Cases eligible for import and export tax exemption in accordance with Vietnamese

by NguyenThiThuTrang

Today, LSX Law Firm will send you an article about: “Cases eligible for import and export tax exemption in accordance with Vietnamese law”, specifically as follows:

Legal grounds:

Law on export tax and import tax 2016

Decree 134/2016/ND-CP

The concept of export tax and import tax

An import tax is a tax that a country or territory levies on goods of foreign origin during importation. Meanwhile, export tax is a type of levy on goods that the State wants to limit exports.

Thus, import and export tax is an indirect tax levied on goods that are allowed to be exported or imported across the border of Vietnam, including the domestic market into the non-tariff zone and from the non-tariff zone into the market domestic.

Cases in which export and import taxes are exempted

According to current legal regulations, there are 23 cases of exemption from import and export tax, which include:

  • Firstly, Exports and imports of foreign organizations and individuals enjoy privileges and immunities; goods in the duty-free baggage allowance of people on exit or entry; imported goods for sale at duty-free shops.
  • Gifts, gifts within the norm of foreign organizations and individuals for Vietnamese organizations and individuals or vice versa.
  • For goods traded and exchanged across the border by border residents on the List of goods and within the norms to serve the production and consumption of border residents.
  • So, goods are exempt from export tax and import tax under international treaties to which the Socialist Republic of Vietnam is a contracting party.
  • Goods with a value or amount of tax payable below the minimum.
  • For raw materials, supplies and components imported for processing export products; imported finished products to attach to processed products; processed products for export.
  • Raw materials, supplies and components imported to produce goods for export.
  • So, Goods produced, processed, recycled or assembled in a non-tariff area without using raw materials and components imported from abroad when imported into the domestic market.
  • Goods temporarily imported for re-export or temporarily exported for re-import within a certain period.
  • Goods are not for commercial purposes in the following cases: samples; Photo, film, replacement model for samples; publication advertising small quantities.
  • So, Goods imported to create fixed assets of beneficiaries of investment incentives in accordance with the law on investment
  • Type of tree; livestock breeds; fertilizers and plant protection drugs that cannot be produced at home and need to be imported according to regulations of competent state management agencies.
  • Raw materials, supplies, and components that cannot be produced economic and imported for production of investment projects on the list of industries and trades with investment special incentives or areas with special- socio conditions difficulties according to the provisions of the law on investment; Hi-tech enterprises, science and technology enterprises, science and technology organizations are exempt from import tax for 5 years from the date of commencement of production.
  • So, Raw materials, supplies and components imported into the country that cannot be produced domestically of investment projects for the production and assembly of medical equipment prioritized for research and manufacturing are exempt from import tax for a period of 05 years, fro
  • Goods imported to serve oil and gas activities.
  • Projects and shipbuilders on the list of preferential industries and trades according to the provisions of the law on investment need not to tax for: Goods imported to create fixed assets of the shipbuilder; Imported goods are machinery, equipment, raw materials, supplies, components, semi-finished products that cannot produce domestically which used for shipbuilding; Ships for export.
  • So, imported machinery, equipment, raw materials, supplies, components, parts and spare parts for money printing and minting activities.m the start of production.
  • Imported goods are raw materials, supplies and components that cannot produce domestically. They directly serve the production of information technology products, digital content, and software.
  • Goods imported and exported to protect the environment.
  • Specialized imported goods that cannot produce domestically which directly served for education.
  • Imported goods which specialized machinery, equipment, spare parts, and supplies that cannot produce in the country, specialized scientific documents, books, and newspapers directly used for scientific research, technological development, and development. develop activities of technology incubation, science and technology business incubation, and technological innovation.
  • Specialized imported goods directly serve security and national defense, of which special-use means of transport must be those that cannot produce domestically.
  • Finally, Goods exported and imported to serve social security, overcoming consequences of natural disasters, disasters, epidemics and other special cases.

Related articles:

Procedures for establishing a 100% foreign-owned company

Procedures for setting up an import-export trading company in Vietnam

Tax exemption norms for gifts according to Vietnamese law

Accordingly, to current Vietnamese law, for goods, as gifts not exceeding VND 2,000,000 or with customs value over VND 2,000,000 but the total payable tax amount under VND 200,000 is exempt from tax no more than 04 times/year.

The time limit for payment of export tax and import tax

Accordingly, the provisions of law, imported and exported goods that are subject to tax must pay tax before customs clearance or goods release.

Contact us

Finally, hope this article is useful for you to answer the question about: “Cases eligible for import and export tax exemption in accordance with Vietnamese law”, please contact  LSX Law firm+84846175333 or Email: hoangson@lsx.vn

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