On November 9 in Hanoi, AmCham hosted a workshop to educate stakeholders and the public about transfer pricing. A number of Vietnamese and foreign experts explained why transfer pricing is a legal and normal business practice around the world, including in Vietnam. The workshop brought together government and industry leaders to discuss the rules and methodologies that governments must consider as tax policies evolve.
In his remarks, AmCham Executive Director Adam Sitkoff expressed concern that the significant increase in the volume of cross-border transactions, the growth in national budget deficits, and the inaccurate media use of transfer pricing as a tax avoidance practice or violation, are creating challenges for multinational enterprises for which cross-border transactions are simply an everyday business necessity.
Sitkoff added that the determination of appropriate transfer prices is relevant for all inter-company transactions, including tangibles, intangibles, services, financing, or cost allocation/sharing arrangements.
Experts at the event, including former Assistant Commissioner of the Australian Taxation Office Wayne Barford, Ernst & Young partner Huong Vu, and LNT & Partners Net Le, noted the many misperceptions about transfer pricing in Vietnam and explained that the misunderstandings and misperceptions are often caused by a lack of knowledge of international norms and international business practices.