GENERAL TAX DEPARTMENT THE SOCIALIST REPUBLIC OF VIETNAM

HANOI TAX DEPARTMENT Independence-Freedom-Happiness

No. 3346/CT-HTr Hanoi, dated 15 March 2004

Ref: Approving construction materials as
legally deductible expenditures when
determining income subject to corporate
income tax.

Respectfully to: Viet-Uc Readymix Concrete Co. Ltd.

(Address: 4 Tran Hung Dao Str., Hoan Kiem District, Hanoi)

Hanoi Tax Department acknowledged receipt of your Official Letter No. 20022004/CV-VU
regarding the request to consider construction materials supplied by foreign contractors as legally
deductible expenditures when determining income subject to corporate income tax.
Based on the Law on Corporate Income Tax;
Based on provisions in Part C of Circular No. 169/1998/TT-BTC dated 22 December 1998 of the
Ministry of Finance guiding the application of tax regime to foreign individuals, organizations those are
conducting business activities in Vietnam but do not fall within investment forms regulated by the Law on
Foreign Investment of Vietnam;
The supply of construction materials by Energroproject (EP) to Viet-Uc Readymix Concrete Co.
Ltd. is subject to VAT, and EP would be responsible for paying VAT under the direct calculation method
over the added value and Corporate income tax to state budget.
Procedures for declaration and payment of taxes are stipulated in Point 2, Item II, Part C of
Circular No. 169/1998/TT-BTC dated 22 December 1998 as follows:
"Within 05 days from the date of making payment to foreign contractors, the Vietnamese party
has to declare VAT and Corporate income tax in accordance with Sample Form No. 03NT-TCT
promulgated along with this Circular and make payment of declared taxes to state budget".
In consideration of Viet-Uc's violation in this respect which was due to not fully understanding
tax policies in first years of implementing the new Laws on VAT and Corporate Income Tax, and in order
to lessen difficulties for the company's business operation, Hanoi Tax Department hereby accepts the
construction materials having vouchers/invoices provided by the foreign contractors as legally deductible
 expenditures when determining income subject to Corporate income tax after the Company makes full
payment of VAT and Corporate income tax to state budget for the foreign contractor.

Hanoi Tax Department would like to inform your company of the foregoing for implementation.

Recipient: P/P DIRECTOR OF HANOI TAX DEPARTMENT

Deputy Director
(signed and sealed)
- As above;
- Department of Foreign Investment
- Archives: HC, HTr. Phi Van Tuan