Title: Circular 50/2006/TT-BTC, guiding the application of import duty and enterprise income tax preferences to Dung Quat oil refinery project

Type: Circular

Issuing Agency: Ministry of Finance

Responsible Agency: Ministry of Finance

Issuing Date: 07-06-2006

 

IMPORT DUTY PREFERENCE

1. Subjects exempted from import duty

Subjects importing goods specified at Point 2, Section I of this Circular to serve construction and maintenance of Dung Quat Oil Refinery Project (hereinafter referred to as the Project) shall be exempted from import duty, including:

- Vietnam Oil and Gas Corporation - the Project investor (hereinafter referred to as the Investor), or

- Domestic and foreign contractors (including principal contractors and subcontractors) implementing bid packages of the Project;

Principal contractors are domestic or foreign organizations winning one of the bid packages of the Project and directly sign contract with the Investor (or organizations authorized by the Investor).

Subcontractors are organizations or individuals running independent business and signing contracts with principal contractors to perform part of the work under contracts which principal contractors sign with the Investor (or organizations authorized by the Investor)

- Importing enterprises entrusted by contractors under regulations on import entrustment.

2. Goods exempted from import duty

Goods imported to serve construction and maintenance of the Project shall be from import duty, including:

2.1. Goods imported to create fixed assets for the Project, including:

2.1.1. Equipment, machinery; 

2.1.2. Special-purpose means of transport in technological lines certified by the Ministry of Science and Technology and vehicles for staff transport, including automobiles of over 24 seats and waterway vehicles;

2.1.3. Spare parts, details, loose parts, fittings, molds, dies, and accessories for assembly into complete units or use with equipment, machinery and special-purpose means of transport specified at Items 2.1.1 and 2.1.2 of this Point;

2.1.4. Materials for manufacturing equipment and machinery in technological lines or for making spare parts, details, loose parts, fittings, molds, dies, and accessories for assembly into complete units or use with equipment, machinery and special-purpose means of transport specified at Item 2.1.1 of this Point;

2.1.5. Construction materials which cannot be produced domestically.

Construction materials serving the Project include both materials constituting the Project’s items and consumable materials (chemicals, gas, lubricants and grease, special-purpose catalysts) used in the operation of construction machinery.

2.2. Equipment, machinery, spare parts, accessories and special-purpose means of transport (other than automobiles of under 24 seats) temporarily imported for re-export by contractors to serve the project construction.

3. Tax exemption procedures

3.1. Responsibilities of importers

- Responsibilities of the Investor (or organizations authorized by the Investor): the Investor shall take responsibility before law for certifying the detailed list of quantities, types and values of imported goods (for consumable materials, consumption norms shall be required)

- Responsibilities of bid package contractors

Contractors shall manage and monitor the list of goods temporarily imported for re-export to serve construction and maintenance of the Project. When the term of construction and maintenance of the Project terminates, bid package contractors shall re-export machinery, equipment and special-purpose means of transport mentioned above, including broken ones. When re-exporting, bid package contractors shall not have to pay export tax.

In case the term of temporary import for re-export terminates and the imported goods are allowed by competent state agencies to be sold, bid package contractors shall declare to pay import duty, value-added tax and special consumption tax (if any) according to current regulations.

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