On June 8th ,2020, Hanoi Tax Department issued Official Letter No. 48057/CT-TTHT. Whereby:
In case a Vietnamese Company has expenses from goods purchasing and selling support for a Foreigner Company through a signed contract on sales support (a commercial brokerage contract under legal regulations), the Company may deduct such expenses when determining the taxable incomes if all the conditions as prescribed in Point a Clause 2 Article 8 of Decree No. 20/2017/ND-CP and Article 4 of Circular No. 96/2015/TT-BTC issued by the Ministry of Finance are met.
In case the Company incurred related-party transactions which neither agree with the arm’s length nature of transactions nor contribute to generating revenue or income for production and business activities of the taxpayer as stipulated in Clause 1 Article 8 of Decree No. 20/2017/ND-CP, any cost from such transactions shall not be qualified as deductible expenses within a specified tax period.
