Compliance of Documentation Transfer Pricing Requirements in Foreign Direct Investment Enterprises in Vietnam

The increase of inter-boundary transactions brings a number of benefits for enterprises. However, even when benefits of transfer pricing are evident, multinational organizations still face legal challenges, including performing parts of transactions in another jurisdiction and motives of tax officials in investigating transfer pricing. This is especially true when countries do not want to lose benefits from tax collection. Therefore, many countries and organizations such as the Organization for Economic Cooperation and Development （OECD）, Pacific Association of Tax Administrators （PATA）, the European Union （EU）, and Vietnam have introduced requirements for transfer pricing documentation to prevent transfer pricing manipulation and maintain benefits from taxes. The aim of this research was to assess the compliance of those requirements of foreign direct investment （FDI） enterprises in Vietnam. This article which is a summary of our research includes the following sections： （1） OECD guidelines of transfer pricing documentation; （2） Vietnam regulations of transfer pricing documentation; （3） results of the research; and （4） discussion and conclusion.

REGULATIONS ON THE ALTERATION OF STOCK EQUITY HELD BY INVESTORS OF FOREIGN INVESTMENT ENTERPRISES

Article 1With a view to promoting the healthy development of foreign invest-ment enterprises, protecting the legitimate rights and interests of investorsof the parties concerned and safeguarding the social and economic order,this set of regulations has been formulated in accordance with the Com-pany Law of the People’s Republic of China,Law of the People’s Republicof China on Chinese-Foreign Equity Joint Ventures,Law of the People’sRepublic of China of Foreign on Chinese-Foreign contractual Joint Ven-tures,Law of the people’s of China of Foreign Capital Enterprises,andother relevant laws and regulations.Article 2The alteration of investors’stock equity in foreign investment enter-prises as used hereof refers to the alteration of investors or theirshares(hereinafter referred to as the stock equity) of financialcontribution(inchiding the cooperative conditions offered) in Chinese-for-eign equity joint ventures,Chinese-foreign contractual joint ventures andforeign investment enterprises(hereinafter referred to as the enterprises).

Application of martingale theory in enterprise investment decision making

From the point of view of the basic option model, enterprise investment decision making under uncertainty is studied based on the martingale method. The study shows that investment options and yields are increasing functions of time, and when the option equals the yield, the investment opportunity cost is the least, which is the appropriate time for the enterprise investment. Under the condition that the investment yield is an increasing function of time, the investment opportunity cost is also an increasing function of time after the time when the investment option equals the investment yield. So the investors should invest as soon as possible, otherwise they should stop investment forever in this project. It is impossible to acquire more investment yields by indefinitely delaying the investment. Meanwhile, the study also shows that the martingale method, used widely in financial investment theory, is a powerful tool for enterprise investment decision making.

THE STATE COUNCIL DECIDES TO EXTEND THEIMPORT-DUTY EXEMPTION PERIOD FOR IMPORTS OF EQUIPMENT AND RAW MATERIALS BY ENTERPRISES WITH FOREIGN INVESTMENT

Recently the State Council decided to extend the period ofduty exemption for imports of equipment and raw materials by foreign-invested enterprises below US$30 million.In order to administrate import and export activities in light ofinternational practice and apply a unified, fair and standardizedpolicy toward import duties, the State Council, on December28,1995, decided to reform and adjust the policies of import duties by fairly significant reduction of the overall import tariff leveland elimination of preferences of import-duty exemption for mostimport items, which was also applicable to imports of equipmentand raw materials by foreign-invested enterprises set up since April1st, 1996. At the same time, with a view to maintaining the policycontinuity and relative stability, those enterprises established before March 31, 1996 were allowed an extended duty-exemptionperiod of one to two years for importation of equipment and rawmaterials(referring to construction materials, etc.) if such importswere below the value of their total investments, and for

The State Council Notified to Rectify and Reorganize Non-Experimental Commercial Enterprises with Foreign Investment

The State Council Office has recently issued"Notification of relevant issues on rectifying andreorganizing non-experimental commercial enter-prises with foreign investment", making it clearthat non-experimental commercial enterprises withforeign investment would be rectified.The notification emphasizes that all the non-experimental commerical enterprises with foreigninvestment which have been presumptuously ap-proved for establishment by localities or depart-ments prior to the issuance by the State CouncilOffice of the Urgent notification of prompt stop oflocal presumptuous approval of establishment ofcommercial enterprises with foreign

Japanese Enterprises Wish to Expand Investments in China,Despite Declining in 2015

Japan’s investment in China in2015 was$3.2 billion,which was a drop of 25.9%compared with the year before;as for trade,however,Japan was the second destination country for China’s exports,with a volume of$135.7 billion;as for imports,Japan ranked third with a volume of$143 billion.Japanese companies

THE DEVELOPMENT OF OUTWARD ECONOMY IN RURAL ENTERPRISESAND THE DIFFERENCE AMONG PROVINCES

Rural wterprise plays a more and more important role in the development of outward economy of China. In 1994, 44.5 percent of the export value was produced by rural enterprises. This paper will focus on the rural enterprises with export, their growth, structural change and regional distribution. 'San Lai Yi Bu' as a special form of outward enterprises, the foreign investment in rural enterprises the regional distribution and development tendency of rtral aterprises with foreign investment will be studied at the same time. The factor analysis will be used to study the evolution of the role that rural enterprises played in the development of outward economy, the regional difference in the development level and industrial structure of rural enterprises of outward economy.

Relevant State Agencies Will Conduct a Joint Annual Inspection on Foreign Invested Enterprises

The Ministry of Foreign Trade and Economic Coop-eration (MOFTEC),the State Administration forIndustry and Commerce (SAIC),the State Economicand Trade Commission (SETC),the Ministry of Finance(MOF),the State Administration for Exchange Control(SAEC),the State Taxation Bureau (STB) and the GeneralCustoms Administration (GCA) (hereinafter referred to asCompetent Joint Annual Inspection Agencies) have jointlyissued a circular a few days before which stipulates that,from the year 1997 onwards,a joint annual inspection willbe conducted on FIEs in order to further improve and stan-dardize China’s investment environment,lessen the burdenson the shoulders of enterprises and enhance the level of ad-ministration over FIEs.

Some Main Foreign Invested Enterprises in Tianjin

MOTOROLA (CHINA) ELECTRONICS LTD. DIRECTOR: RICH YOURTS G. MANAGER: P.T.LAI ADD: NO. 10, 4TH AVENUE, TEDA TIANJIN, CHINA. TEL: 022-25325050 FAX: 022-25326975 P.C.: 300457 TIANJIN MITSUMI ELECTRIC CO., LTD. DIRECTOR: MORIBE LISUO G.MANAGER: TAMURA TRA-

The Impact Analysis of New Company Law on Foreign Invested Enterprise Law

In this paper, the impact of the new company law on foreign-funded enterprise law are analyzed. Firstly. the foreign investment enterprise law is summarized, followed by a detailed introduction of the impact of the new company law and foreign-invested enterprise law . Finally. Impact on the Law of Foreign Investment Enterprises. From these researches, it is concluded thai the promotion of the new company law on the relationship between FIEs and some suggestions for the coexistence of the two.

The Impact Analysis of New Company Law on Foreign Invested Enterprise Law

In this paper, the impact of the new company law on foreign-funded enterprise law are analyzed. Firstly, the foreign investment enterprise law is summarized, followed by a detailed introduction of the impact of the new company law and foreign-invested enterprise law. Finally, Impact on the Law of Foreign Investment Enterprises. From these researches, it is concluded that the promotion of the new company law on the relationship between FIEs and some suggestions liar the coexistence of the lwo.

Large-Scale Investment of Chinese Enterprises in the Copper Industry in the Democratic Republic of the Congo

In recent years,with China’s accelerated implementation of the'going out'strategy and promotion of the'Belt and Road'construction and development,Chinese enterprises have grown rapidly and achieved breakthroughs in terms of overseas investment in copper industries and overseas development of copper resources that are in short supply in China.

The policy of private enterprises to invest overseas released

To implement the "A number of opinions from the State Council to encourage and guide private investment in the healthy development "(Guo Fa [2010] No.13),give full play to the important role of

MOC Released the Procedure for Mainland Enterprises to Invest in Taiwan

To promote the investment of Mainlandenterprises into Taiwan,Ministry ofCommerce and the State Council TaiwanAffairs Office jointely released the Noticeof Related Affairs for Mainland Enterprisesto Invest in Taiwan or Set Non-enterprise-corporation.This Notice makes a clear procedurefor mainland enterprises