Vietnam: Conditions for applying the financial policies of Phu Quoc free trade zone

Conditions for applying the financial policies of Phu Quoc free trade zone (Illustrative Image)

Under Circular 10/2007/TT-BTC, the financial policies of the Phu Quoc free trade zone are only applicable when all the following conditions are simultaneously satisfied:

- Having a physical barrier ensuring the separation of activities in the free trade zone from other functional areas on Phu Quoc Island;

- Having no residential areas, including both permanent and temporary residents (including foreigners);

- Having a customs authority supervising and inspecting goods and vehicles entering and exiting the free trade zone.

This Circular also specifies investment incentive principles for investment projects on Phu Quoc island. Investment projects in Phu Quoc Island are eligible for the maximum incentives provided for investment projects in particularly disadvantaged areas according to the provisions of the Investment Law, the Corporate Income Tax Law, the Value Added Tax Law, and incentives according to treaties, bilateral and multilateral trade agreements to which Vietnam is a signatory.

Note:

- In case legislative documents prescribe different incentive rates for the same matter, the incentive provisions in the document with higher legal standing shall be applied.

- In case legislative documents issued by the same authority prescribe different provisions for the same matter, the provisions of the latest document shall be applied.

Details can be found in Circular 10/2007/TT-BTC effective from March 07, 2007.

Ty Na

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