Uni 07-05-2018 - Guidance on tax policy for enterprise merger- termination of branch operation

Official letter 1064/TCT-KK dated 29 March 2018 of GDT guiding tax policy for enterprise merger- termination of branch operation:

1 According to the regulations, the merged party shall have to fulfill the tax obligation before the merger. If the tax obligation has not yet been fulfilled, the merging party shall have to fulfill the tax obligation on behalf of the merged party. The merged party may transfer the deducted VAT amount of the merged party to the merging party for further tax declaration and deduction.

2. Where a branch terminates its validity due to its dissolution, the taxpayer has made a written request for non-refund of the deductible VAT amount and the overpaid CIT amount. Basing themselves on the examination results of tax offices, the branches may carry out the procedures for transferring the deductible VAT amount and the overpaid CIT amount to the parent company (the managing unit) for further declaration and deduction tax according to regulations.