Factors Affecting the Intention of Local Price Transfer of Businesses in Vietnam

Abstract

Transfer pricing is one of the common acts of enterprises in the market mechanism to evade taxes and gain profits through legalizing prices to deal with Vietnamese tax and customs authorities. Not only multinational corporations, but domestic corporations are also showing signs of non-transparency in internal transactions. The management and control, of anti-transfer pricing is becoming a pressing issue for tax authorities, especially when Vietnam develops a market economy. This study aims to evaluate the factors affecting the intention of domestic transfer pricing in Vietnamese enterprises with the Technology Acceptance Model (TAM) including the groups of factors that are perceived usefulness. and perceived convenience to the firm's transfer pricing intention. Research data is collected from 114 enterprises in Vietnam. The research results confirm the useful perception hypotheses about business strategy; Recognizing the usefulness of tax reductions and reducing operating pressures; Awareness of the convenience of the law and investment incentive mechanism; Both have a positive relationship and a positive impact on the intention to transfer pricing of enterprises in turn according to the level of impact highest to lowest. From these results, the study makes some recommendations to state policy agencies to limit and control this situation shortly.