Tax incentives for automobile supporting industry effective until December 31, 2027
The Government issued Decree No. 21/2025/ND-CP dated February 10, 2025 amending and supplementing Article 9 of Decree No. 26/2023/ND-CP on Export Tariff Schedule, Preferential Import Tariff Schedule, List of goods and absolute tax rates, mixed tax, and import tax outside tariff quotas.
Decree 21/2025/ND-CP amends the name of Article 9 and Clause 1, Article 9 of Decree No. 26/2023/ND-CP on Export Tariff Schedule, Preferential Import Tariff Schedule, List of goods and absolute tax rates, mixed tax, and import tax outside tariff quotas as follows:
"Article 9. 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 until December 31, 2027 (referred to as the Automobile Supporting Industry Tax Incentive Program).
1. 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 (stipulated in Decree 26/2023/ND-CP is until December 31, 2024) as follows:
a) 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.
b) The application of a preferential import tax rate of 0% for raw materials, supplies and components of the Automobile Support Industry Tax Incentive Program shall be implemented in accordance with the provisions of Clauses 2, 3, 4, 5, 6, 7 and 8 of this Article.
Decree 21/2025/ND-CP takes effect from the date of signing (February 10, 2025).
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 that have registered to participate in the Automobile Supporting Industry Tax Incentive Program prescribed before the effective date of this Decree shall not have to re-register for the Automobile Supporting Industry Tax Incentive Program and shall enjoy incentives as prescribed in this Decree.
