IMPORT DUTY EXEMPTION IS ONLY APPLICABLE FOR MATERIALS, SUPPLIES AND COMPONENTS USED FOR TECHNOLOGY PRODUCTS, DIGITAL CONTENTS AND SOFTWARE THAT CANNOT BE PRODUCED DOMESTICALLY

On 31 January 2022, the Ministry of Information and Communications issued Circular No.  25/2022/TT-BTTTT ("Circular 25") stipulating the identification of imported raw materials, supplies, and components subject to exemption of import tax, directly serving the production of information technology products, digital contents, softwares.

Accordingly, materials, supplies and components subject to exemption of import tax for the production of information technology products, digital contents and softwares must fully meet the following criteria:

1. Be imported raw materials, supplies and components directly serving the production of products on the list of software and hardware products, electronics or digital contents in accordance with current laws.
2. Exceed the list of machinery, equipment, raw materials, supplies and components of the telecommunications industry – information technology, digital contents, softwares that have been domestically produced.

This regulation protects the competitiveness of domestic enterprises and products against foreign enterprises and products.

Dossiers and procedures for tax exemption shall comply with the provisions of the current law on export and import taxes.

Circular 25 shall take effect from February 15, 2023.