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THE
MINISTRY OF FINANCE
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SOCIALIST
REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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No:
41/2002/TT-BTC
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Hanoi,
May 03, 2002
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CIRCULAR
GUIDING THE IMPLEMENTATION OF THE TAX POLICY TOWARDS
PROGRAMS AND PROJECTS FUNDED BY OFFICIAL DEVELOPMENT ASSISTANCE (ODA)
Pursuant to the current tax
laws and ordinances of the Socialist Republic of Vietnam and the Government’s decrees
guiding the implementation thereof;
Pursuant to the provisions of Article 28 of the Regulation on the management
and use of official development assistance, issued together with the
Government’s Decree No. 17/2001/ND-CP of May 4, 2001;
Pursuant to the Government’s Decree No. 178/CP of October 28, 1994 defining
the tasks, powers and organizational structure of the Ministry of Finance;
The Ministry of Finance hereby guides the implementation of the tax policy
towards programs and projects funded by official development assistance as
follows:
I. GENERAL
PROVISIONS
1. The programs and projects
funded by official development assistance (hereinafter collectively referred to
as ODA projects), already approved by competent authorities, shall fulfill tax
obligations prescribed in legal documents on tax under the guidance in Section
II of this Circular.
2. Interests on ODA loans
payable to the donors under the international agreements on ODA shall not be
subject to enterprise income tax prescribed in the Enterprise Income Tax Law.
3. Where international
agreements (including those on ODA) which the Vietnamese Government has signed
or acceded to contain tax provisions related to the implementation of a
specific ODA project and such tax provisions differ from the guidance in this
Circular, the application of the tax policy towards that ODA project shall
comply with the concluded international agreements.
In the process of drafting and
negotiating framework international agreements on ODA or specific international
agreements on ODA, which contain tax provisions contrary to the current
provisions, the Ministry of Planning and Investment or the agencies in charge
of negotiations must solicit written opinions of the Ministry of Finance before
submitting them to the Prime Minister for approval and signing with the donors.
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5. The terms defined in Article
5 of the Regulation on the management and use of official development
assistance, issued together with Decree No. 17/2001/ND-CP, which are used in
this Circular, shall have the same meanings as defined in Article 5 of the said
Regulation. Besides, in this Circular, the following terms are construed as
follows:
- "Principal
contractor" is a foreign or Vietnamese organization or individual directly
signing a contract with the ODA project owner for project construction and
installation or provision of goods and/or services for the ODA project.
- "Foreign contractor"
is a foreign organization or individual doing business in Vietnam not in any
investment form under the Law on Foreign Investment in Vietnam, and signing a
contract with the ODA project owner for project construction and installation
or provision of goods and/or services for the ODA project.
- "Foreign
sub-contractor" is a foreign organization or individual doing business in
Vietnam not in any investment form under the Law on Foreign Investment in
Vietnam, and signing a contract with the principal contractor for performing a
portion of the job under the contract signed between the principal contractor
and the ODA project owner.
II.
APPLICABLE TAXES
I. Import tax:
The ODA project owners importing
goods subject to import tax for executing ODA projects must pay import tax
under the provisions of the Export Tax and Import Tax Law, the Law amending and
supplementing a number of articles of the Export Tax and Import Tax Law, the
Government’s Decree No. 54/CP of August 28, 1993 and Decree No. 94/1998/ND-CP
of November 17, 1998 detailing the implementation of the Export Tax and Import
Tax Law and the Law amending and supplementing a number of articles of the
Export Tax and Import Tax Law, the Finance Ministry’s Circular No.
172/1998/TT-BTC of December 22, 1998 guiding the implementation of Decree No.
54/CP of August 28, 1993, Decree No. 94/1998/ND-CP of November 17, 1998 (mentioned
above), and current guiding documents, except for cases of import tax exemption
stated in Section III of this Circular.
2. Special consumption tax:
The ODA project owners importing
goods and/or buying goods and/or services subject to special consumption tax
for executing ODA projects must pay special consumption tax under the Special
Consumption Tax Law, the Government’s Decree No. 84/1998/ND-CP of October 12,
1998 detailing the implementation of the Special Consumption Tax Law, the
Finance Ministry’s Circular No. 168/1998/TT-BTC of December 21, 1998 guiding
the implementation of Decree No. 84/1998/ND-CP, and current guiding documents,
except for cases of special consumption tax exemption stated in Section III of
this Circular.
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The ODA project owners importing
goods or buying goods and/or services subject to value-added tax for executing
ODA projects must pay value-added tax under the Value-Added Tax Law, the
Government’s Decree No. 79/2000/ND-CP of December 29, 2000 detailing the
implementation of the Value-Added Tax Law, the Finance Ministry’s Circular No.
122/2000/TT-BTC of December 29, 2000 guiding the implementation of Decree No.
79/2000/ND-CP, and current guiding documents, except for cases of value-added
tax preferences stated in Section III of this Circular.
4. Income tax on high-income
earners:
Vietnamese and foreign
individuals working for the ODA project management boards, working for foreign
principal contractors or sub-contractors to carry out project construction and
installation, providing goods and/or services for ODA projects, shall pay
personal income tax under the provisions of May 19, 2001 Ordinance No.
35/2001/PL-UBTVQH10 on Income Tax on High-Income Earners, the Government’s
Decree No. 78/2001/ND-CP of October 23, 2001 detailing the implementation of
the Ordinance on Income Tax on High Income Earners, the Finance Ministry’s
Circular No. 05/2002/TT-BTC of January 17, 2002 guiding the implementation of
Decree No. 78/2001/ND-CP, and current guiding documents, except of cases of
enjoying personal income tax preferences stated in Section III of this
Circular.
5. Taxes on foreign principal
contractors and foreign sub-contractors undertaking project construction and
installation, providing goods and/or services for ODA projects:
The foreign principal
contractors or foreign sub-contractors shall fulfill their tax obligations as
guided in the Finance Ministry’s Circular No. 169/1998/TT-BTC of December 22,
1998 guiding the tax regime applicable to foreign organizations and individuals
doing business in Vietnam not in any investment form under the Law on Foreign
Investment in Vietnam and the Finance Ministry’s Circular No. 95/1999/TT-BTC of
August 6, 1999 amending and supplementing Circular No. 169/1998/TT-BTC.
III. TAX PREFERENCES
FOR ODA PROJECTS
1. For non-refundable ODA
projects:
1.1. Import tax, value-added tax
(VAT), special consumption tax on imported goods:
The non-refundable ODA project
owners directly importing, or entrusting the import of goods shall be exempt
from paying import tax, including price differences (or surcharges) on a number
of goods items (if any) and not have to pay value-added tax, special
consumption tax (if any) according to the Export Tax and Import Tax Law, the
Value-Added Tax Law, the Special Consumption Tax Law, and current guiding
documents on imported goods for executing non-refundable ODA projects. The
dossiers to be presented to the customs offices in the places where the goods
are imported consist of:
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- The competent authority’s
decision approving the non-refundable ODA project (a copy stamped and signed
for certification by a competent person of the project owner). Where the goods
are imported many times; the presentation of this decision shall be required
for the first importation only;
- The Finance Ministry’s written
certification of the non-refundable aid goods;
- The contract on the import or
entrusted import of goods, clearly stating that the goods are imported with non-refundable
ODA (a copy stamped and signed for certification by a competent person of the
project owner). Where the goods are imported many times, the presentation of
this document shall be required only for the first importation;
- The goods import or export
declaration.
The General Department of
Customs shall organize the exemption from import tax and non-calculation of
value-added tax, special consumption tax (if any) on the goods imported for
carrying out non-refundable ODA projects.
1.2. Value-added tax on goods
and/or services bought in Vietnam:
The non-refundable ODA project
owners shall be refunded the valued added tax amounts they already paid when
directly buying goods and/or services subject to VAT in Vietnam for executing
non-refundable ODA projects under the guidance at Point 3, Section IV of this
Circular.
The principal contractors
(regardless of whether they pay VAT by the deduction method or direct method),
when undertaking construction and installation or providing goods and/or
services for non-refundable ODA project owners, shall not have to calculate the
output value-added tax and shall be refunded the input value-added tax they
already paid when buying goods and/or services used for project construction
and installation or production of or trading in goods and/or services supplied
to non-refundable ODA project owners under the guidance at Point 3, Section IV
of this Circular.
The non-refundable ODA project
owners may buy cars from duty-free shops within the quotas issued by the
Ministry of Planning and Investment for use for their projects and shall not
have to pay import tax, value-added tax and special consumption tax (if any)
thereon.
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2.1. Import tax:
Where the concessional ODA loan
project owners make investment in the fields, branches, trades and localities
eligible for investment incentives under the Domestic Investment Promotion Law,
they shall be exempt from import tax on the following goods items, which have
not yet been made in the country or have been made in the country but fail to
meet the quality requirements, as prescribed in the Government’s Decree No.
51/1999/ND-CP of July 8, 1999 detailing the implementation of the Domestic
Investment Promotion Law, and documents guiding the implementation thereof:
- Equipment, machinery,
special-use transport means (included in technological chains), which are
imported for formation of fixed assets of the enterprises or for investment
extension and/or technological renewal;
- Special-use transport means
for carrying workers to and from workplaces.
2.2. Value added tax (VAT):
2.2.1. The concessional ODA loan
project owners shall not have to pay VAT on goods and services imported or
bought in the Vietnamese market, which are not subject to VAT as prescribed in
Article 4 of the Value-Added Tax Law, Article 4 of the Government’s Decree No.
79/2000/ND-CP of December 29, 2000 detailing the implementation of the
Value-Added Tax Law, and guided in Section II, Part A of the Finance Ministry’s
Circular No. 122/2000/TT-BTC of December 29, 2000 guiding the implementation of
Decree No. 79/2000/ND-CP, and current guiding documents.
2.2.2. The owners of the
projects funded by concessional ODA loans wholly allocated from the State
budget or the owners of projects funded by ODA partly allocated and partly
re-lent from the State budget, all already approved before May 29, 2001 (the
date Decree No. 17/2001/ND-CP took effect), shall be refunded the VAT amounts
they already paid when buying VAT-liable goods and/or services for executing
out ODA projects, as guided at Point 3, Section IV of this Circular.
Where the ODA project owners
assign contracts to principal contractors (regardless of whether these
principal contractors pay VAT by the deduction or direct method) for undertaking
construction and installation, providing goods and/or services for ODA projects
at the prices without VAT, the principal contractors shall not calculate output
VAT when billing payment invoices for the project owners, and shall be refunded
the input VAT amounts they already paid on the services and goods bought in for
project construction and installation or production of VAT-liable goods and/or
services which are supplied under the contracts signed with the ODA project
owners, as guided at Point 3, Section IV of this Circular.
2.2.3. The ODA projects funded
by concessional loans re-lent from the State budget and those funded by
concessional loans partly allocated and partly re-lent from the State budget,
all already approved as from May 29, 2001 and afterwards (the date Decree No.
17/2001/ND-CP took effect), shall declare and pay VAT or be refunded VAT as
prescribed in the VAT Law and current guiding documents.
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The owners of projects funded by
concessional ODA loans shall be allocated by the authorities competent to
approve their projects the reciprocal capital for paying import tax,
value-added tax and special consumption tax in the form of mutual ceasing for
the goods the project owners have directly imported or entrusted their import
for carrying out ODA projects, compile dossiers of request for mutual ceasing,
then send them to the Ministry of Finance. The dossier of request for mutual
ceasing shall consist of:
- The project owner’s written
request, clearly stating the quantity and value of the imported goods, import
tax, special consumption tax and value added tax amounts requested for mutual
ceasing; For the first-time request for mutual ceasing, the project-managing
agency’s written request for mutual ceasing shall be additionally required.
- The competent authority’s ODA
project-approving decision (a copy stamped and signed for certification by a
competent person of the project owner). In cases where the mutual ceasing must
be effected many times, the presentation of this decision shall be required for
the first time only;
- The competent authority’s
written permission of the mutual ceasing of import tax, special consumption tax
and value-added tax on the imported goods of the project (a cope stamped and
signed for certification by a competent person of the project owner). In cases
where the mutual ceasing must be effected many times, the presentation of this
document shall be required for the first time only;
- The contract for importing, or
entrusting the import of, goods (a copy stamped and signed for certification by
a competent person of the project owner). In cases where the mutual ceasing
must be effected many times, the presentation of this document shall be
required for the first time only;
- The goods import or export
declaration (a copy stamped and signed for certification by a competent person
of the project owner);
- The customs office’s tax
payment notice.
Within 3 working days after
receiving the customs offices tax notices, the project owners must send the
above-said dossiers to the finance offices managing the allocation of capital
to the projects. Within 10 working days after receiving the complete dossiers,
the finance offices in charge of the allocation of capital to the projects
shall carry out the mutual ceasing procedures. Where a dossier is incomplete,
within 3 working days, the finance office in charge of the allocation of
capital to the project shall notify in writing the project owner thereof for
dossier supplementation.
On the basis of the mutual
ceasing vouchers of the Ministry of Finance, the local Finance and Pricing
Services shall conduct cost-accounting to the local budget revenues
additionally allocated from the central budget, and record as an expenditure
the investment capital allocated to the project according to current
regulations.
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The project owners shall have to
apply cost-accounting to tax amounts allowed for mutual ceasing strictly
according to current regulations.
The water supply projects funded
by concessional ODA loans re-lent from the State budget shall apply mutual
ceasing of budgetary resources to import tax and value-added tax as guided in
the Finance Ministry’s Circular No. 28/2001/TT-BTC of May 3, 2001.
3. Retrospective payment of tax:
3.1. The Trade Ministry’s
permission must be obtained before the goods imported or bought at duty-free
shops for carrying out ODA projects and exempt from import tax and special
consumption tax as stated at Points 1.1 and 2.1, Section III, of this Circular,
can be used for purposes other than those for which they are exempt from import
tax and special consumption tax or be sold in the Vietnamese market. The
project owners shall then have to retrospectively pay the import tax and
special consumption tax amounts already exempted.
The dossiers and procedures for
retrospective payment of import tax and special consumption tax shall comply
with the guidance in the Finance Ministry’s Circular No. 172/1998/TT-BTC of
December 22, 1998 guiding the implementation of the Government’s Decree No.
54/CP of August 28, 1993 and Decree No. 94/1998/ND-CP of November 17, 1998
detailing the implementation of the Export Tax and Import Tax Law and the Law
amending and supplementing the Export Tax and Import Tax Law and the guidance
in the Finance Ministry’s Circular No. 168/1998/TT-BTC of December 21, 1998
guiding the implementation of the Government’s Decree No. 84/1998/ND-CP of
October 12, 1998 detailing the implementation of the Special Consumption Tax
Law.
3.2. For the VAT-liable goods
which are imported for executing ODA projects and, therefore, the project owners
do not have to pay VAT thereon, or VAT-liable goods which are imported or
bought in the Vietnamese market and the project owners have been refunded the
VAT previously paid thereon, if they are sold in the Vietnamese market, VAT and
other taxes must be paid according to current regulations.
Particularly for ODA projects
with their owners being non-business State management agencies, political
organizations, socio-political organizations, if they have any goods sold in
the Vietnamese market, the project owners shall request the tax offices to
provide them with odd invoices for issuance to the buyers, then send copy 3 of
each invoice to the tax offices for monitoring the use of these invoices on
which the goods value, the VAT rate and amount must be fully inscribed. The
project owners shall declare and pay tax according to current regulations. When
selling goods for the purpose of property liquidation, they must obtain
property sale decisions as guided in the Finance Ministry’s Circular No
17/1999/TT-BTC of February 5, 1999, and request the tax offices to provide them
with single invoices for issuance to the buyers, and also send copy 3 of each
invoice to the tax offices for monitoring the use of these invoices on which
the VAT rate and amount shall not be inscribed. The project owners shall have
to pay all related tax, except VAT, when liquidating property.
4. Exemption of taxes and
charges for foreign specialists working for ODA projects:
For foreign individuals who
possess the Planning and Investment Ministry’s written certifications that they
are foreign specialists executing ODA programs or projects and eligible for tax
and charge preferences as prescribed in the Regulation on Foreign Specialists,
issued together with the Prime Minister’s Decision No. 211/1998/QD-TTg of
October 31, 1998, they shall be exempt from import tax, special consumption
tax, VAT, registration fee and personal income tax as guided in the Finance
Ministry’s Circular No. 52/2000/TT-BTC of June 5, 2000 guiding the exemption of
taxes and fees for foreign specialists executing ODA programs and projects.
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Machinery, equipment and
transport means imported by principal contractors and sub-contractors by the
mode of temporary import for re-export in service of ODA project construction
shall be exempt from import tax, not subject to value added tax during the time
of being used for ODA project construction, and exempt from export tax when
they are re-exported.
The dossiers to be presented to
the customs offices in the localities where machinery, equipment and transport
means are imported consist of:
- The contractor’s written
request;
- The contract for project
construction, already signed with the ODA project owner (a copy stamped and
signed for certification by a competent person of the contractor). Where
machinery and equipment are imported many times, the presentation of this
document shall be required for the first importation only;
- A list of machinery, equipment
and transport means needed for the ODA project construction, certified by the
project owner, clearly stating that the contractor imports them in service of
the ODA-funded project construction;
- The Trade Ministry’s written
permission for temporary import for re-export;
- The goods import or export
declaration.
The foreign principal
contractors and sub-contractors must re-export machinery, equipment and
transport means upon completion of construction; if they wish to sell them in
the Vietnamese market, they must seek the Trade Ministry’s permission, and pay
import tax, value-added tax, special consumption tax (if any) and other taxes
according to the current tax legislation.
The General Department of
Customs shall organize the exemption of import tax and non-calculation of
value-added tax on machinery, equipment and transport means temporarily
imported by the foreign contractors in service of project construction, and the
exemption of export tax upon their re-export.
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IV.
IMPLEMENTATION ORGANIZATION
1. Provision of documents in
service of the management of ODA project-related taxes:
In the course of executing ODA
projects, when sending periodical reports (monthly, quarterly, annual and
wrap-up reports) as guided in the Planning and Investment Ministry’s Circular
No. 06/2001/TT-BKH of September 20, 2001 guiding the implementation of the
Regulation on the management and use of official development assistance , the
project management boards shall also send their copies to the tax offices in
the localities where the projects executive offices are based, and the tax
offices in the localities where the ODA projects constructions are underway
(for cases where the ODA project’s constructions and its executive office are
located in different localities).
Within 10 working days after
signing the construction and installation and/or goods and service provision
contracts with the principal contractors, the project owners must send one copy
of such contract (stamped and signed for certification by a competent person of
the project owner) to the tax offices in the localities where the projects
executive offices and the tax offices in the localities where the ODA projects
constructions are underway (for cases where the ODA project’s constructions and
its executive office are located in different localities).
2. Determination of the
ODA-providing forms and the applicable tax policy:
The bases for application of the
tax policy and for VAT refunding as guided in this Circular are the competent
authorities ODA project-approving decisions and the guidance on the
ODA-providing forms at Point 1.2, Section I of the Planning and Investment
Ministry’s Circular No. 06/2001/TT-BKH of September 20, 2001. For cases where
the investment decisions do not specify whether the ODA-providing form is
non-refundable ODA or concessional ODA loans wholly allocated from the State
budget, the project owners or the principal contractors shall have to
supplement the documents of the investment decision-issuing agencies
determining clearly the ODA-providing forms of the projects. Particularly for
the projects in which investment is decided by the Prime Minister, the Ministry
of Planning and Investment shall certify the projects ODA-providing forms.
Where the projects using
concessional ODA loans part of which is non-refundable ODA financed under
separate documents signed with the donors, the tax policy shall apply
separately to each project component under each document on the project�s ODA-providing form.
3. VAT refunding for
non-refundable-ODA projects and concessional ODA loan projects eligible for VAT
refunding:
3.1. Procedures for registration
and granting of tax codes:
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The domestic principal contractors
shall use the granted tax codes for transactions and carrying out VAT-refunding
procedures or request the tax offices to grant tax codes to their subsidiaries
for transactions and VAT refunding for activities of construction and
installation as well as provision of goods and/or services for ODA projects.
The foreign principal
contractors that are doing business in Vietnam and have been granted tax codes,
may use these tax codes for carrying out the tax- refunding procedures. Where
they have been granted tax codes but do business in Vietnam under many
contracts, they shall request the tax offices to grant tax codes to their
subsidiaries for use in dealings and VAT refunding for activities of
construction and installation as well as provision of goods and/or service for
ODA projects.
The foreign contractors that
come to do business for the first time in Vietnam or are doing business in
Vietnam but have not yet been granted tax codes (those that are declaring and
paying taxes through Vietnamese organizations and individuals by the tax
deduction mode) must compile dossiers and send them to the tax offices in the
localities where their executive offices are based (for contractors that have
opened executive offices) or the tax offices in the localities where the
project constructions are to be undertaken, according to form 04-DK-TCT, issued
together with the Finance Ministry’s Circular No. 79/1998/TT-BTC of June 12,
1998, so as to be granted tax codes.
Where the principal contractors
are partnerships of many parties with each performing separate jobs and issuing
own invoices for its earned turnover, the tax offices shall grant tax codes to
each partnership member (if they have not yet been granted tax codes). Where
the partnerships are set up under income-distribution contracts, the tax
offices shall grant tax codes to the parties responsible for cost-accounting
the general business results of the partnerships (if they have not yet been
granted tax codes), for VAT refunding. Where the partnerships are set up under
turnover-distribution contracts, the tax offices shall grant tax codes to the
parties responsible for issuing invoices to the project owners for VAT
refunding. Where the partnership parties set up executive boards, these
executive boards shall apply book-keeping accounting, open bank accounts and be
responsible for issuing invoices and accepting payments from the project
owners, the tax offices shall grant tax codes to the projects executive boards
for VAT refunding. The partnership parties shall issue VAT invoices when
receiving payments from the partnerships executive boards.
- For the project owners:
The project owners that have
registered their tax codes shall use them for transactions and carrying out the
VAT refunding procedures. For the newly-set up project owners, within 10 days
after receiving the investment decisions of the competent authorities, they
shall compile dossiers of registration of tax codes with the tax offices in the
localities where the project’s executive offices are located as guided in the
Finance Ministry’s Circular No. 79/1998/TT-BTC of June 12, 1998.
Where the project owners have
registered their tax codes but authorized certain units (project management
boards) to manage and separately account input VAT amounts arising in the
process of project investment with ODA, the tax offices shall grant tax codes
applicable to subsidiaries to the units authorized by the project owners.
3.2. Value-added tax refunding
dossiers:
The dossiers and procedures for
VAT refunding shall comply with the guidance at Point 3, Section II, Part D of
the Finance Ministry’s Circular No. 122/2000/TT-BTC of December 29, 2000
guiding the implementation of the Government’s Decree No. 79/2000/ND-CP of
December 29, 2000 detailing the implementation of the VAT Law. The
responsibilities of the subjects eligible for VAT refunding, the competence and
procedures for VAT refunding shall comply with the guidance in Section III,
Section IV, Part D of the Finance Ministry’s Circular No. 122/2000/TT-BTC of
December 29, 2000.
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- For the project owners: At the
Tax Departments of the provinces or centrally-run cities where the projects
executive offices are located.
- For the principal contractors:
At the Tax Departments of the provinces or centrally-run cities where the
principal contractors executive offices are located (for those having opened
executive offices), or the Tax Departments in the places where the project
construction and installation are underway.
3.4. VAT-refunding process:
- The project owners and
principal contractors eligible for VAT refunding shall compile dossiers of
application for VAT refunding immediately after receiving payment invoices, for
cases where payment is made periodically and the interval between payments is
over one month, or compile dossiers for periodical tax refunding at least once
a month but the interval between periodical payments shall not be less than 10
days according to schedule (the project owners or principal contractors must
register in advance with the tax offices the schedule for submission of tax
refunding dossiers). Within 3 working days after receiving the complete
dossiers of application for tax refunding, the tax offices shall examine them
and issue value-added tax refunding decisions. Where such a dossier needs to be
added, within 3 working days the tax offices must issue written notices thereon
to the project owners or principal contractors.
- For the projects using
concessional ODA loans granted from the State budget and eligible for VAT
refunding: If the tax is refunded to the principal contractors, their
tax-refunding dossiers must be certified by the project owners of the to
be-refunded VAT amounts before being sent to the tax offices. Where the
contractors also declare input VAT amounts not used for ODA-funded
constructions or for the production or trading of VAT-liable goods and
services, for supply to ODA projects, the project owners must give their
opinions right in the tax- refunding dossiers so as to accurately determine the
to be-refunded VAT amounts.
- The tax offices shall not
refund tax to those project owners that directly import VAT-liable goods but
the VAT amounts payable at the import stage have been mutually ceased.
- When issuing tax-refunding
decisions, apart from voucher copies circulated as guided in form No. 14/GTGT
"Value-added tax-refunding decision", issued together with the
Finance Ministry’s Circular No. 122/2000/TT-BTC of December 29, 2000, the tax
offices shall send also one copy to the project owners. Particularly for
projects using concessional ODA loans allocated from the State budget and
eligible for VAT refunding, apart from the above copies, the tax offices shall
send one copy to the Ministry of Finance (the Investment Department) for
carrying out the procedures for recording an increase in investment capital as
guided in the Finance Ministry’s Circular No. 42/2001/TT-BTC of June 12, 2001,
guiding the management and accounting of refunded VAT amounts at the ODA
projects.
- Where the project owners are
allocated from the budget the reciprocal capital for paying VAT, they must
repay the refunded VAT amounts to the State budget as guided in the Finance
Ministry’s Circular No. 42/2001/TT-BTC of June 12, 2001, guiding the management
and accounting of refunded VAT amounts at the ODA projects.
- After refunding VAT, if
detecting any doubtful cases which need to be examined and inspected, the tax
offices shall issue examination and inspection decisions. The examination,
inspection, and handling of violations related to value-added tax refunding
shall comply with current regulations.
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FOR
THE FINANCE MINISTER
VICE MINISTER
Vu Van Ninh