Proposal to narrow the scope of offsetting profits and losses from real estate transfers

VTV.vn - VCCI proposed to narrow the scope of the prohibition on profit and loss offset in the 2025 Corporate Income Tax Law, only applying it to real estate transfers, to avoid causing difficulties for businesses.

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In a document sent to the Ministry of Justice regarding the Draft Law on Corporate Income Tax 2025, the Vietnam Confederation of Commerce and Industry (VCCI) proposed narrowing the scope of profit/loss offset exclusion instead of applying it to all cases.

Accordingly, the Law only sets out the sole exception that income from real estate transfer activities, investment projects or project participation rights cannot be offset against income from activities enjoying tax incentives, in order to eliminate the situation of adding both profits for the purpose of enjoying general tax incentives.

Therefore, expanding the scope of the prohibition on offset to include losses from normal production and business activities would go against the two-way offset principle stipulated by the Law on Corporate Income Tax.

VCCI recommends that the drafting agency consider amending in the direction of narrowing and adding clear regulations on how to handle losses that are still within the time limit, ensuring consistency and creating convenience for businesses during the implementation process.

Source: https://vtv.vn/de-xuat-thu-hep-pham-vi-bu-tru-lai-lo-tu-chuyen-nhuong-bat-dong-san-100250923100232.htm