OFFICIAL LETTER NO. 915/TCT-TTKT OF THE GENERAL DEPARTMENT OF TAXATION DATED MARCH 25, 2022

Pursuant to the provisions on related-party relations at Point d, Clause 2, Article 5 of the Government's Decree No. 132/2020/NDCP dated November 5, 2020 on tax administration for enterprises with related-party transactions:

"d) An enterprise guarantees or lends capital to another enterprise in any form (including loans from third parties secured from the financial resources of the associated party and financial transactions of a similar nature) provided that the loan capital is at least equal to 25% of the contributed capital of the owner of the borrowing enterprise and occupies over 50% of the total value of medium and long-term debts of the borrowing enterprise;"

Pursuant to the above provisions, in case the enterprise does not have medium and long-term debts according to the criteria specified at Point d, Clause 2, Article 5 of the Decree No. 132/2020/ND-CP mentioned above, it is not subject to the application of this Point.