On July 17th, 2019, Hanoi Tax Department issued Official Letter No.55952/CT-TTHT. Whereby:
In case the company contributes capital by the assets attached to the leased land, which has registered ownership at the competent State agency to establish an enterprise, if the contributed capital is ensured to comply with the provisions of law:
– Regarding VAT: Contributing capital with assets to establish an enterprise which is not required to declare and pay VAT as stipulated in Point a, Clause 7, Article 5 of Circular No. 219/2013 / TT-BTC dated December 31 / 2013 of the Ministry of Finance.
– Regarding registration fee: If the contributed capital in the form of an asset with registration fee paid is used as contributing capital in another enterprise, that asset will be exempted from registration fee when it is being registered for ownership and uses, as prescribed in Point a Clause 17, Article 9 of Decree No. 140/2016/ND-CP dated October 10, 2016 of the Government.
– Regarding CIT: In case the company has discrepancies due to the revaluation of assets for capital contribution, the difference shall be accounted as other income when determining CIT taxable income according to Article 2 of the Circular. No. 151/2014 / TT-BTC dated 10/10/2014 of the Ministry of Finance.
