To: Phu Lan Investment Fund Management Joint-Stock Company
(No. 7, Vo Van Tan street, Ward 6, District 3, Ho Chi Minh City)

In reply to Official Letter No. 14/CV-2007 of August 10, 2007, of Phu Lan Investment Fund Management Joint-Stock Company (the Company), inquiring tax policies for foreign investment funds, the Ministry of Finance gives the following opinions:

According to Point 1 of Circular No. 72/2006/TT-BTC of August 10, 2006, amending and supplementing the Finance Ministry’s Circular No. 100/2004/TT-BTC of October 20, 2004, which guides value-added tax and business income tax in the securities domain, foreign investment funds or foreign organizations that are set up under foreign laws, have no legal person status in Vietnam but open securities investment accounts in Vietnam shall pay presumptive business income tax, specifically:

“- For the transfer of securities (stocks, investment fund certificates, bonds, excluding tax-free bonds), the payable tax amount is equal to 0.1% of the total value of securities sold at the time of transfer.

- For interests of bonds (excluding tax-free bonds), the payable tax amount is equal to 0.1% of the total value of bonds (including bond par value and receivable interests) at the time of receipt of interests.”

Thus, in case a fund management company is set up and operates under the law of Cayman Islands for the purpose of setting up a securities investment fund, which opens securities investment account(s) in Vietnam, this fund’s obligation to pay business income tax is determined under the guidance at Point 1 of the above Circular No. 72/2006/TT-BTC.

The Ministry of Finance gives the above reply to the Company for information and compliance.

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FOR THE MINISTER OF FINANCE
ON BEHALF OF THE DIRECTOR OF THE TAX POLICY DEPARTMENT
DEPUTY DIRECTOR




Nguyen Van Phung