Tax incentives encourage auxiliary industries

VGP – Preferential tax will be applied to auxiliary industries in prioritized fields in Việt Nam from August 18, according to Circular 96/2011/TT-BTC, issued by the Ministry of Finance.

July 06, 2011 9:22 AM GMT+7

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The circular instructs the implementation of the PM’s Decision 12/2011/QĐ-TTg to develop auxiliary industries in service of the mechanics, manufacturing, IT, automobiles, garments and textiles, footwear, and high-tech fields.

Under the circular, import duties will be exempted for equipment, machines, and transport vehicles which are not domestically made, vehicles (over 24 seats) to transport workers, spare parts, accessories, and materials used to manufacture spare parts, accessories and software.

In addition, imported goods, materials, books, newspapers which serve scientific research and high-tech development, but are not locally produced will enjoy duty free access.

The circular also defines import tariff exemption for those projects which expand their operation scale, or alter and apply advanced technologies.

Especially, auxiliary industries supporting high-tech development will get preferential corporate tax in accordance with Chapter 3 of the revised Corporate Income Tax Law./.

By Hương Giang