PROCEDURE FOR APPLICATION OF APA BEFORE SUPPLYING OFFICIAL DOCUMENTS

Step 1. Taxpayers who are subject to APA have plans to apply APA, extend APA, convert APA form or accept tax authorities’ recommendations, make a dossier and send it to the General Department of Taxation. Profile components include:

• Application for APA consultation using form No. 1/APA-TV.
• The document describes the information for consultation as follows:
• Name and address of the taxpayer expected to submit the APA dossier and the names and addresses of the parties to the related party transaction;
• The proposed type of APA; the names of the countries or territories involved in the case of a bilateral or multilateral APA application;
• Description of related transactions within the APA scope, related transactions outside the scope of APA (if any) and explanation of reasons for choosing transactions to apply APA as well as reasons for excluding related transactions. other results;
• The size of the associated transaction value;
• Expected time to apply APA;
• Analysis of functions, assets and risks incurred in the course of business by taxpayers and related parties participating in transactions within the scope of APA;
• The proposed method of determining market price includes the contents of comparative analysis, comparative data, calculation method, standard market price range, and material adjustments (if any);
• Substantial assumptions that have a material and significant effect on the APA eligibility requirements;
• General information on the scope and general operation scale of the enterprise and associated transactions of the taxpayer; information on the activities of economic groups and related parties related to the proposed transaction under the scope of application of APA;
• Information summarizing the main contents of the results of tax inspections conducted at the taxpayer’s office;
• APAs on similar related transactions signed or proposed with foreign tax authorities (if any);
• The opinion of the relevant foreign tax authority (if any);
• Official submission time, contact method;
• Other issues affecting APA implementation.
• Number of dossiers: 01 (set)
• The time limit for settlement is 30 working days from the date of completion of document’s’ application.

Step 2. The General Department of Taxation receiving

• In case the dossier is submitted directly at the tax office, the tax official shall receive and stamp the receipt of the dossier, record the time of receipt of the dossier, record the number of documents in the dossier, and record them in the tax authority’s clerk’s book.
• In case the dossier is sent by post, the tax official shall stamp the date of receipt of the dossier and record it in the tax office’s correspondence book.

Step 3. The General Department of Taxation organizes a consultation meeting, based on the conclusion in the APA consultation minutes and the conditions of the tax industry, the General Department of Taxation shall send a written reply to the taxpayer about the approval or (reason) does not allow taxpayers to file a formal APA application.

 

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