Chapter III
INVESTMENT INCENTIVES AND GUARANTY
Article 6.-
1. For projects which were licensed before November 23, 1996, the Ministry of Planning and Investment shall consider and adjust preferential profit tax rates and the duration of profit tax exemption or reduction according to the criteria for investment incentives provided for in Decree No. 12-CP of February 18, 1997 of the Government detailing the implementation of the Law on Foreign Investment in Vietnam (hereunder referred to as Decree No. 12-CP) or in the Regulation on Industrial Parks, Export-Processing Zones and High-Tech Parks issued together with Decree No. 36-CP of April 24, 1997 of the Government.
2. The preferential profit tax rates applicable to foreign-invested enterprises and foreign parties to business cooperation contracts, that invest in the projects on the list of projects where investment is specially encouraged and the list of geographical areas where investment is encouraged shall apply throughout the operating duration of the projects.
Article 7.- Apart from the projects which are entitled to profit tax exemption for eight years under Clause 4, Article 56 of Decree No. 12-CP, investment projects in the geographical areas where investment is encouraged and projects where investment is specially encouraged stated in Appendix I attached to this Decree shall be entitled to profit tax exemption for four years starting from the time the profit is generated from business and a 50% reduction of profit tax for four subsequent years.
Article 8.- Enterprises engaged in the production of export goods shall be allowed to defer payment of import tax on raw materials imported for the production of export goods within the time limit specified in the Law on Import-Export Taxes.
For a number of export products, the above-mentioned duration for deferred tax payment shall be decided by the Ministry of Finance, depending on the production requirements or production cycles.
Article 9.- The price for calculating import tax on the imported goods subject to import tax shall be determined on the basis of the price written in the invoice of imported goods. In cases where such invoice is not available, the price for calculating import tax shall be determined according to the regulations of the Ministry of Finance.
Any fraud in the price for calculating import tax to evade tax is strictly forbidden and all acts of import tax evasion shall be strictly handled in accordance with law.
Article 10.-
1. Import duty-free equipment, machinery and specialized means of transport imported to form fixed assets of enterprises under the provisions of Article 63, Decree No. 12-CP, are specified in Appendix II. A attached to this Decree. Apart from being exempt from import tax on the above-said equipment, machinery and means of transport, enterprises shall be also exempt from import duty on:
- Construction materials imported to form fixed assets, which have not yet been produced in the country;
- Materials and supplies imported to manufacture equipment and machinery of the technological line or to manufacture components, details, attached parts, spare parts, jigs, molds and accessories accompanied with equipment and machinery.
The import tax exemption for the above-mentioned supplies and materials shall also apply to cases of project expansion, replacement or upgrading of technology.
2. In addition to import duty-free equipment, machinery and specialized means of transport imported to form fixed assets of enterprises under Article 63, Decree No. 12-CP, enterprises operating in the fields of hotels, offices and apartments for lease, residential houses, trade centers, technical services, department stores, golf courses, tourist resorts, sports centers, entertainment centers, clinics, training, cultural, financial, banking, insurance, auditing and consulting services shall also be entitled to one duty-free import of the equipment specified in Appendix II.B attached to this Decree.
3. The investment projects on the list of projects where investment is specially encouraged and the investment projects in mountainous, remote and deep-lying areas specified in Appendix I attached to this Decree shall be exempt from import duty on production materials for five years from the commencement of production.
Article 11.- In the course of operation, foreign-invested enterprises are entitled to carry forward losses of any tax year to the subsequent tax year and to offset such losses with the profits of subsequent years for a maximum period of five years.
Article 12.-
1. Loan interests incurred by enterprises shall be accounted into their capital construction costs or production costs and be determined on the basis of the credit contracts but such interest rates must not be higher than the ceiling credit interest rates announced by the State Bank of Vietnam to be applicable to domestic loans or the interest rates and fees applicable to foreign loans already registered with the State Bank of Vietnam.
2. Foreign-invested enterprises and foreign parties to business cooperation contracts shall be permitted, when determining taxable income, to exclude their donations to Vietnamese organizations and/or individuals for charity and humanitarian purposes.
Article 13.-
1. For investment projects that are required to export their products; the export proportion and the tempo for fulfilling this export proportion shall be stated in the investment licenses.
In the course of business operation, if enterprises fail to fulfill the export proportions stated in their investment licenses, they shall have to report it to the Ministry of Trade for consideration and adjustment of the annual plan on product consumption. In cases where an enterprise fails to fulfill the export proportion stated in its investment license for three consecutive years, the investment license-granting agency shall consider and adjust the export proportion and the relevant incentives stated in the investment license or withdraw the investment license.
2. Enterprises which sell their products to other enterprises to directly manufacture other products for export shall be exempt from import tax on the raw materials and turnover tax on the above-said amount of products.
Foreign-invested enterprises are entitled to export through fiduciaries or to act as export fiduciaries in accordance with the provisions of law.
3. Enterprises are entitled to purchase goods and products on the Vietnamese market for export processing or for export according to the regulations of the Ministry of Trade.
Article 14.-
1. Enterprises shall directly, or through agents, consume the permitted quotas of their products on the Vietnamese market without any restrictions on the geographical areas for product consumption.
2. Enterprises shall decide the selling prices of their products. For goods and services which are under the State's unified pricing management, their selling prices shall be within the price bracket announced by a competent State agency.
Article 15.-
1. The State Bank of Vietnam guarantees to balance foreign currencies for enterprises in the fields of infrastructure, production of essential import substitutes and important investment projects announced by the Ministry of Planning and Investment. The sale of foreign currency to the above-mentioned enterprises shall be guaranteed throughout their operating duration.
2. Production enterprises which are obliged to export their products and other enterprises which are not stated in Clause 1 of this Article shall be supported by the State Bank of Vietnam in partly satisfying their foreign currency demands in really necessary and reasonable cases for the first three years from the time the enterprises start their production and business in the following priority order:
- Import of materials and raw materials for production in the year;
- Import of spare parts;
- Payment of loan interests.
3. The State Bank of Vietnam shall consider and allow enterprises operating in the service sector (tourism, hotels, offices for lease, mass transit, schools, health, culture, equipment for lease,...) to purchase foreign currency(ies) in accordance with current regulations on the foreign exchange management .
4. The sale of foreign currency(ies) by banks to the enterprises mentioned in Clauses 1, 2 and 3 of this Article shall comply with the guidance of the State Bank of Vietnam.
Article 16.- In the course of business operation in Vietnam, enterprises are entitled to pledge or mortgage their assets in accordance with the provisions of law.
Article 17.-
1. In cases where an enterprise rents land to realize an investment project or the Vietnamese party contributes capital with the value of its land use right, the land rent or the debt acknowledged to the State in case the Vietnamese party contributes capital with the value of its land use right shall be calculated from the time the enterprise is assigned the land use right under the land renting contract.
2. The provincial People's Committee of the locality where the investment project is located shall determine the costs of land compensation and site clearance according to the regulations of the Ministry of Finance and be responsible for organizing the compensation and site clearance.
Article 18.-
1. The Government guarantees to support the construction of technical infrastructure projects up to the surrounding fence of foreign-invested enterprises or industrial parks. In case of necessity, technical infrastructure-developing and-trading companies may negotiate with the industrial zone infrastructure development enterprises or foreign-invested enterprises on the advance disbursement of capital or another mode for the construction of a technical infrastructure project.
2. Apart from sub-leasing land to enterprises for their construction, industrial zone infrastructure development enterprises shall be allowed to sub-lease the unleased land to domestic and foreign enterprises for further sub-lease to other enterprises.
Tìm kiếm
Nghị định 10/1998/NĐ-CP (Bản Word)