Managing tax deductibility of intercompany expenses

Tax in Vietnam


Tax Deductibility

"Deductibility of royalty/license fee requires consideration of both corporate income tax and transfer pricing regulations. Further, proper registration of the royalty/license agreement with the appropriate authorities, if applicable, is often required to claim tax deduction of the fees."

The deductibility of intercompany expenses involving "non-tangible" goods transactions continues to be an area of focus by the tax authorities, particularly those expenses for payments relating to intellectual property or provision of services. Joseph Vu, Partner of Transfer Pricing and Nguyen Thanh Hoa, Partner of Legal at KPMG Ltd., take a closer look and give insights on mitigating risks regarding deductibility of these expenses from a tax and transfer pricing perspective. 

Read the full article on Vietnam Invesmtment Review:


Share

Odoo • Text and Image
Joseph Vu
Partner, Transfer Pricing

Odoo • Text and Image
 Nguyen Thanh Hoa
Partner, Legal Services