Official letter No. 23820/CTHN-TTHT
dated June 29th, 2021 of the Department of Taxation of Ha Noi city regarding determination of related-party transaction
Posted: 14/7/2021 7:33:26 AM | Latest updated: 26/8/2021 2:49:36 PM (GMT+7) | LuatVietnam: 5248
| Vietlaw: 524
According to point d clause 2 Article 5 of Decree No. 132/2020/ND-CP, in case a company is provided loans by another enterprise under any form (including loans provided by a third party guaranteed by finance sources of related parties) in which the loans equal at least 25% of equity of the company and make up for more than 50% of total medium and long term debts of the company, the Company and other parties are determined related parties.
Accordingly, transactions arisen (purchase, sale, bartering, renting, leasing out, borrowing, lending, etc.) between the company and other parties are determined related-party transactions.
Ms Phuong Thao (VietlawOnline.com)
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