In July 05,2019, The General Department of Vietnam Customs issued letter no. 4447/TCHQ-TXNK on tax exemption for goods imported to create fixed assets of subjects entitled to investment preferences . The content is as below:
The General Department of Customs received the official letter No. 2617 / UBND-KT dated June 20, 2019 of the People’s Committee of Bac Lieu province on supporting the installation of desalination system (treating saline and brackish water into fresh water) of LG Electronics Group in Bac Lieu province. In this regard, the General Department of Customs has the following opinions:
Pursuant to Clause 11, Article 16 of the Law on Export Tax and Import Tax No. 107/2016 / QH13, Article 14 of the Government’s Decree No. 134/2016 / ND-CP of September 1, 2016, on tax exemption for goods imported to create fixed assets of subjects entitled to investment preferences under the provisions of investment law, including:
“11. Imports as fixed assets of an entity eligible for investment incentives as prescribed by regulations of law on investment, including:
a) Machinery and equipment; components, parts, spare parts for assembly or operation of machinery and equipment; raw materials for manufacture of machinery and equipment, components, parts, or spare parts of machinery and equipment;
b) Special-use vehicles in a technological line directly used for a manufacture project;
c) Building materials that cannot be domestically produced.
Exemption of import duty on the imports specified in this Clause also applies to new investment projects and extension projects.”
Pursuant to Clause 13, Article 16 of the Law on Export Tax and Import Tax No. 107/2016 / QH13, Article 15 of the Government’s Decree No. 134/2016 / ND-CP of September 1, 2016, prescribing the exemption of import tax for with materials, supplies and components within 05 years:
“13. Raw materials and components which cannot be domestically manufactured and are imported serving the manufacturing of investment projects eligible for investment incentives or in an extremely disadvantaged area prescribed by regulations of law on investment, high technology enterprises, science and technology enterprises, science and technology organizations are exempt from import duties for 05 years from the commencement of manufacture.
The exemption of import duties specified in this Clause does not apply to mineral extraction projects; projects for manufacture of products where total value of natural resources or minerals plus energy costs makes up at least 51% of the product price; projects for manufacture or sale of goods/services subject to special excise tax.”
Based on numerical order. 52 Appendix II issued together with the Decree No. 118/2015 / ND-CP dated November 12, 2015 of the Government, all districts and towns in Bac Lieu province belong to communes which is particularly difficult economic conditions.
Based on the above regulations, in case of imported goods for the project implemented in Vinh Hau commune, Hoa Binh district, Bac Lieu province (areas with extremely difficult socio-economic conditions), exempted from import tax under the provisions of Clauses 11 and 13, Article 16 of the Law on Export Tax and Import Tax No. 107/2016 / QH13, Article 14 and Article 15 of Decree No. 134/2016 / ND-CP dated September 1 / 2016 Government.
Dossiers of notification of tax exemption list comply with Article 30 of Decree No. 134/2016 / ND-CP; Dossiers and procedures for tax exemption when carrying out customs procedures comply with Article 31 of Decree No. 134/2016 / ND-CP.
The General Department of Customs give above opinions for the People’s Committee of Bac Lieu province to know./.