CIRCULAR guide financial regime applied in Lao Bao trade zone in Quang Tri province, the deployment of decision No. 219/1998/QD-TTg dated November 12, 1998 of the Prime Minister issued a regulation to encourage regional economic development and trade, Lao Bao in Quang Tri province and decision No. 8/2002/QD-TTg dated January 11, 2002 by the Prime Minister on the amendments , the addition of some articles of the Statute Lao Bao Trade Zone, Quang Tri province attached to decision No. 219/1998/QD-TTg dated November 12, 1998, the Ministry of Finance shall guide financial regime applied in Lao Bao trade zone in Quang Tri province, as follows: i. the SCOPE, SUBJECTS of APPLICATION 1. Scope: as defined in article 2, decision 1998/219/QD-TTg dated November 12, 1998 of the Prime Minister, the scope of application of a number of financial regulation policies in this circular is made on the Lao Bao town, the town of Khe Sanh and the Tan Thanh, Tan Long commune: Tan, Tan, Tan, Fit in the district, Quang Tri province Direction. The area above is called Lao Bao Trade Zone.
2. the preferential beneficiaries: beneficiaries of the preferential policies on financial regulation in this circular is the personal organizer, Vietnam and overseas manufacturing operations, business at Lao Bao Trade Zone, including: a) The domestic investors in the economic sectors established in accordance : Business law, business law, the law on cooperatives and individual business households, the independent practice personal...;
b) organizations, foreign individuals including business for foreign investment, foreign investors participate in the contract business, Vietnam who settled in foreign investments on water according to the forms prescribed in 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 in the new Lao Bao Trade Zone enjoy the incentives under the provisions of this circular. The case of organizations, individual business activities both in the commercial area of Lao Bao in Vietnam's Interior and then to separate the accounting operations in the Lao Bao Trade Zone to define the base of preferential regimes.
For enterprises operating license before issuing the decision 219/1998/QD-TTg dated November 12, 1998 that have not enjoyed enough incentives, business must recommend the Licensing Agency for investment, investment incentive certificates, certificate of business registration of additional records as a base to enjoy the preferential policy as prescribed in this circular.
II. Organization-SPECIFIC INSTRUCTIONS, personal investment in Lao Bao trade zone, enjoying 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 revised Law, supplementing a number of articles of the law on foreign investment in Vietnam on 9 June 2000 and the law on investment incentives in the country (modified) on 20 May 1998 and the incentives under the international treaties to which Vietnam signed or joined.
A. FOR TAX INCENTIVES; PREFERENTIAL LAND RENT; PREFERENTIAL LOANS to INVEST 1. Tax incentives: 1.1. Corporate income tax: The project on commercial area of Lao Bao enterprises to invest abroad and foreign parties involved in business cooperation contracts are exempt from corporate income tax for 8 years from the time when the taxable income and the applicable income tax rate is 10% for the next year.
The investment project of Lao Bao Trade Zone into the Organization, individuals are exempt from corporate income tax in four years time since taxable income; 50% reduction of corporate income tax payable in the next 9 years; apply tax rate the corporate income tax is 15%.
The unit is responsible for the tax administration to direct the investment license, certificate of investment incentives, business registration certificate by the competent authority, in which clearly the tax exemption period to be entitled to preference.
Businesses have foreign capital and foreign parties involved in business cooperation contracts using the revenue to reinvest in the business district of Lao Bao, are refunded 100% of the tax agencies of corporate income tax already paid for with proceeds used to reinvest if satisfy both of the following conditions :-capital reinvestment is used 3 years older.
-Have enough capital in the investment license.
Corporate income tax paid for the reinvested income is determined as follows: Th = L---------100-S x S where: Th: Is corporate income tax refund income is divided: the L after corporate income tax used to reinvest into Lao Bao Trade Zone.
S: corporate income tax recorded in the investment license.
The complete procedure for corporate income tax of reinvested profits is made according to the provisions in paragraph 6 c, section I, part two of circular No. 13/2001/TT-BTC on 08/03/2001 of the Ministry of Finance shall guide the implementation of regulations for the form of investment according to the law on foreign investment in Vietnam.
The Organization, individual manufacturing, trading goods, services, businesses, foreign-invested and foreign parties to the contract business operations in the commercial area of Lao Bao, 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.
1.2. export Tax, import tax: All goods, services, relations between Lao Bao Trade Zone and in the country's import-export relations and must comply with all provisions of the current law on the export, import.
Commodities borrowed lines, transit via the Lao Bao Trade Zone gate on the basis of the agreement signed between the two Governments or local branches are prime lets not subject to export tax, import tax.
Goods made from Vietnam and domestic goods from foreign countries enter into a commercial area of Lao Bao are exempt from import tax.
Manufacturing goods, processing, recycling, Assembly in Lao Bao Trade Zone when exported to a foreign tax exemption for export.
Subject goods exported from Vietnam domestic tax put into Lao Bao Trade Zone for export abroad must pay tax according to the current rules.
Imported tax for goods from Lao Bao Trade Zone entered Vietnam domestic follow the following rules: the goods originating from overseas (not from Laos) import tax under current rules.
Goods originating from Laos be reduced import tax as stipulated in decision No 181/1998/QD-TTg dated 21/9/1998 of the Prime Minister or by agreement between the two Governments.
Manufacturing goods, processing, recycling, Assembly in Lao Bao Trade Zone if not using imported materials and components from abroad, when imported into Vietnam's interior is not filed tariffs.
Manufacturing goods, processing, recycling, Assembly in Lao Bao Trade Zone 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 includes:
(a) the value of each type of raw material, imported components constitutes in every unit of the goods (in the import price (CIF) from foreign or domestic market price of raw materials, component parts of the same type (unit USD) human with the consumption of each type of raw material, imported components in each unit of the goods due to the self build and unit responsible to France the law on the integrity of the norm this consumption).
(b) the quantity of the goods imported into Vietnam, domestic (c) import tax for each type of raw material, components and accessories.
The registration procedure, declare the goods to enter Vietnam and domestic tax filing is done according to the rules in section C, circular No. 166/1998/TT-BTC dated 22/12/1998 of the Ministry of Finance shall guide the implementation of Decree No. 54/CP 28/8/1993 and Decree No. 89/1998/ND-CP dated November 17, 1998 detailing the Government's enforcement of tax Law , import tax and the law on amendments and supplements to some articles of the law on the export tax, import tax.
1.3. special consumption tax: goods and services subject to special consumption tax are consumed in Lao Bao Trade Zone are not subject to special consumption tax, include: goods and services subject to special consumption tax on supply, production and consumption in Lao Bao Trade Zone.
The goods or services subject to special consumption tax from foreign countries enter into a commercial area of Lao Bao or produced from domestic and export directly to Lao Bao Trade Zone.
The goods or services subject to special consumption tax from Lao Bao Trade Zone exports abroad is not subject to special consumption tax.
The goods or services subject to special consumption tax from Lao Bao Trade Zone entered Vietnam domestic taxed consumption especially under current rules.
The goods subject to special consumption tax if the borrowed lines, transit through the gate of Lao Bao Trade Zone on the basis of the agreement signed between the two Governments or local branches are prime allows is not subject to special consumption tax.
1.4. value added Tax: goods or services produced and consumed within the Lao Bao Trade Zone are not subject to value added tax.
Goods, services imported from abroad into Lao Bao Trade Zone are not subject to value added tax.
Goods and services from Vietnam domestic production into Lao Bao Trade Zone enjoy the value added tax is 0%.
Goods, service from Lao Bao Trade Zone entered Vietnam domestic value added tax incur according to the current rules on value added tax for imported goods.
1.5. other taxes, fees and charges: other taxes, charges and fees, follow the rules in the tax code, encouraging domestic investment Law (Amendment), the law on foreign investment in Vietnam and other legal texts.
2. Preferential land rent: organizations and individuals who have investment projects in Lao Bao Trade Zone are free in 11 years from the date of contract for leasing land and enjoy the land by 30% land rental applicable to the mountainous district of Quang Tri province since the twelfth year onward.
The Organization, individuals are responsible for the tax administration to direct the investment license or certificate of investment incentives, business registration certificate by the competent authorities, which clearly long time, reducing land rental to enjoy preferential treatment.
3. Preferential loans for Vietnam: the business investments in all economic sectors to invest in manufacturing, trading at Lao Bao Trade Zone be considering development assistance Fund for credit loans of the State under the provisions of Decree No. 43/1999/ND-CP on 29/6/1999 of the Government on credit for investment development of the State and the regulations in other action on the State's credit loans. The case of the Prime Minister decided to adjust interest rates for credit loans to the State, then enjoy the new lending rate as determined by the Prime Minister.
B. REWARDING for ORGANIZATIONS, INDIVIDUALS are CALLED NON-REFUNDABLE CAPITAL (CAPITAL OUTSIDE the STATE BUDGET RESOURCES) 1. Based on the ability of the budget, the Chairman of the provincial people's Committee decided to award the Organization, individuals are called non-refundable capital (capital outside the State budget sources) as non-refundable aid resources by institutions, individuals and foreign direct aid (in addition to support from the budget) to invest in the construction of economic infrastructure in social economic in Lao Bao Trade Zone a maximum bonus of 1% of the total value of the aid which is not refundable and do not exceed $50,000. This AIDS in performance to record the ceasing through local budgets in Quang Tri province.
2. Funding used to reward for organizations, individuals are called non-refundable capital (capital outside the State budget sources) to invest in the economic and social structures in Lao Bao Trade Zone is taken from the bonus of local budget and accounting on your bonus.
C. MANAGEMENT of INVESTMENT CAPITAL BACK FROM the STATE BUDGET to BUILD INFRASTRUCTURE in LAO BAO TRADE ZONE based on the actual number of State budget revenue in the commercial area of Lao Bao (not including value added tax on imported goods, the record collector-record spending, excluding revenues of local budgets balanced as confiscated smuggling goods the people of mobilization, contribute, earning fees, hospital charges, aid, ...), the State will invest back to build infrastructure in Lao Bao Trade Zone according to the following levels: 100% of the annual State budget revenue in the commercial area of Lao Bao if the State budget revenue in the commercial area of Lao Bao hit under 50 billion/year; 50 billion and 50% real currency left if the State budget revenue in the commercial area of Lao Bao hit from 50 billion/year.
The management and use of capital investment by the central budget back to build infrastructure in Lao Bao Trade Zone implemented as specified in part III, circular No. 59/2001/TT-BTC on 17/7/2001 of the Ministry of Finance shall guide financial policy enforcement applies to the khâủ border gate economic zone.
D. FINANCIAL REGIME APPLICABLE To The MANAGEMENT Of LAO BAO TRADE ZONE 1. Management of Lao Bao Trade Zone is State budget estimation, all funding for the operation of the management of Lao Bao Trade Zone due to State budget covered, all revenues as defined by the Board of management of Lao Bao Trade Zone are made payable to the State budget according to the decentralized management of the current state budget.
2. Management of Lao Bao Trade Zone are allowed to collect the fees, the fees corresponding to the tasks of the State management agency authorized under the regulations. When is the competent State bodies authorized to carry out the task, the management of Lao Bao Trade Zone has responsibility for notification and registration with the tax authority where the Headquarters Management Committee to do the procedure on filing the number of fees earned by performing the authorized duties.
III. ENFORCEMENT of the PROVISIONS of this circular have enforceable from the date signed. In the process, if there are obstacles, the proposal reflects on the Finance Ministry to study the resolution.