Official letter No. 31449/CTHN-TTHT dated August 12th, 2021 of the Department of Taxation of Ha Noi city regarding guidelines on determination of deductible loan interest cost with regard to enterprises having related-party transactions

According to clause 3 Article 16 of Decree No. 132/2020/ND-CP, the limit of loan interest cost to be deducted of enterprises having related-party transactions is 30%.

The declaration of ratio of loan interest cost in a specific tax period shall be carried out according to the form and guidelines provided at Annex I of Decree No. 132/2020/ND-CP .

However, with regard to the issue relating to whether deferred payment interest belongs to the group loan interest cost to be deduced under the limit of 30% or not, it does not belong to scope of competence to provide guidelines of a tax authority. Enterprises should contact with other competent agencies for obtaining guidelines