The General Department of Taxation responded to Mau Son Co., Ltd.’s proposal on handling exchange rate loss due to reassessment of debt payable at the end of the year.
Legal basis:
- Regulations on handling losses from exchange rate differences are implemented according to Circular No 78/2014/TT-BTC and Circular no 96/2015/TT-BTC.
- According to Clause 2, Article 9 of Circular 78/2014/TT-BTC, losses (including losses from exchange rate differences) are fully and continuously transferred to the taxable income of the following years, but within time no more than 5 years from the year following the year in which the loss occurred.
Processing comments:
- Ms.’s recommendationThe company’s decision to allocate losses from exchange rate differences from 2022 and 2023 to future years has no legal basis.
- In case of losses, the Company must carry out continuous loss transfer in accordance with regulations.
Additional information:
- This issue was answered by the Tax Department of Binh Duong province in official dispatch No. 23807/CTBDU-TTHT dated August 21, 2024.
Click here to see details of official dispatch 5440/TCT-CS 2024 tax policy
