This circular guides the handling of VAT tax debt write-off (GTGT) for sugar factories in Group 2 when undergoing shareholding reform or selling business shares, leasing businesses, and having a State Audit Agency audit report for 2003. The Ministry of Finance agrees to temporarily not impose late payment penalties on outstanding VAT taxes until December 31, 2003.
Scope of application
Provincial Tax Departments; sugar factories in Group 2
Key points
- Sugar factories in Group 2 are eligible for VAT tax debt write-off arising from 2001-2003 but not exceeding the cumulative losses as of December 31, 2003 (Point 2, Article 3 Decision No. 28/2004/QĐ-TTg).
- The VAT tax debt write-off can only be implemented when there is a decision on shareholding reform, selling business shares, or leasing businesses and an audit report for 2003 from the State Audit Agency (Article 1 Decision No. 49/2004/QĐ-TTg).
- The Ministry of Finance agrees to temporarily not impose late payment penalties on outstanding VAT taxes until December 31, 2003.
🌐 Social impact of this document
- To help sugar factories alleviate financial difficulties caused by accumulated VAT tax debts
- To facilitate the shareholding reform, selling business shares, or leasing businesses of sugar factories
- Tax authorities and the State Audit Agency need to conduct additional verification work to comply with regulations
❓ Frequently asked questions
How are sugar factories in Group 2 eligible for VAT tax debt write-off?
They can have VAT tax debts arising from 2001-2003 written off, but not exceeding cumulative losses as of December 31, 2003, when there is a decision on shareholding reform, selling business shares, or leasing businesses and an audit report for 2003 from the State Audit Agency.
Until what date does the Ministry of Finance agree to temporarily not impose late payment penalties on outstanding VAT taxes?
Until December 31, 2003
Full text
LETTER
OF THE MINISTRY OF FINANCE NUMBER 14292TC/TCT DATED DECEMBER 6, 2004
REGARDING THE HANDLING AND WRITTEN-OFF TAXES FOR VALUE-ADDED TAX (VAT) FOR SUGAR FACTORIES AND COMPANIES
SUGAR COMPANY
RESPECTED: Provincial Tax Departments
The Ministry of Finance has received letters and documents from several sugar companies (Quang Ngai, Nong Cong, Tay Ninh) regarding the written-off VAT according to Decision No. 28/2004/QĐ-TTg dated [date] of the Prime Minister. Regarding this matter, the Ministry of Finance provides the following comments: of the Government Prime Minister. Regarding this matter, the Ministry of Finance comments as follows:
Point 2 - Article 3 - Decision No. 28/2004/QĐ-TTg dated [date] of the Prime Minister stipulates:
"For factories belonging to Group 2: When implementing shareholding, selling business shares, or leasing businesses, in addition to measures for handling existing issues and financial support according to current regulations of the State, the following supportive measures shall be applied:... Written-off tax arrears but not yet paid regarding VAT generated from sugar products and products using by-products and waste recovered from sugar production from 2001-2003. The amount written off must not exceed the cumulative losses up to December 31, 2003 of the factory."
Article 1 - Decision No. 49/2004/QĐ-TTg dated [date] of the Prime Minister stipulates: "The State Audit Agency is tasked with auditing sugar factories belonging to Groups 2 and 3... as a basis for handling financial difficulties faced by sugar factories in Groups 2 and 3."
Based on these regulations, the written-off VAT for sugar factories and companies in Group 2 can only be implemented when such enterprises are decided upon by competent state authorities regarding forms such as: shareholding, selling business shares, or leasing businesses, and must have an audit report of 2003 from the State Audit Agency.
To alleviate difficulties for sugar factories and companies during the period awaiting enterprise restructuring decisions and audit results; the Ministry of Finance agrees to temporarily refrain from imposing late payment penalties on outstanding VAT as of December 31, 2003 for sugar factories and companies in Group 2 according to Decision No. 28/2004/QĐ-TTg mentioned above by the Prime Minister.
The Ministry of Finance hereby informs Provincial Tax Departments to be aware and implement accordingly.
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