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DECREE
DETAILING THE IMPLEMENTATION OF
THE IMPORT TAX AND EXPORT TAX LAW
THE GOVERNMENT
Pursuant to the December 25, 2001 Law on Organization of the Government;
Pursuant to Law No. 45/2005/QH11 of June 14, 2005, on Import Tax and Export
Tax;
Pursuant to the Customs Law No. 29/2001/QH10 of June 29, 2001, and Law No.
42/2005/QH 11 of June 14, 2005, Amending and Supplementing a Number of
Articles of the Customs Law;
At the proposal of the Minister of Finance,
DECREES:
Chapter I
GENERAL PROVISIONS
Article 1.- Tax-liable objects
Except for goods defined in Article 2 of this Decree, goods in the following
cases shall be liable to import tax or export tax:
1. Goods imported or exported through Vietnam’s border-gates or borders,
including goods imported or exported through land or river way border-gates,
seaport, airports, transnational railway stations, international post offices
or other customs clearance venues set up under decisions of competent state
agencies.
2. Goods brought from the domestic market into non-tariff zones or from
non-tariff zones into the domestic market.
Non-tariff zones include export-processing zones, export-processing
enterprises, tax-suspension warehouses, tax-suspension zones, bonded
warehouses, special trade economic zones, trade-industrial zones, and other
economic zones which are set up under decisions of the Prime Minister and
have their relations of goods sale and purchase with the outside regarded as
import-export relations.
3. Other sold, purchased and exchanged goods which are considered imported or
exported goods.
Article 2.- Objects not liable to tax
Goods in the following cases shall not be liable to import tax or export tax:
1. Goods transited through Vietnam’s border-gates or borders according to the
provisions of law.
2. Humanitarian goods, non-refundable goods of foreign governments, United
Nations organizations, inter-governmental organizations, international
organizations, foreign non-governmental organizations (NGOs), foreign
economic organizations, or foreigners for Vietnam and vice versa for
socio-economic development or other humanitarian purposes under official
documents between the two parties approved by competent authorities;
humanitarian aid and emergency relief to remedy consequences of wars, natural
disasters and epidemics.
3. Goods exported from non-tariff zones to foreign countries; goods imported
from foreign countries into non-tariff zones for use in non-tariff zones
only; goods transported from one non-tariff zone to another;
4. Goods being petroleum volumes paid to the State as natural resource tax
when exported.
Article 3.- Taxpayers; subjects authorized to pay tax, guaranteeing
tax payment, and paying tax for others
1. Taxpayers specified in Article 4 of the Import Tax and Export Tax Law
include:
a/ Owners of imported or exported goods;
b/ Organizations undertaking the consignment of goods import and export;
c/ Individuals carrying imported goods or exported goods upon their entry or
exit, or sending or receiving goods through Vietnam’s border-gates or border.
2. Subjects authorized pay tax, guaranteeing tax payment or paying tax for others
include:
a/ Customs procedure clearance agents, if authorized by taxpayers to pay
import tax or export tax;
b/ Enterprises providing international postal services or express mail
services, if paying tax on behalf of taxpayers;
c/ Credit institutions or other organizations operating under the Law on
Credit Institutions, if guaranteeing tax payment or paying tax on behalf of
taxpayers according to the provisions of Article 14 of this Decree.
Article 4.- Application of treaties
In cases where treaties to which the Socialist Republic of Vietnam is a
contracting party contain provisions on import tax and export tax different
from those of this Decree, the provisions of such treaties shall apply.
Article 5.- Tax on goods sold, purchased or exchanged by border
residents
Goods sold, purchased or exchanged by border residents are exempt from tax
within set limits; for goods in excess of these limits, tax must be paid
according the provisions of this Decree. The Ministry of Finance shall assume
the prime responsibility for, and coordinate with People’s Committees of
border provinces or centrally-run cities and relevant agencies in, proposing
the Prime Minister to promulgate tax-free limits for goods sold, purchased or
exchanged by border residents in each region.
Chapter II
TAX BASES AND TARIFFS
Article 6.- Tax bases
1. For goods items subject to tax rates expressed as a percentage (%), tax
bases are:
a/ The actually imported or exported quantity of each goods item, indicated
in the customs declaration;
b/ The tax calculation price of each goods item;
c/ The tax rate applicable to each goods item.
2. For goods items subject to absolute tax, tax bases are:
a/ The actually imported or exported quantity of each goods item, indicated
in the customs declaration;
b/ The absolute tax rate set for a goods unit.
Article 7.- Prices and exchange rates used for tax calculation
1. For exported goods, tax calculation prices are the contractual sale prices
at the border-gates of exportation (FOB prices), excluding freights (F) and
insurance (I), determined according to the provisions of law on customs
valuation of exports.
2. For imported goods, tax calculation prices are the actually paid prices at
the first border-gate of importation under contracts, determined according to
the provisions of law on customs valuation of imports.
3. Exchange rates between Vietnamese dong and foreign currencies used for
determination of tax calculation prices are average exchange rates on the
inter-bank foreign exchange market publicized by the Vietnam State Bank at
the time of tax calculation and published on the “Nhan Dan” daily and the
website of the Vietnam State Bank; for days when the “Nhan Dan” daily is not
published or the website is not updated or when foreign exchange rates are not
published therein, the foreign exchange rate used for tax calculation shall
be the exchange rate of the preceding day.
For foreign currencies of which the average exchange rates on the inter-bank
foreign exchange market are not yet publicized by the Vietnam State Bank, the
exchange rates shall be determined according to the cross-reference rate
between the exchange rate between US dollar (USD) and Vietnam dong (VND) and
the exchange rate between US dollar and such a foreign currency, publicized
by the Vietnam State Bank at the time of tax calculation.
Article 8.- Tax payment currency
Import tax and export tax shall be paid in Vietnam dong. Where tax is paid in
foreign currencies, taxpayers must pay tax in freely convertible ones. The
conversion of foreign currencies into Vietnam dong shall be made at the
average exchange rates on the inter-bank foreign exchange market announced by
the Vietnam State Bank at the time of tax calculation.
Article 9.- Tax rates
1. Tax rates applicable to exports shall be specified for each goods item in
the Export Tariff.
2. Tax rates applicable to imported goods shall be specified for each goods
item, including preferential tax rates, special preferential tax rates and
ordinary tax rates:
a/ Preferential tax rates shall apply to imported goods originating from
countries, groups of countries or territories which sanction most favored
nation treatment in their trade relations with Vietnam. Preferential tax
rates shall be specified for each goods item in the Preferential Import
Tariff;
b/ Special preferential tax rates shall apply to imported goods originating
from countries, groups of countries or territories which sanction most
favored nation treatment in their trade relations with Vietnam under the
regime of free trade areas or tariff alliance in order to facilitate border
commercial exchange, and other cases of special preferential treatment;
Conditions for application of special preferential tax rates:
- Being goods items which are specified in agreements signed between Vietnam
and countries, groups of countries or territories on the implementation of
special tax preferences and meet all conditions stated in such agreements.
- Being goods originating from countries, groups of countries or territories
with which Vietnam has reached agreements on special tax preferences.
c/ Ordinary tax rates shall apply to imported goods originating from
countries, groups of countries or territories which do not sanction most
favored nation treatment or grant special import tax preferences to Vietnam.
Ordinary tax rates shall be equal to 150% of preferential tax rates
applicable to the same goods items specified in the Preferential Import
Tariff.
Article 10.- Taxation measures for safeguard, anti-dumping, anti-subsidy
and anti-discrimination in the import of goods
Apart from being subject to tax according to the provisions of Clause 2,
Article 9 of this Decree, goods excessively imported into Vietnam, subsidized
imports, imports dumped into Vietnam, and goods imported from places
practicing discrimination against exports of Vietnam shall also be subject to
one of the following taxation measures:
1. Higher import tax rates, for goods excessively imported into Vietnam
according to the provisions of the Ordinance on Safeguards in the Import of
Foreign Goods into Vietnam;
2. The anti-dumping tax, for imports dumped into Vietnam according to the
provisions of the Ordinance on Anti-Dumping of Imports into Vietnam;
3. The anti-subsidy tax, for subsidized goods imported into Vietnam according
to the provisions of the Ordinance on Anti-Subsidy of Imports into Vietnam;
4. The anti-discrimination tax, for goods imported into Vietnam from
countries, groups of countries or territories which practice import tax
discrimination or apply other discriminatory measures, according to the
provisions of law on most favored nation treatment and national treatment in
international trade.
Article 11.- Competence and procedures for the determination of export
tax rates, import tax rates, absolute tax and taxation measures against
discrimination in the import of goods
1. The Ministry of Finance shall set the following tax rates:
a/ Preferential export tax rates and import tax rates of each goods item on
the basis of the following principles and procedures:
Principles:
- Being compatible with the list of tax-liable commodity groups and falling
within the tax rate brackets promulgated by the National Assembly Standing
Committee;
- Contributing to ensuring state budget revenues and stabilizing the market;
- Protecting domestic production in a selective and conditional manner for a
certain period of time in conformity with treaties to which the Socialist
Republic of Vietnam is a contracting party.
Procedures:
- On the basis of the aforesaid principles, state policies on goods import
and export in each period, orientations for development of production
industries, price fluctuations in the market in each period, and proposals of
organizations and individuals, the Ministry of Finance shall consult with ministries
and commodity line associations to promulgate decisions on preferential
export tax rates and import tax rates;
- Where opinions of ministries and commodity line associations are still
divergent on the tax rates applicable to some goods items, the Ministry of
Finance shall report thereon to the Prime Minister before promulgating
decisions on preferential export tax rates and import tax rates.
b/ Special preferential import tax rates according to the following
procedures: On the basis of agreements on special tax preferences for
imported goods already committed by Vietnam, the Ministry of Finance shall,
after consulting with ministries and commodity line associations, issue
decisions on special preferential import tax rates.
2. The Ministry of Finance shall assume the prime responsibility for, and
coordinate with concerned agencies in, proposing the Prime Minister to decide
on the application of the absolute tax and the anti-discrimination tax in
case of necessity.
Chapter III
TAX DECLARATION AND PAYMENT
Article 12.- Responsibilities of taxpayers
Payers of import tax or export tax shall have to fully, accurately and
transparently declare tax and bear responsibility before law for their
declared contents, submit customs declarations to customs agencies, and
calculate and pay tax according to the provisions of this Decree and the
provisions of law on customs procedures, customs inspection and supervision.
Article 13.- Tax calculation time
The time for calculating import tax and export tax shall be the time when
taxpayers register customs declarations with customs offices.
Import tax and export tax shall be calculated on the basis of tax rates, tax
calculation prices and tax calculation exchange rates at the time of tax
calculation.
Article 14.- Time limits for tax payment
1. The time limit for payment of export tax is 30 (thirty) days as from the
date taxpayers register customs declarations.
2. Time limits for payment of import tax applicable to taxpayers having well
observed tax laws
Taxpayers having well observed tax laws are those that have conducted import
or export activities for at least 365 (three hundred and sixty five) days,
counting to the date of registration of customs declarations for goods lots
for which import procedures are being carried out without committing acts of
trade frauds or tax evasion and owing overdue tax or fine debts, and well
observed the financial reporting regime provided for by law. The time limits
for them to pay import tax shall be as follows:
a/ For supplies and raw materials imported for the production of goods for
export, the time limit for tax payment shall be 275 (two hundred and seventy
five) days, counting from the date taxpayers register customs declarations;
In special cases where the production cycle as well as the cycle for supplies
and raw material stocking is prolonged, the time limit for tax payment shall
be considered for extension so as to suit these cycles. The Ministry of
Finance shall assume the prime responsibility for, and coordinate with concerned
agencies in, making specific decisions thereon.
b/ For goods temporarily imported for re-export or temporarily exported for
re-import, the time limit for tax payment shall be 15 (fifteen) days as from
the deadline for temporary import for re-export or temporary export for
re-import (also applicable to cases of extension);
c/ For imported goods other than cases defined at Points a and b of this
Clause, the time limit for tax payment shall be 30 (thirty) days after
taxpayers register customs declarations.
3. Time limits for payment of import tax applicable to taxpayers failing to
well observe tax laws:
a/ If taxpayers have their payable tax amounts guaranteed by credit
institutions or other organizations operating under the Law on Credit
Institutions, the time limit for tax payment shall coincide with the
guarantee duration, which, however, must not exceed the time limit defined in
Clause 2 of this Article. Past the guarantee duration (where the guarantee
duration is shorter than the tax payment time limit) or the tax payment time
limit (where the guarantee duration is equal to, or longer than, the tax
payment time limit), if taxpayers still fail to pay tax, the guaranteeing
organizations shall have to pay tax amounts and fines for delayed payment (if
any) on behalf of taxpayers. The duration of delayed payment shall be counted
from the expiry date of the guarantee duration or the tax payment time limit.
b/ If taxpayers do not have their payable tax amounts guaranteed by credit
institutions or other organizations operating under the Law on Credit
Institutions, they must fully pay tax before receiving goods.
4. For imported consumer goods, tax must be fully paid before receipt of
goods. Where the payable tax amounts are guaranteed, the time limit for tax payment
shall coincide with the guarantee duration, which, however, must not exceed
30 (thirty) days after taxpayers register customs declarations. Past the
guarantee duration, if taxpayers still fail to pay tax, the guaranteeing
organizations shall have to pay tax amounts and fines for late payment (if
any) on behalf of taxpayers. The duration of late payment shall be counted
from the date of expiration of the guarantee duration.
The Ministry of Trade shall issue a list of consumer goods, serving as a
basis for the implementation of the provisions of this Point.
Article 15.- Tax declaration and payment according to single customs
declarations
For imported goods or exported goods for which a single customs declaration
is registered for several importations or exportations, import tax or export
tax shall be calculated at the tax rates, tax calculation prices and exchange
rates used for determination of tax calculation prices for each importation
or exportation on the basis of the actually imported or exported quantity of
each goods item. The time limit for tax payment for each importation or
exportation shall comply with the provisions of Article 14 of this Decree.
Chapter IV
TAX EXEMPTION, CONSIDERATION FOR TAX EXEMPTION, TAX REDUCTION, TAX REFUND
AND COLLECTION OF TAX ARREARS
Article 16.- Tax exemption
Imported goods or exported goods shall be exempt from import tax or export
tax in the following cases:
1. Goods temporarily imported for re-export or temporarily exported for
re-import for participation in trade fairs, exhibitions or display;
machinery, equipment and professional instruments temporarily imported for
re-export or temporarily exported for re-import in service of work within a
certain period of time.
After the end of trade fairs, exhibitions or goods display or after the
completion of work according to the provisions of law, temporarily exported
goods must be re-imported into Vietnam and temporarily imported goods must be
re-exported abroad.
2. Movable assets brought into or out of Vietnam by Vietnamese or foreign
organizations or individuals within set limits, including:
a/ Movable assets brought into Vietnam by organizations or individuals that
are permitted to reside or work in Vietnam or brought to foreign countries
upon the expiration of their residence or working duration in Vietnam;
b/ Movable assets brought to foreign countries by Vietnamese organizations
and individuals for business and working purposes and re-imported into
Vietnam upon the expiration of their business or working duration;
c/ Movable assets brought into Vietnam by overseas Vietnamese families or
individuals that are permitted to settle in Vietnam or brought to foreign
countries by Vietnamese families or individuals that are permitted to settle
abroad; movable assets brought into Vietnam by foreigners who are permitted
to settle in Vietnam or brought to foreign countries when they are permitted
to settle in foreign countries.
3. Imported goods and exported goods of foreign organizations or individuals
entitled to diplomatic privileges or immunities in Vietnam;
4. Goods imported for processing for foreign partners shall be exempt from
import tax and processed products exported to foreign parties shall be exempt
from export tax. Goods exported to foreign countries for processing for
Vietnamese parties shall be exempt from export tax and when processed
products are re-imported, they shall exempt from import tax on the value of
goods exported to foreign countries for processing under contracts.
5. Imported goods and exported goods within the duty-free luggage quotas of
persons on entry or exit.
6. Goods imported to create fixed assets of projects entitled to investment
encouragement specified in Appendix I or Appendix II to this Decree,
investment projects funded with official development assistance (ODA)
sources, which are exempted from import tax, including:
a/ Equipment and machinery;
b/ Special-use means of transport included in technological lines, which are
certified by the Ministry of Science and Technology; worker-transporting
vehicles, including cars of 24 seats or more and waterway vehicles;
c/ Components, details, knocked down parts, spare parts, fittings, molds and
accessories accompanying machinery, equipment and special-use means of
transport defined at Points a and b of this Clause for assembly or use;
d/ Raw materials and supplies used for manufacture of equipment and machinery
included in technological lines or for manufacture of components, details,
knocked down parts, spare parts, fittings, molds and accessories accompanying
equipment and machinery defined at Point a of this Clause for assembly or
use;
e/ Building materials which cannot be produced at home.
The Ministry of Planning and Investment shall issue a list of building
materials which can be produced at home, serving as a basis for tax exemption
specified in this Clause.
7. Plant saplings and animal breeds permitted to be imported for the
execution of investment projects in the domains of agriculture, forestry or
fishery.
The Ministry of Agriculture and Rural Development shall issue a list of plant
varieties and animal breeds permitted to be imported, serving as a basis for
tax exemption specified in this Clause.
8. Imported goods of BOT enterprises and sub-contractors for the execution of
BOT, BTO or BT projects, including:
a/ Equipment and machinery imported to create fixed assets (including
equipment, machinery and spare parts used for the survey, designing and
construction of works);
b/ Special-use means of transport included in technological lines to create
fixed assets, which are certified by the Ministry of Science and Technology;
worker-transporting vehicles, including cars of 24 seats or more and waterway
vehicles;
c/ Components, details, knocked down parts, spare parts, fittings, molds and
accessories accompanying machinery and equipment for assembly or use,
special-use means of transport, or worker-transporting vehicles defined in
this Clause, including cases where they are used for replacement and
maintenance in the course of operation;
d/ Raw materials and supplies imported for the execution of projects,
including raw materials and supplies in service of production and operation.
9. The exemption from import tax for imported goods specified in Clauses 6, 7
and 8 of this Article shall also apply to cases of expanding the scale of
projects or replacing or renewing technologies.
10. Equipment and devices listed in Appendix III to this Decree, which are
imported for the first time to create fixed assets of projects entitled to
investment encouragement and investment projects funded with official
development assistance (ODA) capital on hotels, office buildings, apartments
for rent, dwelling houses, trade and technical service centers, department
stores, golf courses, tourist resorts, sport centers, recreation and
entertainment centers, medical examination and treatment, training, cultural,
financial, banking, insurance, audit, and consultancy service establishments.
11. Goods imported in service of petroleum activities, including:
a/ Equipment and machinery; special-use means of transport necessary for
petroleum activities, which are certified by the Ministry of Science and
Technology; worker-transporting vehicles, including cars of 24 seats or more
and waterway vehicles, including components, details, knocked down parts,
spare parts, fittings, molds and accessories accompanying the aforesaid
equipment, machinery, special-use means of transport, or worker-transporting
vehicles for assembly or use;
b/ Supplies necessary for petroleum activities, which cannot be produced at
home.
The Ministry of Planning and Investment shall issue a list of supplies
necessary for petroleum activities, which can be produced at home, serving as
a basis for tax exemption specified at this Point;
c/ Medical equipment and devices and first-aid medicines for use on drilling
platforms and floating works, which are certified by the Ministry of Health;
d/ Office equipment and facilities in service of petroleum activities;
e/ Other goods temporarily imported for re-export in service of petroleum
activities.
12. Shipbuilding establishments shall be exempt from export tax on exported
seagoing vessels, and from import tax on machinery and equipment imported to
create their fixed assets; means of transport included in technological
lines, which are certified by the Ministry of Science and Technology,
imported to create their fixed assets; and raw materials, supplies and
semi-finished products in service of shipbuilding activities, which cannot be
produced at home.
The Ministry of Planning and Investment shall issue a list of raw materials,
supplies and semi-finished products in service of shipbuilding activities,
which can be produced at home, serving as a basis for tax exemption specified
in this Clause.
13. Raw materials and supplies imported in direct service of the production
of software products, which cannot be produced at home, shall be exempt from
import tax.
The Ministry of Planning and Investment shall issue a list of raw materials
and supplies for the production of software products, which can be produced
at home, serving as a basis for tax exemption specified in this Clause.
14. Goods imported for direct use in scientific research and technological
development, including machinery, equipment, spare parts, supplies and means
of transport which cannot be produced at home, technologies which cannot be
created at home; scientific documents, books and newspapers and electronic
scientific and technological information source shall be exempt from import
tax.
The Ministry of Planning and Investment shall issue a list of machinery,
equipment, spare parts, supplies, means of transport and technologies for
direct use in scientific research and technological development, which can be
produced at home, serving as a basis for tax exemption specified in this
Clause.
15. Raw materials, supplies and accessories imported for production
activities of investment projects on the list of domains in which investment
is particularly encouraged defined in Appendix I or the list of geographical
areas meeting with exceptional socio-economic difficulties in Appendix II to
this Decree or investment projects in the domains of producing mechanical,
electric or electronic accessories and spare parts shall be exempt from
import tax for 5 (five) years after the commencement of production.
The Ministry of Trade shall coordinate with concerned ministries and branches
in issuing a document guiding the classification of production raw materials,
supplies and accessories, serving as a basis for tax exemption specified in
this Clause.
16. Raw materials, supplies and semi-finished products which cannot be
produced at home and are imported in service of production activities of
investment projects on the list of domains in which investment is encouraged
in Appendix I; semi-finished products which cannot be produced at home and
are imported in service of production activities of investment projects on
the list of domains in which investment is particularly encouraged in
Appendix I or the list of geographical areas meeting with exceptional
socio-economic difficulties in Appendix II to this Decree, shall be exempt
from import tax for 5 (five) years after the commencement of
production.
The Ministry of Planning and Investment shall issue a list of raw materials,
supplies and semi-finished products which can be produced at home, serving as
a basis for tax exemption specified in this Clause.
17. Goods produced, processed, re-processed or assembled in non-tariff zones
without the use of raw materials and accessories imported from foreign countries,
when being imported into the domestic market, shall be exempt from import
tax; for cases of using raw materials and accessories imported from foreign
countries, when goods are imported into the domestic market, only import tax
on imported raw materials and supplies constituting these goods must be paid.
18. Machinery, equipment and means of transport (except under 24-seat cars
and cars designed for passenger-cum-cargo transport equivalent to under
24-seat cars) temporarily imported for re-export by foreign contractors for
the construction of ODA-funded works or projects in Vietnam shall be exempt
from import tax upon their import and exempt from export tax upon their
re-export.
19. Organizations and individuals importing or exporting goods specified in
Clauses 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17 and 18 of this Article
shall, when registering customs declarations, have to determine and declare
by themselves goods eligible for tax exemption and bear responsibility before
law for the accuracy and truthfulness of their declarations.
20. For cases where taxpayers meeting with difficulties due to objective
reasons and other cases, the Ministry of Finance shall propose the Prime
Minister to consider and decide on the exemption from import tax or export tax
on a case-by-case basis.
Article 17.- Consideration for tax exemption
Imported goods or exported goods in the following cases shall be considered
for exemption from import tax or export tax:
1. Special-use goods imported in direct service of national defense,
security, education and training, or scientific research (except for the
cases defined in Clause 14, Article 16 of this Decree) shall be considered
for exemption from import tax according to a list of imported goods issued by
the Ministry of Finance after reaching agreement with concerned ministries
and branches.
2. Gifts, presents or sample products given by foreign organizations or
individuals to Vietnamese organizations or individuals or vice versa shall be
considered for tax exemption within set limits.
3. Goods imported for sale in duty-free shops to persons on entry or exit and
other subjects according to the Government’s regulations, including sale
promotion goods and trial-use goods supplied by foreign parties for sale
together with goods sold at duty-free goods.
Article 18.- Consideration for tax reduction
Imported goods or exported goods which are damaged or lost while being under
customs supervision, with certification by competent expertise agencies or
organizations, shall be considered for tax reduction in proportion to the
actual loss or damage of the goods. Customs offices shall consider tax
reduction on the basis of the expertise and certified quantity of lost goods
and the actual damage of goods.
Article 19.- Import tax or export tax shall be refunded in the
following cases:
1. Imported goods being in border-gate warehouses or storing yards and under
customs supervision, for which import tax has been paid, are re-exported to
foreign countries.
2. Goods for import or export, for which import tax or export tax has been
paid, are not imported or exported.
3. Goods, for which import tax or export tax has been paid, are actually
imported or exported in a smaller quantity;
4. For goods imported for the production exports, if import tax has been
paid, tax amounts corresponding to their percentages in actually exported
products shall be refunded.
5. Goods, for which import tax has been paid, are exported in the following
cases:
a/ Goods imported and then delivered or sold to foreign parties through their
agencies in Vietnam;
b/ Goods imported and then sold to vehicles of foreign carriers operating on
international routes via Vietnam’s ports, and Vietnam’s vehicles operating on
international routes according to the Government’s regulations.
6. Goods temporarily imported for re-export or temporarily exported for
re-import, goods temporarily exported for re-import and goods imported under
consignment for foreign parties then re-exported, for which import tax or
export tax has been paid (except for cases specified in Clause 1, Article 16
of this Decree).
7. Exported goods which must be re-imported into Vietnam shall be considered
for the refund of paid export tax amounts and exempt from import tax.
8. Imported goods which must be re-exported back to their foreign owners or
to a third country shall be considered for the refund of import tax amounts
already paid for the actually re-exported quantity of goods and exempt from
export tax.
9. For machinery, equipment, devices, and means of transport of organizations
or individuals which are permitted to be temporarily imported for re-export
(including those borrowed for re-export) for the execution of investment
projects, and construction and installation of, works in service of
production when they are imported, import tax declaration and payment must be
made according to regulations and when they are re-exported out of Vietnam,
the paid import tax amounts shall be refunded. To be-refunded import tax
amounts shall be determined on the basis of the residual use value of goods
upon re-export. This residual use value shall be calculated according to the
duration in which such goods are used and kept in Vietnam. In cases where
such goods are no longer usable, the paid tax amounts shall not be refunded.
10. Where goods are imported or exported through international postal
services or express mail services, for which tax has been paid by
service-providing enterprises on behalf of goods owners, but cannot be
delivered to recipients and must be re-imported or re-exported, or where
goods are confiscated or destroyed according to the provisions of law, the
paid tax amounts shall be refunded.
11. Where there are errors in tax declaration, calculation and payment
(including mistakes made by taxpayers and customs offices), the overpaid tax
amounts shall be refunded, provided that these mistakes were made within 365
(three hundred and sixty five) days preceding the date they are detected. The
date of detection of errors is the date of signing of written certifications
thereof between taxpayers and customs offices.
12. Imported goods and exported goods for which import tax or export tax has
been paid, but are later exempt from tax under decisions of competent state
agencies.
Article 20.- Responsibility and time limits for tax refund
1. Within 60 (sixty) days after the date of registration of customs
declarations for goods actually imported or exported, subjects eligible for
tax refund must complete dossiers according to regulations and send them to
competent state agencies for consideration and refund of the paid tax
amounts.
Where the payment time limit stated in export contracts is longer than 60
(sixty) days, counting from the date goods are actually exported, enterprises
must make written commitments to produce payment vouchers within 15 (fifteen)
days after the payment deadline stated in the contracts.
2. Within 15 (fifteen) days after receiving complete dossiers of request for
tax refund, state agencies competent to consider tax refund shall have to
issue decisions on tax refund to subjects eligible therefor; where dossiers
are incomplete or invalid according to regulations, within 5 (five) working
days after receiving the dossiers of request for tax refund, state agencies
competent to consider tax refund shall have to issue written requests for
supplementation thereof.
3. Past the time limit defined in Clause 2 of this Article, if the late issue
of tax refund decision is due to the faults of the state agency competent to
consider tax refund, apart from the to be-refunded tax amount, an interest
thereon must also be paid, which shall be calculated for the period from the
date of late issue of the tax refund decision to the date of issue of such
decision at the lending interest rates applied by commercial banks at the time
when tax refund decision should have been issued.
Article 21.- Collection of tax arrears
1. Import tax or export tax arrears shall be collected in the following
cases:
a/ Where goods which have been exempt from tax or considered for tax
exemption as defined in Article 16 and Article 17 of this Decree, but they
are later used for purposes other than those eligible for tax exemption or
consideration for tax exemption, tax must be fully paid, except for cases
where such goods are transferred to subjects eligible for tax exemption or
consideration for tax exemption defined in this Decree.
b/ Where errors were made in tax declaration, calculation or payment by
taxpayers or customs offices, the tax deficit within 365 (three hundred and
sixty five) days preceding the date of detection of such errors must be paid.
The date of detection of such an error is the date of signing of written
certification thereof between taxpayers and customs offices;
c/ Where tax fraud or tax evasion is detected, tax arrears within 5 (five)
years preceding the date of inspection and detection of such tax fraud or
evasion must be collected. The date of detection of tax fraud or evasion is
the date of signing of the decision on collection of tax arrears by a
competent state agency.
2. Bases for calculation of import tax or export tax are tax calculation
prices, tax rates and exchange rates effective at the time of changing the
purposes eligible for tax exemption or consideration for tax exemption, for
cases defined at Point a, Clause 1, or at the time of registration of customs
declarations, for cases defined at Points b and c, Clause 1 of this Article.
3. The time limit for tax declaration is 10 (ten) days after the date of
changing the purposes eligible for tax exemption or consideration for tax
exemption, for cases defined at Point a, 10 (ten) days after the date of
detection of errors, for cases defined at Point b; or after the date of
inspection and detection of tax fraud or tax evasion, for cases defined at
Point c, Clause 1, this Article.
4. The time limit for payment of taxes or fines (if any) for cases defined at
Points a, b and c, Clause 1 of this Article is 10 (ten) days after the date
of issue of decisions on the payable tax or fine (if any) amounts by
competent state agencies.
Past the aforesaid time limit, if taxpayers still fail to declare and fully
pay taxes or fines (if any) into the state budget, they shall be handled
according to current provisions of law.
Chapter V
COMPLAINTS AND HANDLING OF VIOLATIONS
Article 22.- Complaint and settlement of complaints
Powers and responsibilities of taxpayers in lodging complaints about import
tax or export tax; responsibilities and powers of customs agencies in
settling complaints about import tax or export tax shall comply with the
provisions of the Import Tax and Export Tax Law and laws on complaints and
denunciations.
Article 23.- Handling of tax-related violations committed by taxpayers
Taxpayers that violate the provisions of the Import Tax and Export Tax Law
and this Decree shall be handled as follows:
1. If they pay taxes or fines later than the last day of the prescribed time
limit for payment or the last day of the time limit specified in the
decisions on handling of tax-related violations, they shall, apart from
having to fully pay taxes or fines, have to pay a fine equal to 0.1% (zero
point one percent) of the late paid amounts for each day of late payment; if
the payment is delayed for more than 90 (ninety) days, they shall be coerced
to make payment according to the provisions of Clause 4 of this Article.
2. If they fail to declare and pay taxes in accordance with regulations, they
shall, depending on the nature and seriousness of their violations, be
administratively handled for tax-related violations.
3. If they falsely declare or evade taxes, apart from having to fully pay
taxes according to the provisions of this Law, they shall, depending on the
nature and seriousness of their violations, be subject to a fine equal to one
to five times the evaded tax amounts.
Heads of customs offices with which taxpayers have registered their customs
declarations shall be competent to handle violations defined in this Clause.
4. If taxpayers fail to pay taxes and/or fines according to decisions on
handling of tax-related violations, they shall be subject to the application
of the following measures to force them to do so:
a/ Their deposits at banks, other credit institutions or state treasuries
shall be deducted for payment of taxes and/or fines. Banks, other credit
institutions or State treasuries shall have to make deductions from deposit
accounts of taxpayers to pay taxes and fines to the state budget according to
decisions of customs offices or competent state agencies on handling of
tax-related violations;
b/ Customs offices with which customs declarations are registered may
temporarily seize goods or distrain property according to the provisions of
law in order to ensure full collection of due taxes and/or fines. Past 30
(thirty) days after the customs offices issue decisions on the temporary
seizure of goods or the distraint of property, if taxpayers still fail to
fully pay taxes or fines, the customs agencies may auction such goods or
property according to the provisions of law in order to ensure full
collection of taxes and/or fines;
c/ Customs offices shall not carry out import procedures for subsequent goods
lots of taxpayers until they fully pay taxes and/or fines.
5. Within 60 (sixty) days as from the date of registration of customs
declarations, if taxpayers themselves discover errors or mistakes and
actively pay tax deficit into the state budget, they shall be exempt from
sanctions.
6. Those who commit acts of evading tax in big amounts or have been
administratively sanctioned for tax evasion but still commit violations shall
be examined for penal liability according the provisions of law.
Article 24.- Handling of violations committed by customs officers or
other concerned individuals
1. Customs officers or other individuals who abuse their positions and/or
powers to appropriate or embezzle tax money shall have to return to the State
the whole appropriated or embezzled amounts and, depending on the nature and
seriousness of their violations, be disciplined, administratively sanctioned
or examined for penal liability according to the provisions of law.
2. Customs officers who are irresponsible, deliberately act against
regulations, cover up violators or commit other acts of violating the
provisions of law on import tax and export tax shall, depending on the nature
and seriousness of their violations, be disciplined, administratively
sanctioned or examined for penal liability according to the provisions of
law; if causing damage, they must pay compensation therefor according to the
provisions of law.
Chapter VI
ORGANIZATION OF IMPLEMENTATION
Article 25.- Responsibility of the Ministry of Finance
1. To organize and direct the collection of import tax and export tax;
provide for the competence and procedures for tax exemption, consideration
for tax exemption, tax reduction, consideration for tax reduction,
consideration for tax refund, collection of tax arrears and handling of
tax-related violations according to the provisions of this Decree.
2. To assume the prime responsibility for, and coordinate with the Vietnam
State Bank in, promulgating regulations on and guiding credit institutions in
providing information on taxpayers in service of the inspection of import tax
or export tax collection.
Article 26.- Provincial/municipal People’s Committees shall have to
direct the coordinated collection and management of import tax and export tax
in their respective localities.
Chapter VII
IMPLEMENTATION PROVISIONS
Article 27.- Implementation effect
1. This Decree takes effect as from January 1, 2006.
2. To annul the Government’s Decree No. 54-CP of August 28, 1993 and Decree
No. 94/1998/ND-CP of November 17, 1998, detailing the implementation of the
Law on Import Tax and Export Tax, Article 26 of the Government’s Decree No.
51/1999/ND-CP of July 8, 1999, detailing the implementation of the Law on
Domestic Investment Promotion; Article 57, 58 and 59 of the Government’s
Decree No. 24/2000/ND-CP of July 31, 2000, detailing the implementation of
the Law on Foreign Investment in Vietnam; Clause 10 and Clause 11, Article 1
of the Government’s Decree No. 27/2003/ND-CP of March 19, 2003, amending and
supplementing a number of articles of the Government’s Decree No.
24/2000/ND-CP of July 31, 2000; Articles 54, 56, 57 and 58 of the
Government’s Decree No. 48/2000/ND-CP of September 12, 2000, detailing the
implementation of the Petroleum Law; Article 6 of the Government’s Decree No.
119/1999/ND-CP of September 18, 1999, on a number of financial policies and
regimes to encourage enterprises to invest in scientific and technological
activities; Clauses 1, 2, 3, and 4, Article 5 of the Regulation on investment
under build-operate-transfer contracts, build-transfer-operate contracts, and
build-transfer contracts, applicable to foreign investment projects in
Vietnam, issued together with the Government’s Decree No. 62/1998/ND-CP of
August 15, 1998.
3. Projects entitled to investment incentives, which have already been
granted investment licenses or investment preference certificates with import
tax and/or export tax preferences higher than the levels defined in this
Decree, shall continue enjoying those preferences for the remaining period of
time; where the investment licenses or investment preference certificates
stipulating import tax or export tax preferences lower than those provided
for in the Decree, the preferential levels provided for in this Decree shall
apply for the remaining period of preferential treatment.
4. Regulations on special preferential import tax rates which are issued
before the effective date of this Decree and compliant with agreements signed
between Vietnam and other countries shall still apply. If there is any
change, the Ministry of Finance shall base itself on the provisions of Point
b, Clause 1, Article 11 of this Decree to promulgate specific special
preferential import tax rates.
Article 28.- The Ministry of Finance shall guide the implementation of
this Decree.
Article 29.- Ministers, heads of ministerial-level agencies and
government-attached agencies, presidents of provincial/municipal People’s
Committees shall have to implement this Decree.
On behalf of the Government
Prime Minister
PHAN VAN KHAI
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