Is there a Decree 21 of 2025 on tax incentive program for automobile supporting industry up to the end of 2027?
Is there a Decree 21 of 2025 on tax incentive program for automobile supporting industry up to the end of 2027?
The Government of Vietnam has just issued Decree 21/2025/ND-CP…Download amending Article 9 of Decree 26/2023/ND-CP on the Export Tariff, Preferential Import Tariff, Tariff Nomenclature and fixed duties, mixed duties, out-of-quota import duties.
Decree 21/2025/ND-CP takes effect from February 10, 2025.
To be specific, Decree 21/2025/ND-CP…Download issued by the Government of Vietnam on February 10, 2025, amending the name of Article 9 and Clause 1 of Article 9 of Decree 26/2023/ND-CP on the Export Tariff, Preferential Import Tariff, Tariff Nomenclature and fixed duties, mixed duties, out-of-quota import duties as follows:
Preferential import tax rates for materials, supplies, and components for manufacturing, processing (assembling) automotive supporting industry products prioritized for development in the automotive production and assembly sector until December 31, 2027 (referred to as the tax incentive program for automobile supporting industry)
- Establish a preferential import tax rate of 0% for materials, supplies, and components not yet produced domestically for manufacturing, processing (assembling) supporting products prioritized for development in the automotive production 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 form, the customs declarant shall declare and calculate the tax on imported materials, supplies, and components according to the normal import tax rate or preferential import tax rate or special preferential import tax rate as prescribed, without applying the 0% tax rate.
b) The application of a 0% preferential import tax rate for materials, supplies, and components under the tax incentive program for automobile supporting industry shall be implemented following the provisions in Clause 2, Clause 3, Clause 4, Clause 5, Clause 6, Clause 7, Clause 8 of this Article.
Thus, the preferential import tax rates for materials, supplies, and components for manufacturing, processing (assembling) automotive supporting industry products prioritized for development in the automotive production and assembly sector as prescribed in this Decree are applicable until December 3, 2027.
Enterprises registered to participate in the tax incentive program for automobile supporting industry stipulated before this Decree takes effect do not need to re-register for the tax incentive program for automobile supporting industry and shall enjoy incentives as specified in this Decree.
Is there a Decree 21 of 2025 on tax incentive program for automobile supporting industry up to the end of 2027? (Image from the Internet)
What are the conditions to apply the tax incentive program for automobile supporting industry in Vietnam?
Based on Clause 3 Article 9 of Decree 26/2023/ND-CP, the conditions for applying the tax incentive program for automobile supporting industry are as follows:
(1) For enterprises manufacturing, processing (assembling) automotive parts and components:
- Have a sales contract for automotive supporting industry products with enterprises producing, assembling automobiles with a Certificate of Eligibility for Automobile Production and Assembly issued by the Ministry of Industry and Trade;
- Investment certificate or Business Registration Certificate or Enterprise Registration Certificate or Business Certificate stating the project's objectives or business scope, including automotive parts and accessory manufacturing;
- Have ownership or the right to use production, processing (assembling) facilities, and machinery, equipment at production, processing (assembling) facilities within the territory of Vietnam.
(2) For enterprises producing, assembling automobiles that self-manufacture, process (assemble) automotive parts and components: Must have a Certificate of Eligibility for Automobile Production and Assembly issued by the Ministry of Industry and Trade.
(3) For imported materials, supplies, components:
- Imported materials, supplies, components (including those imported since Decree 26/2023/ND-CP took effect and still in stock for subsequent incentive periods; not including materials, supplies, components put into use but damaged, faulty) for manufacturing, processing (assembling) automotive supporting industry products listed in the priority supporting industry product list for the automobile production and assembly industry stipulated in Section 4 Appendix issued with Decree 111/2015/ND-CP.
In cases where products are simply assembled with simple devices such as screws, bolts, nuts, rivets, without undergoing any manufacturing or processing to form a complete product, they shall not apply the tax incentive program for automobile supporting industry.
- Imported materials, supplies, components not yet domestically produced, directly imported or commissioned for importation or authorized for importation by enterprises specified in Clause 2 Article 9 of Decree 26/2023/ND-CP. The determination of materials, supplies, and components not yet domestically produced is based on the regulations of the Ministry of Planning and Investment regarding the List of Domestically Produced Raw Materials, Supplies, Semi-Finished Products.
Note: Enterprises manufacturing, processing (assembling) automotive parts and components and enterprises producing, assembling automobiles that self-manufacture, process (assemble) automotive parts and components meeting the above conditions and the regulations in Clause 4, Clause 5, Clause 6, Clause 7, Clause 8 Article 9 of Decree 26/2023/ND-CP shall apply the 0% preferential import tax rate for imported materials, supplies, components for manufacturing, processing (assembling) automotive supporting industry products in the incentive assessment period.
Vietnam: What does the dossier for registration to participate in the tax incentive program for automobile supporting industry include?
Based on Point a Clause 5 Article 9 of Decree 26/2023/ND-CP, the dossier for registration to participate in the tax incentive program for automobile supporting industry includes:
- 01 original Official Dispatch registering participation in the tax incentive program for automobile supporting industry following Form No. 08 Appendix 2 issued with Decree 26/2023/ND-CP.
- 01 certified copy of the Investment Certificate or Business Registration Certificate or Enterprise Registration Certificate or Business Certificate (applicable to enterprises manufacturing, processing (assembling) automotive parts and components).
- 01 original document notifying the production, processing (assembling) facilities; machinery, and equipment at the production, processing (assembling) facilities to the customs authorities following Form No. 09 Appendix 2 issued with Decree 26/2023/ND-CP (applicable to enterprises manufacturing, processing (assembling) automotive parts and components).
- 01 certified copy of the Land Use Rights Certificate issued by the competent state authority for the enterprise or the Land Use Rights Certificate issued by the competent authority for the landowner and a lease, loan contract for land, premises, factories in case the enterprise leases or loans them for production purposes.
- 01 certified copy of the Certificate of Eligibility for Automobile Production and Assembly issued by the Ministry of Industry and Trade (applicable to enterprises producing, assembling automobiles that self-manufacture, process (assemble) automotive parts and components).
