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

  • Real
    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.
  • Gain/loss
    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.

Click on link below to download full document. English and Vietnamese version.