Procedures of establishment of and payable taxes for export processing enterprise

A.: Thank you for placing your trust in consulting department of Ha Thi. We have scrutinized your question and this is our response:

I. Legal basis:

- Law on Import/Export tax 2016;

- Decree no. 46/2014/ND-CP issued on 15/05/2014;

- Decree no. 82/2018/ND-CP issued on 22/05/2018.

II. Conditions of establishment

- Location shall be in processing, industrial and economic zones;

- The factory shall be bordered by barriers with independent entrance and its camera shall be connected to Custom;

- Meeting all requirements and being easy for inspection of competent authority;

- Permission of Custom for export processing enterprise (EPE).

III. Dossiers

1. Certified copy of Certificate of Business Registration of Chinese company

2. Certified copy of one of these documents:

- Report on finance of investor

- Confirmation of bank balance equivalent to the amount of capital intended to invest

- Commitment on financial support of parent company

- Commitment on financial support of financial organization

- Guarantee on financial capacity of investor

- Others proving financial capacity.

3. Certified copy of passport of legal representative of the Chinese company and the company intended to establish in Vietnam

4. Certified copy of Rental agreement; Certificate of Right to use land; Certificate of Business Registration/ID cards.

5. Expected tradename in Vietnam (02 – 03 names recommended)

6. Expected charter capital (in consideration of demands of investor)

Note: Documents mentioned in 1 and 2 shall be consular legalized.

IV. Steps

Step 1: Application for Certificate of Investment to establish EPE.

Step 2: Permission on Application for Certificate of Business Registration.

Step 3: Application for Certificate of Business Registration.

V. Tax incentives

1. Incentives of company income tax

- Exemption and deduction of 50% of payable-tax income in 04 consecutive years.

- Other incentives depending on business area and location.

2. Incentives of land use fee

In accordance with item b Clause 3 Art.19 of Decree No. 46/2014/ND-CP, project implemented in deprived area is able to enjoy exemption of fee in 07 years.

3. Incentives of export/import tax

In accordance with Clause 4 Art.2 of Law on export/import tax 2016, the purchase between EPE and foreign nation shall be enjoyed import/export tax exemption.

The abovesaid is the procedures to establish EPE in Vietnam and tax incentives. Should you have any question, please do not hesitate to contact us via online consultation hotline: 0943891828 or via email, wechat and zalo.

We are willing to cooperate with You!

Sincerely!