Circular No. 4519/TC-TCT dated 2002 guiding the refund of import tax on raw materials for foreign-invested enterprises when selling products to other enterprises for export, without limiting the purchasing enterprise to be a foreign-invested enterprise.
Scope of application
Foreign-invested enterprises; all types of enterprises established in accordance with Vietnamese law
Key points
- Foreign-invested enterprises importing raw materials to produce products sold to other enterprises (not limited to foreign-invested enterprises) directly producing export goods are eligible for import tax refund consideration.
- The purchasing enterprise of a foreign-invested enterprise must comply with the value-added tax deduction method.
- The refund of import tax applies to imported raw materials used in production and sale to other enterprises aimed at directly producing export products.
- Ministries, ministerial-level agencies, government-affiliated agencies, and provincial/municipal People's Committees shall uniformly implement this guidance.
- The refund of import tax is based on the Law on Foreign Investment; Article 58 of Decree No. 24/2000/NĐ-CP dated July 31, 2000 issued by the Government and Circular No. 13/2001/TT-BTC dated March 8, 2001.
🌐 Social impact of this document
- Enhance competitiveness for foreign-invested enterprises when producing goods sold to domestic partners for export purposes.
- Reduce initial financial burden on enterprises through import tax refund on raw materials.
- The purchasing enterprise of a foreign-invested enterprise must comply with the regulations regarding value-added tax deduction method.
❓ Frequently asked questions
Which enterprises are eligible for the refund of import tax on raw materials?
Foreign-invested enterprises when selling products to other enterprises for export purposes.
What regulations must the purchasing enterprise of a foreign-invested enterprise comply with?
Must comply with the value-added tax deduction method.
On what basis is the refund of import tax based?
Based on the Law on Foreign Investment; Article 58 of Decree No. 24/2000/NĐ-CP dated July 31, 2000 issued by the Government and Circular No. 13/2001/TT-BTC dated March 8, 2001.
What responsibilities do ministries and ministerial-level agencies have?
Uniformly implement this guidance.
Full text
LETTER
OF THE MINISTRY OF FINANCE NUMBER 4519/TC-TCT DATED MAY 13, 2002
REGARDING REFUND OF IMPORT TAX ON RAW MATERIALS IMPORTED FOR PRODUCTION TO BE SOLD TO OTHER ENTERPRISES
FOR EXPORT MANUFACTURING
PRODUCTION OF EXPORT GOODS
Respected: - Ministries, ministerial-level agencies, and central government agencies
- People's Committees of provinces and centrally-administered cities
The Ministry of Finance has received recommendations from several units regarding the refund of import tax on raw materials imported for production to be sold to other enterprises engaged in export manufacturing. Regarding this matter, the Ministry of Finance provides the following comments:
Pursuant to the Law on Foreign Investment in Vietnam; Article 58 of Decree No. 24/2000/NĐ-CP dated July 31, 2000 of the Government; Circular No. 13/2001/TT-BTC dated March 8, 2001 of the Ministry of Finance guiding the implementation of tax regulations for investment forms under the Law on Foreign Investment in Vietnam, then: Foreign-invested enterprises importing raw materials to produce products sold to other enterprises directly producing export goods are eligible for import tax refund. Other enterprises include all types of businesses established according to Vietnamese law, not limited to foreign-invested enterprises, provided that these enterprises comply with value-added tax deduction methods.
The Ministry of Finance hereby informs ministries, ministerial-level agencies, central government agencies, People's Committees of provinces and centrally-administered cities for their knowledge and uniform implementation.
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