Import and export tax will be exempted for raw gold.

The Ministry of Finance submitted to the Prime Minister the exemption of import and export tax on imported and exported raw gold regardless of content of the State Bank.

Illustration photo (source saigondautu.com.vn)

The Ministry of Finance has just announced the draft Decision of the Prime Minister on exemption of export tax and import tax on raw gold exported and imported by the State Bank of Vietnam (SBV) directly or entrusted for export and import.

Accordingly, export and import taxes will be exempted for raw gold exported and imported directly or by the State Bank of Vietnam on behalf of the State Bank of Vietnam (regardless of the gold content of raw gold when exported or imported).

The decision will ensure that the State Bank of Vietnam can promptly export and import gold and will not affect the price of raw gold exported and imported by the State Bank of Vietnam in the production of gold bars to promptly intervene and stabilize the domestic gold market or to supplement the State's foreign exchange reserves according to Decree No. 24/2012/ND-CP and Decision No. 16/2013/QD-TTg dated March 4, 2013 of the Prime Minister on the purchase and sale of gold bars in the domestic market by the State Bank of Vietnam.

According to current regulations, gold imported for processing for foreign parties when returning products to foreign parties is exempt from export tax.

Gold imported for export production is not subject to export tax on exported gold that meets the conditions to be determined to be processed entirely from imported raw materials.

Cases of gold exported not in the above types are subject to export tax as follows: Raw gold: those with gold content below 99.99% are subject to a tax rate of 10% and those with gold content from 99.99% or more are subject to a rate of 0%. Jewelry, engineering and other gold products: those with gold content from 80% or more are subject to a tax rate of 10%; and those with gold content below 80% are subject to a rate of 0%.

Cases of imported gold not for processing for foreign parties are subject to import tax as follows: Raw gold has a tax rate of 0% (regardless of gold content). Jewelry, engineering and other gold products (regardless of gold content) have a tax rate of 25% and 30%.

Currently, according to the provisions of Decree No. 24/2012/ND-CP, the State has a monopoly on the production of gold bars, the export of raw gold and the import of raw gold to produce gold bars. Based on the monetary policy objectives and gold supply and demand in each period, the State Bank exports and imports raw gold to produce gold bars (to intervene and stabilize the domestic gold market).

Accordingly, Decree 24 stipulates that the State Bank's export and import of raw gold is exempt from export and import taxes.

In the recent past, in order to promptly meet the export of gold bars abroad and import of raw gold meeting international standards of the State Bank, while the Prime Minister's decision to exempt export and import taxes has not been issued, the Ministry of Finance issued an official dispatch dated January 8, 2013 reporting to the Prime Minister to allow the State Bank to exempt gold export taxes.

With the Prime Minister's approval, the Ministry of Finance issued an official dispatch dated February 4, 2013 guiding the exemption of export tax and no value added tax on imports of raw gold in the form of bars and ingots that the State Bank of Vietnam has authorized for export and import during the period from February 4 to March 31, 2013.

However, from April 1, 2013 onwards, the State Bank will temporarily suspend the export and import authorization to allow credit institutions to directly export and import raw gold.

Therefore, to facilitate the State Bank of Vietnam in exporting and importing raw gold to produce gold bars, contributing to stabilizing the domestic gold market, the Ministry of Finance submitted to the Prime Minister a Decision on exemption of export tax and import tax on raw gold exported and imported by the State Bank of Vietnam (regardless of the gold content of raw gold when exported and imported)./.

According to (vov.vn) - LT