Circular No. 143/1998/TT-BTC guides the tax treatment for imported raw materials and components used to produce export goods. This circular stipulates the scope of application and procedures for refunding taxes on types of components and raw materials that do not directly convert into products or form part of the physical product. At the same time, the circular also identifies imported labor tools that are not eligible for tax refunds.
Scope of application
Export production enterprises
Key points
- are eligible for tax refunds: Imported components and raw materials participating in the production process of export goods but do not directly convert into products or do not form part of the physical product.
- Conditions for eligibility for tax refunds: The enterprise must establish consumption quotas for each unit of product, and the enterprise director is responsible for these quotas.
- Imported labor tools not eligible for tax refunds: Cutting boards, sole pressing molds, shoe molds, pliers, scissors, sewing machine needles, technical documents, spare parts and accessories of machinery and equipment.
- Procedures for processing tax refunds: Implemented according to the provisions of Circular No. 53 TC/TCT dated July 13, 1995; Circular No. 84/1997/TT/BTC dated November 13, 1997; Circular No. 732 TC/TCT dated April 1, 1994 of the Ministry of Finance.
- Effective date: This circular takes effect fifteen days from the date of issuance.
🌐 Social impact of this document
- Positive impact: Helps enterprises save tax costs when using components and raw materials that do not directly convert into products.
- Negative impact: May cause difficulties in management and control during the production process of enterprises.
❓ Frequently asked questions
Which enterprises are eligible for this?
Export production enterprises.
What are the conditions for eligibility for tax refunds?
The enterprise must establish consumption quotas for each unit of product, and the enterprise director is responsible for these quotas.
Which labor tools are not eligible for tax refunds?
Cutting boards, sole pressing molds, shoe molds, pliers, scissors, sewing machine needles, technical documents, spare parts and accessories of machinery and equipment.
How are the procedures for processing tax refunds carried out?
Implemented according to the provisions of Circular No. 53 TC/TCT dated July 13, 1995; Circular No. 84/1997/TT/BTC dated November 13, 1997; Circular No. 732 TC/TCT dated April 1, 1994 of the Ministry of Finance.
When does this circular take effect?
This circular takes effect fifteen days from the date of issuance.
Full text
|
MINISTRY OF FINANCE ********
Number: 143/1998/TT-BTC |
SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness ******** Hanoi, November 2, 1998 |
CIRCULAR
Guidelines for handling import tax on materials and components imported for export production
Pursuant to the Law on Export Tax and Import Tax and the Government Decree No. 54/CP dated August 28, 1993 detailing the implementation of the Law on Export Tax and Import Tax and the Law amending and supplementing certain articles of the Law on Export Tax and Import Tax
Circular No. 53 TC/TCT dated July 13, 1995
Circular No. 84/1997/TT-BTC dated November 13, 1997 of the Ministry of Finance
After reaching consensus with the Ministry of Trade and the General Department of Customs
The Ministry of Finance supplements guidelines for handling tax refunds for materials and components imported for export production as follows:
1. Scope of application:
Materials and components imported for participation in the production process of export goods but not directly transformed into products or do not constitute part of the physical product, such as paper, chalk, drawing pens, marking pens, shirt buttons, ink for printing, brushes for applying glue, glue brushes, printing screens, erasers, polishing oil... shall be eligible for import tax refund if the enterprise establishes consumption quotas per unit of product and the enterprise director assumes responsibility for these quotas.
As for tools imported for use in producing export goods such as cutting boards, sole pressing molds, shoe molds, pliers, scissors, sewing machine needles, technical documents, spare parts and accessories of machinery and equipment, they are not eligible for consideration for import tax refund.
2. Implementation:
Authority and procedures for handling tax refunds shall be carried out in accordance with the provisions of Circular No. 53 TC/TCT dated July 13, 1995; Circular No. 84/1997/TT-BTC dated November 13, 1997; Circular No. 732 TC/TCT dated April 1, 1994 of the Ministry of Finance.
3. Effective period:
This Circular takes effect fifteen days from the date of issuance.
Previous guidance contents that differ from the guidance provided in this Circular are no longer in effect. Any difficulties encountered during implementation should be reported to the Ministry of Finance for timely resolution./.
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(Signed) Pham Van Trong |
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