Incentives and financial supports applicable to solid waste collection and transportation establishments in Vietnam

 Incentives and financial supports applicable to solid waste collection and transportation establishments in Vietnam (Internet image)

Circular 121/2008/TT-BTC stipulates the incentives and financial supports applicable to solid waste collection and transportation establishments in Vietnam as follows:

1. Organizations and individuals making investment in the construction of solid waste depots are exempted from land use levy, land rent and provided with supports for ground clearance compensation payment.

2. Solid waste collection and transportation organizations and individuals are entitled to credit incentives.

3. Tax incentives

- Import duty incentives

• Equipment imported to create fixed assets of investment projects on construction of solid waste depots and solid waste collection and transportation is exempted from import duty.

• Dossiers and procedures for import duty exemption comply with the import duty and export duty law.

- Enterprise income tax incentives: Eligible solid waste collection and transportation establishments are entitled to enterprise income tax exemption and reduction and preferential enterprise income tax rates as prescribed by current enterprise income tax law.

4. Policies on state budget supports

Daily-life solid waste collection and transportation establishments may, apart from earning sanitation charges as prescribed, be provided with local budget supports to cover waste collection and transportation expenses under service contracts. Service contracts' value shall be determined under the Prime Minister of Vietnam's Decision 256/20067QD-TTg of November 9, 2006, promulgating the Regulation on bidding, goods ordering and assignment of plans on the production and provision of public-utility products and services and according to the cost estimates approved by competent authorities or service bidding results.

More details can be found in Circular 121/2008/TT-BTC, which comes into force from January 14, 2009.

Ngoc Tai

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