This Decision amends Article 3 of Decision No. 1944/1998/QD-BTC, which stipulates preferential import tax rates for products and spare parts in the mechanical-electrical-electronic industry. Products with preferential import tax rates below 30% or 30% or higher but without domestic spare parts will continue to apply the tax rate according to Circular No. 50A TC/TCT dated July 31, 1997, with a maximum duration until December 31, 2000.
Scope of application
Enterprises importing products and spare parts in the mechanical-electrical-electronic industry.
Key points
- For products and spare parts with preferential import tax rates below 30% or 30% or higher but without domestic spare parts, the preferential tax rate according to Circular No. 50A TC/TCT dated July 31, 1997 will continue to be applied.
- The period for applying the import tax rate as prescribed in Circular No. 50A TC/TCT dated July 31, 1997 shall be determined by the Ministry of Industry, not exceeding December 31, 2000.
- This Decision takes effect from July 1, 1999.
🌐 Social impact of this document
- Enterprises will continue to apply preferential tax rates, helping to reduce import costs and promote domestic production.
- However, this may limit competition among enterprises with foreign counterparts.
❓ Frequently asked questions
Which products are subject to preferential tax rates?
Products and spare parts in the mechanical-electrical-electronic industry with preferential import tax rates below 30% or 30% or higher but without domestic spare parts.
What is the duration of the preferential tax rate application?
The period for applying the import tax rate as prescribed in Circular No. 50A TC/TCT dated July 31, 1997 shall be determined by the Ministry of Industry, not exceeding December 31, 2000.
What conditions must be met to apply the preferential tax rate?
For products with preferential import tax rates of 30% or higher, confirmation from the Ministry of Industry that there are no domestic spare parts or components needed for product localization is required.
When does this Decision take effect?
This Decision takes effect from July 1, 1999.
Until when will the preferential tax rate be applied?
The period for applying the import tax rate as prescribed in Circular No. 50A TC/TCT dated July 31, 1997 shall be determined by the Ministry of Industry, not exceeding December 31, 2000.
Full text
Pursuant to …;
Regarding the amendment of Article 3 of Decision No. 1944/1998/QĐ/BTC dated December 25, 1998 of the Minister of Finance
___________________________
THE MINISTER OF FINANCE
Pursuant to Decree No. 15/CP dated March 2, 1993 of the Government on the tasks, powers, and responsibilities for state management of Ministries and ministerial-level agencies;
BASED ON DECREE NO. 178/CP DATED OCTOBER 28, 1994 OF THE GOVERNMENT ON THE TASKS, POWERS AND ORGANIZATIONAL STRUCTURE OF THE MINISTRY OF FINANCE;
Considering the implementation situation of Decision No. 1944/1998/QĐ/BTC dated December 25, 1998 of the Minister of Finance on the issuance of preferential import tax rates according to the level of domestic production for products and spare parts in the machinery - electrical - electronics industry;
Considering the opinions of the Ministry of Industry in Circular No. 2693/CV-CNCL dated June 28, 1999 and the opinions of the General Department of Customs in Circular No. 3460/TCHQ-KTTT dated June 26, 1999;
At the proposal of the Director General of the General Department of Taxation.
Pursuant to …;
Article 1: Amend Article 3 of Decision No. 1944/1998/QĐ/BTC dated December 25, 1998 of the Minister of Finance as follows:
For products and spare parts in the machinery - electrical - electronics industry that have not been subject to the standard assembly rate SKD, CKD, IKD, in the following cases shall continue to apply the preferential import tax rate as stipulated in Circular No. 50A TC/TCT dated July 31, 1997 of the Ministry of Finance:
a) Products and spare parts with a preferential import tax rate below 30%.
b) Products and spare parts subject to taxation according to the level of domestic production with a preferential import tax rate of 30% or higher but confirmed by the Ministry of Industry that there are no spare parts or components available domestically to support the domestic production of such products and spare parts. The application period of the import tax as stipulated in Circular 50A TC/TCT dated July 31, 1997 of the Ministry of Finance shall be determined by the Ministry of Industry but shall not exceed December 31, 2000.
Article 2: This Decision takes effect from July 1, 1999.
DEPUTY MINISTER
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