Conditions for applying financial mechanisms to the free trade zone in the Nghi Son Economic Zone, Thanh Hoa Province

Conditions for applying financial mechanisms to the free trade zone within the Nghi Son Economic Zone, Thanh Hoa Province (Illustration)

Under Circular 08/2007/TT-BTC, the financial mechanisms are only applicable to the free trade zone within the Nghi Son Economic Zone when the free trade zone satisfies the following conditions:

- Having sturdy fences to separate the activities in the free trade zone with other functional areas in the Nghi Son Economic Zone;

- Having no residential areas, no regular nor irregular residents in free trade zones (including foreigners);

- Having customs authority to supervise and inspect people, goods, and vehicles entering and leaving the free trade zone.

Furthermore, this Circular defines the investment incentive principles for the free trade zone within the Nghi Son Economic Zone. The investment projects in the Nghi Son Economic Zone are eligible for the greatest incentives applicable to investment projects in localities facing extreme socio-economic difficulties prescribed by the Law on Investment, the Law on Enterprise income tax, the Law on Value-added tax, and other incentives in International Agreements, bilateral and multilateral commercial contracts to which Vietnam is a signatory.

In case various legal documents provide various incentives for one issue, the superior legal document shall apply.

In case various legal documents issued by the same agency provide various incentives for one issue, the latest legal document shall apply.

More details may be found in Circular 08/2007/TT-BTC effective from March 3, 2007.

Ty Na

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