Circular No. 18/2008/TT-BTC guiding the financial regime and customs procedures applicable to the Southeast Nghe An Economic Zone, Nghe An Province.

CIRCULAR

Guidelines on financial regime and customs procedures applicable to the Southeast Nghe An Economic Zone

Pursuant to the State Budget Law;

Pursuant to laws and ordinances on taxes, fees, and charges;

Pursuant to Decision No. 85/2007/QD-TTg dated June 11, 2007 of the Prime Minister on the establishment and issuance of regulations for the operation of the Southeast Nghe An Economic Zone, Nghe An Province;

After receiving the unified opinion of the People's Committee of Nghe An Province in Circular No. 7551/UBND-TM dated November 16, 2006, the Ministry of Finance issues guidelines on the financial regime and customs procedures applicable to the Southeast Nghe An Economic Zone as follows:

This technical regulation sets out technical requirements, testing methods, sampling procedures; management requirements; responsibilities of organizations and individuals producing, trading, and importing cigarettes.

1. Scope of application

The financial regime and customs procedures stipulated in this Circular (hereinafter referred to as the financial regime) shall be applied within the territory of the Southeast Nghe An Economic Zone, Nghe An Province (hereinafter referred to as the Southeast Nghe An Economic Zone).

The financial regime stipulated in this Circular shall only apply to business activities conducted within the territory of the Southeast Nghe An Economic Zone. In cases where organizations and individuals conduct business activities both within the territory of the Southeast Nghe An Economic Zone and within the domestic territory of Vietnam, they must separately account for their business activities within the territory of the Southeast Nghe An Economic Zone as the basis for determining the applicable financial regime. Separate accounting shall be carried out in accordance with the provisions of the law on accounting. Separate accounting of income, revenue, and expenses to determine corporate income tax shall be carried out in accordance with the provisions of the law on corporate income tax (accounting based on production and business operations registered and declared for corporate income tax).

Foreign-invested enterprises and foreign parties participating in joint venture contracts that have been granted investment licenses; domestic business establishments that have been granted Investment Preference Certificates at the Southeast Nghe An Economic Zone before the effective date of Decision No. 85/2007/QD-TTg dated June 11, 2007 of the Prime Minister (hereinafter referred to as Decision No. 85/2007/QD-TTg) but have not yet fully enjoyed preferential policies shall enjoy preferential policies as prescribed in this Circular for the remaining preferential period. In cases where projects have higher preferential levels than those prescribed in this Circular, they shall continue to implement preferential policies according to the Investment License for the remaining project period.

Thông tư này áp dụng đối với tổ chức, cá nhân có liên quan đến hoạt động kinh doanh đối tượng thủy sản nuôi chủ lực trên lãnh thổ Việt Nam.

The objects subject to this Circular are investors belonging to various economic sectors operating in accordance with the Investment Law, Enterprise Law, Cooperative Law, individual business households, and independent practitioners, as well as organizations and individuals engaged in business activities in accordance with the law in Vietnam.

In this technical regulation, the following terms are understood as follows:

In this Circular, the following terms are understood as follows:

a) Duty-free zone: is a geographic area separated by a solid fence from other functional zones of the Southeast Nghe An Economic Zone as provided for in Article 7, Article 8 of Decision No. 85/2007/QD-TTg.

b) Domestic Vietnam: includes functional zones within the Southeast Nghe An Economic Zone and the remainder of the territory of Vietnam (excluding non-tariff zones as defined in Clause 1, Article 5 of the Law on Export Duties and Import Duties 2005, Clause 2, Article 1 of Decree No. 149/2005/NĐ-CP dated December 8, 2005, hereinafter referred to as other non-tariff zones).

c) Customs control gate: The non-tariff zone has two customs control gates: Gate A at the junction between the non-tariff port and the sea; Gate B at the junction between the non-tariff port and the domestic territory.

d) List of goods originating from the non-tariff zone: Is a list of goods issued periodically by the Management Board of the Southeast Nghe An Economic Zone (hereinafter referred to as the Management Board), including goods produced, processed, recycled, or assembled in the non-tariff zone without using imported raw materials or components from abroad.

4. Conditions for applying the financial regime and customs procedures related to the non-tariff zone

Financial mechanisms prescribed for the non-tariff zone within the Southeast Nghe An Economic Zone shall only be applied when the non-tariff zone satisfies the following conditions simultaneously:

- Having a solid fence ensuring isolation of activities within the non-tariff zone from other functional zones within the Southeast Nghe An Economic Zone;

- There being no residential areas or permanent or temporary residents (including foreigners) within the non-tariff zone;

- Having a customs office to perform customs functions and duties as prescribed in the Customs Law for goods and means of transport entering and leaving the non-tariff zone.

5. Some general provisions on customs procedures for the non-tariff zone

5.1 Organizations and individuals operating within the non-tariff zone may export to and import from abroad all goods and services not prohibited by Vietnamese law. Policies on export and import items shall be implemented in accordance with the Prime Minister's regulations on the management of export and import goods and guiding documents of the Ministry of Industry and Trade and relevant ministries.

5.2 Every six months, non-tariff zone enterprises are responsible for submitting to the customs authority and the Management Board of the Southeast Nghe An Economic Zone reports on the settlement of exported and imported goods for the period and stocktaking reports. The customs authority will check and reconcile to verify the amounts of taxes due and send them to the Tax Department where the domestic enterprise's headquarters is located if necessary.

5.3 Goods, luggage for export, import, transit; means of transport for departure, entry, transit through the non-tariff zone shall be subject to customs procedures according to the type of goods or means of transport.

5.4 Goods for export, import, transit; means of transport for departure, entry, transit through the non-tariff zone shall only pass through and complete customs procedures at Gate A and Gate B as prescribed in the circulars of the Ministry of Finance on customs procedures, inspection, and supervision.

6. Principles of investment incentives

Investment projects in the Southeast Nghe An Economic Zone shall enjoy maximum incentives for projects in areas with particularly difficult socio-economic conditions as prescribed by laws on investment, corporate income tax, value-added tax, and incentives under international treaties and agreements to which Vietnam is a party..

In cases where legal normative documents provide different levels of incentives for the same issue, the higher-ranking legal document's incentive level shall be applied.

Where legal normative documents issued by the same authority provide different regulations on the same issue, the regulation of the later-issued document shall be applied.

II. SPECIFIC PROVISIONS

1. Tax policy for the Southeast Nghe An Economic Zone

1.1. Corporate Income Tax

1.1.1 Investment projects of domestic and foreign organizations and individuals to establish new production and business establishments in the Southeast Nghe An Economic Zone shall enjoy a corporate income tax rate of 10% for 15 years from the date the investment project commences operations; they shall be exempted from corporate income tax for 04 years from the date taxable income begins; and shall have their corporate income tax reduced by 50% for the next 09 years.

1.1.2 Investment projects of domestic and foreign organizations and individuals in the Southeast Nghe An Economic Zone in high-tech fields meeting the provisions of Clause 2, Article 5 of Decree No. 99/2003/ND-CP dated August 28, 2003 of the Government on the issuance of the High-Tech Zone Regulation; large-scale investment projects of domestic and foreign organizations and individuals in the Southeast Nghe An Economic Zone with significant importance to industry development, sectoral development, or regional economic and social development, approved by the Prime Minister; and investment projects for constructing and operating non-tariff zone infrastructure shall enjoy a corporate income tax rate of 10% throughout the implementation period of the project.

1.1.3 Production and business establishments investing in building new production lines, expanding scale, updating technology, improving ecological environment, and enhancing production capacity shall comply with current laws.

1.1.4 Income subject to corporate income tax from land use rights transfer and land lease rights transfer shall be taxed according to Decree No. 24/2007/NĐ-CP dated February 14, 2007 of the Government detailing corporate income tax and guiding documents.

1.1.5 During operation, if a loss occurs after settlement with the tax authority, the enterprise may carry forward the loss to subsequent years to offset against taxable income, while simultaneously notifying the tax authority in writing at the time of annual corporate income tax declaration. The loss carry-forward period shall not exceed five years.

1.1.6 To implement corporate income tax incentives, organizations and individuals with investment projects in the Southeast Nghe An Economic Zone must submit copies of the Business Registration Certificate (for domestic enterprises) or Investment License (for foreign-invested enterprises) to the tax authority where the enterprise declares and pays taxes.

1.1.7 Enterprises are responsible for registering with the tax authority where the enterprise declares and pays taxes regarding the period of corporate income tax exemption and reduction mentioned herein. The corporate income tax incentives and loss carry-forward mentioned above shall only apply to production and business establishments that have fully complied with financial-accounting systems and declared and paid taxes according to declarations.

1.2. Personal Income Tax for High-Income Individuals

1.2.1 Workers (including both Vietnamese and foreign nationals) working in the Southeast Nghe An Economic Zone shall have their personal income tax (hereinafter referred to as PIT) reduced by 50% for high-income individuals.

1.2.2 Declaration, payment, and settlement of PIT shall be carried out in accordance with current guiding documents of the law on PIT. When declaring and temporarily paying PIT, the payer of income shall deduct 50% of the PIT due monthly for workers employed in the Southeast Nghe An Economic Zone.

1.2.3 For Vietnamese and foreign workers employed in the Southeast Nghe An Economic Zone for less than one year (12 months), the amount of PIT reduction during employment in the Southeast Nghe An Economic Zone is determined as follows:

a. For Vietnamese workers:

Monthly, the income payer temporarily deducts 50% of the PIT due. At the end of the year, the PIT due for the entire year and the PIT reduction for the year are calculated using the following formula:

Among which, the PIT due for the year is determined based on the total taxable income during employment in the Southeast Nghe An Economic Zone and taxable income during employment outside the Southeast Nghe An Economic Zone.

b. For foreign workers:

- If they are non-residents, the amount of tax due is determined as follows:

PIT due = Total taxable income × 25% × 50%.

- If they are residents, the income payer temporarily deducts 50% of the PIT due monthly. At the end of the year, the PIT due for the entire year and the PIT reduction are calculated. The PIT reduction for the year is calculated according to the formula specified in point 1.2.3.a above.

c. The PIT reduction stipulated in this Circular does not apply to occasional income.

1.3. Export Tax, Import Tax

1.3.1 Goods exported or imported under the following circumstances are not subject to export tax or import tax:

- Goods exported from the Non-Tariff Zone to other countries; Goods imported from other countries into the Non-Tariff Zone and solely used within the Non-Tariff Zone;

- Goods transferred from or sold to other Non-Tariff Zones from the Non-Tariff Zone and vice versa.

- Other goods not subject to export tax according to current laws when brought into the Non-Tariff Zone.

1.3.2 Goods subject to export tax originating from Vietnam and entering the Non-Tariff Zone must pay export tax and follow current export procedures.

1.3.3 Goods imported from the Non-Tariff Zone into Vietnam's mainland must pay import tax according to the following rules:

- Goods with foreign origin must pay import tax according to current regulations.

- Goods produced, processed, recycled, or assembled in the Duty-Free Zone shall be subject to the preferential import tariff rate under the CEPT if they meet the current conditions.

- Goods listed in the Origin List of the Duty-Free Zone brought into the domestic market are exempt from import tax.

- Goods produced, processed, recycled, or assembled in the Duty-Free Zone within the Southeast Nghe An Economic Zone using imported raw materials and components directly from abroad (excluding goods imported from the domestic market of Vietnam that use imported raw materials and components), when imported into the domestic market of Vietnam, only need to pay import tax on the portion of imported raw materials and components constituting the goods.

The basis for determining the import tax payable on the portion of imported raw materials and components constituting the goods imported into the domestic market of Vietnam is: The taxable value is calculated according to the guidelines of the Ministry of Finance for determining the customs value of exported and imported goods; The quantity of goods imported into the domestic market of Vietnam; The import tax rate applicable to each type of raw material and component. The taxable value and tax rate are applied at the time of filing the import declaration.

Enterprises and individuals with production and business establishments in the Duty-Free Zone are responsible for registering with the Customs Authority regarding the list of imported goods used as raw materials for producing goods imported into the domestic market and the quota of raw materials and components used to produce imported goods before importing them into the domestic market, in accordance with the requirements of the Customs Authority. In cases where the requirements of the Customs Authority regarding the registration of the list of imported goods used as raw materials for producing goods imported into the domestic market and the quota of raw materials and components used to produce imported goods before importing them into the domestic market are not met, the provisions of Circular No. 59/2007/TT-BTC dated June 14, 2007, issued by the Ministry of Finance, guiding the implementation of the Law on Export Tax, Import Tax, and Management of Taxes on Exported and Imported Goods, shall apply.

1.3.4 Investment projects for production in the Southeast Nghe An Economic Zone by domestic and foreign organizations and individuals are exempt from import tax on raw materials for production, spare parts, and semi-finished products that have not yet been produced domestically for five years, starting from the date of commencement of production.

Procedures, documents for tax exemption, declaration, and settlement of import tax in this case shall be carried out in accordance with the Law on Export Tax and Import Tax; Decree No. 149/2005/NĐ-CP dated December 8, 2005, and other guiding documents for this Decree.

1.3.5 Domestic and foreign organizations and individuals engaged in production and business activities in the Duty-Free Zone importing raw materials for production, spare parts, and goods from abroad but not fully utilized, and by-products still having commercial value are permitted to sell into the domestic market of Vietnam after completing customs procedures and must pay import tax according to current regulations.

1.4. Special Consumption Tax

1.4.1 Goods and services subject to special consumption tax produced, consumed, or imported from abroad into the Duty-Free Zone and vice versa are exempt from special consumption tax. However, passenger cars with less than 24 seats must pay special consumption tax according to the general current regulations.

1.4.2 Goods and services subject to special consumption tax exported from the domestic market of Vietnam to the Duty-Free Zone are exempt from special consumption tax. However, passenger cars with less than 24 seats must pay special consumption tax according to the general current regulations.

1.4.3 Goods and services subject to special consumption tax transferred from or sold to other Duty-Free Zones and vice versa are exempt from special consumption tax.

1.4.4 Goods subject to special consumption tax imported from the Duty-Free Zone into the domestic market of Vietnam must pay special consumption tax on imported goods according to current regulations.

1.5. Value Added Tax

Enterprises in the Southeast Nghe An Economic Zone may use value-added tax invoices according to current regulations, and implement registration, declaration, and payment of value-added tax in accordance with the provisions of this Circular for cases where value-added tax is paid according to these provisions. For cases where goods are not subject to value-added tax, the value-added tax line in the value-added tax invoice shall be crossed out (x). Specifically, as follows:

1.5.1 Goods and services produced and consumed in the Duty-Free Zone and imported from abroad into the Duty-Free Zone and vice versa are exempt from value-added tax.

1.5.2 Goods and services transferred from or sold to export processing zones and vice versa in the Duty-Free Zone are exempt from value-added tax.

1.5.3 Goods and services exported from the domestic market of Vietnam to the Duty-Free Zone are subject to a zero percent value-added tax rate.

1.5.4 Goods and services imported from the Duty-Free Zone into the domestic market of Vietnam must pay value-added tax on imported goods at the applicable rates according to current regulations. Specifically, enterprises in the Duty-Free Zone when selling to enterprises, organizations, or individuals in the domestic market of Vietnam issue invoices without value-added tax, crossing out the tax rate and value-added tax lines. Enterprises, organizations, or individuals in the domestic market (or enterprises in the Duty-Free Zone in the Southeast Nghe An Economic Zone in cases where they bring goods into the domestic market for sale themselves) only need to pay value-added tax on imported goods based on the customs declaration when handling import procedures into the domestic market.

1.6. Regarding prices, fees, and other taxes:

1.6.1 Land rental prices, prices for subleasing land for land that has been developed with infrastructure, and fees for using infrastructure works, service facilities, and public utilities in the Southeast Nghe An Economic Zone are determined by infrastructure businesses after negotiating with the Management Board of the Southeast Nghe An Economic Zone.

1.6.2 The Management Board of the Southeast Nghe An Economic Zone shall collect fees for the use of infrastructure works and public utilities within the Southeast Nghe An Economic Zone in accordance with current laws to cover expenses for maintenance, repair, protection of infrastructure, and management costs as approved by the competent authority. The collection and expenditure of fees for the use of infrastructure works and public utilities within the Southeast Nghe An Economic Zone shall be carried out in accordance with current laws.

1.6.3 Types of taxes, fees, and other charges shall be implemented in accordance with current provisions in the Laws and Ordinances on taxes, fees, charges, the Investment Law, and guiding legal documents.

2. Customs procedures for goods entering and exiting the Non-Tariff Zone

2.1. For goods imported from abroad into the Non-Tariff Zone

2.1.1 Importing into the Non-Tariff Zone through Gate A:

- Organizations and individuals engaged in production and business importing goods are responsible for declaring customs, submitting customs documents in accordance with current regulations for each type of import as stipulated in Clause 5, Section I of this Circular.

- The customs office at Gate A shall handle necessary procedures in accordance with current regulations for each type of goods.

2.1.2 Importing into the Non-Tariff Zone through Gate B: Implementation shall follow current regulations regarding goods imported through border gates.

2.2. For goods imported from abroad into Vietnam's domestic market through Gate A and goods exported from the domestic market to abroad through Gate A: Implementation shall follow current regulations.

2.3. For goods exported from the domestic market into the Non-Tariff ZoneFor power plants invested under the Build-Operate-Transfer (BOT) model, n is determined according to the operational period of the power plant stipulated in the BOT contract.

2.3.1 In cases where organizations and individuals engaged in production and business in the domestic market register customs procedures at the Non-Tariff Zone Customs Office, they are responsible for declaring customs, submitting customs documents in accordance with regulations for each type of export. In cases where goods are internally transported between enterprises within and outside the Non-Tariff Zone, sales contracts may be replaced by warehouse release documents. The Non-Tariff Zone Customs Office shall fulfill all export customs procedures for organizations and individuals engaged in production and business in the domestic market in accordance with regulations for each type of export.

2.3.2 In cases where organizations and individuals engaged in production and business in the domestic market declare export declarations at the Domestic Customs Branch: Customs procedures shall be carried out in accordance with current regulations for goods exported through border gates. The Non-Tariff Zone Customs Office shall perform the duties of the exporting border gate customs office for goods exported through border gates, except for confirming actual export (actual export confirmation shall be carried out in accordance with current regulations).

2.4. For goods exported from the Non-Tariff Zone to foreign countries

2.4.1 Through Gate B: Implementation shall follow current regulations for goods exported through border gates.

2.4.2 Through Gate A: Registration for customs procedures must be made at the customs office at Gate A. The Non-Tariff Zone Customs Office shall carry out customs procedures for exported goods in accordance with current regulations.

2.5. For goods brought into the domestic market from the Non-Tariff Zone

2.5.1. For goods listed in the Export Origin Goods List that are exempted from customs procedures but must be declared in quantity on the customs declaration form to the customs authority and subject to supervision by the customs authority. If foreign goods are found to have been brought into the Non-Tariff Zone for continued importation into the domestic market and are of the same type as those listed in the Export Origin Goods List announced by the Management Board of the Southeast Nghe An Economic Zone, but the enterprise has not declared customs, then the Non-Tariff Zone Customs Office shall require the presentation of proof of origin for the consignment; proceed to handle the violation and complete the import procedures for the consignment in accordance with the law; and simultaneously inform the Management Board of the Southeast Nghe An Economic Zone so that appropriate measures can be taken to manage or exclude such goods from the Export Origin Goods List.

2.5.2. For other goods, full customs procedures must be completed as follows:

- Organizations and individuals engaged in production and business in the Non-Tariff Zone (seller) are responsible for providing organizations and individuals engaged in production and business in the domestic market (buyer) with all required documents, invoices, and papers according to the customs authority's regulations so that domestic enterprises can declare customs, submit customs documents in accordance with regulations for each type of import at the Non-Tariff Zone Customs Office.

- The Non-Tariff Zone Customs Office is responsible for handling customs procedures for imported goods of domestic enterprises in accordance with regulations.

2.6. For processed goods

Customs procedures for goods processed by organizations and individuals engaged in production and business in the Non-Tariff Zone for foreign traders or hired from organizations and individuals engaged in production and business in the domestic market, and vice versa, shall be carried out in accordance with current regulations.

2.7. Temporary export-reimport; temporary import-reexport; transshipment; transit and transportation

Goods for export, import, transit, means of transport for exit, entry, transit, and means of transport transporting goods into and out of the Non-Tariff Zone can only pass through gates equipped with customs checkpoints. Customs procedures for temporary export-reimport; temporary import-reexport; transshipment; transit and transportation within the Non-Tariff Zone shall be carried out in accordance with current regulations.

2.8. In addition to the guidelines set forth in this Circular, enterprises must comply with other obligations prescribed in the Customs Law, the Law on Export Duties and Import Duties, and other guiding documents on customs.

3. Reward system for persons who contribute to attracting investment capital both domestically and internationally

3.1. BASED ON THE BUDGET CAPACITY AND THE EFFECTIVENESS OF RAISING INVESTMENT FUNDS, THE CHAIRMAN OF THE PROVINCE PEOPLE'S COMMITTEE OF NGHE AN DECIDES TO AWARD ORGANIZATIONS AND INDIVIDUALS WHO HAVE CONTRIBUTED TO RAISING OFFICIAL DEVELOPMENT ASSISTANCE FUNDS, PROMOTING FOREIGN DIRECT INVESTMENT PROJECTS, AND DOMESTIC INVESTMENT PROJECTS INTO THE EASTERN NGHE AN ECONOMIC ZONE (EXCLUDING FUNDS FROM THE STATE BUDGET) AFTER CONSULTATION WITH THE MINISTRY OF FINANCE ACCORDING TO THE PRINCIPLE THAT AWARDS FOR NON-REPAYABLE INVESTMENT FUNDS RAISING ARE HIGHER THAN OTHER TYPES OF FUNDS RAISING. THE AWARD PAYMENTS SHALL BE IMPLEMENTED AFTER THE PROJECTS BEGIN OPERATING, HAVE PRODUCTS CIRCULATING IN THE MARKET, AND THE INVESTORS HAVE CONTRIBUTED AT LEAST 50% OF THE LEGAL CAPITAL AS COMMITTED.

3.2. EXPENSES USED TO AWARD ORGANIZATIONS AND INDIVIDUALS WHO HAVE CONTRIBUTED TO RAISING INVESTMENT FUNDS (EXCLUDING FUNDS FROM THE STATE BUDGET) TO INVEST IN ECONOMIC AND SOCIAL PROJECTS IN THE EASTERN NGHE AN ECONOMIC ZONE ARE DRAWN FROM THE LOCAL BUDGET AWARD FUNDS AND ACCOUNTED FOR AS UNEXPECTED AWARD EXPENSES.

4. INCENTIVE REGIME FOR INFRASTRUCTURE DEVELOPMENT

4.1. SUPPORT FOR INVESTMENT FROM THE STATE BUDGET TO BUILD INFRASTRUCTURE

4.1.1 SCOPE AND OBJECTS OF INVESTMENT FROM THE STATE BUDGET (STATE BUDGET)

- THE STATE BUDGET WILL SUPPORT INVESTMENT IN THE CONSTRUCTION OF TECHNICAL AND SOCIAL INFRASTRUCTURE PROJECTS AND IMPORTANT PUBLIC SERVICES AND UTILITIES TO SERVE THE ENTIRE EASTERN NGHE AN ECONOMIC ZONE ACCORDING TO THE PROGRAMS AND TARGETS APPROVED BY THE AUTHORIZED AUTHORITIES. THE STATE BUDGET WILL ONLY SUPPORT THE CONSTRUCTION OF COMMON INFRASTRUCTURE PROJECTS FOR THE ENTIRE EASTERN NGHE AN ECONOMIC ZONE, EXCLUDING INFRASTRUCTURE PROJECTS SPECIFICALLY FOR EACH FUNCTIONAL AREA WITHIN THE ZONE, EXCEPT FOR THE SUPPORT OF WASTE WATER AND SOLID WASTE TREATMENT PROJECTS FOR THE FUNCTIONAL AREAS AND COMPENSATION AND LAND ACQUISITION IN THE FUNCTIONAL AREAS AND RELOCATION FOR FAMILIES WHOSE LAND IS BEING ACQUIRED.

- THE SUPPORT FOR INVESTMENT FROM THE STATE BUDGET TO BUILD INFRASTRUCTURE IN THE EASTERN NGHE AN ECONOMIC ZONE SHALL BE IMPLEMENTED ACCORDING TO THE PROJECTS THAT ARE CONSISTENT WITH THE APPROVED PLANS.

- THE MANAGEMENT BOARD OF THE EASTERN NGHE AN ECONOMIC ZONE IS THE LOCAL PLANNING COORDINATION BODY RESPONSIBLE FOR BALANCING THE BASIC CONSTRUCTION FUNDS FROM THE STATE BUDGET TO BUILD INFRASTRUCTURE IN THE EASTERN NGHE AN ECONOMIC ZONE; IT IS THE DIRECT INVESTOR MANAGING THE INFRASTRUCTURE CONSTRUCTION PROJECTS FUNDED BY THE STATE BUDGET WITHIN THE ZONE ACCORDING TO THE CURRENT STATE INVESTMENT CONSTRUCTION MANAGEMENT REGULATIONS.

4.1.2 SUPPORT FOR INVESTMENT FROM THE STATE BUDGET TO BUILD INFRASTRUCTURE

- ANNUALLY, BASED ON THE APPROVED ECONOMIC AND SOCIAL INFRASTRUCTURE INVESTMENT PROJECTS, THE PROGRESS OF THE PROJECTS, AND THE CENTRAL BUDGET, THE SUPPLEMENTARY BUDGET FOR THE NGHE AN PROVINCE BUDGET TO INVEST IN THE INFRASTRUCTURE PROJECTS OF THE EASTERN NGHE AN ECONOMIC ZONE SHALL BE IMPLEMENTED ACCORDING TO THE STATE BUDGET LAW.

- THE CENTRAL BUDGET SUPPORT FUNDS FOR THE NGHE AN PROVINCE BUDGET TO INVEST IN ECONOMIC AND SOCIAL INFRASTRUCTURE PROJECTS, PUBLIC SERVICES, AND UTILITIES IN THE EASTERN NGHE AN ECONOMIC ZONE SHALL BE CLEARLY STATED IN THE STATE BUDGET ALLOCATION TO THE NGHE AN PROVINCE. ALONG WITH THE CENTRAL BUDGET SUPPORT, THE NGHE AN PROVINCE ANNOUNCES THE ANNUAL LOCAL BUDGET ALLOCATION TO INVEST IN ECONOMIC AND SOCIAL INFRASTRUCTURE PROJECTS, PUBLIC SERVICES, AND UTILITIES IN THE EASTERN NGHE AN ECONOMIC ZONE ACCORDING TO POINT 4.1.1 OF THIS CLAUSE.

4.1.3 ANY NEW REVENUES GENERATED IN THE AREA SHALL BE SUBMITTED TO THE STATE BUDGET. THE DIVISION OF REVENUE BETWEEN THE CENTRAL BUDGET AND THE LOCAL BUDGET SHALL BE ACCORDING TO THE CURRENT LAWS.

4.1.4 MANAGEMENT AND USE OF FUNDS SUPPORTED BY THE STATE BUDGET FOR INFRASTRUCTURE CONSTRUCTION IN THE EASTERN NGHE AN ECONOMIC ZONE:

FUNDS SUPPORTED BY THE STATE BUDGET FOR INFRASTRUCTURE CONSTRUCTION IN THE EASTERN NGHE AN ECONOMIC ZONE SHALL BE MANAGED AND USED ACCORDING TO THE CURRENT REGULATIONS ON BASIC CONSTRUCTION INVESTMENT MANAGEMENT, THE STATE BUDGET LAW, AND THE GUIDELINES. THE BUDGET ESTIMATION SHALL BE IMPLEMENTED ACCORDING TO THE STATE BUDGET LAW.

4.2. REGIME FOR USING LAND FUNDS TO CREATE CAPITAL FOR INFRASTRUCTURE DEVELOPMENT

THE MANAGEMENT BOARD IS RESPONSIBLE FOR SETTING ANNUAL PLAN QUOTAS AND MANAGING THE PROJECTS USING FUNDS FROM THE LAND FUND IN THE EASTERN NGHE AN ECONOMIC ZONE; IT ORGANIZES TENDERING TO SELECT COMPANIES WITH SUFFICIENT FINANCIAL CAPABILITY, EXPERIENCE, AND CREDIBILITY TO IMPLEMENT INFRASTRUCTURE PROJECTS FUNDED BY THE LAND FUND IN THE EASTERN NGHE AN ECONOMIC ZONE.

THE MANAGEMENT BOARD PREPARES A LIST OF INFRASTRUCTURE CONSTRUCTION PROJECTS USING THE LAND FUND TO CREATE CAPITAL AND THE AREA OF LAND USED TO CREATE CAPITAL FOR THE PROJECTS AND SENDS IT TO THE DEPARTMENT OF FINANCE AND THE DEPARTMENT OF PLANNING AND INVESTMENT FOR COMBINED REPORTING ACCORDING TO THE STATE BUDGET LAW SO THAT THE PROVINCE PEOPLE'S COMMITTEE OF NGHE AN CAN SUBMIT TO THE PROVINCE PEOPLE'S COUNCIL FOR DECISION WITHIN ITS AUTHORITY.

BASED ON THE LOCAL LAND USE PLAN, THE ABILITY TO COLLECT LAND USE FEES AND RENT FROM AUCTIONS, LAND USE FEES AND RENTS FROM NON-AUCTION SOURCES, AND THE NEEDS FOR COMPENSATION AND SUPPORT FOR THOSE WHOSE LAND IS BEING ACQUIRED AND THE NEEDS FOR INVESTMENT IN INFRASTRUCTURE PROJECTS FUNDED BY THE STATE BUDGET ACCORDING TO THE LAWS, THE PROVINCE PEOPLE'S COMMITTEE OF NGHE AN DIRECTS THE FINANCE DEPARTMENT TO COMPILE THESE TASKS INTO THE ANNUAL BUDGET PROPOSAL TO SUBMIT TO THE PROVINCE PEOPLE'S COUNCIL FOR DECISION.

BASED ON THE ANNUAL BUDGET DECISION MADE BY THE PROVINCE PEOPLE'S COUNCIL, THE PROVINCE PEOPLE'S COMMITTEE DIRECTS THE FINANCE DEPARTMENT TO COORDINATE WITH RELATED UNITS TO IMPLEMENT THE COLLECTION AND SPENDING FROM THE LAND USE FEES AND RENTS AND TO SETTLE THE ACCOUNTS INTO THE STATE BUDGET ACCORDING TO THE REGULATIONS.

IF ORGANIZATIONS AND INDIVIDUALS ADVANCE FUNDS TO IMPLEMENT COMPENSATION AND SUPPORT FOR THOSE WHOSE LAND IS BEING ACQUIRED TO INVEST IN INFRASTRUCTURE PROJECTS FUNDED BY THE STATE BUDGET, THEN LATER COLLECT LAND USE FEES AND RENTS THROUGH AUCTIONS, THE AMOUNT COLLECTED FROM THE LAND USE FEES AND RENTS MUST BE FULLY ACCOUNTED FOR AND SETTLED INTO THE STATE BUDGET ACCORDING TO THE CURRENT LAWS.

The use of land funds to create capital for constructing infrastructure in the Southeast Nghe An Economic Zone shall be carried out in accordance with Decree No. 181/2004/ND-CP dated October 29, 2004 of the Government on implementing the Land Law, Decree No. 17/2006/ND-CP dated January 27, 2006 of the Government amending and supplementing certain articles of decrees guiding the implementation of the Land Law, Decision No. 216/2005/QD-TTg dated August 31, 2005 of the Prime Minister on promulgating regulations on auctioning land use rights for transferring land with payment of land use fees or leasing land, and other relevant provisions of current laws.

4.3. Investment in infrastructure from ODA funds and other sources

Technical and social infrastructure works, necessary public utility services of the Southeast Nghe An Economic Zone, and other technical aids shall be prioritized for inclusion in the list of projects to call for ODA funding and may utilize other forms of capital mobilization as provided for in Article 21 of the Regulations of the Southeast Nghe An Economic Zone issued together with Decision No. 85/2007/QD-TTg.

5. Financial regime applicable to the Management Board of the Southeast Nghe An Economic Zone

5.1. The Management Board is a local budgetary unit. Operating expenses of the Management Board shall be guaranteed by the local budget and from other revenue sources as prescribed by current regulations. All revenues collected according to the regulations must be deposited into the State budget as stipulated.

5.2. The Management Board is permitted to collect various fees and charges corresponding to the tasks delegated by state management agencies as prescribed by current regulations. When authorized by a competent state agency to perform collection tasks, the Management Board shall have the responsibility to notify and register with the tax authority where the Management Board is located to handle procedures for depositing collected fees and charges due to performing delegated tasks.

III. IMPLEMENTATION

1. The People's Committee of Nghe An Province shall ensure that all conditions specified in Clause 4, Section I are met so that the Duty-Free Zone can apply the financial regime prescribed in this Circular. In cases where such conditions are not met, application shall not be allowed.

2. The General Department of Customs shall be responsible for:

- Formulating plans for organizing customs operations to fulfill customs functions and duties at the Duty-Free Zone.

- Guiding and inspecting the implementation of customs procedures and processes for goods entering and exiting the Duty-Free Zone.

3. The Provincial Customs Office of Nghe An Province shall be responsible for:

- Organizing anti-smuggling, anti-commercial fraud activities, and preventing illegal imports of goods from the Duty-Free Zone into Vietnam's mainland and other areas within its customs jurisdiction.

- Cooperating with the Management Board of the Southeast Nghe An Economic Zone and related agencies (Taxation, Police, Border Guard) to carry out anti-smuggling, anti-commercial fraud activities, and prevent illegal imports of goods from the Duty-Free Zone into Vietnam's mainland.

- Inspecting and supervising goods and transport vehicles, preventing smuggling and illegal transportation of goods across borders; organizing the implementation of tax laws for exported and imported goods; establishing customs stations as prescribed and appropriate to the geographical characteristics of the Duty-Free Zone to effectively fulfill assigned tasks.

4. The Provincial Tax Office of Nghe An Province shall be responsible for guiding enterprises to implement Point 1.1.6, Clause 1.1, Section II, of this Circular and other tax-related contents.

5. This Circular shall take effect fifteen days after its publication in the Official Gazette..

Any difficulties encountered during implementation should be reported to the Ministry of Finance for study and supplementary guidance.