On September 30th, 2024, the Dong Thap Provincial Tax Department issued Official Letter No. 1641/CTDTH-TTHT, accordingly:
In case the Company mortgages secured assets in the form of real estate to borrow capital from the Bank, no longer repays the debt and has handed over the secured assets to the Bank as agreed to substitute for fulfilling the debt repayment obligation:
– The Company is not required to issue VAT invoices, declare and pay VAT when handing over the secured assets to the Bank according to the provisions of law.
– In case the secured asset for the loan that has been handed over by the Company to the Bank is auctioned has the value exceeds the Company’s debt, and the Bank returns the difference, the Company must declare and pay CIT on the amount received from the difference. In case the Company does not receive any amount from handing over the secured asset to the Bank, there is no requirement to declare or pay CIT on the debt assignment through secured assets.
