High-tech application enterprises will be exempted from tax for 5 years

High-tech companies will be exempted from import duty of raw materials, supplies and components which can not be imported to manufacture production for a period of 5 years from the start of production. Photo: T.Trang

The General Department of Customs said that, regarding import duty, as stipulated in Clause 13, Article 16 of the Law on export tax and import duty 107/2016/QH13, and Article 15 of Decree No. 134/2016/ND-CP: Domestic raw materials and components which cannot be produced and imported for manufacture of investment projects on the list and lines of special investment incentives or areas with socio-economic conditions of special difficulty under the provisions of laws on investment, high-tech enterprises, science and technology enterprises, scientific institutions and technology are exempted from tax for a period of 5 years from the start of production in accordance with clause 13 of Article 16 of the Law export tax, import duty.

The start time of production is the time of official production, not including any trial production period. Taxpayers have to do self-assessment and be responsible for conducting the actual date of production and notified before doing Customs procedures to the Customs agency which has received the notification dossier of the exempted category.

Expiration of tax exemption is 5 years, taxpayers who have paid taxes in accordance with the amount of raw materials, supplies and components imported but not used are exempted.

The foundation for determining the materials and components which cannot be produced are implemented by following the regulations of the Ministry of Planning and Investment.

Therefore, in the case of Truong Son Corp., they are a high-tech application enterprise so the company will be exempted from import duty of raw materials and components which cannot be imported to manufacture, for a period of 5 years from the start of production.

Documents and tax exemption procedures will be done under the provisions of Article 30, Article 31 of Decree No. 134/2016/ND-CP.

Accordingly, Trung Son Corp. will based on the provisions for implementation. If any problems arise during implementation, the company should contact the Customs agency where doing Customs declaration registration, for specific instructions.