Official Letter No. 1160/CT-CS dated May 13, 2025, issued by the Tax Department regarding tax policy

Pursuant to Clause 6, Article 7 and Clauses 1, 4, and 5, Article 17 of Circular No. 78/2014/TT-BTC dated June 18, 2014 of the Ministry of Finance (as amended and supplemented by Circular No. 96/2015/TT-BTC dated June 22, 2015) providing regulations on other income and taxable income;

Based on the above provisions, the Tax Department provides the following opinions:

Regarding VAT and invoices:
If the collateralized asset being sold is an asset under a secured transaction that has been registered with the competent authority in accordance with the laws on registration of secured transactions, and the handling of the collateralized asset is conducted in compliance with the laws on secured transactions, then it is not subject to VAT as specified in Clause 3, Article 1 of Circular No. 26/2015/TT-BTC mentioned above.
In cases where the asset being sold is not a collateralized asset under the laws on secured transactions, then it is subject to VAT as prescribed.

Regarding Corporate Income Tax (CIT):
It is requested that the Long An Tax Department (now the Tax Sub-Department of Region XVII) base on specific documents and records, and refer to the aforementioned regulations to coordinate with the Long An Provincial Civil Judgment Enforcement Department and the organization authorized to conduct asset auctions to carry out the declaration, withholding, and remittance of Corporate Income Tax and Personal Income Tax on behalf of the concerned parties into the State budget in accordance with Clause 6, Article 8 of Decree No. 126/2020/NĐ-CP, Clause 5, Article 17 of Circular No. 78/2014/TT-BTC, and Clause 7, Article 2 of Law No. 71/2014/QH13.

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