Uni 16-12-2019 - Tax policy on foreign debt write-off

Official letter 92132/CT-TTHT dated 10/12/2019 regarding tax policies for the write-off of loans (principals and interests) of foreign organizations as follows::

In case the company signs a loan agreement of a foreign organization (does not have a permanent establishment in Vietnam, does not meet one of the conditions specified in Article 8 of Circular No. 103/2014 / TT-BTC dated August 6, 2014 of the Ministry of Finance), now a foreign organization has a plan to write off the loan (principal and interest) for the Company:

- For loan interests, because the Company does not incur payment for foreign organizations, the Company is not required to declare and pay tax on behalf of the foreign organizations.

- For the debt (principal and interest) of the company which is written off, the Company must account it into other income to determine taxable income in accordance with regulations.