Circular No. 26/TC-TCT guiding the examination for exemption from import tax on materials and passenger cars for foreign-invested enterprises.

CIRCULAR

Guidelines for considering exemption from import tax on materials and passenger cars for

enterprises with foreign invested capital

Pursuant to Article 1 of the Law amending and supplementing certain articles of the Law on Export Tax and Import Tax;

Pursuant to Article 13 and Article 17 of Decree No. 54/CP dated August 28, 1993 of the Government detailing the implementation of the Law on Export Tax and Import Tax and the Law amending and supplementing certain articles of the Law on Export Tax and Import Tax;

Pursuant to the guidance of the Prime Minister in Circular No. 716/KTTH dated February 17, 1997 of the Government regarding the import tax on materials and passenger cars for enterprises with foreign invested capital;

The Ministry of Finance provides guidelines for implementing the consideration of exemption from import tax on materials and passenger cars for forms of investment under the Law on Foreign Investment in Vietnam as follows: 

I. SCOPE OF APPLICATION:

1. Objects eligible for consideration of exemption from import tax:

- Foreign-invested enterprises including joint ventures and wholly foreign-owned enterprises established under the Law on Foreign Investment in Vietnam.

- Foreign parties conducting business cooperation based on business cooperation contracts under the Law on Foreign Investment in Vietnam.

2. Goods eligible for consideration of exemption from import tax:

Materials and passenger cars (within the limits specified in Appendix 7 of Circular No. 215 UB/LXT dated February 8, 1995 of the State Committee for Cooperation and Investment) imported for basic construction investment to form enterprises or create fixed assets to implement business cooperation contracts.

II. CONDITIONS AND PROCEDURES FOR CONSIDERING EXEMPTION FROM IMPORT TAX:

1. Conditions for considering exemption from import tax:

- Enterprises eligible for consideration of exemption from import tax under Article 13 of Decree No. 54/CP dated August 28, 1993 and Article 76 of Decree No. 18/CP dated April 16, 1993 of the Government shall continue to be considered for exemption from import tax on materials and passenger cars until July 1, 1997 if they meet the following conditions:

- An investment license issued by the Ministry of Planning and Investment (or the State Committee for Cooperation and Investment or the Ministry of Trade for projects prior to that time) before November 23, 1996.

- A customs declaration for imported goods registered with the customs authority responsible for handling the import procedures (in accordance with the regulations of the General Department of Customs) by July 1, 1997.

2. Procedures for considering exemption from import tax: shall be carried out in accordance with Circular No. 72A TC/TCT dated August 30, 1993 and Circular No. 20 TC/TCT dated March 16, 1995 of the Ministry of Finance.

III. IMPLEMENTATION:

The General Department of Customs, within its functions, directs and guides the Customs Departments of provinces and cities to handle the procedures for exempting import tax for units based on the above guiding provisions. All other provisions shall still be implemented in accordance with Circular No. 72A TC/TCT dated August 30, 1993 and Circular No. 20 TC/TCT dated March 16, 1995 of the Ministry of Finance. All imported goods not meeting the prescribed conditions or having a customs declaration for imported goods registered with the customs authority after July 1, 1997 must comply with the provisions of Decree No. 12/CP dated February 18, 1997 of the Government detailing the implementation of the Law on Foreign Investment in Vietnam.

During the implementation process, any difficulties should be promptly reported to the Ministry of Finance for specific resolution.