How long is the extended period of tax incentive program for automobile supporting industry in Vietnam?

How long is the extended period of tax incentive program for automobile supporting industry in Vietnam?

The Government of Vietnam has just issued Decree 21/2025/ND-CP amending Article 9 of Decree 26/2023/ND-CP regarding Export Tariffs, Preferential Import Tariffs, Tariff Nomenclature and fixed duties, mixed duties, out-of-quota import duties. This extends the duration of the tax incentive program for the automotive supporting industry.

Based on Clause 1, Article 9 of Decree 26/2023/ND-CP as amended by Article 1 of Decree 21/2025/ND-CP, it is stipulated as follows:

Preferential import tax rate for raw materials, supplies, and components used in the production, processing (assembly) of supporting industrial products prioritized for development in the automobile manufacturing and assembly sector until December 31, 2027 (referred to as the tax incentive program for automobile supporting industry)

1. A preferential import tax rate of 0% is applied to raw materials, supplies, and components that cannot be produced domestically, used in the production, processing (assembly) of supporting products prioritized for development for the automobile manufacturing and assembly sector (referred to as automotive supporting industry products) until December 31, 2027 as follows:

a) At the time of registering the customs declaration, the declarant shall declare, calculate taxes on imported raw materials, supplies, and components according to the regular import tax rate, preferential import tax rate, or special preferential import tax rate as prescribed, without applying the 0% tax rate.

b) The application of the 0% preferential import tax rate for raw materials, supplies, and components under the tax incentive program for automobile supporting industry is implemented in accordance with Clauses 2, 3, 4, 5, 6, 7, 8 of this Article.

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Thus, the preferential import tax rate for raw materials, supplies, and components used in the production, processing (assembly) of supporting industrial products prioritized for development in the automobile manufacturing and assembly sector is extended until December 31, 2027, effectively extending the tax incentive program for automobile supporting industry by an additional 3 years.

How long is the extended period of tax incentive program for automobile supporting industry in Vietnam? (Image from the Internet)

How to register the tax incentive program for automobile supporting industry in Vietnam?

Based on Clause 5, Article 9 of Decree 26/2023/ND-CP (Article 9 Title as amended by Article 1 of Decree 21/2025/ND-CP) stipulating the registration and procedure for participating in the tax incentive program for automobile supporting industry as follows:

(1) Registration dossier to participate in the tax incentive program for automobile supporting industry includes:

- Official Dispatch registering participation in the tax incentive program for automobile supporting industry according to Form No. 08 in Appendix II issued together with Decree 26/2023/ND-CP: 01 original copy;

- Investment Certificate or Investment Registration Certificate or Business Registration Certificate or Business License (applied in the case specified at point a, Clause 2, Article 9 of Decree 26/2023/ND-CP): 01 certified copy;

- Document notifying the production, processing (assembly) facility; machinery, equipment at the production, processing (assembly) facility to the customs authority according to Form No. 09 in Appendix II issued together with Decree 26/2023/ND-CP (applied in the case specified at point a, Clause 2, Article 9 of Decree 26/2023/ND-CP): 01 original copy. Certificate of land use rights provided by the competent state authority to the enterprise or Certificate of land use rights provided by the competent authority to the landowner and lease, borrow or rent land, premises, or factory contract in case the enterprise rents or leases as a production base: 01 certified copy;

- Certificate of eligibility to produce, assemble automobiles issued by the Ministry of Industry and Trade (applied in the case specified at point b, Clause 2, Article 9 of Decree 26/2023/ND-CP): 01 certified copy.

(2) Registration procedures to participate in the tax incentive program for automobile supporting industry

Enterprises submit the registration dossier to participate in the tax incentive program for automobile supporting industry directly or send it through the electronic data system of the customs authority or send it by post to the customs authority where the enterprise is headquartered or has a production, processing (assembly) facility to register for participation immediately after this Decree takes effect or any time during the year. The participation date is counted from the date of the official dispatch registering the tax incentive program for automobile supporting industry onwards.

Shall enterprises that have registered for the tax incentive program for automobile supporting industry register again in Vietnam?

Based on Clause 2, Article 2 of Decree 21/2025/ND-CP, it is stipulated as follows:

Implementation and Organization Provisions

1. This Decree is effective from the date of signing and issuance.

2. The preferential import tax rate for raw materials, supplies, and components used for production, processing (assembly) of supporting industrial products prioritized for development in the automobile manufacturing and assembly sector stipulated in this Decree is applicable until December 31, 2027. Enterprises that registered for the tax incentive program for automobile supporting industry before this Decree takes effect are not required to re-register for the program and are entitled to incentives as prescribed by this Decree.

3. The Ministers, heads of ministerial-level agencies, heads of government-attached agencies, Chairpersons of People's Committees of provinces, centrally-affiliated cities, and relevant organizations and individuals are responsible for implementing this Decree.

Thus, enterprises that registered for the tax incentive program for automobile supporting industry before Decree 21/2025/ND-CP takes effect are not required to re-register for the program and are entitled to preferential import tax rates for raw materials, supplies, components for the production, processing (assembly) of supporting industrial products prioritized for development in the automotive manufacturing and assembly industry until December 31, 2027.