OFFICIAL LETTER 2455/CTBNI-TTHT ABOUT VAT RATE FOR ACTIVITIES OF TRANSFER OF RIGHTS TO LEASE LAND AND ASSETS ATTACHED TO LAND TO EPE ENTERPRISES, ACTIVITIES OF RENTAL OF FACTORY TO EPEs
Official letter 2455/CTBNI-TTHT about VAT rate for activities of transferring rights to sublease land and assets attached to land to EPEs, activities of leasing factories to EPEs:
Based on the above regulations and the content presented in document No. 01/TT-BCGT of HB Tech Co., Ltd., the Tax Department of Bac Ninh province guides as follows:
1. In case the Company transfers the right to sublease land and assets attached to the land to an EPE, W&B Technology (Vietnam) Co., Ltd. (Transferee), if the location of the transferred land plot is determined in the section "Project implementation location" on the investment registration certificate issued by a competent state agency to the transferee that is an export processing enterprise and the customs authority determines that this case is not subject to Subjects must go through customs procedures and at the same time meet the conditions specified in Clause 2, Article 9 of Circular No. 219/TT-BTC dated December 31, 2013 of the Ministry of Finance, the 0% VAT rate will be applied.
When transferring the right to sublease land and assets attached to land, the Company is requested to declare and pay relevant taxes (CIT...) at the time of transfer according to regulations.
2. In case the Company leases a factory to an EPE to serve production and business activities, the 0% VAT rate will be applied, if the conditions specified in Clause 1 and Point b, Clause 2, Article 9 are met. Circular No. 219/2013/TT-BTC dated December 31, 2013, and does not fall into the cases specified in Clause 3, Article 9 of Circular No. 219/2013/TT-BTC amended and supplemented in Clause 2, Article 1 Circular No. 130/2016/TT-BTC dated August 12, 2016 of the Ministry of Finance.
