Ministry of Finance issued Official Letter No. 4907 / BTC-CST dated 26 April 2019 on Tax policy for production and assembly of fire prevention and fighting vehicles. The content is as below:
Responding to Official Letter No. 01CVPCCC / FS dated March 18, 2019 of Fire smart Technology Research and Development Co., Ltd. proposes tax policy guidance for organizations and individuals producing and assembling fire prevention equipment and Fire fighting (FPF), the Ministry of Finance has the following opinions:
In cases where organizations or individuals implement production and / or assembly projects of fire prevention and fighting means meeting conditions on tax preferences or performing in geographical areas with difficult socio-economic conditions are entitled to tax incentives in accordance with the preferential conditions that the project meets. For example:
(i) Regarding personal income tax and value-added tax: Business individuals with a turnover of VND 100 million / year or less shall not have to pay value added tax and personal income tax.
(ii) Regarding corporate income tax, non-agricultural land use tax and import tax: Enterprises implement new investment projects or investment projects to expand production and assembly of fire protection means to meet the requirements In the case of preferential fields or preferential areas, they are entitled to preferential corporate income tax, non-agricultural land use tax and import tax in accordance with current law.
In addition, on the import tax, the Government of Vietnam now has incentives for fire protection and fire fighting vehicles with low import tax rates of 3% (code 8705.30.00), anti-clothes fire is 5% (code 6113.00.30) …
Organizations and individuals producing and assembling fire protection means base on actual operation, preferential conditions and contact with tax authorities managing units for specific implementation instructions.
The Ministry of Finance has opinions for the Company to know and implement.