OFFICIAL LETTER NO. 194/TCT-DNNCN DATED 14/01/2025 FROM THE GENERAL DEPARTMENT OF TAXATION PROVIDING GUIDANCE ON DETERMINING THE ACCOUNTING BOOK VALUE OF CAPITAL CONTRIBUTION IN LIMITED LIABILITY COMPANIES FOR PERSONAL INCOME TAX PURPOSES

On January 14, 2025, the General Department of Taxation issued Official Letter No. 194/TCT-DNNCN providing guidance on determining the accounting book value of capital contribution in limited liability companies for personal income tax purposes as follows:

Income for calculating personal income tax for inheritance income from capital contributions in limited liability companies (with two or more members) is determined based on the accounting book value on the company’s Balance Sheet at the time of the latest Balance Sheet preparation according to the accounting regulations before the registration of capital ownership. The accounting book value on the company’s Balance Sheet is determined by the difference between total assets minus liabilities, by taking the codes reflecting assets on the Balance Sheet minus the codes reflecting liabilities on the Balance Sheet (Code 100 + Code 200 – Code 300).