CIRCULAR guide financial regime applied at the border gate economic zone by the provincial people's Committee of management _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ pursuant to the law on State budget; Investment law; Laws and ordinances of tax, fees and customs;
Pursuant to decision No. 53/2001/QD-TTg dated April 19, 2001 by the Prime Minister on the policy for border gate economic zone;
Pursuant to decision No. 273/2005/QD-TTg dated 31/10/2005 by the Prime Minister about the amendments and supplements to some articles of the decision No. 53/2001/QD-TTg dated April 19, 2001 by the Prime Minister on the policy for border gate economic zone;
The Ministry of Finance shall guide the fiscal regime applied at the border gate economic zone by the provincial people's Committee to manage the following: i. the SCOPE, SUBJECTS of APPLICATION 1. Scope: this circular apply to the border gate economic zone (hereinafter referred to as KTCK) was established by decision of the Prime Minister and the provincial people's Committee in the management.
For the KTCK was established by decision of the Prime Minister and by the central management, the financial mode follow each separate circulars of the Ministry of finance.
2. Objects: this circular applies to the following objects: 2.1. The province, central cities (hereafter referred to as the Department) KTCK area prescribed in clause 1, section I mentioned above;
2.2. domestic investors and foreign investors doing business (including construction of infrastructure, production, trading and service providers) in the KTCK;
2.3. The operations conducted within the border gate economic zone.
The case of domestic investors and foreign investors made trading activities in the KTCK but not the economic entity established in the KTCK it must separate accounting business in part to KTCK determining preferential regimes.
3. Explanation of terms:-the tax: the tax is in the KTCK was established according to the provisions in clause 1, article 1, decision No. 273/2005/QD-TTg dated 31/10/2005 by the Prime Minister.
-Vietnam domestic: consists of the rest of the area outside the KTCK tax and the rest of Vietnam territory (except the same tax-free Zone zone defined in paragraph 1, article 5 export taxes, import tax of 45/2005/QH-11 through September 14, 2005 and paragraph 2 , Article 1, Decree 149/2005/ND-CP on 08/12/2005 detailing the Government's enforcement of export tax, import tax).
-Tax-free: the tax-free zone is set forth in paragraph 1, article 5 export taxes, import tax of 45/2005/QH11 passed on June 14, 2005 and clause 2, article 1, Decree 149/2005/ND-CP on 08/12/2005 of the Government detailing the export tax law enforcement , import tax.
II. FINANCIAL INCENTIVES To MODE 1. Incentive modes of investment in building infrastructure in the KTCK: 1.1. Support of investment from the central budget to build the infrastructure: a) the audience supported the investment from the central budget: the central budget support for the budget of the KTCK area directly under the provincial border management to invest in construction of infrastructure works, social engineering the service works, and important public utility serving for the KTCK under target programs are arranged within the estimates are approved by the authority.
b) scope of support investment from the central budget: the central budget support only to construction investment for the public infrastructure works of the whole Area, including the KTCK works outside of KTCK but serve direct KTCK, not including infrastructure dedicated to each of the functional areas in the KTCK.
c) principles to support investment from the central budget:-supporting the investment from the central budget to build infrastructure, KTCK Zone is done in accordance with project planning zones and KTCK was approved by the authority.
-Based on the ability of the central budget every year and the difficulty level of the local government, the National Assembly decided to review the support aimed to invest in the construction of infrastructure essential to the border by KTCK commissions provincial people management-the central budget support is the target for the budget to top investment in the infrastructure construction of the KTCK was identified in GOVERNMENT EXCESSIVE estimation delivered to the province.
-Management of KTCK Area or people's committees (where no management KTCK) is the focal point of local plans are additional objectives from the central budget for capital construction from the central budget resources to build infrastructure, KTCK Area; is the investor directly managing the project to build the infrastructure to be built by the GOVERNMENT EXCESSIVE capital investment within the zone under the rules on the management of KTCK construction of the State.
d) process of planning, use and management of capital due to the central budget support investments:-every year at the time the State budget estimating, management KTCK in collaboration with the relevant agencies to build portfolio of development projects of infrastructure, consistent with the detailed planning of the KTCK was approved and authorized establishment Math basic construction investment spending for these projects to the provincial people's Committee. With no management KTCK KTCK, the provincial people's Committee to directly implement this regulation.
-Based portfolio investment in infrastructure development and estimation of the investment projects in infrastructure development by the PMU KTCK, General People's Committee of the needs of the investment project for the development of infrastructure and the ability to balance the KTCK Area resources locally to determine the portfolio of projects infrastructure investment in the zone of the central budget proposal KTCK supports investment in the people's Council to consider.
-The base directory of the project infrastructure investment proposed KTCK Area central budget supports investment has been approved by the people's Council, the provincial people's Committee established the detailed estimation of capital needs for each specific project to send the Ministry of planning and investment and the Ministry of finance.
-The Ministry of planning and investment chaired General support needs investment from the central budget of the KTCK area, consistent with the Finance Ministry to the Government report submitted to the National Assembly decided to supplement that targets for infrastructure investment in the ability of balancing the State budget. Only the projects in the scope of the State budget investment support provided for in point b, this new account was considered for General Government report submitted to the National Assembly to decide.
--The central budget investment Capital to build the infrastructure managed KTCK Area, use according to the regulations on the management of basic construction investment, State budget Law and the text of the current guidelines.
1.2. mode use the revenues from the land to create the infrastructure development capital KTCK: people's Committee was to use the revenues from the land (as the revenues under the provisions of the law of the land as the proceeds of land use, land lease) to build infrastructure and create capital to clear the ground for investments development , preference for the KTCK. Private land use money land lease for the Land Fund in planning KTCK precedence used to invest in the construction of infrastructure for KTCK.
The delivery of the land, for the land rental to generate capital for investment in the construction of infrastructure of KTCK is accomplished through land use rights auction, bidding for projects, land use, or not to implement land-use rights auction as stipulated in Decree No. 177/2004/ND-CP on 29/10/2004 by the Government on the implementation of the law of the land , Decree No. 198/2004/ND-CP dated 03/12/2004 by the Government on land use charge, Decree No. 17/2006/ND-CP on January 27, 2006 by the Government on amendments and supplements to some articles of the Decree guiding the implementation of the Land Law, Decree No. 187/2004/ND-CP on the transfer of State-owned companies into joint stock companies , Decision No. 216/2005/QD-TTg dated August 31, 2005 by the Prime Minister on the regulation of land use rights auction to collect land use land or land rental and other related provisions of the current law.
Land use planning base is local, the ability to collect the money from the auction, land use demands on compensatory spending, support for people who have recovered ground and demand investment in infrastructure works in the investment object from the State budget according to the provisions of the law The people's Committee, the financial Agency Director General the task of collecting, estimating the annual budget process of the people's Council decided at the same level.
Based budgeting in provincial people Council decided, the people's committees of the province delivered the financial agency in collaboration with the relevant unit implementation of incomes and expenses from the amount of land use and settlement on the State budget according to the prescribed regimes.
The case held, personal funding to advance implementation of compensatory support, who have recovered to land investment in infrastructure works in the investment object of State budget, then make money auctions of land use, the land use revenues to reimburse the Organization individuals must have made revenue accounting, more fully into the State budget under current rules.
2. the preferential regime for the business project in the KTCK: 2.1. The preferential regime for projects in tourism: the owner of the project of business travel in the KTCK enjoy investment incentives apply to the projects in the portfolio of investment incentives under the Government's regulations.
2.2. the preferential mode of land rents, water: investors in the country and foreign investors to invest in the KTCK then enjoy preferential land rent, the water as stipulated in Decree No. 142/2005/ND-CP on November 14, 2005 by the Government on currency land lease, rent water and the writing guide.
2.3. the preferential tax regime: investment projects in the KTCK enjoy the incentives under the provisions of the current law.
III. The TAX And FISCAL REGIMES APPLIED In The TAX AREA 1. Conditions of establishment and operation for the tax: the tax area in the economic zone is established only when the gate to ensure at the same time the following conditions:-Have secured hard barrier segregating activities in tax with other functional areas in the KTCK;
-In residential no tax, no residents regularly or temporarily stay (including foreigners);
-Have the customs surveillance, examine the goods and vehicles into and out of the tax.
2. business activities in tax: base clause 1, article 1, decision No. 273/2005/QD-TTg dated 31/10/2005 by the Prime Minister about the amendments and supplements to some articles of the decision No. 53/2001/QD-TTg dated April 19, 2001 by the Prime Minister on the policy for border gate economic zone the tax, has the following business operations: logistics (logistic); Manufacture and processing of goods; International trade; The exhibition introduced the product.
3. tax policy, fees apply in tax: 3.1. Corporate income tax: The project into the enjoys tax incentives on corporate income tax corporate income tax rules and guidance documents.
3.2. export Tax, import tax: a) the importing, exporting goods in the following cases not subject to export tax, import tax:-goods from the export tax; Foreign goods imported into the tax and only used in the tax area;
-The goods taken from the tax to the tax-free export processing businesses, and vice versa.
-The goods are not subject to tax exports originating from Vietnam brought into the domestic tax.
b) goods subject to tax exports originating from Vietnam domestic take on the tax and export tax export procedures under the current rules.
c) goods from the import tax on Vietnam's Interior must file tariffs under current rules. Particularly for the goods being produced, recycling, machining, assembling in taxes if eligible under the provisions of circular No. 14/2006/TT-BTC on 28/02/2006 the Ministry of Finance shall guide the implementation of the import tax rate special of Vietnam to make agreements about incentive programs effective tariff (CEPT) of the ASEAN countries shall be provisions of this circular.
d) organizations and individuals in local and foreign production, business activities in the import tax on raw materials, supplies and goods from abroad but not handled and the product also has commercial value are allowed to sell in Vietnam, domestic to do full customs and import tax under current rules.
3.3. special consumption tax: a) the goods or services subject to special consumption tax are produced, consumed in taxes or are imported from overseas on the contrary not subject to tax and special consumption tax. Private cars under 24 seats made of special consumption tax under the current common rules.
b) goods or services subject to special consumption tax from Vietnam domestic exports in the tax area is not subject to special consumption tax. Private cars under 24 seats made of special consumption tax under the current common rules.
c) goods or services subject to special consumption tax from the tax switch to or sell tax-free zones and vice versa are not subject to special consumption tax.
d) goods subject to special consumption tax from the tax on domestic Vietnam must bear special consumption tax for imports under current rules.
3.4. value added Tax: production and business establishments in the tax area are using the invoice value according to the current rules, perform registration, Declaration, the value added tax for implementation of value added tax under the provisions of this circular. For these cases the goods do not have to pay tax, the value added in the value added tax invoice, value-added tax line be crossed (x). Specifically the following: a) the goods or services produced and consumed in the tax area and from foreign imports into the tax and vice versa are not subject to value added tax.
b) goods, services from the tax switch to or sell tax-free zones and vice versa are not subject to value added tax.
c) goods, services from Vietnam domestic export to the applicable tax value added tax is 0%.
d) goods, services from the import tax on Vietnam domestic value-added taxes for imported goods with the tax rate according to the current rules. Specifically, the business tax when selling to domestic enterprises in Vietnam billed without value added tax, the tax and value added tax slash. Domestic business (or the business tax in the case of goods brought into the Interior to sell) just to pay the value added tax for imported goods under the customs declaration procedure imports into the domestic market.
3.5. Taxes, fees and other charges: taxes, fees and charges are made according to the current regulations in the laws and ordinances of tax, investment law, Ordinance on fees and charges and other legal documents guiding the implementation.
4. Customs procedures for goods put on, take out the taxes: customs, inspection regimes, customs supervision of goods brought into, given the tax area is done according to the rules in section VIII, part B, circular No. 112/2005/TT-BTC on December 15, 2005 of the Ministry of finance guide to customs procedures , check, customs supervision of goods brought into, given free trade Zone, a tax-free.
IV. IMPLEMENTATION 1. For the people's Committee of the KTCK border area:-based on the needs of development and trade in the KTCK, Chairman of the people's Committee of the KTCK area the border is responsible for directing the research establishing the tax area in the KTCK and ensure full implementation of the conditions specified in paragraph 1 Section III of this circular. If not specified the conditions for the tax not to be allowed to set up and operate.
-The Chairman of the provincial people's Committee has decided to KTCK Area establishing the tax area in the KTCK after agreement with the Ministry of construction, Ministry of Commerce and Ministry of Finance on tax area planning to ensure consistency within the country.
-PPC directed the relevant authorities (border guard, police, customs, tax authorities, etc.) enhance coordination to implement measures to control, check against the acts of smuggling, trade fraud in tax in the KTCK.
2. for the General Department of Customs: customs force layout to make customs procedures for goods put on, take out the taxes and customs monitoring implementation against the tax according to the provisions of the customs law.
3. Effective:-this circular have effect after 15 days from the date The report. This circular replaces circular No. 59/2001/TT-BTC dated July 17, 2001 of the Ministry of Finance shall guide financial policy enforcement applies to the border gate economic zone.
-Management of the KTCK, tax authorities, customs authorities, organs of the State Treasury and other relevant agencies on the KTCK Area coordination should enhance the provisions of this circular, simultaneously, make sure the test measures, aims to control against the smuggling behavior , commercial fraud in the KTCK.
In the process of implementation if having problems suggest reflection on the Ministry of finance to study the resolution./.