Question:
Does the bank generate foreign currency trading transactions, specifically:
• Same-day exchange transactions: a transaction in which both parties buy or sell a certain amount of foreign currency at the current exchange rate at the time of the transaction and settle the payment within the next 2 working days.
• Forward exchange transactions: a transaction in which both parties commit to buying and selling the same amount of foreign currency at a predetermined exchange rate, and the payment will be made at a specified future date.
• Swap exchange transactions: a transaction in which both parties simultaneously buy and sell the same amount of foreign currency (only 2 currencies are used in the transaction). The payment terms for the 2 transactions are different, and the exchange rate for the 2 transactions is determined at the time of contract signing.
At the end of each month, the total amount of foreign currency trading transactions occurred during the month will be summarized to determine the foreign currency trading business results. If the selling exchange rate is greater than the buying exchange rate, it will be recorded as income from foreign currency trading business. If the selling exchange rate is less than the buying exchange rate, the difference will be recorded as operating expenses for foreign currency trading business. In the case of generating income from foreign currency trading business, do I need to issue an invoice with the tax department? And when should the invoice be issued?
Answer:
Based on Circular No. 39/2014/TT-BTC dated March 31, 2014 of the Ministry of Finance on invoices and documents for sales of goods and provision of services;
Based on Clause 9, Article 7 of Circular No. 78/2014/TT-BTC dated June 18, 2014 of the Ministry of Finance guiding corporate income tax regulations on other income.
In the case where there is exchange rate difference arising from exchange transactions during the tax period, the bank will record this difference as other income for tax calculation and declaration of corporate income tax according to regulations, and the bank is not required to issue an invoice.
