1. Corporate Income Tax (“CIT”)
 
(i) Guidance on tax and accounting treatment upon business merger
Per Official Letter No. 16307/BTC-CST of Ministry of Finance dated 10 November  014, when a subsidiary is liquidated to merge into its parent company, it is required to revaluate all the assets and payables of the subsidiary. The difference after revaluation shall be recorded under the following two scenarios:
• If the value of the subsidiary investment (recorded in parent company’s books) is smaller than the value of net assets of the subsidiary at the date of merger, the difference shall be treated as taxable income.
• If the value of the subsidiary investment (recorded in parent company’s books) is higher than the value of net assets of the subsidiary at the date of merger, the difference shall be recorded as goodwill and armotised to deductible expenses for 3 years from the year of merger.
(ii) Tax and accounting guidance on capital contribution
 
On 6 November 2014, the Ministry of Finance issued. Official Letter No. 16200/BTC-TCT providing guidance on accounting issues and tax policies on capital contribution in the enterprises who are not joint-stock company…
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