According to Official Letter 4315/TCT-CS issued by the Vietnamese tax authorities, when a branch in Vietnam terminates its operation, the parent company assumes responsibility for the branches contracts and debts, including tax debts and tax losses. Such losses may be carried forward by the parent. In addition, the letter clarifies that when a closed branch has outstanding payables to the parent company, those payable are characterized as investment capital of the parent company and may not be claimed as deductible expenses for income tax purposes.