HA NOI (Biz Hub) — 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.
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Workers assemble mobile phones in a factory of Viettel. Photo vnreview.vn
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Based on Article No.12, Decree No.87 of the government detailing import duty, the 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, the 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, the MOF said that Law No.32, amending some of the articles of law on corporation income tax, passed by the National Assembly on June 19, 2013, regulates on enterprises receiving a business income tax rate of 10 per cent. The law will come into effect 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