Application for 0% preferential import duty rate for automobile components in Vietnam

Application for 0% preferential import duty rate for automobile components in Vietnam (Illustration)

Form No. 10a- Official Dispatch requesting the application of the preferential tax rate of 0%

To be specific, at Article 1 Decree 57/2020/ND-CP amending Article 7b Decree 122/2016/ND-CP regulates the documents for applying the preferential CIT rate of 0% under the Auto Supporting Industry Tax Incentive Program (materials, supplies, components domestically unavailable for the production, processing (assembly) of prioritized supporting products for the automotive industry, hereinafter referred to as CIS products for the auto industry) for the period from 2020 to 2024, including:

For enterprises manufacturing, processing (assembling) automotive parts and components in Vietnam:

- Official Dispatch requesting the application of the preferential tax rate of 0% under the Auto Supporting Industry Tax Incentive Program according to Form No. 10a Appendix II: 01 original copy;

- Investment Certificate or Investment Registration Certificate or Business Registration Certificate or Enterprise Registration Certificate (unless already submitted when registering to join the Auto Supporting Industry Tax Incentive Program): 01 certified copy;

- Sales contract for CIS products for the auto industry with enterprises holding the certificate of eligibility for automobile manufacturing and assembly issued by the Ministry of Industry and Trade: 01 original copy;

- Manufacturing, processing (assembling) process for CIS products for the auto industry (with an explanation): 01 original copy;

- List of import declarations and the amount of import tax paid for materials, supplies, components to manufacture, process (assemble) CIS products for the auto industry registered in the Program according to Form No. 10 Appendix II: 01 original copy;

- Report on the utilization of imported materials, supplies, components for manufacturing, processing (assembling) CIS products for the auto industry registered in the Program according to Form No. 11** Appendix II: 01 original copy;

- List of VAT invoices corresponding to the quantity of CIS products for the auto industry sold according to the Sales contract according to Form No. 12 Appendix II: 01 original copy;

- Accounting documents showing the quantity of imported materials, supplies, components used for the production, processing (assembling) of CIS products for the auto industry: 01 photocopy.

For auto manufacturing and assembly enterprises self-producing, processing (assembling) automotive parts and components in Vietnam:

- Official Dispatch requesting the application of the preferential tax rate of 0% under the Auto Supporting Industry Tax Incentive Program according to Form No. 10a Appendix II: 01 original copy;

- Manufacturing, processing (assembling) process for CIS products for the auto industry (with an explanation): 01 original copy;

- List of import declarations and the amount of import tax paid for materials, supplies, components to manufacture, process (assemble) CIS products for the auto industry according to Form No. 10 Appendix II: 01 original copy;

- Report on the utilization of imported materials, supplies, components for manufacturing, processing (assembling) CIS products for the auto industry according to Form No. 11** Appendix II: 01 original copy;

- List of VAT invoices corresponding to the quantity of CIS products for the auto industry sold to automobile manufacturing and assembly enterprises holding the certificate of eligibility for automobile manufacturing and assembly issued by the Ministry of Industry and Trade according to Form No. 12 Appendix II (if applicable): 01 original copy;

- Report on the utilization of CIS products for the auto industry produced, processed (assembled) according to Form No. 13 Appendix II: 01 original copy;

- Certificate of eligibility for automobile manufacturing and assembly issued by the Ministry of Industry and Trade (unless already submitted when registering to join the Program): 01 certified copy;

- Accounting documents showing the quantity of imported materials, supplies, components used for the production, processing (assembling) CIS products for the auto industry: 01 photocopy.

Moreover, at Article 7b of Decree 122/2016/ND-CP, as amended by Article 1 of Decree 57/2020/ND-CP, specific procedures for applying the 0% tax rate for automotive parts are stipulated as follows:

- No later than 60 days from June 30 or December 31 of each year, enterprises must send documents to the customs authority where the registration dossier for participation in the Auto Supporting Industry Tax Incentive Program is received. For late submissions beyond the 60-day deadline, the customs authority will accept the dossier, conduct an inspection, and administratively penalize according to the regulations of the Government of Vietnam.

- The customs authority, based on the request for the 0% tax rate, the results of the inspection of the enterprise's production, processing (assembly) facilities, machinery, and equipment, will inspect the eligibility for the Auto Supporting Industry Tax Incentive Program and handle as follows:

Case 1: If the dossier is incomplete, the customs authority will issue a document requesting the enterprise to supplement the dossier.

Case 2: If there are doubts about the accuracy of the dossier, the customs authority will conduct an inspection at the customs office or the taxpayer's office as per the tax administration law.

Case 3: If all conditions are met, the customs authority will issue a Decision for tax refund and an Order for overpaid tax refund for the enterprise in accordance with the Tax Administration Law and its guiding documents.

Case 4: If the enterprise does not meet the conditions to participate in the Auto Supporting Industry Tax Incentive Program, the customs authority will issue a notification to the enterprise.

Customers and Members are invited to see more about Procedures for registering to apply the preferential import duty rate of 0% for auto parts here.

Le Vy

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