The oficial letter No. 2389/TCT-CS dated 26 July 2013 of GDT in Guidance of cit policy about loan interest
According to the official letter No.2389/TCT-CS:
Interest payment of the investment process is included in the value of the invested works or of the business process is included in deductible expense when determining taxable income if satisfying the conditions:
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Having full invoices, documents in compliance with regulations of law,
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Served for activities of production and business
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Is not the payment for loan interests used to contribute the charter capital, payment for loan interests matching to the lacked charter capital and not over the stipulated level;
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Borrowers (enterprises) have the explanation letter and prove with tax authority about the balances of cash fund, the balances of cash in bank at the loan time and conduct the planned loans in the expected time.
