In addition to those prescribed in clause 2 of Article 5 in the Decree No. 20/2017/ND-CP the followings are defined by this document as the related parties:
- Two enterprises that are put under the personnel, financial and business management or control of individuals who are:
+ Stepparents or parents-in-law;
+ Stepchildren, daughters-in-law or sons-in-law.
- Any enterprise performing the following transactions with individuals holding executive or supervisory positions or individuals having one of the relationships stipulated in point g of clause 2 of Article 5 in the Decree No. 132:
+ Disposition and acceptance upon transfer of shares making up at least 25% of total capital contribution during a tax period;
+ Borrowing or lending of funds making up at least 10% of the capital contribution at the time which such transaction is performed during a tax period.
Notes: Related parties are parties having any of the following relationships:
- A party is directly or indirectly involved in the management, control of, contribution of capital to, or investment in, the other party;
- Parties are directly or indirectly affected by the management, control of, contribution of capital, or investment, from the other party.
Decree No. 132/2020/ND-CP is entering into force on December 20, 2020 and applies from the corporate income tax term of 2020.
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