Vietnam: What are the investment incentives for export processing enterprises in 2023?
What are the procedures for establishment of export processing enterprises in Vietnam?
Clause 1, Article 26 of Decree 35/2022/ND-CP stipulates the documentation requirements, application processes and procedures for establishment of export processing enterprises:
- Where the process for establishment of an export processing enterprise coincides with the process for grant of the investment registration certificate, the investor shall be required to submit the full text of commitment regarding its competence in conformance to customs inspection and supervision conditions under law on customs duties, together with application documents for grant of the investment registration certificate under law on investment. Investment registration agencies issuing investment registration certificates shall inscribe the objectives of establishment of an export processing enterprise on the investment registration certificate when issuing that investment registration certificate;
- Where the process for establishment of the export processing enterprise does not coincide with the process for grant of the investment registration certificate, the investor must submit a set of application documents to the investment registration agency where the export processing enterprise is located. The set of application documents shall include the followings: documents on the investment project required by law on investment; the full text of the commitment regarding its competence in conformance to customs inspection and supervision conditions under law on customs duties. The investment registration agency shall grant the certificate of registration of the export processing enterprise to the investor within 03 working days of receipt of all required documents prescribed herein with respect to the investment projects that are not classified into the group of investment projects not subject to the requirements for grant of the investment registration certificate under law on investment;
- With respect to the investment project of the investor of which the consent to the investment policy is required under law on investment, that investor must submit the commitment regarding its competence in conformance to customs inspection and supervision conditions under law on customs duties, together with the request documentation for consent to the investment policy for the investment project under law on investment.
The investment registration agency shall grant the certificate of registration of the export processing enterprise to the investor within 03 working days of receipt of the written consent to the investment policy if the investment project is not classified into the group of investment projects subject to the requirement concerning application for the investment registration certificate, or entry of objectives of establishment of the export processing enterprise in the investment registration certificate when granting the investment registration certificate under law on investment.
What are the investment incentives for export processing enterprises in Vietnam in 2023?
What are the investment incentives for export processing enterprises in Vietnam in 2023?
Clause 3, Article 26 of Decree 35/2022/ND-CP stipulates that export processing enterprises shall be entitled to investment incentives and tax policies applied to free trade zones from the date of entry of the objectives of establishment of export processing enterprises in the investment registration certificate, the revised or updated investment registration certificate or the export processing enterprise certificate of the competent investment registration agencies.
After construction of an export processing enterprise is completed, its conformance to the customs inspection and supervision conditions prescribed in law on customs duties must be certified before its official entry into operation.
Where an export processing enterprise does not obtain certification of conformance to the customs inspection and supervision conditions, it shall not be entitled to tax policies applied to free trade zones. The process for inspecting, certifying an export processing enterprise’s conformance and improvements in conformance to the customs inspection and supervision conditions shall be subject to law on customs duties.
In addition, Clause 5, Article 26 of Decree 35/2022/ND-CP also stipulates that workers and employees of export processing enterprises shall not be obliged to make customs declaration when bringing foreign currency from inland areas of Vietnam to these enterprises and vice versa..
In addition, only investors, workers and employees working for export processing enterprises and persons who do business with export processing enterprises may enter or exit export processing enterprises.
What are the requirements for export processing enterprises in Vietnam to perform other business transactions?
Clause 6, Article 26 of Decree 35/2022/ND-CP stipulates that export processing enterprises may perform other business transactions under law on investment, law on businesses and relevant regulatory provisions, and ensure conformance to the following requirements:
- Areas intended for storage of goods needed for export processing activities must be separated from the others;
- Revenues and expenses related to export processing and other business activities must be recorded separately;
- Using property, equipment and machinery obtaining tax incentives applied to export processing enterprises for other production and business activities must be prohibited. In case of using property, equipment and machinery obtaining tax incentives applied to export processing enterprises for other production and business activities, tax incentives granted in the form of tax reduction or exemption according to law on taxes must be reimbursed.
In addition, export processing enterprises may set up branches in accordance with law on investment and law on businesses so that these branches can perform export processing activities.
Branches of export processing enterprises may be entitled to incentive policies the same as those applied to export processing enterprises specified in Article 26 of Decree 35/2022/ND-CP if they carry out export processing activities inside the perimeter of export processing zones, industrial parks, economic zones, and meet the conditions set out in clause 2 of Article 26 of Decree 35/2022/ND-CP
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