Uni 28-12-2017 - Guidance on accrued interests

Official letter 79335/CT-TTHT dated 08/12/2017 of Ha Noi Taxation Department guiding on CIT for accrued interest:

In case, the company signed loan contract with foreign company for business activities, accordingly, the first payment of interest of the company is in Apr 2017; at the time of ending fiscal year 2016 (31 December 2016), the company accrued interests costs payable of 2016 until 31/12/2016 into the cost of 2016 and until Apr 2017, the company paid interest on due date, the interest that the company accrued included in tax expenses in 2016 if meeting conditions of article 4 Circular 96/2015/TT-BTC and meeting conditions of clause 3 article 8 Decree 20/2017/NĐ-CP.

In case, until time of CIT finalization 2016, the company removes interests incurred of 2016 from tax expense of 2016 (at the time of interest finalization has not yet been due payment date), the company declares to adjust tax file as instruction of clause 5 article 10 Circular 156/2013/TT-BTC.