Tax Incentives to Boost Supporting Industries

From August 18, imports of equipment and machinery for technology assembly lines that are not made by domestic producers will be given import tax breaks as part of a Government plan to enhance support industry development, the Ministry of Finance has announced.

 

Circular 96/2011/TT-BTC, issued by the ministry earlier this week, will modify soft financial policies specified in Government Decision 12/2011/QD-TTg issued in February to encourage support industry development in the machinery and manufacturing, electronics and information technology, automobile assembly and production, textile-garment and leather shoes sectors.

 

According to the circular, projects that support high-tech products will also be exempt from corporate income tax.

 

Imported commodities – including magazines and textbooks which are used in high technology research and development – will also enjoy tax breaks.