OFFICIAL LETTER NO. 4597/BTC-TCT DATED 09 APR 2015 OF MOF IN GUIDANCE OF BUSINESS COOPERATION CONTRACT
According to official letter No. 4597/BTC-TCT:
Party A and party B signed Business cooperation contract, the monthly fixed amounts that party A pays to party B under agreement of the contracts are dealt with:
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In case, the parties determine that the fixed amounts are profit after tax of Business cooperation contract, the party A is not allowed to recognize the payments for party B into the expenses when CIT taxable income is determined.
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In case, the parties determine that the fixed amounts are revenue of the Business cooperation contract, the revenue is imposed VAT and CIT under regulations. If both parties negotiate that party A is imposed the related tax amounts of the payables to party B, party A is allowed to recognize the payments for party B into the when CIT taxable income is determined.
