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Vietnam Briefing is a magazine and daily news service about doing business in Vietnam. We cover topics relating to the Vietnamese economy, the market in Vietnam, foreign direct investment and Vietnamese law and tax. It is written in-house by the foreign investment professionals at Dezan Shira & Associates

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Interest Income not Included in Corporate Tax Incentives Period

Posted on February 5, 2010 by Vietnam Briefing

Feb. 5 – The Ministry of Finance has sent Letter 118/BTC-TCT informing provincial tax authorities on how to treat interest income earned for companies in their pre-operating phase.

Interest income earned for a company in construction or pre-operating phase shall not be included under corporate income tax (CIT) incentives. The company must pay CIT on interest income following applicable regulations and the tax recognition of this income will not begin the commencement of the CIT incentive period.

Previously, taxpayers were able to list interest income under CIT incentives. The letter did not advise on the tax treatment for interest income when a company finally comes into its operation stage.

For help in dealing with business taxes in Vietnam email vietnam@dezshira.com.

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