THE MINISTRY OF FINANCE
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SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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No. 87/2003/TT-BTC
Hanoi, September 15, 2003
 CIRCULAR
GUIDING A NUMBER OF FINANCIAL PREFERENTIAL POLICIES FOR MECHANICAL-ENGINEERING ENTERPRISES ENGAGED IN MANUFACTURE OF PASSENGER CARS OF 25 SEATS OR MORE
Pursuant to the Enterprise Income Tax Law and the current documents guiding the enterprise income tax;
Pursuant to the Law on Import Tax and Export Tax and the current documents guiding import tax and export tax;
Pursuant to the Government’s Decree No. 77/2003/ND-CP of July 1, 2003 on the tasks, powers and organizational structure of the Ministry of Finance;
Pursuant to the Prime Minister’s Decision No. 175/2002/QD-TTg of December 3, 2002 approving the strategy on development of Vietnam’s automobile industry till 2010 and the vision till 2020;
Pursuant to the Prime Minister’s Decision No. 186/2002/QD-TTg of December 26, 2002 approving the strategy on development of Vietnam’s mechanical-engineering industry till 2010, with vision till 2020,
The Ministry of Finance hereby guides a number of financial preferential policies for mechanical-engineering enterprises engaged in manufacture of buses of 25 seats or more (hereinafter called passenger cars) as follows:
I. SUBJECTS OF APPLICATION
Subjects entitled to financial support policies and tax preferences as prescribed in this Circular are enterprises (including foreign-invested enterprises) directly engaged in the manufacture of passenger cars. Particularly, the Automobile Mechanical-Engineering Company 1-5 under the Communications and Transport Mechanical-Engineering Corporation shall be entitled to the financial support policies under the provisions in the Prime Minister’s Decision No. 1223/QD-TTg of September 11, 2001 on adding passenger cars of 25 seats or more to the list of mechanical-engineering products entitled to development assistance policies.
Mechanical-engineering enterprises engaged in the manufacture of passenger cars must register with the Ministry of Industry the passenger cars’ localization rate of up to 20% by 2005 and of between 35% and 40% by 2010 as prescribed in the Prime Minister’s Decision No. 175/2002/QD-TTg of December 3, 2002 approving the strategy on development of Vietnam’s automobile industry till 2010, with vision till 2020.