According to point a clause 2 Article 14 of Circular No. 78/2014/TT-BTC , assessable income from capital transfer shall be determined according to the following formula:
Assessable income = Transfer price - Purchase price of the capital transferred - Transfer cost
In which, “the purchase price of the capital transferred” to be subtracted upon calculation of tax is the value of the contributed capital accumulated to the time of transfer or re-purchase price (in case of selling the re-purchased capital) (Article 8 of Circular No. 96/2015/TT-BTC ).
“The value of the contributed capital accumulated to the time of transfer” is determined based on the accounting books, documents or based on the audit results from an independent audit company in case of selling capital contributed in a wholly foreign-capitalized enterprise (Article 8 of Circular No. 96/2015/TT-BTC ).
|43223/CTHN-TTHT||How to determine deductible “purchase price” upon calculating tax on capital transfer|
|Published||Vietlaw's Newsletter No. 515|