Circular guiding the handling of remaining losses of SOEs up to December 31, 1998, allowing SOEs to continue carrying these losses forward into taxable income in subsequent years with specific deadlines.
适用范围
State-owned Enterprise
要点
- SOEs with losses carried over as of December 31, 1998 may carry them forward to subsequent years for tax deduction purposes, with the final deadline being 2001.
- Losses incurred by SOEs from 1999 onwards after tax settlement with tax authorities can be carried forward to the following year, with a maximum carry-forward period of five years.
- Provincial Tax Departments shall notify SOEs annually of the amount of losses that may be carried forward for tax deduction purposes.
- SOEs incurring losses from 1999 (including cases where there are unrecorded losses from 1998) after tax settlement can carry these losses forward to the following year for tax deduction purposes.
- The final deadline for carrying over losses carried over as of December 31, 1998 is 2001.
🌐 本文件的社会影响
- To assist SOEs in overcoming financial difficulties and reducing their tax burden in subsequent years.
- Tax authorities and related units must notify each SOE of the amount of losses that may be carried forward annually.
❓ 常见问题
Can SOEs carry over losses as of December 31, 1998 to subsequent years?
Yes, with a final deadline being 2001.
What is the maximum period for SOEs to carry over losses incurred from 1999 to subsequent years?
Not exceeding five years.
全文
LETTER
OF THE MINISTRY OF FINANCE NUMBER 3195/TC-TCDN DATED APRIL 9, 2001
REGARDING THE TREATMENT OF LOSSES REMAINING WITH STATE-OWNED ENTERPRISES
AS OF DECEMBER 31, 1998
Respected,
- Ministries, ministerial-level agencies, and government agencies,
- People's Committees of provinces and centrally-administered cities,
- Tax Departments, Provincial Finance Departments of provinces and centrally-administered cities,
In recent times, many state-owned enterprises have requested to apply Article 22 of the Law on Corporate Income Tax and Clause 37 of Decree No. 30/1998/NĐ-CP dated May 13, 1998 issued by the Government detailing the implementation of the Law on Corporate Income Tax to implement the transfer of losses remaining as of December 31, 1998 to subsequent years.
Upon approval from the Prime Minister in Letter No. 689/VPCP-KTTH dated February 23, 2001 regarding principles for handling loss carryovers, the Ministry of Finance provides guidance as follows:
1. State-owned enterprises with losses due to objective reasons that were previously carried over according to previous corporate income tax laws, if such cumulative losses remain as of December 31, 1998, are permitted to continue carrying over these losses.
The cumulative losses as of December 31, 1998 may be transferred and deducted from taxable income in the year 1999. If any remaining losses exist after this period, they can continue to be carried forward for subsequent years, but the final year for transferring and deducting these losses is 2001.
The Ministry of Finance assigns Tax Departments of provinces and centrally-administered cities to notify enterprises annually regarding the amount of losses that may be transferred.
2. State-owned enterprises with losses arising from 1999 (including cases where losses from 1998 were allocated from dissolved joint ventures but not recorded in the financial statements for 1998) after completing tax settlement procedures with tax authorities and experiencing a loss, may carry over these losses to the following year. These losses can be deducted from taxable income. The period allowed for carrying over losses does not exceed five years.
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