Scene at the event (Photo: VNA) Hanoi (VNA) – The opposing viewpoints of domestic and foreign experts ontransfer pricing – a hot topic attracting much public interest in recent times– were the focus of a workshop held by theAmerican Chamber of Commerce in Vietnam (AMCHAM) in Hanoi on November 9.
Experts pointed out popular misconceptions about transfer pricing in Vietnamdue to the lack of knowledge on international standards and business practices.
In his opening speech, Adam Sitkoff, CEO of AMCHAM in Hanoi, expressed hisconcerns regarding the widespread perception of transfer pricing as a tool fortax evasion and a violation of laws.
He said that in the context of Vietnam’s increasing integration into the globaleconomy, transnational transactions will start to become more and more frequent.
The misconceptions about these types of transactions will create challenges andbarriers for transnational investors when they decide to invest in Vietnam,Adam said.
He stressed that measures should be taken to determine appropriate prices forthese transactions, including tangible and intangible transactions, services,financial or cost/share distribution.
Wayne Barford – senior advisor of the International Taxand Investment Center (ITIC) andan expert with extensive international experience in taxation and transferpricing – said that transfer pricing is defined as the rules and methods ofvaluation for internal transactions or between enterprises of the sameownership or control system.
Ascross-border transactions can alter taxable income, tax authorities in manycountries may apply different pricing methods to conventional methods based onmarket prices among independent enterprises, he said.
Transfer pricing is not an illegal activity, he affirmed, noting that it is onlyfraudulent pricing or the abuse of transfer pricing for tax evasion that isillegal.
Nguyen Van Toan, Vice Chairman of the Vietnam Foreign Investment Business Association, highlighted therole and contributions of foreign enterprises in promoting the country’seconomic development.
He expressed his wish that the Government and business community could concedeon a more comprehensive and objective view of foreign firms’ business,especially in terms of legal internal transactions between enterprises inmultinational corporations, in order to avoid creating negative effects on theinvestment climate in Vietnam. –VNA
VNA
