On 22/01/2024, the Hanoi Tax Department issued Official Letter No. 4267/CTHN-TTHT on VAT policy when merging enterprises as follows:

The company (hereinafter referred to as the merged company) may merge into another company (hereinafter referred to as the merged company) by transferring all assets, Legal rights, obligations and interests to the merged company, and at the same time terminate the existence of the merged company.

After the merged company registers its business, the merged company ceases to exist; The merging company enjoys legal rights and interests, is responsible for obligations, unpaid debts, labor contracts and other property obligations of the merged company. The merged companies automatically inherit all legitimate rights, obligations, and interests of the merged companies under the merger contract as prescribed in Article 201 of the Enterprise Law No. 59/2020/QH14.

In case the Company pays value-added tax according to the deduction method, with the input value-added tax amount not fully deducted, the value-added tax refund when merging enterprises as prescribed in Article 1 of Circular No. 130/2016/TT-BTC.