Decision No. 144/2004/QD-TTg dated August 12, 2004 of the Prime Minister supplementing a number of preferential policies for Moc Bai border-gate economic zone, Tay Ninh province

DECISION

SUPPLEMENTING A NUMBER OF PREFERENTIAL POLICIES FOR MOC BAI BORDER-GATE ECONOMIC ZONE, TAY NINH PROVINCE

THE PRIME MINISTER

Pursuant to the December 25, 2001 Law on Organization of the Government;

At the proposals of the president of the People's Committee of Tay Ninh province in Report No.369/TT-UB of October 11, 2002 and Official Dispatches No.151/UB of May 22, 2003, No. 25/UB of July 11, 2003, No.381/UB of December 10, 2003, No. 138/UB of April 27, 2004, and No.210/UB of June 16, 2004;

At the proposals of the Minister of Planning and Investment in Reports No. 1425-BKH/QLKT of March 17, 2003, No. 2426-BKH/QLKTTW of April 22, 2004 and after consulting the concerned ministries and branches,

DECIDES:

Article 1.- The Commercial and Industrial Park within Moc Bai Border-Gate Economic Zone (hereinafter called the Commercial and Industrial Park, within 986 ha under the approved planning, for short) may apply a number of additional preferential policies prescribed in this Decision when satisfying the following conditions:

- Having solid fences to ensure the separation of operations of the Commercial and Industrial Park from the functional areas in the Border-Gate Economic Zone.

- Having no population quarters (including those for foreigners), having neither permanent residents nor temporary residents.

- Having control stations to supervise and examine people, goods and vehicles leaving and entering the Commercial and Industrial Park.

Article 2.-

- Economic organizations operating in the Commercial and Industrial Park may export to and import from, foreign countries all kinds of goods and services not banned by Vietnamese laws.

- Goods and services imported from overseas into the Commercial and Industrial Park or exported from the Commercial and Industrial Park to foreign countries are not subject to import tax and export tax.

- Goods and services imported from overseas into the Commercial and Industrial Park are not subject to value added tax (VAT).

- The exchange of goods and/or service between the Commercial and Industrial Park and other functional areas in the Border-Gate Economic Zone and inland Vietnam must comply with Vietnamese law provisions on management of import and export goods and services.

- Goods and services exported from the Commercial and Industrial Park to foreign countries shall enjoy the VAT rate of 0%; goods and services brought into the Commercial and Industrial Park from other functional areas within the Border-Gate Economic Zone and from inland Vietnam shall enjoy the VAT rate of 0%; goods and services brought from the Commercial and Industrial Park into other functional areas within the Border-Gate Economic Zone and into inland Vietnam shall be subject to VAT under current law provisions.

- Economic organizations and individuals in the Borger-Gate Economic Zone and inland may import from the Commercial and Industrial Park only goods and services not banned from import by Vietnam, and may only export into the Commercial and Industrial Park goods and services not banned from export by Vietnam, and subject to customs inspection and supervision.

- Goods and services liable to special consumption tax, which are produced and consumed within the Commercial and Industrial Park or imported from overseas into the Commercial and Industrial Park within Moc Bai Border-Gate Economic Zone, shall be special consumption tax- free.

- Goods and services liable to special consumption tax, that are exported from the Commercial and Industrial Park to foreign countries, shall be special consumption tax-free.

- Goods and services liable to special consumption tax, that are brought from the Commercial and Industrial Park within Moc Bai Border-Gate Economic Zone into inland Vietnam, shall still be subject to special consumption tax.

- For goods produced, processed, recycled or assembled in the Commercial and Industrial Park within Moc Bai Border-Gate Economic Zone with the use of raw materials and/or accessories imported from overseas under current regulations on import management, when imported into inland Vietnam, only raw materials and/or accessories used to make those products or goods shall be subject to import tax. In cases where raw materials and/or accessories imported from overseas are not used, when they are imported into inland Vietnam, they shall be import tax- free.

Article 3.- All projects of investment in the Commercial and Industrial Park shall enjoy maximum preferences as applicable to areas meeting with special socio-economic difficulties under the November 12, 1996 Law on Foreign Investment in Vietnam; the June 9, 2000 Law Amending and Supplementing a Number of Articles of the Law on Foreign Investment in Vietnam and the May 20, 1998 Law on Domestic Investment Promotion (amended); the Law on Enterprise Income Tax, the VAT Law, and other preferences according to international agreements, bilateral or multilateral commercial contracts which Vietnam has signed or acceded to.

- Projects of investment in the Commercial and Industrial Park within Moc Bai Border-Gate Economic Zone shall be exempt from enterprise income tax for 4 years after taxable incomes are generated; enjoy a 50% reduction of the payable enterprise income tax amount for 9 consecutive subsequent years; and apply the enterprise income tax rate of 10% for 15 years as from the commencement of business operations of the investment projects.

- Projects of investment in building new production chains, expanding production, renovating technologies, improving the ecological environment or raising production capacity shall be exempt from enterprise income tax for the increased income amount brought about by investment for not more than 4 years, and enjoy a 50% reduction of the payable tax amount for 7 subsequent years.

- In cases where legal documents prescribe different levels of preference for the same matter, the level of preference provided for in the document of higher legal effect shall apply.

- In cases where legal documents issued by the same agency contain different provisions on the same matter, the provisions of the latest legal document shall apply.

Article 4.- Projects on tourist business investment in ecological tourist areas within Moc Bai Border-Gate Economic Zone shall be added to the list of trades and business lines eligible for the investment preferences, which is inscribed in the Appendix to the Government's Decree No.51/1999/ND-CP of July 8, 1999 detailing the implementation of the Law on Domestic Investment Promotion (amended).

Article 5.- To authorize the president of the People's Committee of Tay Ninh province to license the investment in the Commercial and Industrial Park, for investment projects valued at under USD 40 million, each through the simplest procedures. For projects subject to separate regulations, the current regulations shall apply.

Article 6.- To exempt land rents for organizations and individuals having projects of investment in the Commercial and Industrial Park within Moc Bai Border-Gate Economic Zone for the first 11 years as from the date of signing the land-lease contracts and allow them to enjoy a land rent equal to 30% of the rent rate applicable to the zone as from the 12th year onwards.

Article 7.- Domestic and foreign tourists, when entering the Commercial and Industrial Park mentioned in Article 1 of this Decision, shall be allowed to purchase assorted commodities and bring them inland and exempt from import tax if the commodities' value does not exceed VND 500,000/person/day.

Article 8.- The State-budget supports for investment in infrastructure construction in Moc Bai Border-Gate Economic Zone shall strictly comply with the planning and project.

The president of the provincial People's Committee shall draw up infrastructure investment project for the Border-Gate Economic Zone. Based on the list of projects, the president of the provincial People's Committee shall elaborate and approve investment projects after getting written agreement from the Ministry of Planning and Investment. The Ministry of Planning and Investment and the Finance Ministry shall sum up the situation and report it to the Government for submission to the National Assembly for approval of targeted supports for the province within the annual State budget-total estimates, focussing on the 6-year (2005-2010) period.

The president of the provincial People's Committee may use the land use levies for infrastructure construction and creation of capital sources for ground clearance in service of development investment. Projects on infrastructure development in the Border-Gate Economic Zone and investment in development of the Commercial and Industrial Park may be entitled to preferential loans from the State and use the support capital sources according to the provisions of this Article to pay both principals and interests.

Article 9.- The People's Committee of Tay Ninh province shall have the responsibility:

- To well implement the policies prescribed in the Prime Minister's Decision No. 210/1998/QD-TTg of October 27, 1998; Decision No. 53/2001/QD-TTg of April 19, 2001 on policies towards border-gate economic zones, as well as relevant policies and policies mentioned in this Decision.

- After 2 years, the province shall assume the prime responsibility for, and coordinate with the concerned ministries and branches in, reviewing and assessing the application of a number of additional preferential policies, and propose necessary adjustments and/or supplements to the Prime Minister.

Article 10.- This Decision takes affect 15 days after its publication in the Official Gazette.

The ministers, the heads of the ministerial-level agencies, the heads of the Government-attached agencies and the president of the People's Committee of Tay Ninh province shall have to implement this Decision.