Circular No. 109/1998/TT-BTC guides the amendment and supplementation of regulations on reducing special consumption tax.

CIRCULAR

OF THE MINISTRY OF FINANCE NUMBER 109/1998/TT-BTC DATED JULY 31, 1998 GUIDELINES FOR AMENDING AND SUPPLEMENTING PROVISIONS ON REDUCING SPECIAL CONSUMPTION TAX

Pursuant to Decree No. 97/CP dated December 27, 1995 of the Government detailing the implementation of the Special Consumption Tax Law and the Law Amending and Supplementing Certain Provisions of the Special Consumption Tax Law; Circular No. 98 TC/TCT dated December 30, 1995 of the Ministry of Finance guiding the implementation of Decree No. 97/CP dated December 27, 1995 of the Government;

The Ministry of Finance guides the amendment of provisions on cases of reducing special consumption tax as stipulated in Point 1.d, Part IV of Circular No. 98 TC/TCT dated December 30, 1995 of the Ministry of Finance as follows:

"d- A production facility producing goods subject to special consumption tax with small scale established before this time and currently continuing production, if encountering difficulties, paying the special consumption tax according to the law but suffering losses may be considered for reduction of special tax.

The amount of special consumption tax eligible for reduction corresponds to the loss amount but does not exceed 50% of the total tax payable under the law.

The period for considering tax reduction is determined annually, based on the calendar year.

Regarding small-scale production:

- A beer production facility with small scale is a facility with a capacity of less than 10 million liters/year.

- A production facility producing tobacco products with small scale is a facility with a capacity of less than 10 million packs/year.

- For alcohol production facilities, the Ministry of Finance will consider and resolve each case individually.

Facilities eligible for tax reduction must fully implement accounting records, invoices, and supporting documents according to prescribed regulations and clearly account for production and business results and the amount of tax payable under the Law.

Facilities eligible for tax reduction must prepare the following documents:

- A letter from the facility requesting tax reduction, specifying the reasons for losses, equipment capacity, and actual production volume, accompanied by:

+ Economic and technical justification or investment project for the production facility, acceptance report of the construction project put into operation.

+ Business result report including details on: production volume, selling price, revenue, production cost factors, cost, tax payable under the law, and capital loss amount.

+ Financial settlement report and tax settlement report of the year requesting tax reduction.

After completing the tax reduction application, the facility shall submit it to the direct tax authority managing the facility. Within 10 working days, the tax authority receiving the application shall be responsible for reviewing and determining the production and business results of the facility, reporting to the Provincial Tax Department (city). Within 5 working days, the Provincial Tax Department (city) shall issue a letter requesting the Ministry of Finance to consider and resolve the matter, attaching the facility's application and sending it to the Ministry of Finance (General Department of Taxation).

At the same time, a production facility can only be considered for special consumption tax reduction under one of the three cases specified in Points b, c, and d above.

This Circular takes effect from the date of issuance and applies to the resolution of special consumption tax reduction arising from 1997. Previous provisions contrary to this Circular are abolished.

In the course of implementation, if there are any difficulties, units and localities are requested to report to the Ministry of Finance for timely research, consideration, and supplementary guidance.