Enterprise income tax incentives for supporting industries
Ministry of Finance issued Circular No. 21/2016/TT-BTC, taking effect from April 1, 2016, guiding on declaration of value added tax and priorities of enterprise income tax on development of supporting industries.
Accordingly, corporate income tax incentives are applied to income of any enterprise that executes a project for manufacture of supporting industry products from January 01, 2015, satisfy all conditions in the Law on amendments to tax laws 2014 and instructional documents, and obtains a Certificate of incentives for manufacture of supporting industry products.
- Procedures for certifying incentives and post-incentive inspection of projects for manufacture of supporting industry products on the List of prioritized supporting industry products in Circular No. 55/2015/TT-BCT.
- The Certificate of incentives for manufacture of supporting industry products is the basis for applying corporate income tax incentives.
- Incentive levels, time for applying incentives, and transition of incentives shall comply with regulations of law on corporate income tax.
- Where an enterprise engages in various business activities while receiving corporate income tax incentives, it shall separate income from the project for manufacture of supporting industry products which is eligible for corporate income tax incentives.
Corporate income tax incentives specified in Circular No. 21/2016/TT-BTC will be applied from the tax period since 2015.
Foreigners to Con Dao can buy duty-free goods up to VND500,000 per day
Circular No. 26/2016/TT-BTC dated February 18, 2016 of the Ministry of Finance guidance on implementation of a number of incentive policies applicable to Con Dao, Ba Ria – Vung Tau Province
Accordingly, foreign tourists, Vietnamese people having foreign passports can buy duty-free goods up to VND500,000/person/day. In case passenger buys a variety of goods and the total value exceeding VND500,000, he can chose the products with a value in excess of the level of tax exemption to pay tax.
This circular has takeneffect since April 3, 2016.
Import tax for diammonium phosphate increased by 5 percent
Circular No. 25/2016/TT-BTC dated February 16, 2016 of the Ministry of Finance on changes in preferential import tax rates imposed on diammonium hydrogen phosphate (diammonium phosphate) of HS Code 3105.30.00 in preferential import tariff schedule promulgated with Circular No. 182/2015 / TT-BTC dated November 16, 2015.
Accordingly, preferential import tax rates for diammonium hydrogen phosphate (diammonium phosphate) of HS Code 3105.30.00 increased by 5 percent instead of 3 percent. This circular has taken effect since April 3, 2016.
N-Hexane solvent used for manufacturing vegetable oil will be applied 2% import tax rate
Circular No. 31/2016/TT-BTC dated February 23, 2016 of the Ministry of Finance on adding N-Hexane solvent used in manufacturing soybean oil cakes and vegetable oil, defatted rice bran and rice bran oil to Chapter 98 of the preferential import Tariff.
According to this Circular, from April 8, 2016, N-Hexane solvent used in manufacturing soybean oil cakes and vegetable oil, defatted rice bran and rice bran oil shall be added to Chapter 98 with HS 9842 and its preferential import tax rate shall be 2%.
New fees for issuance of driving licenses to police officers
From April 09, 2016, Circular No. 29/2016/TT-BTC on amendments to Circular No. 32/2013/TT-BTC on collection, payment, management, and use of fees for testing and issuance of driving licenses to police officers comes into force. According to the Circular:
- The fee for issuance of a paper driving license is VND 30,000 per issuance/reissuance/replacement.
- The fee for issuance of a plastic driving license is VND 135,000 per issuance/reissuance/replacement.
Lending interest rate imposed on the medium and small-sized enterprise development fund
As from April 15, 2016 the Vietnamese dong lending interest rate imposed on the medium and small-sized enterprise development fund will apply in accordance with the Circular No. 37/2016/TT-BTC, specifically including:
The lending interest rate applying to short-term loans within 1 year maturity period (exclusive of those taken out as working capital) is 5.5%/year.
The lending interest rate applying to medium and long-term loans is 7.0%/year.
All of these lending interest rates will apply to loans disbursed to small and medium-sized enterprises from the date of entry into force of this Circular.
Motor vehicle owner's compulsory liability insurance payouts
Circular No. 22/2016/TT-BTC on principles, terms, premiums, and payouts of motor vehicle owner's compulsory liability insurance comes into force from April 01, 2016.According to the Circular, this is the maximum insurance payout an insurer has to pay as indemnity for loss of life, health, or property of the third party and passengers caused by a motor vehicle in each accident covered by insurance. To be specific:
- For loss of life caused by a motor vehicle: VND 100 million per person per accident.
- For property damage caused by a 2-wheel motorcycle of a cylinder capacity exceeding 50 cc, 3-wheel motorcycle of a cylinder capacity exceeding 50 cc, motorcycles of a cylinder capacity not exceeding 50 cc and the like (including motor vehicles for the disabled): VND 50 million per accident.
- For property damage caused by a motor car, tractor, construction machinery, agriculture machinery, forestry machinery, or a specialized vehicle serving national defense and security (including trailers and semi-trailers towed by a motor car or tractor): VND 100 million per accident.