New decree exempts import tax on many items

The Government has just issued Decree No. 134/2016/ND-CP detailing a number of articles and measures to implement the Law on Export Tax and Import Tax, including regulations on import tax exemption for many items.

4 taxable entities

The Decree stipulates four taxable subjects, including: Goods exported and imported through Vietnam's border gates and borders; goods exported from the domestic market to export processing enterprises, export processing zones, bonded warehouses, customs warehouses and other non-tariff zones in accordance with the provisions of Clause 1, Article 4 of the Law on Export Tax and Import Tax. Goods imported from export processing enterprises, export processing zones, bonded warehouses, customs warehouses and other non-tariff zones in accordance with the provisions of Clause 1, Article 4 of the Law on Export Tax and Import Tax into the domestic market.

Illustration.

Two other taxable subjects are: Goods exported and imported on the spot as prescribed in Clause 3, Article 2 of the Law on Export Tax and Import Tax are implemented according to the provisions of Decree No. 8/2015/ND-CP dated January 21, 2015 of the Government detailing and implementing measures for the Customs Law on customs procedures, inspection, supervision and control. Goods of export processing enterprises exercising the right to export, the right to import and the right to distribute as prescribed in Clause 3, Article 2 of the Law on Export Tax and Import Tax are goods exported and imported by export processing enterprises to exercise the right to export, the right to import and the right to distribute according to the provisions of the law on commerce and the law on investment.

The Decree clearly stipulates tax rates for exported and imported goods in accordance with the provisions of Articles 5, 6 and 7 of the Law on Export Tax and Import Tax.

In case the preferential tax rate of an item specified in the Export Tariff or Preferential Import Tariff is lower than the special preferential tax rate specified in the Special Preferential Export and Import Tariff, the preferential tax rate shall be applied.

Taxpayers shall have their overpaid tax handled in accordance with the provisions of the law on tax administration in cases where they have paid import tax at a special preferential tax rate higher than the preferential tax rate.

Tax exemption for import and export of many items

The Decree also stipulates tax exemption for many items such as: Goods of foreign organizations and individuals enjoying privileges and immunities; luggage of people exiting and entering the country; movable assets; gifts; goods bought, sold, and exchanged by border residents; imported goods for processing, processed products for export; exported goods for processing, imported processed products; imported goods for the production of export goods; goods temporarily imported, re-exported or temporarily exported, re-imported within a certain period of time; goods imported to create fixed assets of subjects enjoying investment incentives.

The Decree also stipulates import tax exemption for raw materials, supplies and components for a period of 5 years; imported goods serving oil and gas activities; imported goods serving shipbuilding and export vessels; plant varieties, animal breeds, fertilizers, pesticides; imported goods serving scientific research and technological development; imported goods directly serving security and defense; imported goods directly serving education; goods produced, processed, recycled and assembled in duty-free zones; imported raw materials, supplies and components for the production and assembly of medical equipment; imported raw materials, supplies and components directly serving the production of information technology products, digital content and software; exported and imported goods for environmental protection; goods serving printing and minting activities; import tax exemption for goods not for commercial purposes; Exported and imported goods to serve social security, overcome the consequences of natural disasters, catastrophes, epidemics and other special cases; exported and imported goods under international treaties, goods with minimum value, goods sent via express delivery service.

According to baotintuc