IT ' S SMART

Tax guidance on programs, projects and projects.
use the official development support source

The tax laws, the current tax code,

The Base of Decree No. 87 /CP on August 5, 1997 of the Government on the issuer of Regulatory Regulation and the Use of Official Development Assistance;

Tax-guided Finance Ministry for programs, projects that use the official development support source as follows:

I. SCOPE APPLIES:

Guided tax obligations in this Information apply to all organizations, domestic and foreign individuals involved in the implementation of programs, the project using the official development assistance (later called ODA) in Vietnam.

II. THE TAXES APPLY AND THE CAPITAL TO PAY TAX:

1. The indirect taxes and capital funds to pay taxes:

a. Income tax and special consumption tax:

For supplies, goods, equipment machinery, transport of imported goods from an ODA source must pay an import tax under the provisions of the export tax law, import tax, and Special Consuration Tax (if available) by the provisions of the Special Consuicing Tax Act.

Private goods, supplies, machinery, imported vehicles from an unreimbursable source of ODA are exempt from import duties, special consumption tax on regulation at Article 12 54 /CP on 28 August 1993 of the Government rules the law enforcement of the law. Export tax, import tax, and Article 3 Decree No. 97 /CP on 27 December 1995 of the Government rules the implementation of the Law of Special Consumption Tax Law and Amendment Law, which complements some of the provisions of the Special Consumption Tax Law.

Filing for import tax exemption, special consumption tax (if any) include:

The theme of the program's agenda, the project.

The contract to purchase goods between the program owner, the project, and the supply side provides the payment of the payment by non-reimbursable ODA.

The Ministry of Commerce's work allowed the importation of machinery, equipment for the program, the project in which the goods imported by an ODA source were not reimbursable.

Machines, equipment, transport vehicles brought by foreign contractors into Vietnam to serve the program's construction work, the project using ODA capital is exempt from import duties and must reexport when completed the work. The program hosts, project aggregations of machines, equipment, transport vehicles that contractors need to import, send records of the Ministry of Finance (along with the import of goods, materials of the project) to review decisions for each specific case. The Customs Administration has a management-tracking process for this case as a re-entry case.

In case of the completion of the completed work, the franchisor, the equipment, the import-exempt vehicle imported, the special consumption tax in the Vietnamese market must be approved by the Ministry of Commerce, which must pay import taxes, tax taxes. In particular (if available) by the guidelines at the Information Section 65 TC/TCT on 24/9/1997 by the Ministry of Finance guidelines that determine the value of import and consumption tax rates specifically for the imported goods of these tax-exempt objects now changes the free reason. taxes and other taxes on the provisions of the existing law.

b. Revenue tax:

Organizations, individuals with revenues from business activities through participation in the implementation of programs, the project using an ODA source must pay the revenue tax under the provisions of the Revenue Tax Law. Tax revenue is the entire contract value according to the type of activity that the organization, the individual made in accordance with the guidance at the LC/TCT on 30 December 1995 of the Ministry of Finance. The revenue tax rate is applicable to each business or service operation that organizes, the individual conducts under the Revenue Tax Act issued by Decree No. 96 /CP on 27 December 1995 of the Government rules the details of the law of taxation. and the amended Law, which adds some of the provisions of the Revenue Tax Act.

For construction contracts, installed in accordance with the package method or hand-handed key, the machine value, the full import device attached to the work provided by the foreign contractor provided under the program ' s import license, the project is subtracted from the program. when calculating revenue and tax revenues on construction activities and not paying a business tax in the commercial business of this device.

c. The capital to pay taxes:

For programs, the project uses ODA capital investment by the State Budget or to support a portion of the partner's capital, the program, the project, when building capital accounting annually must charge enough revenue tax, special consumption tax, import tax. The State Budget will guarantee sufficient planning to be approved under the approved plan to have a tax return or an implementation of the record, which is in charge of the above, indirect taxes.

For programs, the project to use the ODA capital by the mechanism of borrowing from the budget is that the hosts, the project must calculate and take care of the capital to submit the indirect taxes.

2. Tax tax returns and income tax on high-income people:

Organizations, individuals in the country taking part in the implementation of the programs, the project using ODA which benefits tax returns must pay the tax returns by regulation at Decree No. 57 /CP on 28 August 1993 of the Government regulating the implementation of the Tax Law of Foreign Policy and Law. modified to add some of the provisions of the Tax Law of Exchequer and Metrics Guidance 75A TC/TCT on 31 August 1993 by the Ministry of Finance.

Organizations, foreign individuals (later known as foreign contractors) perform the yield tax in accordance with guidelines at the Private Ministry's 37 TC/TCT on 10 May 1995 of the Ministry of Finance guiding the applicable tax imposed on economic institutions, foreign individuals operating on the site. Business in Vietnam is not in the form of investment by foreign investment law in Vietnam.

Domestic and foreign individuals working for the participating bidders perform program, project or for program management, the project using high-income ODA which must pay income tax under the ordinance of the income tax on the income tax on the person who is available. All right, high income

The case of foreign contractors implementing the project and foreign individuals working for the contractor or the project management of the countries that signed the agreement to avoid taxation twice with Vietnam, the payment of the income tax and the personal income tax is followed. The treaty signed.

In case the Government of Vietnam has a preferable tax incentive, personal income tax for organizations and individuals of the country supporting the non-reimbursable ODA source is not reimbursable by the current regulation, and the implementation of the agreement between the two governments.

III. DECLARE, TAX.

Organizations, individuals in the country taking part in the implementation of the program, the project must register the filing of tax filing pursuits to the LC/TCT on 30 December 1995, and the 75th TC/TCT on 31 August 1993 of the Ministry of Finance. Organizations, individuals, foreign contractors enumerate tax in guidance at the Private Ministry's 37 TC/TCT on 10 May 1995. Individuals who work for the contractors, the project management project have the income to prescribe tax in the guidelines at the LC/TCT on 26 June 1997 of the Ministry of Finance.

The prescribed tax-exempt cases at the two-time tax avoidance Agreement or bilateral agreement between the Government of Vietnam with the Government of the Water Supply of non-reimbursable ODA to Vietnam must also carry out prescribation procedures. under the regulation and must provide the tax authority the documents related to the calculation of the tax, tax, tax exemption.

The program management, the project is responsible for the governor, reminding contractors in the country and abroad to register, prescribe the correct tax of law and guidelines at this Smart, while also implementing the deduction of the tax number must be submitted by the contractors. foreign countries to submit to the State Budget according to the regulatory regime.

The legal violations of the registration, prescribation of taxes are subject to the provisions of the tax laws, the tax ordinance and the Government of 22 /CP on 17 April 1996 of the Government on the sanctiation of administrative violations in the tax sector.

IV. THE ORGANIZATION.

This message comes into effect after 15 days, since the date of the signing. The programs, the project using ODA which had not previously decided on the Government's tax treatment, the Ministry of Finance was implemented under this Smart ./.