OFFICIAL LETTER 167061/CT-TTHT DATED 10 APR 2018 OF HA NOI TAXATION DEPARTMENT GUIDING EXCHANGE RATE DUE TO REVALUATION OF PAYABLES AND COSTS OF DEFERRED GOODS
Official letter 167061/CT-TTHT dated 10 Apr 2018 of Ha Noi Taxation Department guiding on exchange rate due to revaluation of foreign payables at reporting time, unpaid deferred goods as follows:
- Where the Company incurs foreign exchange differences due to revaluation of payable debts in foreign currency at the end of the financial year, the exchange rate difference shall be offset by the revaluation of foreign debts. at the end of the financial year, with foreign exchange losses arising from revaluation of liabilities denominated in foreign currencies at the end of the financial year
After deducting foreign exchange gains or losses directly related to the turnover and expenses of the enterprise's main production and business activities, it shall be included in the income or expenses of the principal production and business activities of the enterprise. . Interest or exchange rate losses not directly related to turnover and expenses of the enterprise's main production and business activities shall be accounted into other incomes or other expenses when determining taxable incomes.
- In case the company buys goods with a deferred payment of VND 20 million or more each time inscribed in the invoice, at the time of recognizing the unpaid company's expenses, the company shall be counted as deductible expenses. When determining the income subject to CIT if the actual expenses incurred related to the production and business activities of the company, there are sufficient lawful invoices and vouchers as prescribed by law
When making payment, if the company does not have non-cash payment vouchers, the company shall declare and adjust the cost reduction for the value of goods or services without non-cash payment vouchers. In the tax period arising from the payment of cash (even in cases where the tax authorities and functional agencies have issued decisions on inspection and examination of the tax calculation period, such expenses arise).
