Vietnam Amends the APA Approval Process with Decree 122

June 30, 2025

Introduction

The Vietnamese government has enacted Decree 122/2025/ND-CP, effective July 1, 2025, which introduces significant amendments to the approval process for Advance Pricing Agreements (APAs) to simplify it and provide greater administrative efficiency in Transfer Pricing management. 

Direct Delegation to the Minister of Finance

One of the main amendments is the transfer of the authority to approve bilateral and multilateral APAs. Previously, they required validation by the Prime Minister after a proposal from the Ministry of Finance. Due to the new decree, this authority is directly assigned to the Minister of Finance, significantly streamlining the procedure. 

Participation of the Tax Department

The Tax Department of the Ministry of Finance is still a key player. This body is responsible for: 

  • Developing the APA negotiation plan. 
  • Coordinating consultations with other authorities when needed. 
  • Negotiating with foreign tax administrations and preparing the APA draft for approval. 

This new approach strengthens its technical and operational role in formalizing agreements. 

Application to Pending Requests

The decree also covers APA applications filed before July 1, 2025. If still not filed before the Prime Minister, they will be processed under the new legal framework, i.e., the direct authority of the Minister of Finance. 

Final Considerations

Decree 122 is a step forward in more efficient and decentralized management of Advance Pricing Agreements in Vietnam. Its implementation will enable a faster response from the competent authority, which could translate into greater tax certainty for taxpayers. 

Need Support with International APAs?

At TPC Group, we have an experienced team in Transfer Pricing and APAs in different jurisdictions. We can assess feasibility, prepare the documentation, and accompany you throughout the process. 

Contact us today and ensure effective compliance with your international obligations. 

 

Source: Decree No. 122/2025/ND-CP – Vietnam

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