Vietnam: What are the incentives for products involving collection, treatment, recycling or reuse of waste?
- What are the current incentives and support for business investment activities on environmental protection in Vietnam?
- What are the incentives for and assistance in environmental protection in Vietnam?
- What are the incentives for products involving collection, treatment, recycling or reuse of waste in Vietnam?
What are the current incentives and support for business investment activities on environmental protection in Vietnam?
Pursuant to Clause 2, Article 141 of the Law on Environmental Protection 2020, which stipulates the incentives for and assistance in environmental protection as follows:
- Investment projects involving collection, treatment, recycling or reuse of waste;
- Enterprises manufacturing and providing technologies, equipment, products and services in support of satisfying the environmental protection requirements, including combined waste treatment and waste-to-energy technology; centralized domestic wastewater treatment services; ambient environment monitoring services; electric and renewable energy-powered public transport services; manufacturing clean and renewable energy; manufacturing and supplying environmental monitoring equipment and equipment for in situ wastewater treatment, Vietnam Green Label certified environmentally-friendly products and services.
Vietnam: What are the incentives for products involving collection, treatment, recycling or reuse of waste? (Image from the internet)
What are the incentives for and assistance in environmental protection in Vietnam?
Pursuant to Clause 1, Article 141 of the Law on Environmental Protection 2020 stipulates the policy to provide incentives and assistance for environmental protection is as follows:
- The State shall provide incentives and assistance regarding land and capital; exemption and reduction of environmental protection taxes and fees; provision of freight subsidies to environmentally-friendly products and other incentives and assistance for environmental protection activities as prescribed by law;
- Entities that carry out multiple environmental protection activities eligible for incentives and assistance are entitled to the incentives and assistance corresponding to such activities;
- If an environmental protection activity is eligible for the same incentives or assistance in accordance with regulations of this Law and other relevant regulations of law, the higher rates of incentives or assistance provided for in a document shall apply;
- The rate and scope of incentives and assistance for environmental protection shall be adjusted to ensure the consistency with the environmental protection policy in each period.
What are the incentives for products involving collection, treatment, recycling or reuse of waste in Vietnam?
Official Dispatch 3377/TCHQ-TXNK in 2022, guiding policies on incentives for products involving collection, treatment, recycling or reuse of waste in Vietnam as follows:
Incentives for enterprises producing and providing technology, equipment, products and services to meet environmental protection requirements according to the list of environmental protection activities
- Pursuant to Clause 2, Article 141 of the Law on Environmental Protection 2020, which stipulates investment and business activities regarding environmental protection eligible for incentives and assistance.
- Pursuant to Clause 1, Article 131 of Decree 08/2022/ND-CP stipulating the entities entitled to incentives and assistance in environmental protection
+ The entities entitled to incentives and assistance in environmental protection include organizations and individuals investing in environmental protection works; conducting production and business activities and providing services in relation to environmental protection in projects and business lines eligible for investment incentives specified in the Appendix XXX enclosed herewith.
- Pursuant to Clause 2, Article 134 of Decree 08/2022/ND-CP stipulating tax, fee and charge incentives as follows:
+ Other tax, fee and charge incentives shall comply with regulations of law on tax, fees and charges.
- Pursuant to item 2, Appendix XXX promulgated together with Decree 08/2022/ND-CP stipulating that enterprises produce, provide technology, equipment and services to meet the requirements of environmental protection including products produced from recycling and waste treatment activities that meet the provisions of law on product quality and goods on the list of environmental protection activities eligible for incentives and support.
Pursuant to the above provisions, in case organizations or individuals engage in production, business or service activities related to environmental protection under projects, industries and trades eligible for investment incentives specified in the List of environmental protection activities. The environment is entitled to preferential policies on taxes, fees and charges in accordance with the law on taxes, fees and charges.
Regarding the export of products produced from recycling and waste treatment activities
Pursuant to Point b, Clause 19, Article 16 of the 2016 Law on Import Tax and Export Tax stipulates:
+ Exports that are products of waste recycling and treatment are eligible for export tax exemption.
- Pursuant to Clause 3, Article 25 of Decree 134/2016/ND-CP stipulates:
+ Bases for determining export products produced from waste recycling and treatment activities comply with regulations of the Ministry of Natural Resources and Environment;
Pursuant to the above provisions, the law currently does not provide for the exemption of export tax for the case where a recycling enterprise treats waste and sells it to another enterprise for export.
Therefore, in case a company resells only recycled products to another company for export, it is not eligible for export tax exemption.
LawNet
