OFFICIAL LETTER 1539/CT-KT2 DATED 27 JULY 2015 OF BAC NINH TAXATION DEPARTMENT ISSUED TOGETHER WITH VOUCHERS AND RECORDS FOR DEFERRED INTEREST
According to official letter 1539/CT-KT2:
In case, the company pays deferred interest under regulations of contracts and appendices, it prepared payment vouchers, interest receiver does not issue invoice, nor declares VAT. Payments for deferred interest under appendices are financial expense, recognized in 635 and included in deductible expense.
Payments for penalty interest is the violating contracts are offset to penalty income, compensate that the company receives due to other partners violating contracts (if any). After offsetting, the differences will be included in other income (or deducted to other income). In case, the company does not incur other income, it deducted to the income of business activities and included in expense in the period.
