On June 29th ,2020, Bac Ninh Tax Department issued Official Letter No. 2175/CT-TTHT. Whereby:
The Company leased the land with the use of the industrial park infrastructure for a total lease term of 47 years, if the Company has paid in full at once for the whole lease term with a sufficient set of invoices, records and made payment in accordance with legal regulations, the total lease expenses for 47 years shall be gradually allocated to the business administration expenses due to the number of leasing years.
The annual land lease expenses incurred during the factory construction shall be allocated to the enterprise administration expenses. At the end of the investment phase and enter the production and business phase, annual land lease expenses shall be allocated as expendable entities (enterprise administration expenses, general expenses,…)
