FDI Enterprises Exempted from Import Tax

FDI Enterprises Exempted from Import Tax

The Ministry of Trade has recently issued a circular to provide detailed regulations on cases, materials and accessories exempted from import tax for five years for 100 per cent foreign-invested or joint ventures after they commence production.

Under the circular, all parties which sign business contracts for projects within fields of special investment, in remote places, or projects manufacturing mechanical, electric and electronic accessories will be eligible.

Materials and accessories exempted from import tax must not be in a list of goods and materials Vietnam can manufacture, which is announced each year by the Ministry of Planning and Investment. Licensed projects in fields having regulations on export proportion will be exempted from import tax if they implement regulations on export proportion for two consecutive years.

• B.T