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blue-check It is not required to declare related party transactions with regard to amounts collected, paid on behalf of others

Official letter No. 45095/CTHN-TTHT dated September 13th, 2022 of the Department of Taxation of Ha Noi city regarding expenses before establishment of an enterprise
Posted: 22/9/2022 4:08:30 PM | Latest updated: 29/9/2022 8:42:02 AM (GMT+7) | LuatVietnam: 5547 | Vietlaw: 580
VietlawOnline

According to opinions of the Department of Taxation of Ha Noi city, in case before establishment, a company authorizes its parent company to pay on its behalf expenses related to the establishment, documents, invoices of the amounts paid on behalf of the company bearing the parent company’s name are still considered to be legitimate documents for making cost accounting (if the conditions at Article 4 of Circular No. 96/2015/TT-BTCstatus2 are met).

With regard to the transactions of authorized payment, authorized collection between the company and its parent company, they are not related party transactions requiring the declaration according to the regulations at Decree No. 132/2020/ND-CP .

Ms Phuong Thao (VietlawOnline.com)
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Published Vietlaw's Newsletter No. 580

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