Circular No. 98/2002/tt-Btc: Guide To Perform The Tax Exemption, Tax Relief For The Audience To Enjoy Investment Incentives Under Decree No. 51/1999/nd-Cp On 8/7/1999 Of Government Regulation Details

Original Language Title: Thông tư 98/2002/TT-BTC: Hướng dẫn thực hiện việc miễn thuế, giảm thuế cho các đối tượng được hưởng ưu đãi đầu tư theo Nghị định số 51/1999/NÐ-CP ngày 8/7/1999 của Chính phủ quy định chi ti

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To base the tax law, the Tax Ordinance;

Pursuant to Decree No. 51/1999/ND-CP on 8/7/1999 of the Government detailing the implementation of the law to encourage investment in water (Amendment) No. 03/1998/QH10 (under the wire as Decree No. 51/1999/ND-CP) and Decree No. 35/2002/ND-CP on 29/3/2002 of the Government on the amendments additional, category A, B and C, issued at the appendix to the Decree No. 51/1999/ND-CP (under the wire as Decree No. 35/2002/ND-CP);

Pursuant to Decree No. 64/2002/ND-CP on 19/6/2002 of Government transfer of State enterprises into joint stock companies (replacing Decree No. 44/1998/ND-CP on 29/6/1998 of the Government on the transfer of State enterprises into joint stock companies);

Pursuant to Decree No. 103/1999/ND-CP on 10/9/1999 of the Government on Affairs, sell, lease, leasing business of State enterprises;

The Ministry of Finance shall guide the implementation of tax incentives for the audience to enjoy investment incentives under the provisions of the law on investment incentives in the country as follows: a. GENERAL PROVISIONS I. This circular apply to the beneficiaries of tax incentives under the law on domestic investment incentives , including: 1. State Enterprise;

2. State enterprises transformed into joint stock companies as stipulated in Decree No. 64/2002/ND-CP on 19/6/2002 of Government (replacing Decree No. 44/1998/ND-CP on 29/6/1998 of the Government on the transfer of State enterprises into joint stock companies);

3. State Enterprise for delivery workers, collective sale for collective, individual or legal entities according to the provisions of Decree No. 103/1999/ND-CP on 10/9/1999 of the Government;

4. Joint stock companies, limited liability companies, partnerships;

5. Private business;

6. Cooperative, cooperative association;

7. Educational establishments, private training, set up, sell; private health facility, set up; ethnic cultural facility was established and legitimate activities in accordance with the law;

8. The business of the political organization, social-political, professional associations and business registration in accordance with the law;

9. Individuals, business groups operating under Decree No. 66-dated 2/3/1992 of the Council of Ministers (Government) and individual business households of business registration as stipulated in Decree No. 02/2000/ND-CP dated 3/2/2000 of the Government about business registration;

10. The population of Vietnam, Vietnam people settled abroad, foreigners residing in Vietnam, buying stock, raising capital to businesses to Vietnam.

II. The objects stated in points 1, 2, 3, 4, 5, 6, 7, 8 and 9 section I mentioned above (collectively referred to as production facilities, business) investment projects (for State enterprises made the shares, intersection, the sale of the investment project is the option shares, intersection business sales are approved by the authorized) meet the conditions of workers, in the fields of lines to be entitled to investment incentives, investment incentives under the provisions of article 15, article 16 of Decree No. 51/1999/ND-CP or investment project in the form of BOT, BTO shall enjoy tax incentives money, land use and land lease (referred to as tax incentives) according to the instructions in section B to this circular if:-the correct functioning of industries registered the business;

-Tax registered with tax authorities;

-Implement fully the provisions of the law on accounting, statistics.

With regard to the production facilities, business has not implemented the accounting mode, invoices, vouchers, tax monthly according to the mode of securities turnover rates and taxable income are not eligible to enjoy tax incentives under the guidance of this circular.

B. TAX INCENTIVES i. CORPORATE INCOME TAX: the tax preferential enterprise income tax according to the provisions of article 20 of Decree 51/1999/ND-CP is done as follows: 1. the applicable objects are: manufacturing, trading and investment projects in the industry in the fields of craft, was entitled to investment incentives specified in list A, or the implementation of investment projects in geographical areas entitled to investment incentives are as defined in list B or list C of the appendix attached to Decree No. 35/2002/ND-CP.

2. The level of corporate income tax incentives specifically as follows: 2.1. The tax rate of 25% for the investment project on the lines defined in list A of the appendix attached to Decree No. 35/2002/ND-CP;

2.2. Tax rate of 25% with respect to the implementation of investment projects in geographical areas defined in list B of the appendix attached to Decree No. 35/2002/ND-CP;

2.3. Tax rate of 20% for investment projects in the scope specified in list A, which are implemented in geographical areas defined in list B of the appendix attached to Decree No. 35/2002/ND-CP;

2.4. Tax rate of 20% for investment projects implemented in geographical areas defined in list C of the appendix attached to Decree No. 35/2002/ND-CP;

2.5. The tax rate of 15% for investment projects in the scope specified in list A, which are implemented in geographical areas defined in list C of the appendix attached to Decree No. 35/2002/ND-CP.


Production base, external business investment project on the lines of business, enjoy investment incentives, also have business activities in the fields of business, others have to follow separate accounting part of taxable income of the sector, profession, geographical business is entitled to investment incentives with the taxable income of the business activities in the branches , occupations, other business areas to declare private enterprise income tax according to the tax rate prescribed for each of the lines, which have business establishments. The base case production, business does not track private accounting is taxable income of individual lines of business, the level of corporate income tax different then the entire taxable income of those lines of business, not the private accounting, facilities must declare the income tax rate for the highest business rules for the hospitality industry the craft, the business that is not a private accounting basis.

Enterprise income tax incentives as instructed in section I, part B to this circular is applicable only during the project are entitled to preferential tax, enterprise income tax reduction. When the project ran out of time to be free of tax, business income tax, manufacturing facilities, business must make declare, pay tax according to the tax rate stipulated in the law on enterprise income tax. Private investment projects for expansion, investment in depth only applies for the additional income investments bring that production facilities, business has been identified according to the instructions in point 1.3.2, section II, part B to this circular.

II. ABOUT TIME and the EXEMPTION LEVEL, reducing the TAXES 1. 1.1 business income tax. Tax incentives, corporate income tax reduction for investors whose investment projects establishment of production base of business, according to the provisions of article 21 of Decree 51/1999/ND-CP is made as follows: 1.1.1. Objects are: production base, new business established (including the cases of State enterprises transformed into joint-stock companies under Decree No. 64/2002/ND-CP DATED and delivered to the State enterprises workers collective, State enterprises sold to collective, individual or legal entities according to Decree No. 103/1999/ND-CP) meet the conditions of labor , lines in the fields are entitled to investment incentives, investment incentives under the provisions of article 15, article 16 of Decree No. 51/1999/ND-CP.

1.1.2. Of time and the level of tax exemption and tax breaks: a two-year exemption), since there is taxable income and 50% of the tax for the next two years for the project to satisfy a condition specified in article 15 of Decree 51/1999/ND-CP;

b) is exempt for two years, since there is taxable income and 50% of the tax for the next four years for the project to meet the two conditions specified in article 15 of Decree 51/1999/ND-CP;

c) are exempt from the three years, since a taxable income and 50% of the tax for the next five years for projects in industries specified in list A, which are implemented in geographical areas defined in list B of the appendix attached to Decree No. 35/2002/ND-CP;

d) Was a three-year exemption, since the taxable income and 50% of the tax for the next seven years for investment projects that meet both conditions stipulated in article 15 of Decree 51/1999/ND-CP and is done in geographical areas defined in list B of the appendix attached to Decree No. 35/2002/ND-CP;

a four-year exemption), since there is taxable income and 50% of the tax for the next seven years for the project to invest in industries specified in list A, which are implemented in geographical areas defined in list C of the appendix attached to Decree No. 35/2002/ND-CP;

e) are free for four years, since the taxable income and 50% of the tax payable for the next nine years for investment projects that meet both conditions stipulated in article 15 of Decree 51/1999/ND-CP and is done in geographical areas defined in list C of the appendix attached to Decree No. 35/2002/ND-CP.

For the production facility, the active business investment projects established production base, new business in an enjoy investment incentives, incentives on corporate income tax as follows: – If the production base, the newly formed business unit is to be granted the certificate of business registration perform accounting, business results and perform registration, Declaration, corporate income tax with the tax authorities, the production base, new business establishment be applied time and the level of tax exemption and reduction of enterprise income tax according to the instructions in point 1.1, section II, part B to this circular.

-If the production base, the newly formed business unit accounting is dependent and perform registration, Declaration, filing business income taxes clustered in manufacturing, the main business of the time and the level of tax, corporate income tax reduction for production facilities the main business, according to the instructions in point 1.3, section II, part B to this circular. In this case, the part of taxable income are entitled to tax exemption incentives, tax reduction determined respectively according to the percentage (%) of revenue accounting unit dependent compared with total revenue of production facilities, the main business.


Production base, the business was established in the cases below are not eligible to enjoy preferential corporate income tax according to the instructions in section I and point 1.1, section II, part B to this circular:-production base, the business was founded by the divided, split, merged, amalgamated under the regulations of the corporate law;

-Production base, the business was founded by converting property (not including State-owned enterprises implement timeframes under the capitalization of the 64/2002/ND-CP and making State enterprises, sold under Decree No. 103/1999/ND-CP), change of name from the production base of active trading, ago , including the following cases: business individual householder established private business with business lines as old business headquarters and still plays in the old business locations; Private business owners abolished the business to establish a new private enterprise or establishment of limited liability company on the same province, central cities as the President of the Council or the Member who has the highest share in the Charter capital of the company.

The production base, the business was established in the above case, if the investment expansion, investment in depth and meet the conditions to be entitled to investment incentives provisions in article 15, article 16 Decree 51/1999/ND-Cp, the production base, sales will be looking to enjoy the preferential enterprise income tax according to the instructions in section I and the point 1.3, section II, part B to this circular.

1.2. The preferential enterprise income tax for capital mobilization and lending capital of the people's credit funds: effective 1/1/2001 operation raising capital and loan capital of the people's credit funds enjoy preferential corporate income tax under the provisions of article 21 of Decree 51/1999/ND-CP on 8/7/1999 of the Government. Preferential corporate income tax are determined as follows: 1.2.1. Capital mobilization and lending capital of the people's credit fund established on 1/1/2001 onwards are tax, corporate income tax, since the taxable income is as follows: a two-year exemption) and 50% of the tax for the next two years for the people's credit funds do not meet the conditions of the employer incentives on average in the year according to the provisions of article 15 of Decree 51/1999/ND-CP;

b) is exempt for two years and 50% reduction of the payable tax for the next four years for people's credit funds preferential conditions to meet employers on average during the year, but does not meet the conditions for preferential investment areas as defined in article 16 of Decree No. 51/1999/ND-CP;

c) are exempt from the three years and 50% reduction of the payable tax for the next five years for people's credit fund is headquartered in geographical areas defined in list B of the appendix attached to Decree No. 35/2002/ND-CP, but not preferential conditions to meet employers on average in the year according to the provisions of article 15 of Decree 51/1999/ND-CP;

d) Are long three years and 50% reduction of the payable tax for the next seven years for people's credit fund is headquartered in geographical areas defined in list B of the appendix attached to Decree No. 35/2002/ND-CP and preferential conditions to meet employers on average in the year according to the provisions of article 15 of Decree 51/1999/ND-CP;

DD) Is a four-year exemption and a 50% reduction of the payable tax for the next seven years for people's credit fund is headquartered in geographical areas defined in list C of the appendix attached to Decree No. 35/2002/ND-CP, but not preferential conditions to meet employers on average in the year according to the provisions of article 15 of Decree 51/1999/ND-CP;

e) Was a four-year exemption and a 50% reduction of the payable tax for the next nine years for the people's credit fund is headquartered in geographical areas defined in list C of the appendix attached to Decree No. 35/2002/ND-CP and preferential conditions to meet employers on average during the year;

1.2.2. the mobilization of capital and loans of the people's credit fund established before 1/1/2001, if the time investment incentives still then time to enjoy tax incentives, corporate income tax reduction for the remaining time, effective 1/1/2001. Remaining time is determined by the time at which tax exemption credit fund was entitled under the conditions stated in point 1.2.1, section II to this circular minus (-) the period of time from when the people's credit funds began to be taxable income to the end of 2000. The case following on 1/1/2001 to the new people's credit funds have taxable income, the tax exemption period is counted from the year of the people's credit funds began to be taxable income.

To be entitled to the preferential enterprise income tax according to the instructions in point 1.2, section II, part B to this circular, the people's credit funds have to do for the certification of investment incentives in accordance with the regulations. Every year, based on the actual conditions are entitled to investment incentives, the people's credit fund itself determines the preferential enterprise income tax and make declarations, submit the State budget according to each States as well as the tax year with tax authorities according to the prescribed regimes.


1.3. Preferential tax, enterprise income tax rebate for investment expansion, investment in depth according to the provisions of article 23 of Decree No. 51/1999/ND-CP are as follows: 1.3.1. Objects are: manufacturing, trading and investment projects to expand, invest for production activities, business lines defined in list A of the appendix attached to Decree No. 35/2002/ND-CP; production base of investment projects to move away from the inner city, or in industrial zones, export processing zones, high-tech zones, clusters.

1.3.2. The timing and extent of tax reduction, tax free incentives for the increased income due to expanded investment projects, investment brings depth as follows: a) is waived for a year and a 50% reduction of the payable tax in the next four years;

b) Are long three years and 50% reduction of the payable tax in the next five years for the implementation of investment projects in geographical areas defined in list B of the appendix attached to Decree No. 35/2002/ND-CP;

c) four-year exemption and a 50% reduction of the payable tax in the next seven years for the implementation of investment projects in geographical areas defined in list C of the appendix attached to Decree No. 35/2002/ND-CP.

Tax, tax breaks for investment projects expand the scale of investment, the depth is determined in one of two ways:-as from the year completed investment projects into production, business;

-Computer from the year following the year the project to complete production, business.

For the project to be implemented on time a year and divided into multiple categories of investment, the production base, applied business time computer tax, enterprise income tax reduction when the project completed, the production business; the case of each of the categories of investment completed production, business tax, the tax reduction is calculated according to each category of investment completed production, business.

Based on the implementation of the investment project and time calculated tax free, tax reduction mentioned above, production facilities, business registered with the tax authorities of the time specific tax exemption for his unit. A tax registration, tax breaks were created and sent the tax authorities along with a copy of the certificate of investment incentives or decided to convert the possession of the competent agency (for State enterprises transformed into joint-stock companies under Decree No. 64/2002/ND-CP DATED and delivered to the State enterprises workers ' collective the sale of State enterprises, collective, individual or legal entities according to Decree No. 103/1999/ND-CP).

Production facilities, business must own accounting income increase due to investments brought to determine the number of corporate income tax exemption, reduction. The base case production, no the private accounting business income increase due to investment in bringing the income tax exemption, tax reduction more determined correspond to the ratio between the value of fixed assets investment have completed delivery put on use of fixed assets original production reality trading within the tax exemption.

 





TNDN added tax exemption = total taxable TNDN in new investment LOAN value X Of the actual LOAN price for raw produce, including: business + Total taxable business income for the year determined in accordance with the regulation on mode of enterprise income tax.

+ Total fixed assets original reality involved produce, including: business value of fixed assets investment has completed the handover brought into use and the original price of the existing fixed assets are used for production as of end of year accounting balance sheet tax review tax reduction.

The case of the investment project implementation on time a year and divided into multiple categories of investment, production facilities, business registered with the tax authorities apply tax calculator, tax relief for each category of investment completed production, the business value of fixed assets new investments are determined by accumulated value of grades the portfolio was completed and put into use by the time the enterprise income tax (to December 31) of the tax years, the tax reduction. For the project to complete each section or category of investment, but not in the fixed assets investment in production, to increase business capacity, production efficiency, the business of manufacturing and trading establishments in the year does not apply tax exemption calculation according to the instructions in point 1.3 , section II, part B to this circular.

Example 1: A company last year 2000 worth of original fixed assets involved manufacturing operations, sales of 30 billion. The company has investment projects as follows: installation 2001 completed and put into use a production line worth 10 billion; 2002 installation of completed and put into use a production line worth 15 billion. The company does not separately accounting income increased due to the implementation of the investment project and has registered applicable tax calculator, tax relief for each category of investment completed production, business. The company's business results in 2001 have taxable income of 12 billion and 2002 there is taxable income of 20 billion.


Income increase due to investments yield tax exempt, the tax reduction is determined as follows: + in 2001: the extra income is tax-free, tax rebate = 12 billion X 10 billion to 30 billion + 10 billion + in 2002: the extra income tax exemption, tax = 20 billion X 10 billion VND 40 billion + 15 + 15 billion for example 2 : Also the example above, the company investment project complete each section, but only until the entire project completed the new company put into production, business. In this case, the taxable income increased due to investments yield determined when the entire project completed for production, business (2002) and is determined as follows: + 2002: the extra income tax exemption, tax = 20 billion X 25 billion to 30 billion + 25 1.4 billion. The preferential enterprise income tax for investors whose investment project in the form of BOT, BTO prescribed in article 22 of Decree No. 51/1999/ND-CP is done as follows: 1.4.1. Objects are: manufacturing, trading and investment projects in the form of construction contract-business-transfer (BOT) or build-transfer-business (BTO).

1.4.2. Time and preferential tax rates, tax relief: a four-year tax exemption, since the taxable income and 50% of the tax in the next nine years for income have been due to the implementation of investment projects in the form of BOT and BTO.

Production facilities, business also get income from the BOT, BTO projects are also income from production activities, other business premises to a private accounting business results of each activity to implement tax incentives regime as well as the Declaration and payment of prescribed separately for each activity for which the facility has trading.

1.5. incentives of additional business income tax under the provisions of article 24 of Decree 51/1999/ND-CP is done as follows: production facilities, business investment projects (regardless of the form of the investment established production facilities for new business or expansion investments forms investment depth) has a project on the lines of the provisions in list A or investment projects in the area of investment incentives provisions in list B or list C of the appendix attached to Decree No. 35/2002/ND-CP, does not submit the additional business income tax for the taxable income that the manufacturing facility business, were determined to enjoy tax incentives, reducing the corporate income tax.

1.6. additional tax incentives, corporate income tax reduction for production facilities, export business prescribed in article 27 Decree No. 51/1999/ND-CP is done as follows: 1.6.1. Objects are: manufacturing, export business to enjoy preferential corporate income tax under one of the cases specified in articles 20, 21, 22, 23 and 24 of the Decree No. 51/1999/ND-CP.

1.6.2. The timing and extent of tax reduction, tax free incentives: a 50% reduction of the payable tax) payable for the taxable income has been due to the export of the production facilities, business in the following cases: a. 1 the first year export was done by direct export;

a. the first 2 years of exporting new items have technical-economic features, other features used with items previously exported business;

a. the first 3 years of exports to the market in a new country, or other new territory with the market before.

b) 50% reduction of the payable tax taxable income due to the increased exports in the financial year of the production base, the business had revenues of exports next year is higher than the previous year;

c) 20% reduction of the payable tax taxable income earned from export in a fiscal year of the production facilities, business in the case of: c. 1 export sales reached over 50% of total revenue;

c. 2 to maintain market stability in the number or value of goods for export in three consecutive years prior to that.

d) Was reduced more 25% tax for the income earned from export in a fiscal year in respect of the production facilities, business tax incentives were entitled to followed the instructions in a, b and c, point 1.6.2, section II, part B to this circular, if investment projects generated income have been due to the export of that made in accordance List B of the appendix attached to Decree No. 35/2002/ND-CP.

DD) are exempt of corporate income tax on the income earned from export in a fiscal year in respect of the production facilities, business tax incentives were entitled to followed the instructions in a, b and c, point 1.6.2, section II, part B to this circular, if investment projects generated income have been due to the export of that done at the table defined in list C of the appendix attached to Decree No. 35/2002/ND-CP.


To have made the additional preferential rate of corporate income tax according to the instructions in point 1.6, section II, part B to this circular, production facilities, export business to the private accounting income are entitled to preferential treatment under the circumstances mentioned above. Where does the private accounting income are entitled to preferential treatment under the regulations for the export of the above part of this income is defined corresponds to the percentage (%) of export revenues in accordance with the total turnover of the production facilities, business.

The base case production, trading in the financial year at the same time meet the tax reduction conditions according to the a, b, c and d, point 1.6.2, section II, part B to this circular, the enterprise income tax of manufacturing facilities, sales are rising by (=) total business income tax are considering the reduction of the case on. Maximum tax reduction level in this case equal to (=) the enterprise income tax amounts that are the basis of production, trading for part of the income earned from export in a fiscal year.

2. land use tax incentives of tax exemption and reduction of land use tax (including agricultural land use tax and tax, land) in accordance with article 19 of Decree 51/1999/ND-CP is done as follows: 2.1. Objects are: production base, the business satisfies the conditions of workers, in the fields of lines to be entitled to investment incentives, investment incentives under the provisions of article 15, article 16 of Decree No. 51/1999/ND-CP by the State land to implement investment projects.

The production base, while the business meets the conditions to be entitled to investment incentives, but the investment project implementation on the part of the land not in the form of State land to the project or the project on land that was previously delivered State is not eligible for tax exemption land use tax, as stipulated in article 19 of Decree 51/1999/ND-CP.

2.2. Time and preferential land use tax: 2.2.1. Production facilities, business is State land allocated to investment projects in the scope specified in list A of the appendix attached to Decree No. 35/2002/ND-CP are tax, land use tax, since the land was entrusted to implement investment projects such as the following : a) the 50% reduction of land use tax for seven years for investment projects in the scope specified in section II, list A of the appendix attached to Decree No. 35/2002/ND-CP;

b land use tax exemption) for the duration of the project for projects in the scope specified in section I, list A, attached to Decree No. 35/2002/ND-CP.

2.2.2. Production facilities, business is State land allocated to investment projects in geographical areas defined in list B of the appendix attached to Decree No. 35/2002/ND-CP is exempt from the land use tax, since the land was entrusted to implement investment projects such as the following : a seven-year exemption) for implementation of investment projects in geographical areas defined in section II, list B of the appendix attached to Decree No. 35/2002/ND-CP.

b) be free of ten years for the implementation of investment projects in geographical areas defined in list B of annex I, attached to Decree No. 35/2002/ND-CP.

2.2.3. Production facilities, business is State land allocated to investment projects in geographical areas defined in list B of the appendix attached to Decree No. 35/2002/ND-CP, at the same time meet the conditions stipulated in article 15 of the Decree 51/1999/ND-CP is exempt from the land use tax , since the land was entrusted to implement investment projects such as the following: a) eleven-year exemption for investment projects in the scope specified in list A of the appendix attached to Decree No. 35/2002/ND-CP;

b) be free of fifteen years for the project to meet simultaneously the two conditions specified in paragraph 1, paragraph 2, article 15 of the Decree 51/1999/ND-CP.

2.2.4 production facilities, business is State land allocated to investment projects in geographical areas defined in list C of the appendix attached to Decree No. 35/2002/ND-CP is exempt from the land use tax, since the land was entrusted to implement investment projects such as the following : a) eleven-year exemption for investment projects in geographical areas defined in list C of annex II attached to Decree No. 35/2002/ND-CP.

b) be free of fifteen years for investment projects in geographical areas defined in list C of annex I, attached to Decree No. 35/2002/ND-CP.

c) tax-exempt land use throughout the project implementation period for projects in industries specified in list A, which are implemented in geographical areas defined in list C of the appendix attached to Decree No. 35/2002/ND-CP.

Every year, during the term of land use tax incentives, production facilities, business must identify and count the cost of manufacturing and trading of land-use tax still payable after deducting the number of land-use tax exemption, reduction according to the instructions in point 2.2, section II Part B to this circular.

3. About the import tax


According to the provisions of article 26 of Decree No. 51/1999/ND-CP, the production base, business investment projects in industry, trades specified in list A, or investment projects in geographical areas defined in list B or list C of the appendix attached to Decree No. 35/2002/ND-CP is tax-free import of the following goods which in the country have not produced or production but do not meet quality requirements:-equipment, machines, means of transport (located in the technology) to create the fixed asset of your business or expand the scale of investment, technological innovation.

-Specialized transportation workers.

4. transfer tax profit (income) tax incentives to overseas move overseas income as defined in article 28 of Decree 51/1999/ND-CP is done as follows: 4.1. Object is applied: the investor is Vietnam People settled abroad, foreigners residing in Vietnam, foreign capital contribution, purchase of shares under the provisions of Decree No. 51/1999/ND-CP.

4.2. Preferential tax offshore income transfer: file a tax equal to 5% of legitimate income moved abroad. How to determine tax tax procedure, follow the instructions in section V, part C circular No. 18/2002/TT-BTC dated February 20, 2002 of the Ministry of finance.

III. the LONG, STEADY MONEY USING preferential LAND about land use money as defined in article 17 of Decree 51/1999/ND-CP is done as follows: 1. the applicable object is: production base, the business satisfies the conditions of workers, in the fields of lines to be entitled to investment incentives local investment incentives, according to the provisions of article 15, article 16 of Decree No. 51/1999/ND-CP and State land to implement investment projects in manufacturing, business activity subject to paid use of land.

The production base, the business satisfies the condition is entitled to investment incentives, but the implementation of investment projects on the land in the following circumstances are not eligible for the exemption, reduced use of land according to the provisions of article 17 of Decree 51/1999/ND-CP:-implement investment projects on land not in the form of State land to implement the investment project (for example, production facilities, business investment project implementation on the part of the land area by land use rights from someone other then incorporation ...).

-Implement investment projects on the part of the land is State land for production and business establishments, but not for the purpose of performing the highest risk projects (for example, production facilities, business investment project expansion on the part of the land were allocated to state production base business, before the time of the investment project...)

2. preferential Rates, reduced land use: 2.1. 50% reduction of land use money, if investment projects in industry, trades, fields defined in list A of the appendix attached to Decree No. 35/2002/ND-CP;

2.2. Be reduced 75% of land use, if investment projects are implemented in geographical areas defined in list B of the appendix attached to Decree No. 35/2002/ND-CP;

2.3. payment exemption for land use in the following cases: a) investment projects in industry, trades, the field specified in list A, which are implemented in geographical areas in list B of the appendix attached to Decree No. 35/2002/ND-CP;

b) investment projects are implemented in geographical areas defined in list C of the appendix attached to Decree No. 35/2002/ND-CP;

The preferential reduction free money to use the above-mentioned land is defined once at the time of production facilities, business was entrusted to implement investment projects and to calculate the amount payable land use State budget according to the regulations. The base case production, business at the time of delivery of the land are not eligible to enjoy preferential long, steady money using the land, but the State to slow and slow time in filing the submission, production facilities, business meets the conditions to be entitled to investment incentives, then this case production base , business still must make sufficient land use amount payable has been determined in accordance with the prescribed time limit and do not enjoy the exemption, reduced land use according to the instructions in section III, part B to this circular.

IV. Exemption and REDUCTION of preferential LAND RENT free as prescribed in article 18 Decree No. 51/1999/ND-CP is done as follows: 1. the applicable object is: production base, the business satisfies the conditions of workers, in the fields of lines to be entitled to investment incentives local investment incentives, according to the provisions of article 15, article 16 of Decree No. 51/1999/ND-CP by the State for the land rental to implement investment projects in production and business activities.


The production base, business investment projects without State's land rental or investment projects on the ground that the production facilities, business has hired former State, even the event part of the land investment projects, facility yet land rental by State but the base has actually used before the time of execution of the project and the tax agency has managed currency land lease is not eligible to be free under the provisions of article 18 Decree No. 51/1999/ND-CP and the guidance in this circular.

For State business after moving into joint stock companies as stipulated in Decree No. 64/2002/ND-CP DATED and delivered to the State enterprises workers ' collective sale, collective, individual or legal entities according to the provisions of Decree No. 103/1999/ND-CP, which established new business still made produce business, on an area of land that SOE has hired former State cannot be free under the provisions of article 18 Decree No. 51/1999/ND-CP and the guidance in this circular. Case when done changed ownership, the new businesses have hired more State land to expand production, business, the only business to be free under the guidance of this circular for the new hire more area to expand production, business.

2. Time and preferential land rent: 2.1. Production facilities, business is State land rental to implement investment projects in production and business activities, if the project meets the conditions stipulated in article 15 of Decree 51/1999/ND-CP was free, since the contract for leasing land to implement investment projects such as the following : a three-year exemption) for investment projects that meet a condition prescribed in article 15 of Decree 51/1999/ND-CP;

b) be free of six years for the project to meet the two conditions specified in article 15 of Decree 51/1999/ND-CP;

2.2. Production facilities, business is State land rental to implement investment projects in manufacturing, business activity, if the implementation of investment projects in geographical areas defined in list B of the appendix attached to Decree No. 35/2002/ND-CP of exempt leasing the land, since the land lease contract to implement investment projects such as the following : a seven-year exemption) for projects in geographical areas defined in section II, list B of the appendix attached to Decree No. 35/2002/ND-CP.

b) be free of ten years for projects in geographical areas defined in list B of annex I, attached to Decree No. 35/2002/ND-CP.

2.3. Production facilities, business is State land rental to implement investment projects in production and business activities, if the implementation of investment projects in geographical areas defined in list B of the appendix attached to Decree No. 35/2002/ND-CP, at the same time meet the conditions stipulated in article 15 of the Decree 51/1999/ND-CP are free , since the land lease contract to implement investment projects such as the following: a) eleven-year exemption for investment projects in industry defined in list A of the appendix attached to Decree No. 35/2002/ND-CP;

b) exempt the thirteen years for investment projects that meet both conditions specified in paragraph 1, paragraph 2 article 15 Decree 51/1999/ND-CP.

2.4. Production facilities, business is State land rental to implement investment projects in production and business activities, if the implementation of investment projects in geographical areas defined in list C of the appendix attached to Decree No. 35/2002/ND-CP of exempt leasing the land, since the land lease contract to implement investment projects such as the following : a) are exempt, for implementation of investment projects in geographical areas defined in list C of annex II attached to Decree No. 35/2002/ND-CP.

b) be free of fifteen years for implementation of investment projects in geographical areas defined in list C of annex I, attached to Decree No. 35/2002/ND-CP.

c) Are free for the duration of the project for investment projects in branches specified in list A, which are implemented in geographical areas defined in list C of the appendix attached to Decree No. 35/2002/ND-CP.

Each year, within the time limit are preferential land rent, production facilities, business must identify and count the cost of production, the amount of land rental business must submit the State budget, after subtracting the amount the land rent free perks, reduce according to the instructions at point 2 , Section IV, part B to this circular.

C. IMPLEMENTATION I. for PRODUCTION and BUSINESS ESTABLISHMENTS 1. After being granted investment preference certificates, the business and production base of the project in an investment tax perks under the guidance of this circular must send a copy of a valid certificate of investment incentives for tax authorities directly managed currency within 10 working days from the date granted investment preference certificates to make the base implementation of the tax incentive for the facility in accordance with the provisions of article 37 of Decree 51/1999/ND-CP.


Every year, according to the investment incentive certificates have been issued, production facilities, business self determine the account are tax preferences, the balance to be paid into the State budget and declaring, filed the State budget according to each States as well as the annual settlement with the tax authorities according to the prescribed regimes. In determining the terms of tax incentives under the guidance of this circular was calculated according to the tax year.

2. separate the case below, the order and the procedures for tax incentives as follows: 2.1. State enterprises transformed into joint stock companies as stipulated in Decree No. 64/2002/ND-CP DATED and delivered to the State enterprises workers ' collective sale, collective, individual or legal entities according to the provisions of Decree No. 103/1999/ND-CP, if it meets the conditions of labor, industry and investment incentive tax perks, then follow the instructions in This circular is not made for the certification of investment incentives.

To enjoy tax incentives as stipulated in Decree No. 51/1999/ND-CP on 8/7/1999 of the Government, State enterprises transformed into joint stock companies and State enterprises for collective communication workers, sold to individual or collective entity must submit to the tax authority directly manages the business (including the tax agency Customs Agency) a copy of the decision changed the ownership of the competent agency (stamped by the business identified the main copies) and a self-determination of the business requirements are entitled to incentives, preferential tax that businesses enjoy.

Every year, based on the actual conditions are entitled to investment incentives, businesses determine and be responsible before the law for the accuracy of the determination of taxes, the State budget must be filed and be free, falling under the guidance of this circular. Business must make declarations, tax receivables and State budget as well as the annual settlement with the tax authorities according to the prescribed regimes.

2.2. production establishments, business tax incentives were entitled to followed the instructions at point 3, section II, part B to this circular must have form and send a copy of the certificate of investment incentives (or a copy of the decision to move the form property of the authorized agency) have stamped copies of the base , accompanied by a technical economic explanation on the category of machinery, equipment, means of transport (located in the technology), means of transportation workers for the Customs gate where actual import facility. The Customs gate where the basis of imported machinery, equipment, means of transport, made the free imported tax once the base according to the practice of importing (importing cases mandated the import facility mandated to produce records on import contracts with mandated for customs).

2.3. for manufacturing facilities, business tax incentives were entitled to followed the instructions in section III, part B to this circular and exemption authority records, reducing the amount of land used to follow the guidance in circular No. 115/2000/TT-BTC dated December 11, 2000 by the Ministry of Finance shall guide the implementation of Decree No. 38/2000/ND-CP dated 23 August 2000 the Government collect money using the land.

3. In the course of project implementation, the production base, the business does not meet the conditions to enjoy tax incentives under the registered level for reasons of objectivity or subjectivity, the base must be notified in writing with the Agency decided to grant investment incentives within 30 days , since the project is no longer eligible to enjoy investment incentives under the rules. Within 7 days from the date of the notice of the manufacturing business, the Agency decided to grant investment incentives review and decided to adjust a part or remove the entire investment incentives has accepted.

4. Production facilities, business behavior deceitful to enjoy tax incentives encouraged investment laws in the country or when changing investment conditions led to the decrease in the level of tax incentives under the registered rate without timely declarations in accordance with the tax agency to adjust back to tax preferential compensation and reimbursement payment of tax incentives was affected during the time that the project is no longer eligible for investment incentives. In addition, depending on the level of offense that production facilities, business also sanctioned administrative violations or prejudice criminal liability under the law.

5. In the same time, the production base, medium business tax incentives enjoyed by law to encourage investment in the country, just enjoy the incentives under the other provisions of the law, the only basis for tax perks under one of the provisions on the free basis by the selection and must sign the application of preferential tax direct tax management.


In the same time, production facilities, business made many investment projects that enjoy tax incentives, the facility must perform track partial accounting taxable income of each investment project to apply the preferential enterprise income tax rules for each project. The base case does not separate accounting is taxable income of each project, the base only apply preferential enterprise income tax for the lowest basis are entitled for the taxable income is not a separate accounting.

For example, in 2001, the company X is making 3 projects that enjoy tax incentives. In the three projects above, there are two investment projects are in the period of enterprise income tax exemption and the remaining projects are in time 50% reduction of corporate income tax payable.

Last settlement in 2001, only a private accounting company X to be taxable income of an investment project are exempt from corporate income tax. Follow the instructions on the part of taxable income in the private accounting mentioned above will be exempt from corporate income tax and the taxable income is not the private accounting of the two remaining projects then company X is applied only a 50% reduction of the payable income tax.

II. With RESPECT to the TAX AUTHORITIES 1. Tax authorities (including tax authorities, customs agencies hereinafter referred to as the tax agency) pursuant to the terms of tax incentives was clearly in the preferential investment certificates (for State enterprises transformed into joint stock companies and State enterprises for collective communication workers , on sale for collective, individual or legal entity is a self-determination of the business) to determine the tax to be waived, reduced when the business, manufacturing facility has implemented in full the obligations and the tax agency had sent the necessary documents according to the instructions in this circular.

2. in case of the detection of the level of investment incentives included in the preferential investment certificates were granted to manufacturing facilities, business (for State enterprises transformed into joint stock companies and State enterprises for collective communication workers, sold to individual or collective entity is a self-determination of the business) does not match the eligibility of investment incentives According to the fact, then the tax authorities apply the temporary preferential taxation according to actual conditions, and reported back to base to know and suggest the Agency granted investment preference certificates adjusting a part or the whole withdraw investment incentives under the provisions of article 34 of Decree 51/1999/ND-CP.

Every year, when implemented, tax the tax agency official must determine the tax incentives that production base, the business is entitled to investment incentives, but must submit the State budget of the production facilities, business and announcements for the facility to submit enough missing within the time limit prescribed , or the number of overpaid compared to the number recorded in the notice to be paid by the Agency to reduce the tax deducted to pay of States.

3. The tax authorities during tax inspections, if the production base, sales are in time to enjoy the preferential investment behavior of enterprise income tax are not true to fact, business or manufacturing acts perjury, the tax authorities consider the handling as follows :-If investment projects are in time corporate income tax exemption for the production and business establishments remain to be addressed the enterprise income tax according to the prescribed regimes. Depending on the fault of the production base, the business, the tax authorities apply the administrative sanction for acts of corporate income tax not true fact or of production facilities, business.

-If investment projects are in time be reduced corporate income tax, the taxable income of part production base, business cannot correct the fact or not, consider reducing taxes. Depending on the fault of the production base, the business, the tax authorities apply the administrative sanction or prejudice the authority bodies responsible for the criminal acts of the enterprise income tax not true fact or of production facilities, business.

In any case, the tax authorities must make tax collection enough for production facilities, business behavior perjury, tax evasion and sanction measures imposed by law.

4. The tax authorities to open records, shared track, the full retention of documents related to the projects enjoying preferential tariffs under the guidance of this circular. Every year, the tax Bureau of the province, directly governed cities made a report on the Ministry of Finance (tax administration-plan) of the object are entitled under the law on investment incentives to encourage domestic investment, tax and other State budget revenue has long, rising along with reports the results of State budget revenue in its management.

5. tax, customs officers, other individuals taking advantage of the prerogatives, powers deliberately rules in Decree No. 51/1999/ND-CP and the guidance in this circular, causing damage to the State budget, depending on the extent to which violations were disciplined, the administrative sanction or prejudice criminal liability under the law.

III. EFFECTIVE ENFORCEMENT OF


1. for the investment project has been issued a certificate under the provisions of the law of incentives to encourage investment in countries that were not in the category A, B and C of the annex attached to Decree No. 35/2002/ND-CP shall continue to enjoy the tax incentives under the investment incentive certificates already issued.

2. for the investment project has been granted investment preference certificates, if meet more conditions under the provisions of Decree No. 35/2002/ND-CP and the competent authority has been granted investment preference certificates adjusted, additional investment preference certificates shall only be entitled to tax incentives for remaining time (if longer) from the date of Decree No. 35/2002/ND-CP effective enforcement.

3. With regard to the investment projects already implemented have not registered previously entitled to investment incentives under the provisions of Decree No. 51/1999/ND-CP, if it meets the conditions prescribed in Decree No. 35/2002/ND-CP, that the project owner has registered record investment incentives and the competent authority has been granted investment preference certificates shall only be enjoy tax incentives for remaining time (if longer), calculated from the date of Decree No. 35/2002/ND-CP effective enforcement.

4. in case of a change of owner for the investment projects are in time to enjoy tax incentives under the guidance of this circular, the new owner if it meets conditions on investment incentives under the rules shall continue to enjoy tax incentives for the remaining time period of each account for tax incentives specifically stated in Investment incentive certificates have been granted to the former owner of the investment project. The new owner is responsible to fulfill the obligations that the former owner was committed to perform with the State.

5 this circular have effect after 15 days from the date of signing and replacing circular No. 22/2001/TT-BTC on 03/04/2001 of the Ministry of Finance shall guide the implementation of tax exemption and tax relief for the audience to enjoy investment incentives under Decree No. 51/1999/ND-CP on 8/7/1999 of the Government detailing the law encourages domestic investment (modified).

For investment projects and the case has to be tax free, tax reduction with preferential rates under the guidance documents made tax free, tax relief for the audience to enjoy investment incentives of the Ministry of Finance before the date of this circular has the effect, but the owner has made tax according to the prescribed regimes do not handle collection or refund the taxes investors had overpaid or missing compared to the level of tax incentives under the guidance of this circular.