On June 30, 2026, the Government issued Decree No. 255/2026/ND-CP on tax administration for enterprises having related-party transactions, replacing previous regulations and introducing a number of new provisions on related-party transaction pricing management. The Decree takes effect from July 1, 2026, and applies from the 2026 corporate income tax period. Accordingly, enterprises engaging in transactions with related parties should review their transactions, pricing policies, and information declaration and provision obligations to ensure compliance.
Compared with the previous regulations, Decree No. 255/2026/ND-CP introduces notable adjustments regarding the determination of related-party relationships, determination of transaction prices, preparation and retention of documentation, as well as the provision of information to tax authorities. These changes may directly affect the declaration and documentation requirements of enterprises for the 2026 tax period.
In the following article, Siglaw Firm summarizes 04 key changes that enterprises engaging in related-party transactions should be aware of and proactively implement from the 2026 tax period.
Clarification of the Concepts and Documentation Requirements for Related-Party Transaction Pricing
One of the notable aspects of Decree No. 255/2026/ND-CP is the review, refinement, and harmonization of concepts relating to related-party transactions with the Law on Tax Administration and other relevant legal regulations. This contributes to greater consistency in the interpretation and application of tax administration regulations applicable to enterprises engaging in related-party transactions.
At the same time, the Decree continues to require enterprises that are subject to the obligation to prepare related-party transaction pricing documentation to complete such documentation before the deadline for submission of the corporate income tax finalization return. The documentation is not merely a set of documents to be prepared when the tax authority conducts an inspection or examination; rather, enterprises are required to proactively prepare and update it throughout the process of determining transaction prices and carrying out tax finalization.
This requirement means that enterprises should proactively review their related-party transactions, collect necessary information and data, and complete the required documentation within the prescribed timeframe so that they are ready to provide explanations and supporting documents when requested by the tax authorities.
Introduction of an Order of Priority for Selecting Comparable Data
Another notable change is that Decree No. 255/2026/ND-CP provides more specific guidance on the order of priority for selecting comparable data sources when determining related-party transaction prices based on the arm’s length principle.
Accordingly, when selecting data for a comparability analysis, enterprises are directed to prioritize publicly available sources that are objective and highly verifiable, including:
- Publicly available information from stock exchanges;
- Data on goods and services;
- Financial databases; and
- Official publicly disclosed sources of information.
Where no appropriate data are available from the prioritized sources, enterprises may then consider using other sources of data, including commercial databases and databases of tax authorities.
The establishment of a priority order for comparable data sources contributes to enhancing the objectivity and transparency of the analysis and determination of related-party transaction prices. At the same time, this provides enterprises with a clearer basis for preparing documentation and explaining the pricing methodology applied to the tax authorities.
Expansion of Cases Eligible for Exemption from Preparing Related-Party Transaction Pricing Documentation
The provisions on cases eligible for exemption from preparing related-party transaction pricing documentation are among the matters of greatest interest to enterprises under Decree No. 255/2026/ND-CP.
Under the new regulations, the revenue threshold for determining whether an enterprise qualifies for exemption from preparing related-party transaction pricing documentation has been increased from VND 200 billion to VND 500 billion. The higher revenue threshold expands the range of enterprises that may qualify for the documentation exemption, provided that all conditions prescribed by the regulations are satisfied.
In addition, the Decree removes certain qualitative criteria, including the condition relating to whether an enterprise conducts only simple or routine business activities.
These adjustments may significantly reduce the costs and resources required to prepare documentation for enterprises eligible for the exemption. However, enterprises should still carefully review all applicable conditions under the Decree before determining that they are exempt from the documentation requirement, in order to avoid confusing an exemption from preparing documentation with an exemption from declaring related-party transactions and fulfilling other related obligations.
Changes to the Country-by-Country Report Regulations
Decree No. 255/2026/ND-CP also introduces adjustments concerning the Country-by-Country Report (CbCR), which provides aggregated information on the activities, income and profit allocation, and tax payments of multinational groups across different countries and territories.
Under the new regulations, the consolidated revenue threshold of a multinational group for determining obligations relating to the Country-by-Country Report is adjusted to EUR 750 million.
In addition, where the ultimate parent company designates an enterprise in Vietnam to fulfill the notification obligation, the designated enterprise may submit a one-time notification using Form No. 01/TB-BCLN identifying the entity responsible for submitting the Country-by-Country Report in accordance with the regulations.
These changes contribute to improving the framework for managing information concerning the operations of multinational groups in Vietnam, while further enhancing transparency in tax administration and aligning with the direction of international tax cooperation and exchange of tax information.
What Should Enterprises Do in Response to These Changes?
In light of the changes introduced by Decree No. 255/2026/ND-CP, enterprises engaging in related-party transactions should proactively review their transactions and relevant tax obligations in order to make timely adjustments, mitigate compliance risks, and minimize potential issues during tax finalization. Enterprises should consider taking the following actions:
- Review transactions with related parties and identify all transactions falling within the scope of regulations on tax administration for related-party transactions;
- Assess whether the conditions for exemption from preparing related-party transaction pricing documentation are satisfied under the new regulations, particularly where the enterprise’s revenue falls between VND 200 billion and VND 500 billion;
- Proactively prepare related-party transaction pricing documentation before the deadline for submission of the corporate income tax finalization return;
- Review and update internal pricing policies to ensure that transactions with related parties are priced in accordance with the arm’s length principle;
- Determine obligations relating to the Country-by-Country Report for enterprises belonging to multinational groups and submit the required notifications in accordance with the regulations, where applicable.
Proactive preparation and early review enable enterprises to establish a sufficient basis for providing explanations and supporting documents when requested by tax authorities, while minimizing the risk of tax reassessment, tax arrears, administrative penalties for tax violations, and disputes arising during tax inspections and examinations.
Services Provided by Siglaw Law Firm
With experience in foreign investment, international taxation, and tax administration for related-party transactions, Siglaw Firm provides legal consulting and support services to enterprises in fulfilling their obligations relating to related-party transactions, including:
- Advising on the identification of related-party transactions and the scope of application of regulations on tax administration for related-party transactions;
- Reviewing and assessing policies and methodologies for determining related-party transaction prices;
- Advising on and preparing the Local File;
- Advising on and preparing the Master File;
- Advising on the Country-by-Country Report and related notification obligations;
- Providing consultation, explanations, and support to enterprises during tax inspections and examinations.
Full compliance with regulations on tax administration for related-party transactions not only helps enterprises mitigate tax risks but also contributes to establishing transparent and consistent pricing policies and tax management systems that comply with Vietnamese law and international practices.
Contact Siglaw Firm today for a FREE initial consultation that is fast and accurate:
Head Office in Hanoi: No. 44/A32 – NV13, Geleximco Area A, Le Trong Tan Street, Tay Mo Ward, Hanoi City.
Southern Branch: No. 103–105, Nguyen Dinh Chieu Street, Xuan Hoa Ward, Ho Chi Minh City.
Central Branch: VIFC DN – ICT Building, Software Park No. 2, Nhu Nguyet Street, Hai Chau Ward, Da Nang City.
Email: vp@siglaw.com.vn
Hotline: 0961 366 238
Facebook: https://www.facebook.com/hangluatSiglaw
