Tay Ninh Tax Department received an official dispatch from NEW MATERIALS BLUE OCEAN COMPANY LIMITED about the capital contribution amount on the statement not matching the investment certificate, charter capital, and VAT refund for the investment project. The opinion of the Tax Department is as follows:

Regulations on charter capital:

According to the Enterprise Law, charter capital is the total value of assets actually contributed by members or shareholders (not committed contributions).

According to Circular 200/2014/TT-BTC:

• The charter capital recorded on Account 411 must be based on the actual amount of capital contributed, not the amount of commitment recorded.
• For capital contributed in foreign currency, determined according to the actual amount of foreign currency contributed, not based on conversion according to the investment license.

Regulations on value added tax (VAT) refund:

According to Law No. 106/2016/QH13 and Circular 130/2016/TT-BTC:

• Business establishments are not entitled to VAT refund if the investment project does not contribute the full amount of charter capital as registered.
• Tax refund applications from July 1, 2016 will be rejected if the actual contributed charter capital is not enough.

Conclude:

• In case the investor contributes capital in foreign currency, the capital contribution is determined based on the actual amount of foreign currency contributed. Bank fees are not included in the charter capital.
• NEW MATERIALS BLUE OCEAN COMPANY LIMITED is not entitled to a VAT refund if the investment project does not contribute enough charter capital according to regulations.

Click here to see details of Official Dispatch 3832/CTTNI-TTHT