Circular No. 26/2016/TT-BTC guiding the implementation of certain preferential mechanisms and policies for Con Dao District, Ba Ria - Vung Tau Province

CIRCULAR

Guidelines for implementing certain preferential mechanisms and policies for Con Dao District, Ba Ria-Vung Tau Province

On the basis of Law on Export Duties and Import Duties and related guiding documents;

On the basis of Law Amending and Supplementing Certain Provisions of the Bidding Law, the Public-Private Partnership Investment Law, the Customs Law, the Value Added Tax Law, the Export Tax Law, the Import Tax Law, the Investment Law, the Public Investment Law, the Management and Use of State Property Law and related guiding documents;

On the basis of Law on Corporate Income Tax and related guiding documents;

On the basis of Investment Law No. 67/2014/QH13 and related guiding documents;

Decree No. Decree No. 45/2014/NĐ-CP dated May 15, 2014 of the Government on land use fee collection; Decree No. 46/2014/NĐ-CP dated May 15, 2014 of the Government on land lease fee and water surface lease fee collection and related guiding documents;

Pursuant to Decision No. Decision No. 32/2013/QĐ-TTg dated May 22, 2013 of the Prime Minister on certain preferential mechanisms and policies for Con Dao District, Ba Ria-Vung Tau Province;

Pursuant to Decision No. Decision No. 24/2009/QĐ-TTg dated February 17, 2009 of the Prime Minister promulgating regulations on duty-free sales; Decision No. 44/2013/QĐ-TTg dated July 19, 2013 amending and supplementing certain articles of the Regulations on duty-free sales promulgated together with Decision No. 24/2009/QĐ-TTg; Decision No. 39/2015/QĐ-TTg dated September 11, 2015 amending and supplementing certain articles of the Regulations on duty-free sales promulgated together with Decision No. Decision No. 24/2009/QĐ-TTg dated February 17, 2009 and Decision No. 44/2013/QĐ-TTg;

Decree No. 215/2013/NĐ-CP dated December 23, 2013 of the Government on the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Implementing the opinion of the Prime Minister in Circular No. 5528/VPCP-KTTH dated July 16, 2015 of the Government Office;

At the proposal of the Director of the Policy Department;

The Minister of Finance issues this Circular to guide the implementation of certain preferential mechanisms and policies for Con Dao District, Ba Ria-Vung Tau Province.

Article 1. Scope of Regulation

This Circular guides preferential treatment regarding corporate income tax; preferential treatment regarding export tax and import tax; preferential treatment regarding exemption and reduction of land use fees and land lease fees for investment projects in Con Dao District, Ba Ria-Vung Tau Province (hereinafter referred to as Con Dao); procedures for value-added tax refund for goods purchased in Vietnam carried by foreigners and overseas Vietnamese holding passports or entry permits issued by foreign competent authorities when exiting Con Dao; procedures for establishing duty-free shops in Con Dao; procedures for selling imported goods duty-free to foreign tourists and Vietnamese holding foreign passports visiting Con Dao.

Article 2. Guidance on preferential treatment regarding taxes, land use fees, and land lease fees

1. Preferential treatment regarding corporate income tax (CIT)

a) Domestic and foreign organizations and individuals investing in Con Dao shall enjoy preferential CIT treatment applicable to areas with particularly difficult socio-economic conditions as prescribed in the Law on Corporate Income Tax No. 14/2008/QH12, the Law Amending and Supplementing Certain Provisions of the Law on Corporate Income Tax No. 32/2013/QH13, the Law Amending and Supplementing Certain Provisions of Various Tax Laws No. 71/2014/QH13, and related guiding documents.

b) Regarding the procedures for implementing preferential CIT treatment: Implement according to Circular No. 78/2014/TT-BTC dated June 18, 2014 of the Minister of Finance guiding the implementation of Decree No. 218/2013/NĐ-CP dated December 26, 2013 of the Government detailing and guiding the implementation of the Law on Corporate Income Tax and Circular No. 96/2015/TT-BTC dated June 22, 2015 of the Minister of Finance guiding corporate income tax under Decree No. 12/2015/NĐ-CP dated February 12, 2015 of the Government detailing the implementation of the Law Amending and Supplementing Certain Provisions of Various Tax Laws and amending and supplementing certain provisions of various decrees on tax and amending and supplementing certain provisions of Circular No. 78/2014/TT-BTC dated June 18, 2014, Circular No. 119/2014/TT-BTC dated August 25, 2014, and Circular No. 151/2014/TT-BTC dated October 10, 2014 of the Minister of Finance.

2. Preferential treatment regarding export tax and import tax

a) Domestic and foreign organizations and individuals investing in Con Dao shall enjoy preferential import tax treatment applicable to areas with particularly difficult socio-economic conditions as prescribed in the Law on Export Tax and Import Tax and related guiding documents.

b) Procedures for implementing preferential export tax and import tax treatment shall be implemented according to Circular No. 38/2015/TT-BTC dated March 25, 2015 of the Minister of Finance on customs procedures, customs inspection and supervision; export tax and import tax and management of tax on exported and imported goods.

3. Preferential treatment regarding land use fees and land lease fees

a) Investment projects in Con Dao shall enjoy preferential exemption and reduction of land use fees and land lease fees at levels of preferential treatment applicable to:

- Investment projects in areas with particularly difficult socio-economic conditions;

- Investment projects in priority industries (including investment projects in priority industries or highly prioritized industries specified in Appendix I of the List of Priority Industries promulgated together with Decree No. 118/2015/NĐ-CP dated November 12, 2015 of the Government detailing and guiding the implementation of certain provisions of the Investment Law) invested in Con Dao (an area with particularly difficult socio-economic conditions) shall enjoy corresponding preferential levels as prescribed by laws on land use fees, land lease fees, and water surface lease fees.

b) The application of documents prescribing preferential levels of land use fees, land lease fees, and water surface lease fees as stipulated in Point a Clause 33 above is as follows:

- Preferential treatment regarding land use fees shall be implemented in accordance with Decree No. 45/2014/NĐ-CP dated May 15, 2014 of the Government on land use fee collection and Circular No. 76/2014/TT-BTC dated June 16, 2014 of the Minister of Finance guiding certain provisions of Decree No. 45/2014/NĐ-CP. Procedures for implementing preferential treatment regarding land use fees shall be implemented in accordance with Circular No. 76/2014/TT-BTC mentioned above.

- Preferential treatment regarding land lease fees and water surface lease fees shall be implemented in accordance with Decree No. 46/2014/NĐ-CP dated May 15, 2014 of the Government on land lease fee and water surface lease fee collection and Circular No. 77/2014/TT-BTC dated June 16, 2014 of the Minister of Finance guiding certain provisions of Decree No. 46/2014/NĐ-CP. Procedures for implementing preferential treatment regarding land lease fees and water surface lease fees shall be implemented in accordance with Circular No. 77/2014/TT-BTC mentioned above.

Article 3. Guidance on Value Added Tax Refunds for Goods Purchased in Vietnam and Carried by Individuals When Departing from Con Dao International Port

Foreign individuals and overseas Vietnamese residents holding passports or foreign-issued travel documents still valid shall be eligible for Value Added Tax refunds for goods purchased in Vietnam and carried when departing through Con Dao International Port Bến Đầm or international airports and ports with sufficient conditions for state management under Clause 7, Article 1 of the Law Amending and Supplementing Certain Provisions of the Law on Value Added Tax No. 31/2013/QH13, Government Decree No. 209/2013/NĐ-CP dated December 18, 2013 detailing and guiding the implementation of certain provisions of the Law on Value Added Tax, and Circular No. 72/2014/TT-BTC dated May 30, 2014 issued by the Minister of Finance regarding VAT refunds for goods carried by foreign individuals and overseas Vietnamese residents when departing.

Article 4. Guidance on Establishing Duty-Free Stores at Con Dao and Procedures for Selling Imported Duty-Free Goods to Foreign Tourists and Vietnamese Residents Holding Foreign Passports Arriving at Con Dao

1. On the establishment of duty-free stores at Con Dao

a) The establishment of duty-free stores at Con Dao (in the quarantine area of Bến Đầm Port or within the Con Dao area) shall be carried out in accordance with Decision No. 24/2009/QĐ-TTg dated February 17, 2009 of the Prime Minister promulgating the Regulations on Duty-Free Sales (Decision No. 24/2009/QĐ-TTg), Decision No. 44/2013/QĐ-TTg dated July 19, 2013 of the Prime Minister amending and supplementing certain provisions of the Regulations on Duty-Free Sales promulgated together with Decision No. 24/2009/QĐ-TTg (Decision No. 44/2013/QĐ-TTg); Decision No. 39/2015/QĐ-TTg dated September 11, 2015 amending and supplementing certain provisions of the Regulations on Duty-Free Sales promulgated together with Decision No. 24/2009/QĐ-TTg and Decision No. 44/2013/QĐ-TTg (Decision No. 39/2015/QĐ-TTg); Circular No. 148/2013/TT-BTC dated October 25, 2013 of the Minister of Finance guiding the implementation of the Regulations on Duty-Free Sales promulgated together with Decision No. 24/2009/QĐ-TTg and Decision No. 44/2013/QĐ-TTg (Circular No. 148/2013/TT-BTC); Circular No. 207/2015/TT-BTC dated December 25, 2015 of the Minister of Finance amending and supplementing Circular No. 148/2013/TT-BTC (Circular No. 207/2015/TT-BTC).

b) Duty-free stores at Con Dao shall sell duty-free goods to the following subjects:

- Subjects eligible to purchase duty-free goods as stipulated in Decision No. 24/2009/QĐ-TTg and Decision No. 44/2013/QĐ-TTg. The procedures for selling duty-free goods shall be implemented according to the guidance provided in Circular No. 148/2013/TT-BTC and Circular No. 207/2015/TT-BTC.

- Tourists who are foreigners and Vietnamese residents holding foreign passports are eligible to purchase imported duty-free goods each time they visit Con Dao with a value not exceeding VND 500,000/person/day. The procedures for selling imported duty-free goods shall be implemented according to the guidance provided in Clause 2 of this Article.

2. Procedures for Selling Imported Duty-Free Goods to Foreign Tourists and Vietnamese Residents Holding Foreign Passports Arriving at Con Dao (the purchaser of imported duty-free goods)

a) Provisions for goods

Goods brought into duty-free stores must be clearly recorded in terms of sale price, including the amount of import tax deducted based on the exemption standard, Value Added Tax, Special Consumption Tax, and Environmental Protection Tax (if applicable).

b) Responsibilities of duty-free sales traders:

b1) Traders must have software systems with the following main functions:

- Inputting information, searching, and statistics on the quantity of goods sold and the tax amount after deducting the import tax exemption standard.

- Backing up and exporting data to serve reporting, statistical, and archival purposes.

- Sharing information with the Con Dao Customs Sub-Department to assist in inspection and control activities.

b2) Weekly, duty-free sales traders must submit a summary of the quantity of goods sold to tourists to the customs authority. The summary of goods sold to tourists includes the following information: Customer name, passport number, product name, quantity, value, tax payable, and import declaration form number (according to the attached model in this Circular).

b3) Before the 15th day of the following month, duty-free sales traders must complete customs procedures for goods transferred for domestic consumption of the previous month. The customs declaration form for transferring goods for domestic consumption will be used to settle import declaration forms.

b4) When selling goods to tourists who are foreigners and Vietnamese residents holding foreign passports arriving at Con Dao, duty-free sales traders must enter the following data into the software system:

- The buyer's name as stated on the passport or equivalent document;

- Passport number or equivalent document number;

- Product name and accurate unit of measurement as declared on the import declaration form for goods sold at the duty-free store.

- Quantity and value.

b5) Calculate Value Added Tax, Special Consumption Tax, and Environmental Protection Tax (if applicable) on the portion of the value that exceeds the import tax exemption standard. Fully calculate all taxes on the portion of the value that exceeds the exemption limit.

For customers purchasing multiple types of goods and whose total value exceeds the import tax exemption limit, the customer may choose products with values exceeding the exemption limit to pay taxes on.

b6) Retain sales invoices daily (if sales invoices are in rolls, retain them roll by roll) along with copies of passports or foreign-issued travel documents still valid.

c) Responsibilities of the duty-free import purchaser: The duty-free import purchaser must present and provide relevant information as prescribed in point b4 of this clause when purchasing duty-free goods, and shall not allow others to use their passport or duty-free quota.

d) Responsibilities of the customs authority managing duty-free shops:

- On a weekly basis, the customs authority shall compare and confirm the quantity of goods sold by enterprises to tourists with the software system and surveillance cameras.

- Implement the declaration of goods for domestic consumption transfer for goods sold to tourists.

đ) Customs procedures and settlement documents for imported goods intended for sale as duty-free goods: To be carried out in accordance with Circular No. 148/2013/TT-BTC dated October 25, 2013, issued by the Minister of Finance guiding the implementation of the Regulations on Duty-Free Sales accompanying Decision No. 24/2009/QĐ-TTg and Decision No. 44/2013/QĐ-TTg; and Circular No. 207/2015/TT-BTC dated December 25, 2015, issued by the Minister of Finance amending and supplementing Circular No. 148/2013/TT-BTC.

Article 5. Effective Date

1. This Circular takes effect from April 3, 2016.

2. In the course of implementation, if related documents referred to in this Circular are amended, supplemented, or replaced, they shall be implemented according to the newly amended, supplemented, or replaced documents./.