On April 15, 2024, Hai Phong City Tax Department issued Official Letter No. 1254/CTHPH-TTHT answering the tax policy as follows: In case an export processing enterprise has leased land for a lump sum payment for the whole lease period, now transfers land use rights associated with assets on land to enterprises operating in accordance with export processing regulations. If the transfer of land use rights associated with assets on the Company’s land comply with the provisions of the 2013 Land Law:

– Transfer activities are subject to VAT, the tax rate of 10% is applied.

– The company applies the VAT calculation method as prescribed in Article 12, Article 13, Circular No. 219/2013/TT-BTC of the Ministry of Finance and uses invoices as prescribed in Article 8 of the Government’s Decree No. 123/2020/ND-CP dated October 19, 2020.

– The company changes tax registration information as prescribed in Clause 1, Article 36 of the Law on Tax Administration No. 38/2019/QH14 dated June 13, 6, 2019 of the National Assembly and changes the content of registration to use electronic invoices as prescribed in Clause 4, Article 15 of the Government’s Decree No. 123/2020/ND-CP dated October 19, 2020.