Removing Localisation Tax Policy for Mechanics, Electricity and Electronics

Prime Minister Nguyen Tan Dung has asked the Ministry of Finance to accelerate the removal of the localisation-base priority tax policy for products and accessories of mechanics, electricity and electronics, which has been applied since 1999. Accordingly, from October 1, goods items imported by enterprises for manufacturing and assembling mechanic, electricity and electronic products, which meet the conditions for the application of the Common Effective Preferential Tariff (CEPT) and conditions for the application of localisation-based import tax rate under the existing regulations, may choose one of two following ways:

 

If enterprises choose the localisation-based import tax rate, when they import asynchronous details or groups of details, enterprises will be imposed with a tax rate applied for the whole list of imported details and groups of details even though some details and groups of details can apply CEPT tax rate.

 

In case that enterprises choose the CEPT tax rate, asynchronous details and groups of details, which meet the conditions to be applied with the CEPT tax rate, will be imposed with the CEPT tax rate. Other details and groups of details will be imposed with the most favour nation (MFN) tax rate or the normal tax rate.

 

Earlier, the localisation-based priority tax policy for mechanic, electricity and electronic products and accessories is applied at the same time with CEPT tax rate when Vietnam implements the ASEAN Agreement on CEPT.