Decision No. 16/2009/QD-TTg of the Government Chairman Issuing Certain Measures on Tax to Stimulate Investment and Consumption, Preventing Economic Downturn. Notably, it reduces the Value Added Tax (VAT) rate by 50% for many goods from February 2009 to the end of 2009.
Scope of application
Enterprises producing and trading in goods mentioned in the decision, taxpayers of corporate income tax.
Key points
- Enterprises producing coal, basic chemicals, automobiles, automobile parts, ships, molds, explosives, grinding wheels, particleboard, industrial concrete, tires and tire sets with sizes from 900-20 and above, neutral glass tubes, black metals, colored metals, precious metals (excluding imported gold), automatic data processing machines will be reduced by 50% in the VAT rate from February 2009 to the end of 2009.
- Enterprises producing mechanical products as production means, construction materials (bricks, tiles, lime, paint), construction, installation, hotel operation, tour package travel services, printing will have their corporate income tax payment extended for nine months in 2009.
- No export tax will be levied on wood products made from imported wood for customs declarations registered before December 1, 2008.
- Abolish the fixed export tax rates on rice, fertilizers, raw copper ore and refined copper ore, barite and apatite ores.
- The Decision takes effect from the date of issuance.
🌐 Social impact of this document
- Enterprises will reduce their tax burden, helping to improve financial conditions and promote business operations. This also contributes to stimulating consumption.
- Consumers may benefit from lower prices due to the reduction in the VAT rate.
❓ Frequently asked questions
Which enterprises will be eligible for a 50% reduction in the VAT rate?
Enterprises producing coal, basic chemicals, automobiles, automobile parts, ships, molds, explosives, grinding wheels, particleboard, industrial concrete, tires and tire sets with sizes from 900-20 and above, neutral glass tubes, black metals, colored metals, precious metals (excluding imported gold), automatic data processing machines will be eligible for a 50% reduction in the VAT rate from February 2009 to the end of 2009.
Which enterprises can extend their corporate income tax payment?
Enterprises producing mechanical products as production means, construction materials (bricks, tiles, lime, paint), construction, installation, hotel operation, tour package travel services, printing will be eligible to extend their corporate income tax payment for nine months in 2009.
Which enterprises are exempt from export tax?
Enterprises producing wood products from imported wood for customs declarations registered before December 1, 2008 will be exempt from export tax.
When does this Decision take effect?
The Decision takes effect from the date of issuance.
Are there any fixed export taxes that have been abolished?
Yes, the Decision has abolished the fixed export taxes on rice, fertilizers, raw copper ore and refined copper ore, barite and apatite ores.
Full text
Pursuant to …;
ISSUING CERTAIN TAX MEASURES TO IMPLEMENT THE POLICY OF STIMULATING INVESTMENT AND CONSUMPTION, PREVENTING ECONOMIC DECLINE,REMOVING DIFFICULTIES FOR ENTERPRISES
________________________
PRIME MINISTER
Pursuant to the Law on Organization of the Government dated December 25, 2001;
Pursuant to Resolution No. 21/2008/QH12 dated November 8, 2008 of the National Assembly on the State Budget for the year 2009;
Considering the proposal of the Minister of Finance,
DECISION:
Article 1. Reducing the value-added tax rate by 50% from February 1, 2009 to December 31, 2009 for the following goods and services:
1. Coal;
2. Basic chemicals; machinery products as production materials; all types of automobiles; automobile parts including engines, gearboxes, clutches, and components of these items; ships and boats; various molds; explosives; grinding wheels; artificial wood panels; prefabricated reinforced concrete products including prestressed concrete beams, reinforced concrete columns and beams, precast piles, reinforced concrete utility poles, round reinforced concrete pipes, various types of reinforced concrete boxes, non-standard reinforced concrete prefabricated components, ready-mixed concrete; tires and inner tubes with sizes from 900 - 20 and above; neutral glass tubes;
3. Steel, non-ferrous metals, precious metals products, except imported gold;
4. Automatic data processing machines and their parts and accessories;
5. Loading and unloading; dredging channels, rivers, inland ports, sea ports; salvage and rescue operations; transportation including cargo, baggage, passenger transport, tour transportation by air, road, rail, and waterways, excluding international transportation;
6. Hotel business; travel agency services;
7. Printing, except printing money.
Article 2. Extending the payment period for corporate income tax due in 2009 from the following activities for nine months:
1. Production of machinery products as production materials;
2. Production of construction materials including bricks, tiles, lime, paint;
3. Construction and installation;
4. Tourism services;
5. Grain trading;
6. Fertilizer trading.
Article 3.
1. Not collecting export tax on timber exported produced from imported timber for customs declarations of goods for export registered with the customs authority before December 1, 2008.
2. Abolishing Decisions of the Government: No. 104/2008/QĐ-TTg dated July 21, 2008 on the absolute export tax rate for rice and fertilizer exports, No. 119/2008/QĐ-TTg dated August 29, 2008 on the absolute export tax rate for raw copper and refined copper, No. 129/2008/QĐ-TTg dated September 19, 2008 on the absolute export tax rate for barite and apatite ores.
Article 4. This Decision takes effect from the date of signature. The Ministry of Finance shall guide the implementation of this Decision.
Article 5. THE MINISTERS, HEADS OF GOVERNMENT-LEVEL MINISTRIES, HEADS OF GOVERNMENT-LEVEL AGENCIES, AND CHAIRMEN OF PROVINCE AND CITY PEOPLE'S COMMITTEES DIRECTLY UNDER THE CENTRAL GOVERNMENT SHALL BE RESPONSIBLE FOR ENFORCING THIS DECISION./.
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