Decree 20/2025/NĐ-CP: Key Updates Businesses Need to Know!

Decree 20/2025/NĐ-CP: Key Updates Businesses Need to Know!

Decree 20/2025/NĐ-CP: Key Updates Businesses Need to Know!

Posted on: 13/02/2025

 

 On February 10, 2025, the Government officially issued Decree 20/2025/NĐ-CP, amending and supplementing certain provisions of Decree 132/2020/NĐ-CP on tax management for enterprises with related-party transactions. This decree will take effect from March 27, 2025, and apply to the 2024 tax period onward.
🔍 Key Changes:
✅ Redefining Related-Party Transactions: Stricter regulations on guarantees and loans between businesses. Some loans from credit institutions will no longer be considered related-party transactions.
✅ Additional Responsibilities for the State Bank of Vietnam: Assisting tax authorities in providing information related to related-party transactions.
✅ Changes in Declaration Forms: Businesses must update to the new declaration forms when reporting related-party transactions.
⚡ Impacts on Businesses:
📌 Businesses with Bank Loans: If they meet the non-related-party conditions, they will not be subject to strict related-party transaction regulations.
📌 Businesses with Cross-Border Transactions: Need to prepare more detailed documentation when declaring and explaining transactions to tax authorities.
💡 Recommendations for Businesses:
🔹 Review financial transactions, especially loans and guarantees.
🔹 Update declaration forms according to the new regulations.
🔹 Consult tax experts to ensure full compliance and optimize tax obligations.
📢 Decree 20/2025/NĐ-CP is a significant step in simplifying tax compliance while enhancing transparency and efficiency in financial management.