Dispatch 17164/BTC-TCT on taxation the loan interest

Profit from lending activities of organizations and individuals which are not credit institutions will not have to pay VAT.

That is the guidance of the Ministry of Finance in Dispatch 17164/BTC-TCT issued on December 11^th 2012.

Accordingly, the Ministry has identified the above lending activities are credit services.

This service is one of the subjects that are exempt from tax under the provisions in Paragraph 8, Article 5 of the Law on value added tax.

Dispatch takes effect from the date of issuance.