We are in the stage of implementing a new investment project, located in the Industrial Zone which is granted investment registration certificate.
1. What should our company do to the Customs Sub-Department at the place where the new investment project is being implemented?
2. The Company is eligible for investment incentives and shall be exempt from import tax on machinery and equipment to create fixed assets for new project. At the present time, there are commodities with 0% import tariff, there are commodities with import tariff . Expected import time is February 2018. We are concerned about the time of importation, the tariff rate may change for commodities at the present time with a tax rate of 0%.
So our company only registers the list of export goods, duty-free imports for the goods with zero import tax rate or 0% registration also for the goods with the tax rate of 0%?
3. Our company plans to open A12 account. What should be noted on the customs declaration? Will VAT be extended?
In cases where the company has not yet gone through customs procedures, the company does not yet have to notify the customs office of the investment project. Prior to the implementation of the project, the company registers the list of preferential import duty-free goods where the Customs Department manages the area.
– Regarding the principle of registration of duty-free lists and dossiers of procedures for notification to the customs offices of the list of machinery and equipment to be imported under the projects, the company shall comply with the provisions in Articles 30 and 31 Decree No. 134/2016/ND-CP dated 01/09/2016 of the Government and Article 104 of Circular No. 38/2015 / TT-BTC dated 25 March 2015 of the Ministry of Finance.
Pursuant to clause 1 and clause 2 Article 85 Circular No. 38/2015/TT-BTC dated 25/03/2015 of the Ministry of Finance:
“Article 85. Customs procedures for import of tax-free goods serving project execution
- Imported tax-free goods serving project execution include goods imported as fixed assets; materials/supplies, components, semi-finished products serving manufacturing of the preferential projects.
2. Customs procedures
a) Customs places:
Customs procedures for import shall be carried out at the most Sub-department of Customs affiliated at the Customs Departments where the list of tax-free goods or supervisory Sub-department of Customs of the checkpoint where goods are stored, the port of destination written on the bill of lading, transport contract, or the Sub-department of Customs in charge of project goods affiliated to the Customs Department where goods are imported.
With regard to imported goods serving petroleum activities that are eligible for tax exemption as prescribed in Clause 11 Article 103 of this Circular, the declarant shall select the Sub-department of Customs at his/her convenience to follow customs procedures;
b) Customs procedures for import of tax-free goods serving project execution are similar to those applied to imported goods. Besides, the declarant must provide information about the List of duty-free goods on the on the declaration of imported goods.
The System will automatically deduct the quantity of imported goods corresponding to the quantity of goods on the List of duty-free goods. In case of paper list of duty-free goods, the customs authority shall make a monitoring sheet and deduct goods quantity as prescribed in Clause 4 Article 104 of this Circular.
Accordingly, the customs procedures applicable to imported goods for implementation of tax-exempt investment projects shall be the same as those applicable to imported goods; In addition, the customs declarer must declare the relevant information of the list of goods exempted from tax on the declaration of imported goods.
Pursuant to clause 1 article 15 Law on Investment No. 69/2014/QH13 dated 26/11/2004 of the National Assembly:
“Article 15. Forms and beneficiaries of investment incentives
1. Forms of incentives:
a) Application of a lower rate of corporate income tax for a certain period of time or throughout the project execution; exemption, reduction of corporate income tax;
b) Exemption or reduction of import tax on goods imported as fixed assets; raw materials, supplies, and parts used for the project;
c) Exemption, reduction of land rents, land levy”.
According to the above provisions, investment preferences shall only apply to corporate income tax; import tax on imported goods to create fixed assets; materials, supplies and components for the execution of investment projects and land rents, land use fees and land use tax. Accordingly, the company is not entitled to investment incentives for VAT.
Please refer to the above content for implementation. In case of any problems arising, the company kindly contacts directly the customs sub-department where the declaration is registered for specific guidance./.