To: OGINO Vietnam Corporation
(Address: Block N-9, Thang Long Industrial Park, Dong Anh district, Hanoi)

Below is the response of General Department of Taxation to Official Dispatch No. 101201/CV-OVC dated 02/12/2010 of OGINO Vietnam Corporation (OVC) regarding determination whether income from golf club membership is subject to personal income tax:

- Paragraph 2.1.7, Section I of Circular No. 81/2004/TT-BTC dated 13/8/2004 of the Ministry of Finance providing guidelines for implementation of the Government’s Decree No. 147/2004/ND-CP dated 23/7/2004 elaborating the Ordinance on income tax on high-income earners, the following recurring incomes are subject to tax: "Other incomes paid to individuals by income-paying agencies."

- Paragraph 1, Section II of Circular No. 81/2004/TT-BTC: "For incomes in kind, the taxable incomes shall be determined according to prices inscribed in invoices or market prices of products of the same kind (or equivalent) at the time such incomes are generated."

- Paragraph 2(c) Article 1 of Circular No. 62/2009/TT-BTC dated 27/3/2009: "Membership fees, such as golf club membership, tennis club membership, art club membership, sport club membership cards, etc., shall be recorded as taxable incomes of the individuals or groups of individuals whose name are written on the cards. If a membership card is shared and does not bear the name of any specific individual or group of individuals, the membership fee must not be recorded as taxable income."

Pursuant to the aforementioned guidance:

1. When OVC purchases a golf club membership card and gives it to the General Director, who has the right to use, sell and give away the card, the value of the golf club membership card shall be recorded as taxable income of the General Director.

In case the golf club membership card is OVC's asset and is only be given to the General Director for use under the OVC's regulations (with or without the General Director's name on the card), the value of the membership card that is recorded as annual taxable income of the General Director shall be the total value of the membership card divided by (:) the number of years over which the card is used under OVC's regulations.

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For your information. OVC may contact the local tax authority for further instructions./.

PP GENERAL DIRECTOR
DEPUTY GENERAL DIRECTOR




Pham Duy Khuong