Strengthening transfer pricing audit on foreign direct invested enterprises in Vietnam
Nguyen, Thi Thu Ha (2018)
2018
Hallintotieteiden tutkinto-ohjelma - Degree Programme in Administrative Studies
Johtamiskorkeakoulu - Faculty of Management
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Hyväksymispäivämäärä
2018-08-31
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:uta-201809202569
https://urn.fi/URN:NBN:fi:uta-201809202569
Tiivistelmä
The topic is “strengthening transfer pricing audit on foreign-directed investment enterprises”. Transfer pricing is a phenomenon studied in the world over the last few years. It has made a loss of tax revenue of many countries, especially happening in developing countries. Many tax authorities have strengthened transfer pricing audit to prevent the tax loss from foreign invested enterprises.
The thesis attempts to explore the issue by using quantitative method to collect transfer pricing information for analyzing of elements which affect transfer pricing audit such as regulation, administrative aspects and auditing activity. To approach research problems, the specific methods is used such as data collection, case study and analyzing.
The results indicated that the phenomenon has become more common, sotificated and increased unfair competition in all the world. Vietnam transfer pricing regulations are based in part on the guidelines of international organizations. The organizational structure of Vietnam's transfer pricing audit has formulated as centralized model as in Japan. However, the number of auditor is very limited which does not respond with foreign directed investment enterprises increasing yearly. Vietnamese transfer pricing audit procedure has followed the guidelines of international organizations. The source of information to use in the initial risk assessment is limited and normally used as secret comparative data from tax data system for comparable purpose.
Based on the research result, some recommendation to strengthen transfer pricing audit on foreign invested enterprises are made. Tax offices should finalize the legal framework of transfer pricing regulation and improve the tax policy by adjusting corporate tax rate which is similar to other countries in Asia; Moreover, improving the effectiveness of transfer pricing audit by training and development the human resource and complete relevant tax database system for transfer pricing challenges.
The thesis attempts to explore the issue by using quantitative method to collect transfer pricing information for analyzing of elements which affect transfer pricing audit such as regulation, administrative aspects and auditing activity. To approach research problems, the specific methods is used such as data collection, case study and analyzing.
The results indicated that the phenomenon has become more common, sotificated and increased unfair competition in all the world. Vietnam transfer pricing regulations are based in part on the guidelines of international organizations. The organizational structure of Vietnam's transfer pricing audit has formulated as centralized model as in Japan. However, the number of auditor is very limited which does not respond with foreign directed investment enterprises increasing yearly. Vietnamese transfer pricing audit procedure has followed the guidelines of international organizations. The source of information to use in the initial risk assessment is limited and normally used as secret comparative data from tax data system for comparable purpose.
Based on the research result, some recommendation to strengthen transfer pricing audit on foreign invested enterprises are made. Tax offices should finalize the legal framework of transfer pricing regulation and improve the tax policy by adjusting corporate tax rate which is similar to other countries in Asia; Moreover, improving the effectiveness of transfer pricing audit by training and development the human resource and complete relevant tax database system for transfer pricing challenges.