On June 5, 2024, the General Department of Taxation issued Official Letter No. 2372/TCT-CS regarding tax policy.
The General Department of Taxation provided the following opinions on this matter:
In cases where capital increase activities are conducted in accordance with the provisions of the Enterprise Law No. 68/2014/QH13 dated November 26, 2014, the provisions of the Enterprise Law No. 68/2014/QH13 should be used to determine the value of capital contributions at the time of contribution. Furthermore, the provisions of Point b2, Clause 1, Article 17 of Circular No. 78/2014/TT-BTC dated June 18, 2014, issued by the Ministry of Finance should be applied to determine the land cost basis for the transfer of land use rights, consistent with the origin of the land use rights.
The determination of deductible land value when transferring real estate at Minh Duc Private Enterprise depends on whether the capital contribution records for land use rights of Minh Duc Private Enterprise are complete and comply with legal regulations, and whether they reflect the market value at the time of capital contribution in 2019. If the transaction does not reflect the economic substance or the actual occurrence, and aims to reduce the taxpayer's obligations, the Tra Vinh Tax Department is advised to base their actions on the provisions of Articles 49, 50, 53, and 54, Chapter V of the Tax Administration Law No. 38/2019/QH14, which govern tax assessment, along with the detailed regulations and guidance documents implementing the Tax Administration Law.
