Công văn 4321/TCT-DTNN

To: The Tax Department of Ba Ria-Vung Tau province

In response to Official Letter No. 3577/CT-DN3 of October 14, 2005, of the Tax Department of Ba Ria-Vung Tau province, requesting guidance on the transfer of losses of enterprises allowed to practice foreign-currency accounting, the General Department of Taxation gives the following opinions:

Where an enterprise has obtained the Finance Ministry’s written permission for practicing accounting in the US dollar, it shall practice accounting in the foreign currency. Particularly for tax declaration and payment, amounts in the US dollar must be converted into Vietnam dong at the exchange rate applicable at the time of tax payment.

Companies suffering from business losses shall determine their losses in foreign currency when registering the transfer of losses with the Tax Department of Ba Ria-Vung Tau province and also effect such transfer in foreign currency.

The General Department of Taxation gives the aforesaid guidance to the Tax Department of Ba Ria-Vung Tau province for the latter’s knowledge and compliance.