CIRCULAR Guide made the long, steady income taxes under decision No. 29/1998-QD-TTg on 9/2/1998 of the Prime support solutions developed a number of areas in the mechanical industry to base income tax Law to be National Assembly VIII passed on 30/6/1990; Additional amendment of some articles of the law on income taxes to be National Assembly IX passed on 6/6/1993;
Pursuant to decision No. 29/1998/QD-TTg dated 9/2/1998 of the Prime support solutions developed a number of areas in the mechanics;
The Ministry of Finance shall guide the implementation of the exemption, the tax reduction for enterprises under the provisions in article 3 of decision No. 29/1998/QD-TTg dated 9/2/1998 of the Prime Minister as follows: i. SCOPE of APPLICATION: 1. The object is exempt, the tax reduction: according to article 1 of decision No. 29/1998/QD-TTg dated 9/2/1998 of the Prime Minister, the enterprises producing Bicycle products, electric fans, air power is under 6-15 CV and close the vessel to use preferential loan of medium and long term of the State from 1998 to modernization of equipment and technology for production of the products on the subject are exempt, the tax relief under the provisions of this circular.
2. The time and extent of tax reduction, exemption: according to the regulation in detail b article 3 decision No. 29/1998/QD-TTg dated: businesses of the object referred to in point 1 above, when investment operations are exempt from tax in the first two years since taxable income and 50% in the next 2 years; the exemption, the tax reduction by year (12 months).
The return is exemption, reduction is the return on investment from bringing equipment and technology innovation by capital incentives by State. Business must own this benefit accounting to determine the base number of tax exemption, reduction.
The business case has incurred losses of the previous year, if the hole were transferred by law shall transfer the hole must be deducted from the taxable income before income tax exemption.
The business case for investment in the district and the region in list B, C – Decree No. 7/1998/ND-CP dated 15/1/1998 of the Government-regulated law enforcement details encourage investments in water, apply the exemption level, reducing income taxes under the provisions of Decree No. 7/1998/ND-CP , does not apply in this circular.
 
II. procedure for the REVIEW of RECORDS EXEMPT FROM TAX reduction: the basis subject to tax reduction, exemption must file income tax reduction, waiver of exemption from tax years submitted to the tax authorities according to the following provisions: a tax reduction, exemption form the basis of a clear explanation of the reason waiver tax reduction, there is partial analysis of income producing activity electric fans, bicycles, air power is under 6-15 CV and ship at sea.
Investment project for the renovation of equipment and technology as a basis of preferential loans.
Financial year, the tax year;
Application for exemption of tax basis according to the rules above must be a major enough of the politics of writing. If is a photocopying must be stamped copies of the base.
 
III. The AUTHORITY and PROCEDURES for EXEMPTION, reduction of INCOME TAX: the authority consider tax exemptions: Director of taxation and exemption, tax breaks for the cases have varying tax exemptions to 100 million per year.
General Director of taxation and exemption, tax breaks for the cases have varying tax exemptions on 100 million/year.
Order exemption tax reduction: application for exemption, the tax reduction is sent to the tax authorities directly managed facilities. Tax authorities directly responsible for facility management to check closely under the conditions specified in this circular. Within a maximum of 10 days from the date of the application, the Agency has the jurisdiction to decide on tax exemptions and income tax exemption for foundations or inform the basis why not yet solve, don't settle. The case is not in the jurisdiction must have comments and proposals in writing accompanied by free application, reduction of base-level tax offices send up on the review of the decision. The tax exemption made when annual tax.
To reduce the difficulties for enterprises subject to tax reduction, exemption, based on the number of estimated income tax exemption, reduction in the tax agency business management review identified for business was temporarily withheld a portion of income taxes payable. Temporary keep tax levels do not exceed 70% of the expected income tax exemption, reduction.
This circular has the effect after 15 days from the date of signing and applying for the exemption, the tax reduction in 1998. In the process, if there are problems and obstacles, business establishments, branches reflect timely the Finance Ministry (General Directorate of taxes) to resolve.