On June 18, 2021, the Ministry of Finance issued Circular No. 45/2021/TT-BTC guiding the application of the prior agreement on tax calculation method (APA) in tax administration for associate transactions.

According to Circular No. 45/2021/TT-BTC, transactions proposed to apply APA include: Affiliate transactions specified in Clause 2, Article 1 of Decree No. 132/2020/ND-CP; and at the same time satisfy the following conditions. The actual transaction has arisen in the taxpayer’s production and business activities and will continue to take place during the period of application of the APA.

Transactions that have a basis to determine the nature of the transaction determine tax obligations and have a basis for analysis, comparison and selection of independent comparable as prescribed in Articles 6 and 7 of Decree No. 132 2020/ND-CP, based on information and data in compliance with the provisions of Point b, Clause 6, Article 42 of the Law on Tax Administration.

Transactions are not subject to tax disputes or complaints. And transactions are also made transparently, not for the purpose of evading, avoiding taxes or taking advantage of Tax Agreements.

Dossier of application for APA shall be presented in Vietnamese. In case of application for bilateral or multilateral APA, the English version shall be included. Taxpayers affix their seals for certification and are responsible for the content of the translation.

Circular No. 45/2021/TT-BTC also stipulates in detail the exchange and negotiation of APA contents with taxpayers or partner tax agencies and taxpayers through the form of meetings, face-to-face meetings or by telephone, online televised or written by mail on the contents related to the taxpayer’s application for APA.

Circular No. 45/2021/TT-BTC takes effect from August 3, 2021, replacing Circular No. 201/2013/TT-BTC dated December 20, 2013 of the Ministry of Finance guiding the application of the APA Agreement in tax administration.

Documentary Editorial Board, DBRC「 Researching on Accounting, Taxes, Legal, Finances in Vietnam」, Dong Du International Accounting & Legal Consulting Group Vietnam, A member of OneSMP Singapore, Southeast Asia Business Consulting Network (

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