Decision No. 116/2001/QĐ-TTg stipulates certain incentives and encouragement for foreign investment in the oil and gas sector for Vietnamese enterprises. The Decision applies tax incentives on corporate income tax, exemption from export tax and value-added tax, as well as the right to reinvest post-tax profits.
适用范围
Vietnamese enterprises investing abroad in the oil and gas sector
要点
- Enterprises may deduct the corporate income tax paid abroad when determining the amount of tax payable in Vietnam (Article 3.1)
- Employees working on oil and gas projects may deduct the personal income tax paid abroad when determining the amount of tax payable in Vietnam (Article 3.2)
- Equipment, means of transport, materials, raw materials, fuel subject to export tax and value-added tax are exempt from export tax and apply a zero rate of value-added tax when exported abroad to implement oil and gas projects (Article 3.3)
- Specimens, technical documents imported for research and analysis purposes are exempt from import tax and not subject to value-added tax (Article 3.4)
- Specialized equipment and materials for oil and gas activities that are not yet produced domestically when temporarily imported for processing and manufacturing, then re-exported are exempt from import tax, export tax, and not subject to value-added tax (Article 3.5)
- Enterprises using post-tax profits for reinvestment abroad consistent with the content and objectives of the project approved must register with the State Bank of Vietnam and report periodically to the Ministry of Planning and Investment (Article 4.1)
- In cases where the amount of foreign currency in the account is insufficient to invest according to the project schedule, enterprises may purchase the missing foreign currency at foreign exchange banks permitted to operate in Vietnam (Article 4.2)
🌐 本文件的社会影响
- Creating opportunities for oil and gas enterprises to invest abroad through various tax and procedural incentives, enhancing international competitiveness
- Reducing financial burdens on enterprises through exemptions from export tax, value-added tax, and other incentives
❓ 常见问题
What percentage of corporate income tax paid abroad can enterprises deduct?
The deductible corporate income tax shall not exceed the amount of tax calculated at the tax rate specified in Clause 3, Article 10 of the Law on Corporate Income Tax dated May 10, 1997 (Article 3.1)
What percentage of personal income tax paid abroad can employees working on oil and gas projects deduct?
The deductible personal income tax shall not exceed the amount of tax payable for high-income individuals under Vietnamese laws on taxes for high-income earners (Article 3.2)
What percentage of import tax are specialized equipment and materials for oil and gas activities exempt from?
Specialized equipment and materials for oil and gas activities that are not yet produced domestically when temporarily imported for processing and manufacturing, then re-exported are exempt from import tax, export tax, and not subject to value-added tax (Article 3.5)
How can enterprises use post-tax profits abroad?
After fulfilling all tax obligations, enterprises may use post-tax profits to reinvest abroad consistent with the content and objectives of the approved oil and gas project (Article 4.1)
In cases where the amount of foreign currency in the account is insufficient, how much foreign currency can enterprises purchase?
Enterprises may purchase the missing foreign currency at foreign exchange banks permitted to operate in Vietnam (Article 4.2)
全文
DECISION
On certain incentives and encouragement for foreign investment in the oil and gas sector
trong lĩnh vực hoạt động dầu khí
PRIME MINISTER
Pursuant to the Government Organization Law dated September 30, 1992;
Pursuant to the Oil Law dated July 6, 1993; the Law Amending and Supplementing Certain Provisions of the Oil Law dated June 9, 2000; Government Decree No. 48/2000/NĐ-CP dated September 12, 2000 detailing the implementation of the Oil Law;
Pursuant to Government Decree No. 22/1999/NĐ-CP dated April 14, 1999 on foreign investment by Vietnamese enterprises;
At the proposal of the Minister and Head of the Government Office,
DECISION:
Article 1. Apply certain incentives and encouragement for Vietnamese enterprises investing abroad in the form of 100% capital investment or participation through contribution ratios in the oil and gas sector, including exploration, development, and exploitation of oil and gas fields, as well as activities directly serving oil and gas operations, hereinafter referred to as oil and gas projects.
Article 2. Vietnamese enterprises investing in oil and gas projects abroad (hereinafter referred to as enterprises) shall, in addition to enjoying the incentives stipulated in Government Decree No. 22/1999/NĐ-CP dated April 14, 1999 on foreign investment by Vietnamese enterprises, also enjoy certain incentives stipulated in Articles 3 and 4 of this Decision.
Article 3
1. When determining the corporate income tax payable in Vietnam for overseas oil and gas projects, the enterprise may deduct the corporate income tax paid abroad or paid on behalf of the enterprise by the host country (with valid documentation), but the amount deducted shall not exceed the corporate income tax calculated at the rate specified in Clause 3, Article 10 of the Corporate Income Tax Law dated May 10, 1997.
2. Individuals working for oil and gas projects must pay personal income tax according to the provisions of the law. When determining the personal income tax payable in Vietnam, the individual may deduct the personal income tax paid abroad or paid on behalf of the individual by the host country (with valid documentation), but the amount deducted shall not exceed the personal income tax payable according to the provisions of Vietnamese law on personal income tax for high-income individuals.
3. Equipment, means of transport, materials, raw materials, and fuel subject to export tax and value-added tax when exported abroad for the purpose of implementing overseas oil and gas projects shall be exempt from export tax and shall be subject to a zero (0%) value-added tax rate.
Specimens and technical documents (magnetic tapes, paper tapes, etc.) imported for the purpose of research and analysis to implement oil and gas projects shall be exempt from import tax and shall not be subject to value-added tax.
Specialized equipment and materials for oil and gas operations that are not produced domestically, when temporarily imported for processing and then re-exported for the purpose of implementing oil and gas projects, shall be exempt from import tax, export tax, and shall not be subject to value-added tax.
Article 4
1. After fulfilling all tax obligations as prescribed by the Vietnamese State, enterprises conducting oil and gas projects abroad may use post-tax profits for reinvestment abroad consistent with the content and objectives of the approved oil and gas project, but must register with the State Bank of Vietnam and report periodically to the Ministry of Planning and Investment on the use of post-tax profits for reinvestment abroad.
2. In cases where the foreign currency balance on the enterprise's account is insufficient to meet the project's approved progress, the enterprise may purchase the required additional foreign currency from authorized foreign exchange banks in Vietnam.
3. Interest on bank loans for overseas investments may be deducted when calculating corporate income tax.
Article 5. THIS DECISION SHALL TAKE EFFECT 15 DAYS AFTER THE DATE OF SIGNATURE.
Article 6. Ministers, heads of ministerial-level agencies, heads of government agencies, and Chairpersons of Provincial People's Committees and Municipal People's Committees directly under the Central Government shall be responsible for enforcing this Decision.
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