Offer valid until 12/31/2027
In order to provide incentives to promote the development of the automobile industry and increase the localization rate, on February 10, 2025, the Government issued Decree No. 21/2025/ND-CP amending and supplementing Article 9 of Decree No. 26/2023/ND-CP on export tax schedules, preferential import tax schedules, list of goods and absolute tax rates, mixed tax, and import tax outside the tariff quota.
Previously, the Ministry of Industry and Trade, the Vietnam Mechanical Association (VAMI), and the Vietnam Automobile Manufacturers Association (VAMA) also proposed that the Government extend the tax incentive program for automobile supporting industries until December 31, 2027, equivalent to the duration of other tax incentive programs in the automobile manufacturing and assembly sector.
Regarding Decree No. 21/2025/ND-CP amending Article 9 of this Decree on preferential import tax rates for raw materials, supplies, and components for manufacturing, processing (assembling) priority supporting industrial products for the automobile manufacturing and assembly industry until December 31, 2027 (referred to as the Automobile Supporting Industry Tax Incentive Program).
Regulations on preferential import tax rate of 0% for raw materials, supplies and components that cannot be produced domestically for the production, processing (assembly) of priority support products for the development of the automobile manufacturing and assembly industry (referred to as automobile support industry products) until December 31, 2027 are as follows: At the time of customs declaration registration, the customs declarant shall declare and calculate tax on imported raw materials, supplies and components according to the normal import tax rate or preferential import tax rate or special preferential import tax rate as prescribed, not yet applying the 0% tax rate.
Preferential import tax rates for raw materials, supplies, and components for the production, processing (assembly) of priority supporting industrial products for the automobile manufacturing and assembly industry prescribed in this Decree shall be applied until December 31, 2027. Enterprises (DN) that have registered to participate in the Automobile Supporting Industry Tax Incentive Program prescribed before the effective date of this Decree do not have to re-register for the Automobile Supporting Industry Tax Incentive Program and shall enjoy incentives according to the provisions of this Decree.
Expanding scale thanks to tax incentives
According to economic experts, the preferential tax policy for the automobile supporting industry applied at this time will be no different from an important lever, helping businesses confidently expand their scale, improve equipment, and gradually participate deeply in the global value chain of the automobile industry.
According to the representative of the Ministry of Finance, the extension of the Automobile Support Industry Tax Incentive Program until December 31, 2027, is a necessary solution to realize the strategy of industrialization and modernization of the country according to the Party's orientation and the Government's direction. This policy not only supports domestic enterprises to expand automobile production and assembly but also reduces dependence on imported complete automobiles from ASEAN with a 0% tax rate.
According to the latest data from the General Statistics Office (Ministry of Planning and Investment), in the first 11 months of 2024, the motor vehicle production index increased by 18.3% compared to the same period in 2023. The output of the auto parts and components group increased significantly compared to the same period in 2023. Of which, other spare parts for motor vehicles increased by 24.55%; other equipment for vehicle engines increased by 5.88%; ignition wire sets and other wire sets used for motor vehicles increased by 5.79%. Regarding automobile production, there are only 2 classifications: internal combustion engine vehicles carrying 10 or more people with an output increase of 33.51% and internal combustion engine vehicles carrying less than 10 people with an output increase of 31.46%.
Since the issuance of the Automobile Supporting Industry Tax Incentive Program, according to the assessment of the Vietnam Mechanical Association (VAMI), member enterprises have recorded certain effectiveness through the application of a preferential import tax rate of 0% for raw materials, supplies, components for manufacturing and assembling supporting industrial products. Since 2020, the Ministry of Industry and Trade has granted Certificates of Incentive to about 40 projects manufacturing supporting industrial products for the automobile manufacturing and assembling industry.
According to the representative of the Ministry of Finance, the extension of the Automobile Support Industry Tax Incentive Program until December 31, 2027 is a necessary solution to realize the strategy of industrialization and modernization of the country according to the Party's orientation and the Government's direction. This policy not only supports domestic enterprises to expand automobile production and assembly but also reduces dependence on imported complete automobiles from ASEAN with a 0% tax rate.
Source: https://daidoanket.vn/co-hoi-tham-gia-chuoi-gia-toan-cau-10300302.html
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