Uni 30-01-2015 - Guidance on tax policy for investment activities

According to official letter No. 234/TCT-DNL:

• The long-term investments are the capitals invested to other economic organizations established under regulations of Law. In case, the parent company invests 100% capital to subsidiaries, if there are losses for the financial statements of 2013 of the subsidiaries (except that the planed losses are determined in the business plan before investing), the parent company sets provisions for long-term investments under Circular No. 89/2013/TT-BTC and included deductible expense when CIT is determined under Circular No.123/2012/TT-BTC.
• In case, the company arises the expense at the investment preparation stage such as cost of drilling, costs of environmental impact assessment, investment project establishment cost. However, after appraising the project but not effective and not being approved by the leader in charge, this project does not arise revenue, expense and does not match to assessable revenue. On the other hand, the expense does not have to be majeure reasons. Therefore, the company does not include the expense into deductible expense when determining CIT