As climate change has become a serious international issue, many countries have taken action to reduce greenhouse gas emissions and achieve net-zero emissions by 2050. In Vietnam, the government has made a tremendous effort to combat climate change by ratifying the Paris Climate Agreement in 2016, pursuing the National Green Growth Strategy for 2021-2030, and implementing the Law on Environmental Protection which came into effect at the beginning of 2022.

The implementation of the government’s Decree No.20/2017/ND-CP dated February 2017 and Circular No.41/2017/TT-BTC dated April 2017 – both effective from May 2017 and applied from the fiscal year of 2017 onwards – has raised several concerns among taxpayers regarding transfer pricing (TP) rules.