(HQ Online) - The General Department of Customs has just responded and instructed Kim Long Motors Hue Joint Stock Company to carry out procedures to enjoy import tax incentives for materials and components that cannot be produced domestically.
Clause 13, Article 16 of the Law on Export Tax and Import Tax stipulates: "Raw materials, supplies and components that cannot be produced domestically are imported for production of investment projects on the list of industries and professions with special investment incentives. or areas with particularly difficult socio-economic conditions according to the provisions of investment law, high-tech enterprises, science and technology enterprises, science and technology organizations are exempt from import tax during the period of time. 5 years from the start of production.
The import tax exemption specified in this clause does not apply to mineral exploitation investment projects; Projects to produce products with a total value of natural resources and minerals plus energy costs accounting for 51% or more of the product cost; Projects to produce and trade goods and services subject to special consumption tax.
In Appendix III, the List of investment incentive areas attached to Decree 31/2021/ND-CP of the Government stipulates: Economic zones and high-tech zones in areas with special socio-economic conditions hard.
Article 2 of the Law on Special Consumption Tax stipulates: "Cars with less than 24 seats, including cars carrying both passengers and goods with two or more rows of seats, with a fixed partition design between the cargo compartment people and cargo compartment" are subject to special consumption tax.
Article 15 of Decree 134/2016/ND-CP is amended and supplemented in Clause 8, Article 1 of Decree 18/2021/ND-CP of the Government, stipulating: “Raw materials, supplies and components not yet produced domestically Products imported for production of investment projects specified in Points a, b, c of this Clause are exempt from import tax for a period of 5 years from the date of commencement of production according to the provisions of Clause 13, Article 16 of the Law on Export Tax. import tax.
a) Investment projects in the List of industries and trades eligible for special investment incentives specified in Appendix 1 of Decree 118/2015/ND-CP and documents amending, supplementing, and replacing (if any).
b) Investment projects in the List of areas with extremely difficult socio-economic conditions specified in Appendix II of Decree 118/2015/ND-CP and documents amending, supplementing and replacing ( if any) or investment projects specified in Points a and c, Clause 2, Article 16 of Decree 118/2015/ND-CP and documents amending, supplementing and replacing (if any).
c) Investment projects of high-tech enterprises, science and technology enterprises, science and technology organizations according to the provisions of law on high technology and law on science and technology.
Production start time is the official production time, excluding trial production time. Taxpayers self-declare and are responsible for the actual date of production and notify before carrying out customs procedures to the Customs office that receives the application for notification of the Tax Exempt List.
At the end of the 5-year tax exemption period, taxpayers must declare and pay full tax according to regulations for the amount of imported raw materials, supplies and components that have been exempted from tax but are not fully used.
Compare with current regulations, according to the General Department of Customs, in the case of Kim Long Motors Hue Joint Stock Company NK Raw materials, supplies and components that cannot be produced domestically for production of investment projects in areas with extremely difficult socio-economic conditions according to the provisions of investment law are exempt from import tax. within 5 years from the start of production. This import tax exemption does not apply to projects producing and trading in goods and services subject to special consumption tax.
The basis for determining raw materials, supplies and components that cannot be produced domestically is carried out according to regulations of the Ministry of Planning and Investment. Tax exemption documents and procedures comply with the provisions of Articles 30 and 31 of Decree 134/2016/ND-CP amended and supplemented in Clauses 13 and 14, Article 1 of Decree 18/2021/ND-CP.
General Department of Customs suggestion Kim Long Motors Hue Joint Stock Company, based on the area, objectives, and scale of the investment project, compares it with the above regulations and contacts the Customs office where the goods are imported for specific instructions.
Source: Customs Online
