However, in case an enterprise additionally builds works items for a project entitled to investment incentives but it neither modify the investment certificate not register projects of expansion investment, it shall not be eligible for exemption from import duty.
However, notably, the aforesaid duty exemption policy is only applicable to equipment, supplies which are used immediately for forming fixed assets of projects; it is not exempt from duty on equipment, supplies imported for maintenance stage after the projects have been put into operation.
Accordingly, projects eligible for investment incentives shall be exempt from duty on goods imported to form fixed assets which include:
(i) Machinery and equipment; components, parts, spare parts for assembly or operation of machinery and equipment; raw materials for manufacture of machinery and equipment, components, parts, or spare parts of machinery and equipment;
(ii) Special-use vehicles in a technological line directly used for a manufacture project;
(iii) Domestically unavailable construction materials.
Notably, among the above – mentioned goods exempt from duty, construction materials must be the domestically unavailable construction materials while other goods items, it is regardless of whether they are domestically manufactured or not.
Regarding criteria for determination of “special-use vehicles in technological lines”, they shall be carried out according to regulations of the Ministry of Science and Technology.
Criteria for determination of “domestically unavailable construction materials” shall be based on regulations of the Ministry of Planning and Investment.
In addition, in order to be exempt from duty, the project owner must register the list of duty – free goods before registering the import declaration of the first shipment (point a Clause 4 Article 30 of Decree No. 134/2016/ND-CP).
According to the supplemented regulations in this Circular, investment projects which apply tax incentive policies according to regulations entering into force before July 1st, 2015 shall be guaranteed investment incentives in accordance with Article 3 of Decree No. 118/2015/ND-CP.
This Circular takes effect from October 12th, 2018.
Circular No. 81/2018/TT-BTC dated August 28th, 2018 of the Ministry of Finance on amending, supplementing to Circular No. 83/2016/TT-BTC dated June 17th, 2016 of the Ministry of Finance guiding the implementation of investment incentive programs under the provisions of the Law on Investment No. 67/2014/QH13 and the Government’s Decree No. 118/2015/ND-CP dated November 12th, 2015.
1. Law on amendments to the Laws on Construction, Housing, Real Estate Trading and Urban Planning to ensure consistency in the legal system, reform and simplify administrative procedures and investment conditions.
2. The Law on Public Investment with a view to simplifying administrative procedures, promoting autonomy in preparing, appraising and assigning the annual and medium-term public investment plans.
3. The Law on amendments, supplements to a number of articles of the Law on Investment and the Law on Enterprises with a view to amending the regulations on scope of application; rules for applying the Law on Investment; entities eligible for investment incentives; business lines eligible for investment incentives; business lines subject to conditions; power of and procedures for making investment; criteria for determining the investment projects whose decisions on investment guidelines are issued by the Prime Minister; law against wrongful seizure of final trust; issuance of investment registration certificates and state management of business operation, etc. to ensure consistency in the legal system and improve investment environment.
4. The Law on Bidding (amended) and Decree No. 63/2014/ND-CP with a view to amending procedures and methods for selecting contractors and investors, regulations on bidding for consulting services; expanding the scope of direct contracting with regard to construction planning consulting.
5. The Law on amendments, supplements to some articles of the Law on Land with a view to uniformly providing for the time delay in execution of the projects for which land is appropriated between the Law on Land and the Law on Investment; developing methods for performance security; simplifying business conditions.
6. The Law on amendments, supplements to the Law on Environmental Protection with a view to simultaneously carrying out the procedures for appraising the environmental impact assessment report (or determining the environmental protection plan) and the procedures for appraising the project and construction design. During the approval for investment guidelines, it is only required to carry out preliminary environmental impact assessment.
7. Decree on amendments, supplements to Decree No. 32/2015/ND-CP on construction cost management and the Decree No. 37/2015/ND-CP on elaboration of construction contract.
With regard to other cases, investors shall only follow procedures for changing shareholders/members as prescribed by laws. However, investors are still allowed to register the capital contribution or purchase of shares/capital contributions, depending on their demand.
“Localities with socio-economic advantage conditions” defined in this Clause are inner districts of centrally - affiliated special-grade and grade-I urban centers and provincial grade-I urban centers (except for the districts of centrally - affiliated special-grade and grade-I urban centers and provincial grade-I urban centers that are newly - established from districts since January 1st, 2009).
Accordingly, in case an enterprise executes a project of new investment in an industrial part in a provincial grade – I city, this project shall not be entitled to tax incentives.