Circular No. 22/2001/TT-BTC amends Circular No. 146/1999/TT-BTC dated December 17, 1999 of the Ministry of Finance guiding the implementation of tax exemption and reduction for investment beneficiaries under Decree No. 51/1999/ND-CP dated July 8, 1999 of the Government detailing the implementation of the Law on Encouraging Domestic Investment (amended) No. 03/1998/QH10.

CIRCULAR

OF THE MINISTRY OF FINANCE NUMBER 22/2001/TT-BTC DATE APRIL 3, 2001 REGARDING AMENDMENTS TO CIRCULAR NUMBER 146/1999/TT-BTC
DATE DECEMBER 17, 1999 OF THE MINISTRY OF FINANCE GUIDING IMPLEMENTATION
OF TAX EXEMPTIONS AND REDUCTIONS FOR ENTITIES ELIGIBLE FOR INVESTMENT INCENTIVES PURSUANT TO DECREE NUMBER 51/1999/NĐ-CP DATE JULY 8, 1999 OF THE GOVERNMENT DETAILING THE IMPLEMENTATION OF THE LAW ON ENCOURAGING DOMESTIC INVESTMENT (AMENDED) NUMBER 03/1998/QH10
PROMOTING DOMESTIC INVESTMENT (AMENDED) NUMBER 03/1998/QH10

- BASED ON CURRENT TAX LAWS AND TAX ORDINANCES;

- BASED ON DECREE NUMBER 44/1998/NĐ-CP DATE JUNE 29, 1998 OF THE GOVERNMENT ON CONVERTING STATE ENTERPRISES INTO JOINT STOCK COMPANIES;

- BASED ON DECREE NUMBER 51/1999/NĐ-CP DATE JULY 8, 1999 OF THE GOVERNMENT DETAILING THE IMPLEMENTATION OF THE LAW ON ENCOURAGING DOMESTIC INVESTMENT (AMENDED) NUMBER 03/1998/QH10;

- BASED ON DECREE NUMBER 103/1999/NĐ-CP DATE SEPTEMBER 10, 1999 OF THE GOVERNMENT ON TRANSFERRING, SELLING, CONTRACTING OUT, OR LEASING STATE ENTERPRISES;

The Ministry of Finance guides the implementation of tax incentives for entities eligible for investment incentives under the Law on Encouraging Domestic Investment as follows:

A - GENERAL PROVISIONS

I. This Circular applies to entities eligible for tax incentives under the Law on Encouraging Domestic Investment, including:

Businesses eligible for consideration for export labor activity permits include:

2. State enterprises converted into joint stock companies pursuant to Decree Number 44/1998/NĐ-CP dated June 29, 1998 of the Government on converting state enterprises into joint stock companies;

3. State enterprises transferred to labor collectives, sold to collectives, individuals, or legal persons pursuant to Decree Number 103/1999/NĐ-CP dated September 10, 1999 of the Government;

4. Joint stock companies, limited liability companies, and partnerships;

5. Private enterprises;

6. Cooperatives and cooperative unions;

7. Private educational and training institutions, private and public-private partnership cultural institutions, and private healthcare institutions established and operating legally in accordance with the law;

8. Enterprises of political organizations, political-social organizations, and professional associations that have registered their business operations in accordance with the law;

9. Individuals and business groups operating in accordance with Decree Number 66-HĐBT dated March 2, 1992 of the Council of Ministers and individual households registered for business operations in accordance with Decree Number 02/2000/NĐ-CP dated February 3, 2000 of the Government on business registration;

10. Vietnamese citizens, overseas Vietnamese, foreigners residing permanently in Vietnam, purchasing shares or contributing capital to Vietnamese enterprises.

II. Entities mentioned in Points 1, 2, 3, 4, 5, 6, 7, 8, and 9 of Section I above (collectively referred to as production and business establishments) with investment projects meeting the conditions regarding labor, industries, sectors, areas eligible for investment incentives, and having been granted an investment incentive certificate shall enjoy tax incentives, land use fees, and land rental fees (collectively referred to as tax incentives) according to the guidance provided in Part B of this Circular when:

- Operating within the registered industry;

- Having registered for tax payment with the tax authority;

- Complying fully with laws on accounting and statistics.

B. TAX INCENTIVES

I. TAX RATE ON CORPORATE INCOME TAX

1. Scope of application:

Entities mentioned in Points 1, 2, 3, 4, 5, 6, 7, 8, and 9 of Section I of Part A of this Circular shall enjoy corporate income tax rate incentives as stipulated in Article 20 of Decree Number 51/1999/NĐ-CP at the following preferential tax rates:

2. Preferential corporate income tax rate:

2.1. A tax rate of 25% for projects investing in industries listed in Appendix A attached to Decree Number 51/1999/NĐ-CP;

2.2. A tax rate of 25% for projects investing in areas listed in Appendix B attached to Decree Number 51/1999/NĐ-CP;

2.3. A tax rate of 20% for projects investing in industries listed in Appendix A and located in areas listed in Appendix B attached to Decree Number 51/1999/NĐ-CP;

2.4. A tax rate of 20% for projects investing in areas listed in Appendix C attached to Decree Number 51/1999/NĐ-CP;

2.5. A tax rate of 15% for projects investing in industries listed in Appendix A and located in areas listed in Appendix C attached to Decree Number 51/1999/NĐ-CP.

Production and business establishments mentioned in Point 1 of Section I of Part B of this Circular, in addition to industries enjoying preferential corporate income tax rates, may also engage in other industries. Such establishments must separately account for and declare the taxable income from industries enjoying preferential tax rates and other industries, and pay corporate income tax at the applicable rates for each industry. If an establishment cannot separately account for the taxable income from different industries with varying tax rates, then all income must be declared and taxed at the highest corporate income tax rate applicable to the establishment as stipulated in the Corporate Income Tax Law.

For production and business establishments implementing expansion or deepening investment projects, the preferential corporate income tax rates specified in Point 2 of Section I of Part B of this Circular shall apply during the period of tax exemption or reduction and only to the additional income generated from such investments. After this period, all income from the expanded or deepened investment projects must be declared and taxed at the rates specified in the Corporate Income Tax Law.

II. TIME PERIOD AND LEVELS OF EXEMPTIONS AND REDUCTIONS FOR VARIOUS TAXES

1. Corporate Income Tax

1.1. For new production and business establishments set up through investment projects:

a. Applicable entities.

New production and business establishments established through investment projects, state enterprises converted into joint stock companies pursuant to Decree Number 44/1998/NĐ-CP dated June 29, 1998 of the Government, state enterprises transferred to labor collectives, state enterprises sold to collectives, individuals, or legal persons pursuant to Decree Number 103/1999/NĐ-CP dated September 10, 1999 of the Government shall be exempted or reduced from corporate income tax according to the provisions of Article 21 of Decree Number 51/1999/NĐ-CP for the time periods and at the levels of incentives as follows:

b. Period and amount of tax exemption, reduction:

- Exempted for two years from the year when taxable income begins to be generated, and reduced by 50% of the tax payable for the next two years for projects meeting one condition specified in Article 15 of Decree No. 51/1999/NĐ-CP;

- Exempted for two years from the year when taxable income begins to be generated, and reduced by 50% of the tax payable for the next four years for projects meeting both conditions specified in Article 15 of Decree No. 51/1999/NĐ-CP;

- Exempted for three years from the year when taxable income begins to be generated, and reduced by 50% of the tax payable for the next five years for projects investing in industries listed in Appendix A and implemented in areas listed in Appendix B issued together with Decree No. 51/1999/NĐ-CP;

- Exempted for three years from the year when taxable income begins to be generated, and reduced by 50% of the tax payable for the next seven years for projects investing in industries meeting both conditions specified in Article 15 and implemented in areas listed in Appendix B issued together with Decree No. 51/1999/NĐ-CP;

- Exempted for four years from the year when taxable income begins to be generated, and reduced by 50% of the tax payable for the next seven years for projects investing in industries listed in Appendix A and implemented in areas listed in Appendix C issued together with Decree No. 51/1999/NĐ-CP;

- Exempted for four years from the year when taxable income begins to be generated, and reduced by 50% of the tax payable for the next nine years for projects investing in industries meeting both conditions specified in Article 15 and implemented in areas listed in Appendix C issued together with Decree No. 51/1999/NĐ-CP.

The above tax exemption and reduction benefits only apply to the portion of taxable income from industries and business fields eligible for investment incentives. In cases where production and business establishments cannot separately account for the portion of taxable income from industries and business fields eligible for investment incentives, the portion of taxable income eligible for tax exemption and reduction shall be determined according to the percentage ratio of revenue from industries and business fields eligible for investment incentives to the total revenue of the establishment.

For newly established production and business establishments under investment projects that generate taxable income from the year of completion of investment and commencement of production and business activities, but if the duration of production and business activities in the first year is less than six months, the enterprise may register the period of tax exemption and reduction of corporate income tax with the local tax authority starting from the following year.

For existing production and business establishments with investment projects to establish new production and business establishments eligible for investment incentives, the tax incentives on corporate income tax shall be implemented as follows:

- If the newly established production and business establishment is a unit registered with a business registration certificate, conducting accounting for business results, and registering, declaring, and paying corporate income tax to the tax authority, the unit shall be entitled to the period and amount of tax exemption and reduction of corporate income tax as stipulated in point 1.b Section II Part B of this Circular;.1.b Section II Part B of this Circular;

- If the newly established production and business establishment is a dependent accounting unit and registers, declares, and pays corporate income tax centrally at the main production and business establishment, the period and amount of tax exemption and reduction of corporate income tax for the main production and business establishment shall be implemented as stipulated in point 1.2 Section II Part B of this Circular.

Production and business establishments established through division, separation, merger, consolidation, change of ownership, or renaming from existing production and business establishments (including the case of dissolution of a private enterprise to establish a new private enterprise or joining to form a limited liability company as the Chairman of the Board of Members or General Director of the company within the same province or centrally governed city) do not qualify for corporate income tax incentives as stipulated in Section I and point 1.1 Section II Part B of this Circular;

1.2. For expansion and deepening investment projects:

a. Applicability:

Production and business establishments implementing expansion and deepening investment projects in industries listed in Appendix A of Decree No. 51/1999/NĐ-CP shall be exempted and have their corporate income tax reduced for the additional income generated by such investments, as provided in Article 23 of Decree No. 51/1999/NĐ-CP, according to the period and level of incentives below:

b. Period and level of incentives:

- Exempted for one year and reduced by 50% of the tax payable for the next four years;

- Exempted for three years and reduced by 50% of the tax payable for the next five years for projects implemented in areas listed in Appendix B issued together with Decree No. 51/1999/NĐ-CP;

- Exempted for four years and reduced by 50% of the tax payable for the next seven years for projects implemented in areas listed in Appendix C issued together with Decree No. 51/1999/NĐ-CP.

The period of tax exemption and reduction for expansion and deepening investment projects shall be determined based on one of the following methods:

- Calculated from the year the investment project is completed and put into production and business operations;

- Calculated from the year following the year the investment project is completed and put into production and business operations.

For investment projects with implementation periods exceeding one year and divided into multiple investment components, production and business establishments may apply the period of tax exemption and reduction of corporate income tax based on each completed component put into production and business operations or calculated collectively for the entire completed investment project put into production and business operations.

Based on the actual implementation of the investment project and the period of tax exemption and reduction mentioned above, production and business establishments shall register with the tax authority the specific period of tax exemption and reduction for their own units. The registration of the period of tax exemption and reduction shall be prepared and submitted to the tax authority along with a copy of the investment incentive certificate.

Production and business establishments must separately account for additional income generated from investment to determine the amount of corporate income tax that is exempted or reduced. In cases where production and business establishments cannot separately account for additional income due to expanded scale investment or deepened investment, the additional taxable income will be determined based on the ratio between the value of new fixed assets put into use and the remaining total value of fixed assets (including the value of new fixed assets put into use) at the time of tax exemption or reduction consideration.

1.3. For BOT and BTO projects:

a. Applicability:

New production and business establishments established from investment projects implemented under the Build-Operate-Transfer (BOT) or Build-Transfer-Operate (BTO) contracts shall enjoy corporate income tax benefits according to Article 22 of Decree No. 51/1999/NĐ-CP as follows:

b. Period and level of incentives:

Exemption for four years starting from when taxable income is generated, and a 50% reduction in the tax payable for nine subsequent years on the income derived from implementing BOT and BTO projects for the production and business establishments referred to in point I.3.a Section II Part B of this Circular.

If production and business establishments have income from BTO or BOT projects as well as other business activities, they must separately account for the results of each activity to implement tax benefits and tax declaration and payment procedures according to regulations applicable to each activity conducted.

1.4. Additional corporate income tax benefits:

New production and business establishments established from investment projects or existing production and business establishments implementing expanded scale investment or deepened investment projects, if such projects fall within the industries listed in Appendix A or are carried out in areas specified in Appendices B or C issued together with Decree No. 51/1999/NĐ-CP, shall be entitled to additional corporate income tax exemptions according to Article 24 of Decree No. 51/1999/NĐ-CP.

1.5. Additional corporate income tax benefits for export-oriented production and business establishments:

a. Applicability:

Export-oriented production and business establishments eligible for investment incentives, in addition to the corporate income tax benefits stipulated in Articles 20, 21, 22, 23, and 24 of Decree No. 51/1999/NĐ-CP, shall also enjoy additional corporate income tax benefits as prescribed in Article 27 of Decree No. 51/1999/NĐ-CP, as follows:

b. Period and level of incentives:

b.1. A 50% reduction in the tax payable for the income earned in the following cases:

+ The first year of direct exports;

+ The first year of exporting a new product with economic and technical features or usage different from those of previously exported products;

+ The first year of exporting to a new country or territory different from previous markets.

b.2. A 50% reduction in the tax payable for the additional income earned from exports in the fiscal year for enterprises whose export revenue in the following year exceeds that of the previous year;

b.3. A 20% reduction in the tax payable for the income earned from exports in the fiscal year for enterprises meeting the following conditions:

+ Export revenue accounts for more than 50% of total revenue;

+ Maintaining stable export markets in terms of quantity or value of goods exported over three consecutive years prior to the current year.

b.4. An additional 25% reduction in the tax payable for the income earned from exports in the fiscal year for enterprises enjoying tax benefits as guided in sub-items b.1, b.2, and b.3 of this point, if the investment project is carried out in areas specified in Appendix B issued together with Decree No. 51/1999/NĐ-CP.

b.5. Full exemption from corporate income tax payable for the income earned from exports in the fiscal year for enterprises enjoying tax benefits as guided in sub-items b.1, b.2, and b.3 of this point, if the investment project is carried out in areas specified in Appendix C issued together with Decree No. 51/1999/NĐ-CP.

To implement additional corporate income tax benefits as guided in point 1.5 Section II Part B of this Circular, export-oriented production and business establishments must separately account for the income benefiting from such incentives according to the above cases. In cases where separate accounting for the income benefiting from the above export incentives is not possible, such income will be determined proportionally to the percentage of export revenue relative to the total revenue of the production and business establishment.

2. Regarding land use tax

2.1. Applicability:

Production and business establishments granted land by the State to implement investment projects eligible for investment incentives shall be exempted or have their land use tax (including agricultural land use tax and property tax) reduced according to Article 19 of Decree No. 51/1999/NĐ-CP as follows:

2.2. Duration and level of benefits:

a. Production and business establishments granted land by the State to implement investment projects in industries specified in Appendix A issued together with Decree No. 51/1999/NĐ-CP shall be exempted or have their land use tax reduced from the date of land grant as follows:

- A 50% reduction in land use tax for seven years for projects in industries specified in Section II of Appendix A issued together with Decree No. 51/1999/NĐ-CP;

- Exemption from land use tax throughout the duration of the project for projects in industries specified in Section I of Appendix A issued together with Decree No. 51/1999/NĐ-CP.

b. Production and business establishments granted land by the State to implement investment projects in areas specified in Appendix B issued together with Decree No. 51/1999/NĐ-CP shall be exempted from land use tax from the date of land grant as follows:

- Exemption for seven years for projects in areas specified in Section II of Appendix B issued together with Decree No. 51/1999/NĐ-CP.

- Exemption for ten years for projects in areas specified in Section I of Appendix B issued together with Decree No. 51/1999/NĐ-CP.

c. Production and business bases that are granted land by the State to implement investment projects in areas specified in Appendix B issued together with Decree No. 51/1999/NĐ-CP, and at the same time meet the conditions stipulated in Article 15 of Decree No. 51/1999/NĐ-CP shall be exempted from land use tax from the date of being granted land as follows:

- Exempted for eleven years for investment projects in industries specified in Appendix A issued together with Decree No. 51/1999/NĐ-CP;

- Exempted for fifteen years for projects meeting both conditions stipulated in Clause 1 and Clause 2 of Article 15 of Decree No. 51/1999/NĐ-CP.

d. Production and business bases that are granted land by the State to implement investment projects in areas specified in Appendix C issued together with Decree No. 51/1999/NĐ-CP shall be exempted from land use tax from the date of being granted land as follows:

- Exempted for eleven years for projects in areas specified in Section II of Appendix C issued together with Decree No. 51/1999/NĐ-CP.

- Exempted for fifteen years for projects in areas specified in Section I of Appendix C issued together with Decree No. 51/1999/NĐ-CP.

- Exempted from land use tax throughout the implementation period of the project for investment projects in industries specified in Appendix A and implemented in areas specified in Appendix C issued together with Decree No. 51/1999/NĐ-CP.

Annually, during the preferential period for land use tax, production and business bases must self-determine and include in their production and business costs the amount of land use tax still payable after deducting the amount of land use tax exempted or reduced according to the levels guided in Point 2.2 Section II Part B of this Circular.

3. Regarding import tax

3.1. Scope of application:

Production and business bases implementing investment projects in industries specified in Appendix A or investment projects implemented in areas specified in Appendices B and C issued together with Decree No. 51/1999/NĐ-CP shall be exempted from import tax on equipment, machinery constituting fixed assets as stipulated in Article 26 of Decree No. 51/1999/NĐ-CP according to the following preferential levels.

3.2. Preferential level:

Equipment, machinery constituting fixed assets that are not produced domestically or are produced domestically but do not meet quality requirements shall be exempted from import tax, including:

Specialized equipment, machinery, and transportation means (part of the production line) imported to constitute fixed assets of enterprises or to expand investment scale, modernize technology. Specialized transportation means for picking up and dropping off workers.

The specialized equipment, machinery, and transportation means mentioned above must be accepted by the competent authority responsible for investment incentives and registered with the customs office to enjoy the preferential treatment.

4. Regarding tax on profit (income) repatriation abroad

4.1. Applicability: Overseas Vietnamese residents, foreigners permanently residing in Vietnam, and foreigners contributing capital or purchasing shares who transfer legitimate income abroad shall be entitled to preferential tax on profit (income) repatriation abroad as stipulated in Clause 4 of Article 1 of Decree No. 51/1999/NĐ-CP according to the following preferential levels:

4.2. Preferential level:

Pay a tax amount equivalent to 5% of the legitimate income transferred abroad.

The method of determining the tax payable and procedures for payment shall be carried out according to Section V Part C of Circular No. 99/1998/TT-BTC dated July 14, 1998, issued by the Ministry of Finance.

5. Regarding income tax for high-income individuals.

Individual investors are exempted from income tax for high-income individuals as stipulated in Article 25 of Decree No. 51/1999/NĐ-CP.

III. EXEMPTION AND REDUCTION OF LAND USE FEE

Production and business bases granted land by the State to carry out production and business activities shall be entitled to exemption and reduction of land use fee payable as stipulated in Article 17 of Decree No. 51/1999/NĐ-CP according to the following preferential levels.

1. Scope of application:

2. Preferential level:

a. Reduced by 50% of the land use fee if the investment project belongs to industries, fields, or sectors specified in Appendix A attached to Decree No. 51/1999/NĐ-CP.

b. Reduced by 75% of the land use fee if the investment project is implemented in areas specified in Appendix B attached to Decree No. 51/1999/NĐ-CP.

c. Exempted from paying the land use fee in the following cases:

- Investment projects belonging to industries, fields, or sectors specified in Appendix A and implemented in areas specified in Appendix B attached to Decree No. 51/1999/NĐ-CP;

- Investment projects implemented in areas specified in Appendix C attached to Decree No. 51/1999/NĐ-CP;

The preferential levels of land use fee mentioned above shall be determined once when the production and business base is granted land and the amount of land use fee payable to the state budget must be calculated according to regulations.

IV. EXEMPTION AND REDUCTION OF RENTAL LAND FEE

Production and business bases renting land from the State to carry out production and business activities shall be entitled to preferential rental land fee as stipulated in Article 18 of Decree No. 51/1999/NĐ-CP according to the following periods and preferential levels.

1. Scope of application:

2. Periods and preferential levels:

a. Production and business bases renting land from the State to implement investment projects in production and business activities, if the investment project meets the conditions stipulated in Article 15 of Decree No. 51/1999/NĐ-CP, shall be exempted from rental land fee from the date of signing the land lease contract as follows:

- Exempted for three years for investment projects meeting one condition stipulated in Article 15 of Decree No. 51/1999/NĐ-CP;

- Exempted for six years for investment projects meeting two conditions stipulated in Article 15 of Decree No. 51/1999/NĐ-CP;

b. Production and business bases renting land from the State to implement investment projects in production and business activities, if the investment project is implemented in areas specified in Appendix B issued together with Decree No. 51/1999/NĐ-CP, shall be exempted from rental land fee from the date of signing the land lease contract as follows:

c. Production and business bases renting land from the State to implement investment projects in production and business activities, if the investment project is implemented in areas specified in Appendix B issued together with Decree No. 51/1999/NĐ-CP, and at the same time meets the conditions stipulated in Article 15 of Decree No. 51/1999/NĐ-CP, shall be exempted from rental land fee from the date of signing the land lease contract as follows:

- Exemption for seven years for projects in areas specified in Section II of Appendix B issued together with Decree No. 51/1999/NĐ-CP.

- Exemption for ten years for projects in areas specified in Section I of Appendix B issued together with Decree No. 51/1999/NĐ-CP.

c. A production and business establishment that is leased land by the State to implement an investment project for production and business activities shall be exempted from land lease fees, starting from the date of signing the land lease contract, if the investment project is located in the area specified in Appendix B issued together with Decree No. 51/1999/NĐ-CP and simultaneously meets the conditions stipulated in Article 15 of Decree No. 51/1999/NĐ-CP.

- Exempted for eleven years for investment projects in industries specified in Appendix A issued together with Decree No. 51/1999/NĐ-CP;

- Exempted for thirteen years for investment projects meeting both conditions stipulated in Clause 1 and Clause 2 of Article 15 of Decree No. 51/1999/NĐ-CP.

d. Production and business establishments that are leased land by the State to implement investment projects operating production and business activities shall be exempted from paying land lease fees from the date of signing the land lease contract, if the investment project is implemented in the areas specified in Appendix C issued together with Decree No. 51/1999/NĐ-CP.

- Exempted for eleven years for projects in areas specified in Section II of Appendix C issued together with Decree No. 51/1999/NĐ-CP.

- Exempted for fifteen years for projects located in the areas specified in Section I of Appendix C issued together with Decree No. 51/1999/NĐ-CP.

- Exempted from land lease fees throughout the implementation period for investment projects in industries specified in Appendix A and implemented in the areas specified in Appendix C issued together with Decree No. 51/1999/NĐ-CP.

Annually, within the period of tax benefits on land, production and business establishments must self-determine and include in their production and business costs the amount of land lease fees payable to the State budget, after deducting the amount of land lease fees granted according to the levels guided at Point 2, Section IV, Part B of this Circular.

C. IMPLEMENTATION

I. FOR PRODUCTION AND BUSINESS ESTABLISHMENTS

1. After being granted an investment incentive certificate, production and business establishments implementing investment projects eligible for tax incentives as guided in this Circular must submit a certified copy of the investment incentive certificate to the direct tax collection authority within ten working days from the date of issuance of the investment incentive certificate to serve as the basis for implementing tax incentives for the establishment in accordance with Article 37 of Decree No. 51/1999/NĐ-CP..

Annually, based on the issued investment incentive certificate, production and business establishments must self-determine the tax benefits, amounts still payable to the State budget, and declare and pay to the State budget according to each period and settle the annual accounts with the tax authority in accordance with the prescribed regulations.

2. For production and business establishments eligible for tax incentives as guided in Point 3, Section II and Section III, Part B of this Circular, the procedures and formalities for tax incentives shall be carried out as follows:

- For production and business establishments eligible for tax incentives as guided in Point 3, Section II, they must have a request form and submit a certified copy of the investment incentive certificate along with an economic and technical explanation regarding the list of machinery, equipment, specialized transportation vehicles (part of the production line), and transportation vehicles for picking up workers to the customs office at the port where the establishment actually imports. The customs office at the port where the establishment imports machinery, equipment, and transportation vehicles will implement exemption from import taxes on a case-by-case basis according to actual imports (in cases of agency imports, the agency importer must present the above documents along with the agency import contract to the customs office).

- For production and business establishments eligible for tax incentives as guided in Section III, the procedures and authorities for granting exemptions and reductions in land use fees shall be carried out in accordance with Circular No. 115/2000/TT-BTC dated December 11, 2000, guiding the implementation of Decree No. 38/2000/NĐ-CP dated August 23, 2000, on collecting land use fees.

3. During the implementation of the project, if production and business establishments fail to meet the conditions for enjoying tax incentives at the registered level due to objective or subjective reasons, the establishment must notify in writing the authority that granted the investment incentives within thirty days from the date when the project no longer meets the conditions for enjoying investment incentives as stipulated, to adjust the investment incentive certificate to match the actual conditions for enjoying incentives.

4. If production and business establishments engage in fraudulent acts to enjoy tax incentives under the Law on Encouraging Domestic Investment or fail to report changes in investment conditions, they must compensate for losses and return the tax incentives already enjoyed. Additionally, depending on the severity of the violation, production and business establishments may also face administrative penalties or criminal prosecution as provided by law.

II. FOR TAX COLLECTION AUTHORITIES

1. Tax collection authorities (including tax authorities and customs offices hereinafter referred to collectively as tax authorities) base on the tax incentives clearly stated in the Investment Incentive Certificate to determine the amount of tax exemptions and reductions when production and business establishments have fulfilled all obligations guided in Part A of this Circular and have submitted a certified copy of the Investment Incentive Certificate and other necessary documents as guided in Part B of this Circular to the tax authorities.

2. In cases where it is found that the investment incentives recorded in the Investment Incentive Certificate issued to production and business establishments do not match the actual conditions for enjoying incentives, the tax authorities temporarily apply tax incentives according to the actual conditions, while informing the establishment and requesting the authority issuing the Investment Incentive Certificate to adjust part or revoke the entire investment incentive according to Article 34 of Decree No. 51/1999/NĐ-CP.

Annually, during the finalization of tax settlement, tax authorities must officially determine the tax incentives enjoyed by production and business establishments, the amounts still payable to the State budget, and inform the establishment to pay the outstanding amount within the prescribed time limit, or reduce the excess payment from the amount due in the next period.

3. During the process of checking and finalizing tax settlements, if tax authorities discover that production and business establishments have engaged in false declarations or tax evasion, they shall not grant tax incentives to such establishments. Tax authorities must fully recover taxes from production and business establishments engaging in false declarations or tax evasion and apply legal penalties accordingly.

4. Tax authorities at all levels must open files, registers to track and retain all documents related to projects benefiting from tax incentives in accordance with the guidance provided in this Circular. Annually, the tax authority shall report to the Ministry of Finance (General Department of Taxation) on the number of entities benefiting from investment incentives under the Law on Encouraging Domestic Investment, the actual amount of taxes and other state revenues exempted or reduced, along with the results of state budget revenue collection for the year in their jurisdiction.

5. Tax officials, customs officers, and other individuals who abuse their positions or powers intentionally violate the provisions of Decree No. 51/1999/ND-CP and the guidance provided in this Circular, causing damage to the State Budget, shall be subject to disciplinary action, administrative penalties, or criminal liability追究刑事责任，具体根据法律规定。

III. EFFECTIVE DATE OF IMPLEMENTATION

1. Production and business establishments enjoying incentives under the Law on Encouraging Domestic Investment before June 22, 1994, or under Decree No. 07/1998/NĐ-CP dated January 15, 1998, of the Government detailing the implementation of the Law on Encouraging Domestic Investment, shall continue to enjoy investment incentives until the end of the remaining period specified in the issued Investment Incentive Certificate. The income tax incentive recorded in the Investment Incentive Certificate shall be converted into corporate income tax incentives from January 1, 1999, and the turnover tax incentive recorded in the Investment Incentive Certificate shall be implemented until December 31, 1998.

2. For projects with Investment Incentive Certificates issued under the Law on Encouraging Domestic Investment before June 22, 1994, or under Decree No. 07/1998/NĐ-CP dated January 15, 1998, of the Government detailing the implementation of the Law on Encouraging Domestic Investment, which are entitled to additional tax incentives such as land use tax, land use fee, land lease fee, corporate income tax, and import tax as stipulated in Decree No. 51/1999/NĐ-CP, if they are granted supplementary Investment Incentive Certificates by the competent authority, they shall only enjoy the remaining period of incentives from the date Decree No. 51/1999/NĐ-CP comes into effect.

3. Production and business establishments enjoying tax incentives as prescribed in Decree No. 51/1999/NĐ-CP, if there are changes in the conditions for enjoying incentives during their operation, must notify the competent authority to review, adjust, supplement, or terminate the incentives prematurely in accordance with Article 34 of Decree No. 51/1999/NĐ-CP.

4. In cases where there is a change in ownership (or management) for projects enjoying tax incentives as guided in this Circular, the new owner (or manager) shall continue to enjoy the tax incentives recorded in the Investment Incentive Certificate for the remaining period of the project and shall be responsible for fulfilling all obligations previously committed by the previous owner (or manager).

5. This Circular takes effect from the date of signature and replaces Circular No. 146/1999/TT-BTC dated December 17, 1999, of the Ministry of Finance guiding the implementation of Decree No. 51/1999/NĐ-CP dated July 8, 1999, of the Government detailing the implementation of the Law on Encouraging Domestic Investment (amended)..

For investment projects that have been granted Investment Incentive Certificates and have applied tax incentives according to the guidance in Circular No. 146/1999/TT-BTC, if the level of incentives does not align with the guidance in this Circular and affects the rights of investors, the tax authority shall consider allowing these investment projects to enjoy the tax incentives as guided in this Circular for the remaining period of incentives from the date this Circular takes effect.

Any tax incentives for investment projects implemented before the effective date of this Circular, if the level of incentives does not conform to the guidance in this Circular, shall not be subject to recovery or refund.