On October 30th, 2024, the General Department of Taxation issued Official Letter No. 4909/TCT-CS, accordingly:
In case the Company signs a contract with a foreign Company to sell receivable from customers abroad under export contracts with deferred payment terms to receive advance payment for goods from the foreign Company (the buyer of the receivable), which is not a credit loan activity that requires interest payments; The company transfers all rights and obligations related to the receivable to the receivable buyer and does not have any responsibility or obligation to the receivable buyer regarding whether they can collect the receivable from the buyer of the goods; The Company does not incur payments to the foreign Company (the buyer of the receivable), meaning that in the above case, the foreign Company does not generate income and is not subject to tax under Articles 6 and 7 of Circular No. 103/2014/TT-BTC dated August 06th, 2014, of the Ministry of Finance.
