Official letter 2424/CTBNI-TTHT on tax policy:
Based on the content presented in the Company's document, the Company has imported goods from a supplier in China, has declared the import declaration to the Customs and paid VAT on imported goods. prescribed import tax. The Company has made payment for the debt, however due to the Company's difficult situation, it has applied for an extension of the payment term and has been agreed by the supplier. Up to now, the Company could not contact the supplier in China for payment, so it had a written decision to recognize the non-payment and at the same time to record it as another income.
Pursuant to the above provisions, the Tax Department of Bac Ninh province guides the Company as follows:
1. About deductible expenses when determining taxable income
The cost of raw materials corresponding to the value of unpaid goods to the supplier in China mentioned above used to produce the finished product, the Company is included in the deductible expense when determining the taxable income. if it meets the requirements in Article 4 of Circular No. 96/2015/TT-BTC dated June 22, 2015 of the Ministry of Finance.
2. About VAT deduction
In case the payable amount to suppliers for each time imported goods is valued at VND 20 million or more, if not paid, the Company shall declare and reduce the declared and deducted VAT amount according to regulations..
