{"id":13492,"date":"2026-08-19T10:19:37","date_gmt":"2026-08-19T03:19:37","guid":{"rendered":"https:\/\/democft.az9s.com\/?p=13492"},"modified":"2026-08-19T10:25:26","modified_gmt":"2026-08-19T03:25:26","slug":"when-are-enterprises-exempt-from-transfer-pricing-declaration-and-documentation-related-party-transaction-documentation","status":"publish","type":"post","link":"http:\/\/democft.az9s.com\/en\/when-are-enterprises-exempt-from-transfer-pricing-declaration-and-documentation-related-party-transaction-documentation\/","title":{"rendered":"When Are Enterprises Exempt from Transfer Pricing Declaration and Documentation Related-Party Transaction Documentation"},"content":{"rendered":"<p><strong><em>About the Author &amp; Ecosystem: <\/em><\/strong><\/p>\n<p><span data-text-color=\"primary\"><strong><em>The article is legally sponsored by CDLAF and expertise from CFT Solutions \u2013 a company specializing in providing Finance \u2013 Tax \u2013 Accounting services. We provide comprehensive management solutions, helping businesses control risks and optimize resources.<\/em><\/strong><\/span><\/p>\n<p><em>Is your enterprise really required to prepare the burdensome Transfer Pricing Documentation (three-tiered documentation) for this tax finalization period? Under <strong>Article 20 of Decree No. 255\/2026\/ND-CP<\/strong>, the Government has clearly divided the levels of exemption from declaration and preparation of Transfer Pricing Documentation (TPD) to reduce administrative procedures for small enterprises, domestic enterprises, or those achieving safe profit margins. Nevertheless, these exemptions do not exist independently and are always accompanied by strict verification conditions.<\/em><\/p>\n<p><em>Together with experts from <strong>CDLAF &amp; CFT Solutions<\/strong>, let us break down the latest exemption conditions and highlight the \u201ccommon mistakes\u201d to help enterprises proactively manage risks before tax inspections and audits.<\/em><\/p>\n<figure id=\"attachment_13487\" aria-describedby=\"caption-attachment-13487\" style=\"width: 711px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-13487\" src=\"http:\/\/democft.az9s.com\/wp-content\/uploads\/2026\/08\/pexels-googledeepmind-17485678-1-1-711x400.jpg\" alt=\"\" width=\"711\" height=\"400\" srcset=\"http:\/\/democft.az9s.com\/wp-content\/uploads\/2026\/08\/pexels-googledeepmind-17485678-1-1-711x400.jpg 711w, http:\/\/democft.az9s.com\/wp-content\/uploads\/2026\/08\/pexels-googledeepmind-17485678-1-1-1400x787.jpg 1400w, http:\/\/democft.az9s.com\/wp-content\/uploads\/2026\/08\/pexels-googledeepmind-17485678-1-1-768x432.jpg 768w, http:\/\/democft.az9s.com\/wp-content\/uploads\/2026\/08\/pexels-googledeepmind-17485678-1-1-1536x864.jpg 1536w, http:\/\/democft.az9s.com\/wp-content\/uploads\/2026\/08\/pexels-googledeepmind-17485678-1-1-2048x1152.jpg 2048w\" sizes=\"auto, (max-width: 711px) 100vw, 711px\" \/><figcaption id=\"caption-attachment-13487\" class=\"wp-caption-text\">Source: pexels-googledeepmind-17485678<\/figcaption><\/figure>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of contents:<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #fe8500;color:#fe8500\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #fe8500;color:#fe8500\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"http:\/\/democft.az9s.com\/en\/when-are-enterprises-exempt-from-transfer-pricing-declaration-and-documentation-related-party-transaction-documentation\/#1_General_Declaration_and_Documentation_Obligations\" >1. General Declaration and Documentation Obligations<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"http:\/\/democft.az9s.com\/en\/when-are-enterprises-exempt-from-transfer-pricing-declaration-and-documentation-related-party-transaction-documentation\/#2_Cases_Eligible_for_Partial_Declaration_Exemption_and_Documentation_Exemption_Article_20\" >2. Cases Eligible for Partial Declaration Exemption and Documentation Exemption (Article 20)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"http:\/\/democft.az9s.com\/en\/when-are-enterprises-exempt-from-transfer-pricing-declaration-and-documentation-related-party-transaction-documentation\/#3_Key_Points_for_Enterprises_to_Note\" >3. Key Points for Enterprises to Note<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"1_General_Declaration_and_Documentation_Obligations\"><\/span>1. General Declaration and Documentation Obligations<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Within the broader framework of Decree No. 255\/2026\/ND-CP, the provisions on exemption from declaration and preparation of transfer pricing documentation (TPD) under Article 20 are designed as safe harbors to reduce the administrative compliance burden on enterprises. However, these exemptions do not exist independently, but are closely linked to general declaration and documentation obligations and other expense limitation rules.<\/p>\n<p>To understand the value of these exemption provisions, it is first necessary to consider the strict general obligations that all enterprises with related-party transactions (RPTs) must comply with under Article <strong>18<\/strong>:<\/p>\n<ul>\n<li><strong>Annual declaration obligation:<\/strong> The enterprise must fully declare information on related-party relationships and RPTs in Appendix I and submit it together with the Corporate Income Tax (CIT) finalization return.<\/li>\n<li><strong>Three-tier documentation obligation:<\/strong> The enterprise must proactively prepare and retain Transfer Pricing Documentation, including: the Local File (Appendix II), the Master File (Appendix III), and the Country-by-Country Report (Appendix IV) before the annual CIT finalization deadline.<\/li>\n<li><strong>Submission deadline:<\/strong> Upon request by the tax authority, the enterprise must provide these documents within <strong>30 working days<\/strong> (which may be extended only once for no more than 15 working days if there is a legitimate reason).<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"2_Cases_Eligible_for_Partial_Declaration_Exemption_and_Documentation_Exemption_Article_20\"><\/span>2. Cases Eligible for Partial Declaration Exemption and Documentation Exemption (Article 20)<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Decree No. 255\/2026\/ND-CP divides the exemptions into two specific levels for control, including:<\/p>\n<p><strong>Partial Exemption from Transfer Pricing Declaration &amp; Full Exemption from Documentation (Clause 1, Article 20)<\/strong><\/p>\n<p>This is the highest level of exemption for enterprises with RPTs but with no risk of offshore transfer pricing or profit shifting between tax-incentivized areas.<\/p>\n<ul>\n<li>Applicable conditions: The enterprise only has transactions with related parties that are subject to CIT in Vietnam, apply the same CIT rate, and none of the parties enjoy CIT incentives during the tax period.<\/li>\n<li>Scope of exemption: The enterprise is exempt from declaring transfer pricing information in Section III (Transfer Pricing Information) and Section IV (Post-Transfer Pricing Business Results) of Appendix I; and is also fully exempt from preparing Transfer Pricing Documentation (including both the Local File and the Master File).<\/li>\n<li>Relationship with general obligations: The enterprise must still declare information on related-party relationships in Section I and the basis for exemption in Section II of Appendix I attached to the tax finalization dossier. In other words, the obligation to demonstrate that it qualifies for the exemption remains mandatory.<\/li>\n<\/ul>\n<p><strong>Full Appendix I Declaration but Exemption from Transfer Pricing Documentation (Clause 2, Article 20)<\/strong><\/p>\n<p>The enterprise must still provide detailed declarations of transactions in Appendix I when submitting its tax finalization, but is relieved from the burdensome obligation to prepare Transfer Pricing Documentation (three-tiered documentation) if it falls into one of the following cases:<\/p>\n<ul>\n<li>Exemption based on size (Point a): The enterprise has RPTs, but its total revenue for the tax period is below VND 50 billion and the total value of all RPTs arising during the tax period is below VND 30 billion.<\/li>\n<li>APA-based exemption (Point b): The taxpayer has entered into an Advance Pricing Agreement (APA) and has fully submitted the required annual report.<\/li>\n<li>Exemption based on actual business performance (Point c \u2013 Profit Margin Safe Harbor): This is the most significant relief, replacing the former \u201csimple function\u201d rule. The enterprise is exempt from documentation if it simultaneously satisfies three conditions: \u00a0No revenue or expenses arise from the exploitation or use of intangible assets; Revenue is below VND 500 billion; The net profit margin before interest and CIT expenses (EBIT) on net revenue reaches at least the applicable threshold for each business sector: Distribution: 5% or higher; Manufacturing: 10% or higher; Processing: 15% or higher.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"3_Key_Points_for_Enterprises_to_Note\"><\/span>3. Key Points for Enterprises to Note<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>A critical point that enterprises can easily misunderstand under the overall framework of the Decree is that being exempt from preparing transfer pricing documentation does not mean being exempt from other RPT-related regulations.<\/p>\n<p>Clause 3, Article 20 clearly provides that taxpayers, even if they qualify for partial declaration exemption or exemption from preparing Transfer Pricing Documentation (under Clauses 1 and 2), must still determine the total deductible interest expense (subject to the 30% EBITDA cap) in accordance with Clause 3, Article 16.<\/p>\n<p>Therefore, even if your enterprise is a small enterprise with revenue below VND 50 billion, or falls within the domestic group with the same tax rate and qualifies for documentation exemption, the accounting department must still calculate and adjust interest expenses exceeding the cap and declare this ratio in Appendix I.<\/p>\n<p>In other words, enterprises must correctly understand and properly apply the exemption provisions under Article 20 of Decree No. 255\/2026\/ND-CP and always remember that: Being exempt from documentation does not mean being completely relieved from RPT obligations, particularly the control of the 30% EBITDA interest expense cap.<\/p>\n<p><strong><em>Date of writing: August 19, 2026<\/em><\/strong><\/p>\n<p><em>The article contains general information which is of reference value, in case you want to receive legal opinions on issues you need clarification on, please get in touch with our Experts at <a href=\"https:\/\/mail.google.com\/mail\" target=\"_blank\" rel=\"noopener\"><strong>info@democft.az9s.com<\/strong><\/a><\/em><\/p>\n<div class=\"content-post-nd\">\n<p><strong>Why choose CFT\u2019s service?<\/strong><\/p>\n<ul class=\"li-content\">\n<li>We provide effective and comprehensive legal solutions that help you save money and maintain compliance in your business;<\/li>\n<li>We continue to monitor your legal matters even after the service is completed and update you when there are any changes in the Vietnamese legal system;<\/li>\n<li>Our system of forms and processes related to labor and personnel is continuously built and updated and will be provided as soon as the customer requests it;<\/li>\n<li>We have a thorough understanding of Vietnam&#8217;s legal regulations, and grasp the psychology of employees, employers, and working methods at competent authorities;<\/li>\n<li>CFT&#8217;s team of lawyers and experts has many years of experience in the field of labor and enterprises, as well as human resources and financial advisory.<\/li>\n<li>Strict information security procedures throughout the service performance and even after the service is completed.<\/li>\n<\/ul>\n<\/div>\n<p><strong style=\"color: #a32411;\">You can refer for more information:<\/strong><\/p>\n<ul>\n<li><a href=\"https:\/\/democft.az9s.com\/en\/10-important-new-highlights-in-decree-255-2026-nd-cp-on-tax-management-for-related-party-transactions\/\">10 important new highlights in Decree 255\/2026\/ND-CP on tax management for related-party transactions<\/a><\/li>\n<li><a href=\"https:\/\/democft.az9s.com\/en\/cross-border-e-commerce-and-compliance-requirements-for-international-brands\/\">Cross-bolder E-commerce and Compliance Requirement for International Brands<\/a><\/li>\n<li><a href=\"https:\/\/democft.az9s.com\/en\/outbound-investment-by-fdi-enterprises-procedures-under-decree-103-2026-nd-cp\/\">Outbound Investment by FDI Enterprises: Procedures under Decree 103\/2026\/ND-CP<\/a><\/li>\n<li><a href=\"https:\/\/democft.az9s.com\/en\/foreign-ownership-of-real-estate-in-vietnam\/\">Foreign Ownership of Real Estate in Vietnam<\/a><\/li>\n<li><a href=\"https:\/\/democft.az9s.com\/en\/what-should-advertising-enterprises-prepare-to-comply-with-the-personal-data-protection-law\/\">What Should Advertising Enterprises Prepare To Comply With The Personal Data Protection Law?<\/a><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>About the Author &amp; Ecosystem: The article is legally sponsored by CDLAF and expertise from CFT Solutions \u2013 a company specializing in providing Finance \u2013 Tax \u2013 Accounting services. We provide comprehensive management solutions, helping businesses control risks and optimize resources. Is your enterprise really required to prepare the burdensome Transfer Pricing Documentation (three-tiered documentation)&#8230;<\/p>\n","protected":false},"author":2,"featured_media":13487,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[64],"tags":[],"class_list":["post-13492","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles"],"acf":[],"_links":{"self":[{"href":"http:\/\/democft.az9s.com\/en\/wp-json\/wp\/v2\/posts\/13492","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/democft.az9s.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/democft.az9s.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/democft.az9s.com\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"http:\/\/democft.az9s.com\/en\/wp-json\/wp\/v2\/comments?post=13492"}],"version-history":[{"count":2,"href":"http:\/\/democft.az9s.com\/en\/wp-json\/wp\/v2\/posts\/13492\/revisions"}],"predecessor-version":[{"id":13494,"href":"http:\/\/democft.az9s.com\/en\/wp-json\/wp\/v2\/posts\/13492\/revisions\/13494"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/democft.az9s.com\/en\/wp-json\/wp\/v2\/media\/13487"}],"wp:attachment":[{"href":"http:\/\/democft.az9s.com\/en\/wp-json\/wp\/v2\/media?parent=13492"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/democft.az9s.com\/en\/wp-json\/wp\/v2\/categories?post=13492"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/democft.az9s.com\/en\/wp-json\/wp\/v2\/tags?post=13492"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}