Uni 30-09-2021 - On contractor tax policy for fixed asset leasing

Official letter 3280/CT-TTHT on contractor tax policy for fixed asset leasing activities as follows::

In case, the Company leases fixed assets of the foreign parent company to serve production and business activities. In case the leased fixed assets do not satisfy the regulations (fixed assets leased by the enterprise from the financial leasing company. At the end of the lease term, the lessee has the option to buy back the leased asset or continue the lease. according to the conditions agreed in the finance lease contract (which must be at least equivalent to the value of that asset at the time of signing the contract), it shall be determined as an operating lease fixed asset.

Accordingly, if the Company determines that it is an operating lease fixed asset, the Company shall study and perform the contractor tax obligations as prescribed in Clause 2, Article 12, Clause 2, Article 13 of Circular 103/2014/TT-BTC.