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[Taxation] "Foreign exchange gains” are subject to preferential tax treatment

2024/05/16

Foreign exchange gains” are subject to preferential tax treatment

The GDT issued Official Letter No. 1794/TCT-CS dated May 2, 2024, guiding CIT tax policy.

Pursuant to Article 5, paragraph 2 of Circular No. 96/2015/TT-BTC, if the foreign exchange difference arising during the period is directly related to the sales or expenses of the enterprise’s main production and management activities, such foreign exchange difference may be recorded as the expenses or income of the main production and management activities.

If the enterprise has an investment project that meets the preferential conditions in the industry or region and qualifies for preferential tax treatment, the foreign exchange gains directly related to the sales or expenses of the preferential investment activity shall also qualify for preferential tax treatment in accordance with Article 10, paragraph 2 of Circular No. 96/2015/TT-BTC.

References:
Official Letter No. 1794/TCT-CS dated May 2, 2024 of GDT
Circular No. 96/2015/TT-BTC