Conditions for Application of Financial Policies in the Phu Quoc Island Free Trade Zone

Conditions for applying the financial policies of Phu Quoc Island Free Trade Zone (Illustrative Image)

Circular 10/2007/TT-BTC stipulates that the financial mechanisms for the Free Trade Zone on Phu Quoc Island are only applicable when the Free Trade Zone meets all the following conditions simultaneously:

- There must be a physical barrier ensuring the separation of activities in the Free Trade Zone from other functional areas on Phu Quoc Island;- The Free Trade Zone must not have residential areas, including both permanent and temporary residents (including foreigners);- There must be a customs authority to supervise and inspect goods and vehicles entering and exiting the Free Trade Zone.

Additionally, this Circular also specifies investment incentive principles for investment projects on Phu Quoc Island. Investment projects on Phu Quoc Island are entitled to the maximum incentives provided for investment projects in areas with especially difficult socio-economic conditions according to the provisions of investment law, the Corporate Income Tax Law, the Value Added Tax Law, and incentives according to international treaties, bilateral and multilateral trade agreements to which Vietnam is a signatory.

Note:

- In case legal documents prescribe different levels of incentives for the same issue, the incentives provisions in the document with higher legal standing shall be applied.- In case legal documents issued by the same authority prescribe different provisions for the same issue, the provisions of the document issued later shall be applied.

For details, refer to Circular 10/2007/TT-BTC, effective from March 7, 2007.

Ty Na

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