Decision No. 16/2009/QD-TTg dated January 21, 2009 of the Prime Minister promulgating tax measures for implementing the policy to stimulate investment and consumption demands, curb the economic downturn and remove difficulties for enterprises

DECISION

ISSUING TAX SOLUTIONS FOR IMPLEMENTING THE POLICY ON STIMULATING INVESTMENT AND SALES IN ORDER TO ALLEVIATE THE ECONOMIC DOWNTURN AND RELIEVE HARDSHIPS FOR ENTERPRISES

PRIME MINISTER OF THE GOVERNMENT

Pursuant to the Law on Organization ofthe Governmentdated 25December2001;

Pursuant to Resolution21/2008/QH12of the NationalAssembly dated 8 November2008 with the estimated State budget foryear 2009;

Havingconsidered the proposal of the Minister of Finance,

DECIDES:

Article 1

To reduceby fifty per cent (50%) the valueadded tax rate,as from 1 February2009until the end of 31 December2009, on thefollowing goods and services:

1. Pit [or fossil]coal.

2. Basicchemicals;mechanicalengineeringproductsbeingmeansofproduction;thevarioustypesof automobiles;automobilecomponentscomprisingengines,gearboxes,clutchesandsectionsofsuch goods; ships and boats; the various types of casting moulds; explosive materials; grindstones; artificialplywood;industrialconcreteproductscomprisingconcretebridgebeams,concretebuilding beamsandframes,concretepiles,concreteelectricwirepoles,concretepipeculverts,thevarious types of concrete boxes, panels andnon-standard ready-made reinforced concreteunits orparts, andcommercialconcreteproducts;tyresandinnertubesetsofsize900-20orlarger;andneutral glass tubes.

3. Productsrolled or cut from ferrous, non-ferrousorprecious metal, but excludingimportedgold.

4. Automatic data processingmachines and their sections and accessories.

5. Cargo handling; dredging of channels, canals, riverports and sea ports; sea rescue activities; transportationcomprisingtransportationofpassengers,luggageandcargo,andtouristtransportation by air, road, rail and waterway but excluding international transportation.

6. Hotel business; and tourism services in the form of package holiday travel.

7. Printing, but excluding printing of money.

Article 2

Toextendbynine(9)monthsthetimefortaxpaymentoftheamountofcorporateincometaxpayablein year 2009 onincome fromthe followingactivities:

1. Manufacture of mechanical engineering products being means of production.

2. Manufacture of buildingmaterials comprising thevarious types of bricks and tiles; and limeand paint.

3. Construction,assembly and installation.

4. Tourismservices.

5. Foodproducts business.

6. Fertilizer business.

Article 3

1. Not to collect export duty on exported timber goods producedfrom imported timber, applicable to customs declarations forexport goods registeredwith the customs officepriorto 1 December 2008.

2. To repeal thefollowingDecisions of the Prime Minister of the Government:

- Decision 104/2008/QD-TTg dated 21 July2008 stipulating the absolute export duty rate applicable toexportedrice and fertilizer;

- Decision 119/2008/QD-TTg dated 29 August 2008 stipulatingthe absolute export duty rate applicable tocrude and pure copper ore;

- Decision129/2008/QD-TTgdated19September2008stipulatingtheabsoluteexportdutyrate applicable tobarium andapatite ore.

Article 4

ThisDecision shallbe offull forceand effect as from the dateof signing. The Ministryof Finance shall provideguidelines for implementation ofthis Decision.

Article 5

Ministers,headsofministerialequivalentbodies,headsofGovernmentbodiesandchairmenofpeople s committeesofprovincesandcitiesundercentralauthorityshallberesponsibleforimplementationofthis Decision.