Status of transfer pricing of multinational companies operating in the territory of Vietnam

Abstract

In the trend of globalization, Vietnam has attracted more and more direct investment by multinational companies from many countries around the world. However, along with the enormous benefits that multinational companies bring to the economy, many complex issues have arisen, which must mention the problem: the multinational corporation has interest use transfer pricing in commodity prices, services and capital to the parent company and the subsidiaries within the group to move profits offshore to avoid taxes, avoid tax (also known as operation "transfer pricing" the scope and extent of worsening. The situation that has caused serious losses to the state budget, adversely affecting the investment climate and business in Vietnam.