Independence - Freedom - Happiness
No: 07/2006/TT-BTC
Hanoi, January 20, 2006
Pursuant to the State Budget Law;
Pursuant to the tax, charge and fee laws and ordinances;
Pursuant to the Prime Minister's Decision No. 141/2005/QD-TTg of June 14, 2005, establishing Nhon Hoi Economic Zone, Binh Dinh province, and promulgating its operation Regulation;
The Finance Ministry hereby guides the financial regimes applicable to Nhon Hoi Economic Zone as follows:
1. Scope of application:
The financial regimes and customs procedures specified in this Circular (hereinafter collectively referred to as financial regimes) apply to Nhon Hoi Economic Zone (hereinafter abbreviated to Nhon Hoi EZ) which covers a land area of around 12,000 hectares, embracing the communes of Nhon Hoi, Nhon Ly and Nhon Hai and zone 9 of Hai Cang ward of Quy Nhon city; part of Phuoc Hoa and Phuoc Son communes of Tuy Phuoc district; and part of Cat Tien, Cat Chanh and Cat Hai communes of Phu Cat district, strictly according to the planned boundaries of Nhon Hoi EZ.
The financial regimes specified in this Circular shall only apply to business activities conducted in Nhon Hoi EZ. Vietnam, their business activities in Nhon Hoi EZ must be separately accounted to serve as a basis for determining applicable financial regimes.
Foreign-invested enterprises and foreign parties to business cooperation contracts, which had been granted investment licenses; and domestic business establishments, which had been granted certificates of investment preferences in Nhon Hoi EZ before the effective date of the Prime Minister's Decision No. 141/2005/QD-TTg of June 14, 2005 (hereinafter referred to as Decision No. 141/2005/QD-TTg), but have not yet enjoyed all the preferences shall be entitled to preferential policies under this Circular for the remaining preferential duration.
2. Subjects of application:
Subjects of application of this Circular
a/ Domestic investors of all economic sectors operating under the provisions of the Law on State Enterprises, the Law on Enterprises and the Law on Cooperatives, individual business households and independent professional practitioners.
b/ Foreign organizations and individuals, including foreign-invested enterprises, foreign investors joining business cooperation contracts, overseas Vietnamese operating under the forms specified in the Law on Foreign Investment in Vietnam, and foreign investors doing business not under the Law on Foreign Investment in Vietnam.
3. Interpretation of terms:
In this Circular, the following terms and phrases are construed as follows:
- The non-tariff area means a geographical area separated from other functional areas of Nhon Hoi EZ by solid fences according to the provisions of Articles 7, 8 and 9 of the Prime Minister's Decision No. 141/2005/QD-TTg of June 14, 2005.
- The functional areas include the industrial park, the population quarters, the urban center, the tourism-service zone, the entertainment and recreation zone and the administrative zone in Nhon Hoi EZ (excluding the export processing zone) demarcated in the master plan of Nhon Hoi EZ approved by the Prime Minister.
- Inland Vietnam means the functional areas in Nhon Hoi EZ and the Vietnamese territory outside Nhon Hoi EZ (excluding areas similar to the non-tariff area and the export processing zone).
- The customs control gates: The non-tariff area has two customs control gates. The customs control gate situated in the contiguous area between the non-tariff port and the tariff port is called gate A, while the one in the contiguous area between the non-tariff port and the inland is called gate B.
- The list of goods originating from the non-tariff area means the list of goods promulgated by the Nhon Hoi EZ Management Board (hereinafter referred to as the Management Board for short) for each period (called the list of goods of the non-tariff area's origin), including goods manufactured, processed, re-processed or assembled in the non-tariff area without the use of raw materials or components imported from abroad.
4. Conditions for application of the financial regimes related to the non-tariff area:
The financial mechanisms related to the non-tariff area in Nhon Hoi EZ shall apply to the non-tariff area only when it ensures all the following conditions:
- It has solid fences isolating activities within it from other functional areas in Nhon Hoi EZ;
- There are no residential quarters and no permanent and temporary residents in it (foreigners alike);
- It has a customs office for supervising and inspecting people, goods and means of transport entering and leaving it.
5. Some general provisions on customs procedures applicable to the non-tariff area:
g/ Apart from the above provisions on customs procedures, the concerned parties shall also have to perform other obligations specified in the Customs Law and the Import Tax and Export Tax Law and other documents concerning import and export activities.
6. Principles of investment preferences:
Projects on investment in Nhon Hoi EZ shall enjoy the maximum preferences given to investment projects in geographical areas with exceptionally difficult socio-economic conditions and economic zones according to the provisions of the Law on Foreign Investment in Vietnam, the Law on Domestic Investment Promotion, the Law on Enterprise Income Tax and other tax laws.
Where legal documents provide for preferences at different levels for the same matter, the highest preference level shall apply. Where newly promulgated mechanisms and policies are more preferential than those provided for in this Circular, such new policies shall apply.
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