Vital assembly line technology to be tax free from August

From August 18, imports of equipment and machinery for technology assembly lines that are not made by domestic producers will be given import tax exemption, as part of a Government plan to enhance support industry development, the Ministry of Finance has announced.

Circular 96/2011/TT-BTC, issued by the ministry earlier this week, will modify soft financial policies specified in Government Decision 12/2011/QD-TTg issued in February to encourage support industry development in the machinery and manufacturing, electronics and information technology, automobile assembly and production, textile-garment and leather shoes sectors.

According to the circular, projects that support high-tech products will also be given income tax breaks in accordance with the Law on Corporate Income Tax.

Construction materials and materials used for software production that are unable to be produced inside the country will also enjoy tax exemption.

Imported commodities – including magazines and textbooks which are used in high technology research and development – will not attract tax.

Several projects invested in remote areas will benefit from a zero tax rate on imported materials that are not made domestically, excluding the manufacturing of motorbikes, air conditioners, electric heaters, refrigerators, washing machines, fans, dish washers and kettles. —VNS

Tags: Circular 96/2011/TT-BTC