Vietnam witnessed the most significant developments related to transfer pricing, e-commerce activities and the application of e-invoices. Following the release of Transfer Pricing Decree No. 20/2017/ND-CP guiding the implementation of transfer pricing (Decree 20) and guiding circular 41/2017/TT-BTC (Circular 41), which entered into effect from 1 May 2017. In 2018 and 2019, various rulings guiding the implementation of Decree 20 and Circular 41 have been issued. An amendment of Decree No. 20/2017 on transfer pricing is being circulated for discussion which proposes easing up the cap ratio of interest expenses under Decree 20.
In addition, aiming to enhance the management and taxation of e-commerce transactions, the Ministry of Finance (MoF) has circulated a draft decree, which includes in its scope organizations operating e-commerce platforms and websites, transporters of the goods, customs brokers, as well as the exporters and importers. An e-commerce activity management system will be developed by the General Department of Customs (GDC). Export and import declarations will be processed 24/7 via this system and the system will inter-connect and exchange information with the National Single Window and other existing management systems of the GDC.
Regarding e-invoices, one year after the release of Decree 119/2018/ND-CP (Decree 119) on e-invoicing, MoF has finally released a circular providing more guidance on this matter. Circular 68/2019/TT-BTC (Circular 68), guiding the implementation of Decree 119 and will take effect from 14 November, and e-invoices will be compulsory effective from 1 November 2020.
The amended Tax Admin Law was approved in June 2019 and will take effect from 1 July 2020, except for provisions relating to e-invoices and electronic documents, which will be effective from 1 July 2022.
In addition, the National Assembly ratified Law No. 45/2019/QH14 amending the Labour Code on 20 November 2019. The amended Code will come into effect from 1 January 2020.