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Preferential tax not applicable to Viettel: MoF

Update: October, 08/2013 - 09:27
Workers assemble mobile phones in a factory of Viettel. Photo vnreview
HA NOI (VNS)  — The Ministry of Finance (MoF) has said that Vietnamese telecom group Viettel is not entitled to receive the same tax preferentials as Samsung Electronics Viet Nam (SEV) of South Korea.

Based on Article No.12, Government Decree No.87 detailing import duty, MoF said mobile phone production and assembly are not on the list of products receiving preferentials on import tax.

If Viettel carried out a project on producing and assembling mobile phones in poor areas, they would get a five-year tax exemption for components and parts not produced in Viet Nam.

In SEV's case, MoF said that the company received preferentials on import and export tax because it was recognised as a key production and export firm by the Government.

For Viettel's proposal on favourable rates for business income tax, MoF said that Article 13 and Article 14 under Law on Corporate Income Tax No.14/2008/QH12, and Clause 7 and Clause 8, Article 1 under Law No.32/2013/QH13 amending and supplementing some articles of Law on Corporate Income Tax No14/2008/QH12, regulate on enterprises receiving a business income tax rate of 10 per cent. The law will come into effect on January 1, 2014.

In an official document sent to the Prime Minister in August, Viettel asked for a five-year tax exemption on components and parts used for research, design, production and assembly of mobile phones, and used SEV as an example. The group also requested to adjust the business income tax to 10 per cent for the income on sales of locally made phones. — VNS

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