Last updated: Wednesday, March 29, 2017
Please let us about transfer losses when separating enterprise?Posted: Monday, February 18, 2008
On 27 November 2007, the General Department of Taxation issued Official Letter No.4955/TCT-CS guiding on transfer losses when separating enterprise. Accordingly, transfer losses when separating enterprise is based on the below foundations:
- Separation enterprise means transfer a part of current company assets (separated company) in order to set up a new company or new companies at the same types (separating company) without termination the existence of separated company; and
- If enterprise still makes losses after drawing the balance-sheet, such enterprise shall transfer and deduct losses from the taxable earnings of following years.
From the above-mentioned foundations, it concludes that separated company shall transfer and deduct losses from the taxable earnings of the following years if such company still makes the loss after separating enterprise.
Consulted by InvestConsult Group
Tel: (84.4) 5373262
Fax: (84.4) 5373283