Pursuant to the regulations on affiliated relationships at Point d, Clause 2, Article 5 of Decree No. 132/2020/ND-CP dated November 5, 2020 of the Government regulating tax management for enterprises with affiliated transactions: 

 “d) An enterprise guarantees or lends capital to another enterprise in any form (including loans from third parties guaranteed from the financial resources of affiliated parties and financial transactions of a similar nature) with the condition that the loan capital is at least equal to 25% of the capital contribution of the owner of the borrowing enterprise and accounts for over 50% of the total value of medium and long-term debts of the borrowing enterprise;” 

Pursuant to the above regulations, in case an enterprise does not have medium and long-term debts according to the condition specified in Point d, Clause 2, Article 5 of Decree No. 132/2020/ND-CP mentioned above, will not be applicable to this point.