On January 11, 2024, the Tax Department of Bac Giang Province issued official document number 329/CTBGI-TTHT, as follows:
In the case where the Investment Certificate specifies the requirement to contribute investment capital in foreign currency and the investor contributes capital in USD to a USsD account at a Vietnamese bank, following accounting regulations, during the investment phase, if there are payments to suppliers in Vietnam, the company is not allowed to make payments in foreign currency to contractors and suppliers within the territory of Vietnam (according to current foreign exchange management). In such situations, the company must sell foreign currency from the contributed capital of the investor and convert it into VND for payment.
When selling foreign currency, if the exchange rate at the time of sale is higher than the accounting exchange rate, the company records financial activity revenue for the difference between the actual selling exchange rate and the accounting exchange rate. If the company determines that this difference falls under the circumstances specified in Point 2.21, Article 4 of Circular No. 96/2015/TT-BTC, then this exchange rate difference does not constitute income for determining tax exemption or reduction periods under Article 12 of Circular No. 96/2015/TT-BTC.
