Circular 113/2003/TT-BTC supplements the Finance Ministry's Circular No.98/2002/TT-BTC dated October 24, 2002, which guides tax exemptions and reductions for subjects entitled to investment preferences (Content Attached)

CIRCULAR

Supplementing Circular No. 98/2002/TT-BTC dated October 24, 2002 of the Ministry of Finance guiding the implementation of tax exemptions and reductions for investment incentive beneficiaries
Pursuant to current Tax Laws and Tax Ordinances;
Pursuant to Decree No. 51/1999/NĐ-CP dated July 8, 1999 of the Government detailing the implementation of the Law on Encouraging Domestic Investment (amended) No. 03/1998/QH10 and Decree No. 35/2002/NĐ-CP dated March 29, 2002 of the Government amending and supplementing List A, B, and C issued as an appendix to Decree No. 51/1999/NĐ-CP;

Pursuant to the guidance of the Prime Minister in Official Letter No. 5121/VPCP-KTTH dated October 20, 2003 of the Government Office;

The Ministry of Finance supplements Circular No. 98/2002/TT-BTC dated October 24, 2002 of the Ministry of Finance guiding the implementation of tax exemptions and reductions for investment incentive beneficiaries according to Decree No. 51/1999/NĐ-CP dated July 8, 1999 of the Government detailing the implementation of the Law on Encouraging Domestic Investment (amended) No. 03/1998/QH10 as follows:

1. Supplementing Point 3, Section II, Part B: "Tax Incentives" with a new Point 3 as follows:

According to Article 26 of Decree No. 51/1999/NĐ-CP, production and business establishments with investment projects in industries and professions listed in List A or investment projects in areas listed in Lists B or C in the Appendix issued pursuant to Decree No. 35/2002/NĐ-CP are exempted from import duties on goods that are not produced domestically or are produced but do not meet quality requirements:

- Specialized transportation equipment, machinery, and transport vehicles (part of the production line) imported to form fixed assets of enterprises or to expand investment scale, and to update technology.

- Specialized transportation equipment for picking up and dropping off workers.

In cases where units import machinery and equipment before obtaining an Investment Incentive Certificate, they are also exempted from import duties, but the period shall not exceed two months (rounded to 60 days) from the date of importation to the date when the competent authority issues the Investment Incentive Certificate.

2. This Circular takes effect fifteen days after its publication in the Official Gazette. The provisions of this Circular shall be uniformly applied to cases arising before the effective date of this Circular. However, in cases where customs authorities have already processed import duty exemptions according to Circular No. 803/TCT/CS dated February 20, 2003 of the General Department of Taxation - Ministry of Finance, no back taxes will be levied on the import duties that have been exempted.

In the case where an importing unit imports machinery and equipment before being granted an Investment Preference Certificate, they shall also be exempted from import tax, but the period shall not exceed two (2) months (rounded to sixty (60) days according to the calendar) from the date of importation to the date when the competent authority grants the Investment Preference Certificate.

This Circular takes effect fifteen (15) days from the date of publication in the Official Gazette. The provisions of this Circular shall be uniformly applied to cases arising before the date this Circular takes effect. However, in cases that have already been processed for tax exemption by the Customs Authority pursuant to Circular No. 803 TCT/CS dated February 20, 2003 of the General Department of Taxation - Ministry of Finance, no back taxes on the exempted import tax shall be collected.