CIRCULAR guide financial regime applicable to industrial and commercial Areas in the MOC Bai border gate economic zones, Tay Ninh province based on the State budget Law on December 16, 2002, the law on amendments and supplements to some articles of the law to encourage investment in the country on 20/5/1998 Law on foreign investment, 12/11/1996, law on foreign investment (modified) on 9/6/2000, the enterprise income tax law, tax law, the law on value added Tax special consumption on 17/6/2003; Customs Law No. 29/2001/QH10 on June 29, 2001;
Pursuant to decision No. 144/2004/QD-TTg dated 12/8/2004 of the Prime Minister about the addition of a number of preferential policies for the MOC Bai border gate economic zones, Tay Ninh province;
The Ministry of Finance shall guide the fiscal regime applied in the industrial and commercial Department of the MOC Bai border gate economic zone as follows: i. GENERAL PROVISIONS 1. Scope: financial regime prescribed in this circular are applied within the area of the industrial-commercial Area in the MOC Bai border gate economic zone (hereinafter referred to as the KTM-CN) established by decision 1595/2002/QD-UB, on 30/9/2002 of Tay Ninh province approving the detailed planning of commercial District Municipality MOC Bai border gate Tay Ninh province;
In this circular the phrase "inland Vietnam" is understood as the rest of the MOC Bai border gate economic zone does not include the KTM-CN and the territory of Vietnam in addition to MOC Bai border gate economic zone.
2. the applicable object: the object to apply the preferential policies on financial regulation in this circular is the personal organizer, Vietnam and overseas manufacturing operations, business at KTM-CN in the MOC Bai border gate economic zone, including: a) The domestic investors in the economic sectors of activity according to the provisions of the law on State enterprises , Business law, cooperative Law, the individual business households and individuals independent practice.
b) organizations and individuals including foreign businesses invested abroad; foreign investors participation in business cooperation contracts; Vietnam who settled in foreign operations by encouraging domestic investment Law (Amendment), the law on foreign investment in Vietnam and foreign investors not trading under the law on foreign investment in Vietnam.
Only business activities are conducted on the KTM-new INDUSTRIAL incentives for geographical KTM-CN provided in this circular. The case of organizations, individual business activities both on the KTM-CN and inland Vietnam must own accounting business activities on the KTM-CN make determining preferential regimes.
For businesses that are licensed to operate in the KTM-CN before deciding to 144/2004/QĐ-TTg in effect that has not enjoyed enough incentives, business must recommend the Licensing Agency for investment, investment incentive certificates, certificate of business registration record additional incentives as a base to enjoy the preferential policy as prescribed in this circular.
3. Conditions apply: KTM-CN was entitled to the preferential regime of financial regulation in this circular while ensuring at the same time the following conditions:-Have secured hard fence separated the activities of KTM-CN with the other functional areas in the border gate Economic Zones;
-In the KTM-CN no settlement, no residence populations often or staying (including foreigners);
-Customs control Station to monitor, check the people, goods and vehicles into and out of KTM-CN.
4. A number of General provisions on Customs:-economic organizations active in KTM-CN is exported abroad and imported from abroad all the goods and services that the law does not prohibit Vietnam.
-The exchange of goods and services between KTM-CN with the other functional areas in the border gate Economic Zone (KKTCK) and Vietnam's Interior must comply with the provisions of the law on the management of Vietnam goods, services for export, import.
-Economic organizations and individuals in Vietnam gets hinterland from KTM-CN the goods and services that Vietnam does not prohibit the importation, export to KTM-CN the goods and services that Vietnam does not export prohibited and subject to inspection, supervision of customs.
-Customs Bureau in Tay Ninh province was established customs checkpoints KTM-CN at the gate-on KTM-CN. The customs stations of KTM-CN subject to the direct management of the MOC Bai border gate customs Bureau.
-Export and import of goods in kind would then apply the process current customs procedures for that type.
-Customs Agency responsible directly about the prevention, fight against smuggling in the Customs according to the provisions of the law on Customs and is responsible, in coordination with the relevant departments in the prevention of smuggling of Tay Ninh province.
5. organizations and individuals invest in KTM-CN was entitled to the maximum incentives for investment projects in geographical socio-economic conditions particularly difficult under the provisions of the law on foreign investment in Vietnam on November 12, 1996, the law on amendments and supplements to some articles of the law on foreign investment in Vietnam on June 9, 2000 The law, encourage domestic investment (modified) on 20 May 1998, the enterprise income tax law, the law on value added Tax and other incentives under international treaties, bilateral trade agreements and multilateralism that Vietnam signed or joined.
6. The case of the legal text has defined the different incentive levels about the same problem then apply preferential rates provided for in the text of higher legal force.
The case of the legal texts provisions on the same issue by the same agency that issued that have different rules shall apply the provisions of the text to be issued after.
II. SPECIFIC PROVISIONS a. for goods and services: 1. On the export tax, import tax: a) the goods or services from abroad, from entering domestic KTM-CN was exempt from import tax.
b) goods, services from KTM-CN entered Vietnam: domestic-goods and services originating from overseas filed tariffs under current rules.
-Goods manufacturing, processing, recycling, assembled in the KTM-CN if the goods value of ASEAN origin constitute from 30% or more, is confirmed by the certificate of origin of goods to ASEAN-Model D and qualified under the provisions of circular No. 64/2003/TT-BTC dated 1/7/2003 on the enactment of the category of goods and the tariff of Vietnam to make tax incentive agreement view the general effect (CEPT) of the ASEAN countries for the years 2003-2006 shall be applied a tariff preferential import tariffs CEPT when entering into Vietnam's interior.
-Goods manufacturing, processing, recycling, assembled in the KTM-CN if not using imported materials and components from abroad, when imported into Vietnam's interior is not filed tariffs.
-Goods manufacturing, processing, recycling, assembled in the KTM-CN has used imported materials and components from abroad, when imported into Vietnam's Interior only have to pay tax for the import of raw materials, components and accessories imported from abroad constitute in such goods.
The base to determine the import duties to be paid for the raw materials, import components from abroad constitutes in goods imported into Vietnam's Interior include: + the value of each type of raw material, imported components constitutes in every unit of the goods (to be calculated by the price of imports from abroad (CIF) or price on the domestic market of raw materials components, of the same type (unit USD) human with the consumption of each type of raw material, imported components in each unit of the goods by the construction unit and is responsible before the law about the truthfulness of the norm this consumption).
+ The amount of goods imported into Vietnam, domestic
+ Import tax for each type of raw material, components and accessories.
Business, personal business has the duty to register with the customs of the category of goods imported as raw materials for the production of imported goods into the Interior before entering into the hinterland.
c) goods production, recycling, machining, assembling at KTM-CN when exported to a foreign tax exemption for export.
d) goods subject to tax exports from Vietnam domestic take on KTM-CN to pay the tax under the current rules.
2. special consumption tax:-the goods or services subject to special consumption tax are produced, consumed in the KTM-CN is not subject to special consumption tax, include: goods and services subject to special consumption tax on supply, production and consumption in the KTM-CN; from overseas enter the KTM-CN.
-The goods or services subject to special consumption tax from KTM-CN exports abroad is not subject to special consumption tax.
-The goods or services subject to special consumption tax from KTM-CN entered Vietnam domestic taxed consumption particularly for imports under current rules.
– The goods subject to special consumption tax if the borrowed lines, transit through the gate KTM-CN on the basis of bilateral, multilateral agreements concluded or local branches are prime allows is not subject to special consumption tax.
3. value added tax:-goods, services imported from abroad on KTM-CN is not subject to value added tax.
-Goods and services from KTM-CN exports abroad enjoy the tariff RATES of 0%; Goods and services from Vietnam domestic production on KTM-CN enjoy value-added tax is 0%. VAT refund conditions are made according to the provisions of the current law of VAT refund.
-Goods and services from KTM-CN put into domestic VAT incurred for imports under current rules.
-Goods and services circulating within the KTM-CN is not subject to VAT. With respect to goods, the VAT invoice, the VAT line be crossed (x).
4. Customs procedures: a) for goods imported from abroad to the KTM-KTM-business ad: CN customs declaration implementation and submission of customs as prescribed for each type of import customs Bureau at MOC Bai border gate and be subject to the supervision of the customs checkpoint KTM-CN;
b) for goods imported from abroad to the Inland through the MOC Bai border gate is made of customs procedures at MOC Bai border gate customs Bureau.
c) for goods or services from the Inland brought to KTM-CN, the customs procedure only when business requirements. Customs procedures are as follows:-business-KTM-CN and inland enterprises perform Customs Declaration and submission of customs as prescribed for each type of import and export. The case of the internal freight between businesses and affiliates inside and outside the KTM-CN, then replace the proof of purchase contracts from output.
-Internal business case sign export declarations at inland Customs Bureau, local business customs declaration and submission of customs as prescribed for each type of export; KTM enterprises-CN Customs Declaration and submission of customs as prescribed for each type of import.
d) for goods from KTM-CN exported abroad: business-KTM-CN make customs declaration and submission of customs as prescribed for each type of export Customs Bureau at MOC Bai border gate or customs control stations in the KTM-CN.
DD) with respect to goods from the domestic exports abroad through the MOC Bai border gate customs procedures at the Customs Bureau at MOC Bai border gate. In the case of customs procedures at the local customs Bureau, the transport of the goods to the MOC Bai border gate made according to the rules for goods exports moved the gate.
e) for goods from KTM-CN put into the domestic customs procedures performed at Genus MOC Bai border gate Customs Department or customs control stations in the KTM-CN. KTM enterprises-CN (seller) and the domestic business (the buyer) is responsible for:-Customs Declaration and submission of customs as prescribed for each type of import and export. The case of the internal freight between businesses and affiliates inside and outside the KTM-CN or direct business carrying on the sale in the inland customs records replaced the contract proof from output.
-Business-KTM-CN to pay more for the customs security copy of the Declaration of goods imported from abroad to the KTM-CN if the goods brought into the hinterland is foreign origin goods, copies are stamped copies of the business.
-Business-KTM-CN (the seller) must be filed with the Customs Bureau MOC Bai a level of raw materials imported from abroad constitutes in the product if the commodity is fabrication, manufacturing, recycling, assembled in the KTM-CN has used raw materials, foreign components.
Customs is responsible for opening the window track for each business to statistics and examined, collated with the votes of the output of goods and services.
f) exports, imports, transit; means of transport, entry, transit through the KTM-CN just be going through the portal to have customs checkpoints.
g) in addition to the provisions of this circular, the parties concerned must perform other obligations stipulated in the customs law, export taxes, import taxes, the Decree 101/2001/ND-CP dated 31/12/2001 detailing the Government's implementation of some articles of the customs law on customs procedures , test mode, customs supervision and guidance documents on customs.
B. for investment projects on KTM-CN: 1. enterprise income tax:-The investment project on KTM-CN applies the level of corporate income tax rate is 10% in 15 years since the project began operations, the corporate income tax exemption during 4 years since taxable income; 50% reduction of corporate income tax payable in the next 9 years. Special case should encourage higher, the Finance Ministry and Its walls the Government decided to apply the 10% tariff for the duration of the project.
Procedure to enjoy enterprise income tax reduction implemented as specified in circular No. 128/2003/TT-BTC on December 22, 2004 of the Ministry of finance.
-For investment projects to build new production lines, expansion, technological innovation, improve the ecological environment, raise production capacity: + tax for the income tax increase due to the project brings: follow rules in 5.1.4 Circular No. 88/2004/TT-BTC dated 1/9/2004 of the Ministry of finance and the other provisions of the law the onions.
+ Long term, tax reduction for the extra income brought by the project: The project is not in the list A of the attached Decree 164/2003/ND-CP dated December 22, 2003, the Government's corporate income tax exemption for 1 year for the extra income brought by investment and 50% tax maximum is 2 years. The projects in the list A of the attached Decree 164/2003/ND-CP dated December 22, 2003, the Government's corporate income tax exemption for 3 years for the extra income brought by investment and 50% tax maximum is 7 years.
+ The accounting income increase due to the construction of new production lines, expansion, technological innovation, improve the ecological environment, raise production capacity to bring made in accordance with Point 7 circular No. 88/2004/TT-BTC dated 1/9/2004 of the Ministry of finance and the other provisions of the current law.
-Organizations, individual business, producing goods and services; businesses have foreign capital and foreign parties involved in business cooperation contracts business activity in KTM-CN, after settlement with the tax authorities of that loss shall be transmitted to the following year to minus on taxable income. Time was moving the hole no more than 5 years.
-Taxable income with earnings from the transfer of land use right or land rent right associated with infrastructures on land architecture, must pay taxes according to the income specified in section C of the circular No. 128/2003/TT-BTC dated December 22, 2003 guiding the implementation of Decree No. 164/2003/ND-CP dated December 22, 2003 detailing the Government's enforcement of the law on enterprise income tax career.
2. land transport charge land use, and land lease-land users in the KTM-CN is investing in the construction of infrastructure, production, business activity services and have the right, the obligation corresponding to the assigned form the land, land under the provisions of the law of the land.
-The investment project on KTM-CN be free in 10 years beginning from the date of contract for leasing land and enjoy the land by 30% of the land in the area from the twelfth year onward.
-Apply a land rental for individuals and businesses that rent land, irrespective of who Vietnam or foreigners.
For cases handed back land, lease land without through land use rights auction or bidding for projects, land use, management of MOC Bai border gate economic zone decided to collect level land use, land lease, the exemption level, reducing the amount of land use, land lease according to each project to ensure investment is encouraged on the basis of land prices by the committees population of Tay Ninh province to decide.
3. investment credit: domestic enterprises in the economic sectors have investment projects in manufacturing, trading at KTM-CN credit loans a priority investment in development of the State, the following interest rates supported investment or investment credit guarantee as stipulated in Decree No. 105/2004/ND-CP dated 19/4/2004 and Government decision No. 54/2004/ QD-BTC dated 16/6/2004 of the Minister of Finance on the development of investment credit of the State.
4. Prices, taxes, fees and other charges:-management of MOC Bai border gate economic zone are allowed to collect the fees, the fees corresponding to the tasks of the State management agency mandated under current regulations. When is the competent State bodies authorized to carry out the task, management of MOC Bai border gate economic zone has responsibility for notification and registration with the tax authority where the management based on the collection of fees, the fees due to the implementation of its mandate.
-Price level using the works of infrastructure, public utilities and public services for the KTM-CN about roads, ports, infrastructure systems, electric lighting, electricity, water, communication, ... is the price agreed between the business infrastructure and the objects used.
-Taxes, fees and charges are made according to the current provisions in the tax law, the law on investment incentives in the country (modified), the law on foreign investment in Vietnam, the Ordinance on fees and charges and other legal texts.
C. for passengers back KTM-CN: – domestic and foreign tourists when on KTM-CN be allowed to buy goods brought about domestic and imported duty free if the total value of the goods does not exceed 500,000 VND/person/day. If the total value of goods purchased exceeding the above rules, people have to pay taxes on the import goods exceeds the prescribed limit part of the current law.
Tourists there buy goods at KTM-CN offers to do the domestic customs declaration procedures at customs checkpoints MOC Bai border gate or customs control stations in the KTM-CN.
MOC Bai KTCK management specific guidelines the standards to identify objects through the TM-CN as tourists after the exchange for Tay Ninh province.
-For passengers to enter Vietnam via MOC Bai border gate with a passport by the competent State agencies of Vietnam or oversea level, when on the KTM-CN be allowed to bring into Vietnam every domestic duty-free under the provisions of Decree 68/2002/ND-CP dated 19/7/2002 by the Government about the baggage limit the exit entry and importing gifts are tax free.
-Means of transport, entry, transit; goods, luggage, person's Forex entry, exit, transit customs procedures at MOC Bai border gate customs Bureau.
-Domestic transport goes through the TM-CN must be subject to the supervision of the customs stations of KTM-CN.
III. IMPLEMENTATION-Tay Ninh province has the responsibility to ensure the implementation of the conditions specified in paragraph 3, section I to KTM-CN applies the financial regulatory regime in this circular. The case has not yet specified conditions apply.
-Tay Ninh province 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 at the MOC Bai-CN TM.
-After 2 years, Tay Ninh province hosted, in cooperation with the Ministry of finance to conduct summative evaluation, applying some additional incentive policies on finance at MOC Bai border gate economic zone.
-This circular have effect after 15 days from the Post Gazette. In the process of implementation if having problems suggest reflection on the Ministry of finance to study the resolution./.