Decision No. 43/2006/QD-BTC of the Ministry of Finance abolishes the domestic content tax policy for products and spare parts in the mechanical-electrical-electronic industry from October 1, 2006.
Key points
- Products and spare parts in the mechanical-electrical-electronic industry → no longer apply the domestic content tax policy from October 1, 2006.
🌐 Social impact of this document
- Citizens and businesses in the mechanical-electrical-electronic industry will no longer bear the pressure of the domestic content tax policy, reducing production costs.
- However, abolishing this policy may change the cost structure of products, affecting competition between domestic and international enterprises.
❓ Frequently asked questions
Which products will no longer apply the domestic content tax policy?
Products and spare parts in the mechanical-electrical-electronic industry will no longer apply this policy.
When do businesses start applying the new policy?
From October 1, 2006, after the Decision takes effect.
How much will businesses in the mechanical-electrical-electronic industry save on taxes?
The specific amount saved depends on the value of the product and the domestic content tax rate that has been abolished; there is no detailed information provided in the document.
Does abolishing this policy affect which businesses?
The affected entities are domestic manufacturing and assembly enterprises in the mechanical-electrical-electronic industry and import partners of components and spare parts.
Are there specific regulations regarding the new tax rates for these products?
The document does not specify the application of new tax rates, only stating the abolition of the domestic content tax policy.
Full text
QUDECISION
Regarding the abolition of the domestic content tax policy for certain products and parts in the mechanical-electrical-electronic industry,
parts belonging to the mechanical - electrical - electronic industry
__________________________________
THE MINISTER OF FINANCE
WHEREAS, the Law on Export Duties and Import Duties No. 45/2005/QH11 dated June 14, 2005, and to implement the commitments under the Vietnam-U.S. Trade Agreement approved by the National Assembly of the Socialist Republic of Vietnam at its tenth session, tenth meeting, Resolution No. 48/2001/QH10 dated November 28, 2001;
WHEREAS, Decree No. 86/2002/NĐ-CP dated November 5, 2002 of the Government stipulating the functions, tasks, powers, and organizational structure of Ministries and Ministerial-Level Agencies;
WHEREAS, Decree No. 77/2003/NĐ-CP dated July 1, 2003 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;
WHEREAS, the guidance of the Prime Minister in Circular No. 1162/TTg-KTTH dated July 26, 2006 regarding the abolition of the domestic content tax policy;
At the proposal of the Director of the Department of Tax Policy,
DECISION:
Article 1. Abolish the domestic content tax policy for certain products and parts in the mechanical-electrical-electronic industry as prescribed in Joint Circulars No. 176/1998/TTLT-BTC-BCN-TCHQ dated December 25, 1998, No. 120/2000/TTLT-BTC-BCN-TCHQ dated December 25, 2000, issued by the Ministry of Finance, Ministry of Industry, General Department of Customs, Decision No. 1944/1998/QĐ-BTC dated December 25, 1998 of the Minister of Finance, and related guiding documents.
Article 2. This Decision shall take effect from October 1, 2006. For imported components and parts for production and assembly in the mechanical-electrical-electronic industry with customs declarations registered with customs authorities from October 1, 2006, import duties shall be applied according to current regulations./.
| DEPUTY MINISTER DEPUTY MINISTER (Signed) Truong Chi Trung |
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