The Government has recently issued Decree 218/2013/ND-CP (“Decree 218”)
dated 26 December 2013 to provide detailed guidance on the new
provisions of the Law on CIT and the Amended Law on CIT ratified by the
National Assembly in 2013.
Decree 218, taking effect from 15
February 2014, will replace the two former Decrees on CIT i.e. Decree
No.124/2008/ND-CP and Decree No.122/2011/ND-CP, and apply for the tax
year 2014 onwards.
We would like to summarize several notable points of Decree 218 as below:
Determination of tax assessable income
estate transfer business: Decree 218 not only re-affirms the approval
for offsetting loss of real estate transfer business against profit of
other business activities in a tax period, but also allows enterprise to
offset the taxable income (either profit or loss) of real estate
transfer business against loss/profit of other business activities in
case the enterprise is in the dissolution process.
from revaluation of assets for the purpose of separation, split,
consolidation, merger, dissolution, corporate type transformation,
ownership transformation, capital contribution shall be accounted as
increase of other income (if having gain) or decrease of other income
(if having loss). Previously, the tax treatment where revaluation of
asset resulting in loss were yet stipulated.