The government has recently issued Decree No. 134/2016/NĐ-CP detailing a number of articles and measures for the enforcement of the Law on Import Tax and Export Tax, including tax exemption for a number of goods items.
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The government has recently issued Decree No. 134/2016/NĐ-CP detailing a number of articles and measures for the enforcement of the Law on Import Tax and Export Tax, including tax exemption for a number of goods items.
Four tax-liable objects
The decree stipulates four tax-liable objects, including:
1- Goods imported or exported through Viet Nam's border-gates or borders.
2- Goods brought from the domestic market into export processing businesses, export processing zones (EPZs), tax-suspension warehouses, bonded warehouses and other non-tariff zones in line with regulations at Article 4 Subarticle 1 of the Law on Import Tax and Export Tax; or from export processing businesses, EPZs, tax-suspension warehouses, bonded warehouses and other non-tariff zones in line with regulations at Article 4 Subarticle 1 of the Law on Import Tax and Export Tax into the domestic market.
3- In-country exports and imports stipulated at Article 2 Subarticle 3 of the Law on Import Tax and Export Tax.
4- Goods manufactured by export processing businesses exercising the import, export and distribution rights as stipulated at Article 2 Subarticle 3 of the Law on Import Tax and Export Tax, are the commodities imported or exported by export processing enterprises in order to exercise the rights to export, import and distribute according to commercial and investment laws.
The decree clearly stipulates the tax rates for the imports and exports implemented in accordance with Article 5, 6, 7 of the Law on Import Tax and Export Tax.
The preferential tax rate is applicable to a goods item stipulated at the preferential Import Tariff and Export Tariff if it is lower than the special preferential tax rate stipulated at the preferential Import Tariff and Export Tariff.
Taxpayers will get their tax overpayments reimbursed in line with regulations on tax management if they have paid the import tax according to the special preferential tax rate which is higher the preferential tax rate.
Import and export tax exemption for a number of goods items
The decree also stipulates tax exemption for a number of goods items, including goods of Viet Nam-based foreign organizations or individuals entitled to diplomatic privileges or immunities; goods within the duty-free luggage quotas of persons on entry or exit; goods being movable assets; goods being gifts and presents; goods purchased or exchanged by border residents; goods imported for processing and export processed products; goods exported for processing and import processed products; goods imported to manufacture export goods; goods temporarily imported for re-export or temporarily exported for re-import; and goods imported to create fixed assets of projects entitled to investment incentives.
The decree also stipulates import duty exemption for raw materials, supplies and accessories in five years; goods imported for oil and gas activities; goods imported to serve shipbuilding for exports; plant varieties, animal breeds, fertilizers and plant protection drugs; goods imported to serve scientific research and technology development; goods imported for national defence and security affairs; goods imported for education; goods manufactured, processed, recycled and assembled at non-tariff zones; materials, supplies and accessories imported to manufacture and assemble medical equipment; materials, supplies and accessories imported for the manufacturing of information technology, digital and software products; import and export goods for environmental protection; goods serving money printing and minting; goods not for commercial purposes; import and export goods to ensure social security and address the consequences of natural disasters, epidemics and other special cases; import and export goods in line with international treaties; goods of minimum values; and goods transferred through express delivery services.
(Source:VGP)
