A FEW NOTES RELATED TO THE PREPARATION RELATED-PARTY TRANSACTION APPENDIX WHEN FINALIZING CIT

Information on the appendix form of related-party transaction.

Case: There is a related-party transaction

(Example: There is a purchase and sale with a Subsidiary, an Investor, an Owner with capital contribution to the Company. Issue invoices to the Parent Company and vice versa…etc.)

On the finalization declaration of the CIT year, we will select the Appendix according to Decree 132, Form 01: Related-party transaction

1. List all related-party transactions, fill in the appropriate information (can review old forms of previous years if any)
2. Particularly for the criteria of forms of relationship (A, B, C, D, D, E, G, H, I, K), when declaring we will select with the codes A, B, C, D, D , E, G, H, I, K (refer to determine according to the items specified in Clause 2, Article 5 of Decree No. 132/2020/ND-CP.)
3. Exemption cases: Only pay attention to section (2) and tick the criteria (a) exempt from filtering transaction records for the case “The taxpayer has related-party transactions but the total revenue generated in the tax period is less than 50 billion VND and the total value of all related-party transactions arising in the tax period is less than 30 billion VND”.

Regarding SECTION III. INFORMATION DETERMINATION OF RELATED-PARTY TRANSACTION PRICE:

• Row (I): Fill in the total value arising from business activities: We fill in 2 criteria as follows:

+ Column (3) sales target is the total value of revenue (including all business revenue, financial revenue, …), similar to column (7) expenses (including all costs of cost, administrative expenses, selling expenses, other expenses,…) -> The information is taken on the table of business results, taking the total.

• Row (II): Is only the related party expenses, how much revenue, what costs, what purchases from the related parties, it depends on which form, we choose the appropriate and declare it accordingly to each subject.

NOTE: In Section IV, always choose NO, do not sign the APA method agreement.

Finally, in section IV, fill in the spreadsheet like the Company’s income statement, only the last column, column 6.