Uni 21-08-2017 - Guidance on dealing with tax obligation of branch termination

Official letter 3541/TCT-KK dated 09 Aug 2017 GDT guiding on dealing with tax obligation of branch termination as follows:

In case, the branch is a dependent unit of a company, when it ends the operations:

- For VAT: input VAT without deduction of branch until the time of branch termination can be moved to the company to continue conduct deduction.

- For CIT: In case, branch is a production unit (including processing, assembling units), the company conducts to declare, finalize CIT with tax authority if incurred CIT payable, the company is responsible for allocating CIT payables incurred in branch to pay allocations tax agency of branch.