Are exports and imports to recover from the Storm No. 3 exempt from tax in Vietnam?

Are exports and imports to recover from the Storm No. 3 exempt from tax in Vietnam?

23 categories of exports and imports that are exempt from tax are stipulated in Clause 17, Article 16 of the Law on Export and import duties 2016 as follows:

[1] Goods exported or imported by foreign organizations or individuals enjoying preferential treatment, exemption in Vietnam within the appropriate limits according to international treaties that the Socialist Republic of Vietnam is a member; goods within the duty-free luggage allowance of exiting or entering individuals; goods imported for sale at duty-free shops.

[2] Relocating assets, gifts, and presents within the limits of foreign organizations or individuals to Vietnamese organizations or individuals, or vice versa.

Relocating assets, gifts, and presents exceeding the tax-free limit must pay tax on the excess, except for receiving units which are state-budget funded organizations approved by competent authorities, or for humanitarian and charitable purposes.

[3] Goods traded across borders by border residents within the list and limits to serve the production and consumption needs of border residents.

Goods collected, transported within the limit but not used for the production and consumption of border residents, and export-import goods of foreign traders permitted to conduct business at border markets must pay tax.

[4] Goods exempt from export tax and import tax according to international treaties that the Socialist Republic of Vietnam is a part of.

[5] Goods valued or taxed below the minimum limit.

[6] Import materials, supplies, components for processing export products; finished products imported for assembly into processed products; processed products for export.

Processed products for export from domestic materials and supplies subject to export tax are not exempt from tax on the equivalent value of domestic materials, supplies constituting the exported product.

Exported goods for processing and re-imported are exempt from import and export tax based on the value of exported raw materials constituting the processed product. Exported goods for processing and re-imported which are resources, minerals, or products with the total value of resources, minerals plus energy costs making up 51% or more of the product cost are not exempt from tax.

[7] Materials, supplies, components imported for producing export goods.

[8] Goods produced, processed, recycled, assembled within tax-free zones not using imported raw materials, components from abroad when imported into the domestic market.

[9] Goods temporarily imported, re-exported or temporarily exported, re-imported within a set period, including:

- Goods temporarily imported, re-exported, temporarily exported, re-imported for organizing or attending fairs, exhibitions, product introductions, sports events, cultural, artistic events or other events; machinery, equipment temporarily imported, re-exported for testing, product development research; machinery, equipment, professional tools temporarily imported, re-exported, temporarily exported, re-imported for specific temporary work or foreign trader processing services, except machinery, equipment, tools, transport means of organizations, individuals permitted for temporary import, re-export for investment projects, construction, installation operations, production support;

- Machinery, equipment, components, spare parts temporarily imported for replacing, repairing foreign sea vessels, aircraft or temporarily exported for replacing, repairing Vietnamese sea vessels, aircraft abroad; goods temporarily imported, re-exported to supply foreign sea vessels, aircraft berthing at Vietnamese ports;

- Goods temporarily imported, re-exported or temporarily exported, re-imported for warranty, repair, replacement;

- Circulating means in temporary import, re-export or temporary export, re-import mode for containing export, import goods;

- Goods business of temporary import, re-export within the temporary import, re-export term (including the extension period) guaranteed by credit institutions or placed a deposit equivalent to the import tax amount of temporary import, re-export goods.

[10] Goods not for commercial purposes in the following cases: samples; images, films, models replacing samples; small quantity promotional publications.

[11] Goods imported to create fixed assets of investment preference subjects under investment law, including:

- Machinery, equipment; components, details, separate parts, spare parts for assembly or use synchronously with machinery, equipment; materials, supplies for manufacturing machinery, equipment or for manufacturing components, details, separate parts, spare parts of machinery, equipment;

- Specialized transport vehicles in the technological line used directly for the production activity of the project;

- Construction materials domestically not produced.

The import tax exemption for imported goods prescribed in this clause applies to both new investment projects and expansion investment projects.

[12] Plant seeds; animal breeds; fertilizers, pesticides domestically not produced, necessary for import under regulations of competent state management agencies.

[13] Materials, supplies, components domestically not produced for production of investment projects in the list of specially investment preferential industries or areas with extremely difficult socio-economic conditions under investment law, high-tech enterprises, science and technology enterprises, science and technology organizations exempt from import tax for 5 years from the start of production.

Import tax exemption stipulated in this clause does not apply to mineral exploitation investment projects; projects producing products with the total value of resources, minerals plus energy costs making up 51% or more of product cost; projects producing, trading goods, services subject to special consumption tax.

[14] Import materials, supplies, components domestically not produced of investment projects for manufacturing, assembling medical equipment prioritized for research, manufacturing exempt from import tax for 5 years from the start of production.

[15] Imported goods for petroleum activities include:

- Machinery, equipment, spare parts, specialized transport vehicles needed for petroleum activities, including cases of temporary import, re-export;

- Components, details, separate parts, spare parts for assembly or use synchronously with machinery, equipment; materials, supplies for manufacturing machinery, equipment or for manufacturing components, details, separate parts, spare parts of machinery, equipment needed for petroleum activities;

- Materials needed for petroleum activities domestically not produced.

[16] Shipbuilding projects, facilities in the list of investment preferential industries under investment law exempt from tax for:

- Imported goods to create fixed assets of the shipbuilding facility, including: machinery, equipment; components, details, separate parts, spare parts for assembly or use synchronously with machinery, equipment; materials, supplies for manufacturing machinery, equipment or for manufacturing components, details, separate parts, spare parts of machinery, equipment; transport means in the technology line used directly for shipbuilding activities; construction materials domestically not produced;

- Imported goods not domestically produced including machinery, equipment, raw materials, supplies, components, semi-finished products for shipbuilding purposes;

- Exported sea vessels.

[17] Imported machinery, equipment, raw materials, supplies, components, parts, spare parts for printing, coin-minting activities.

[18] Imported goods as raw materials, supplies, components domestically not produced directly serving for production activities of information technology, digital content, software products.

[19] Exported, imported goods to protect the environment, including:

- Imported machinery, equipment, means, tools, materials specialized domestically not produced for collection, transportation, treatment, processing of wastewater, waste, exhaust gases, environmental monitoring and analysis, renewable energy production; environmental pollution treatment, emergency response, environmental incident treatment;

- Exported products produced from waste recycling, treatment activities.

[20] Imported specialized goods domestically not produced directly serving education.

[21] Imported goods as machinery, equipment, spare parts, materials specialized domestically not produced, documents, scientific specialized books directly used for scientific research, technology development, technological incubation activities, science and technology enterprise incubation, technological innovation.

[22] Imported specialized goods directly serving security, defense, where specialized transport means must be domestically not produced.

[23] Exported, imported goods for ensuring social welfare, overcoming consequences of natural disasters, calamities, epidemics, and other special cases.

Therefore, according to the above regulations, imports and exports to overcome the consequences of natural disasters are among the cases exempt from export-import tax.

Are exports and imports to recover from the Storm No. 3 exempt from tax in Vietnam? (Image from the Internet)

What is the List of proposed goods for tax exemption for recovery from the Storm No. 3 in Vietnam?

Based on Sample No. 04, Appendix VII issued together with Decree 18/2021/ND-CP, the sample list of goods proposed for tax exemption for recovery from the Storm No. 3 is Sample No. 04 as follows:

>>> Download Sample list of goods proposed for tax exemption for recovery from the Storm No. 3 (Yagi).

What is the procedure for tax reduction for import and export in Vietnam?

The procedure for tax reduction is stipulated in Article 32 of Decree 134/2016/ND-CP, amended and supplemented by Clause 16, Article 1 of Decree 18/2021/ND-CP. Specifically:

Reduction application file:

- Official Dispatch proposing tax reduction sent by the taxpayer through the customs authority's electronic data processing system according to the information criteria in Sample No. 3, Appendix VIIa or the written proposal for tax reduction according to Sample No. 08 attached to this Decree: 01 original copy;

- Insurance contract, notice of compensation payment from the insurance organization (if any), in case the insurance contract does not include content compensation for tax, it must be confirmed by the insurance organization; compensation contract or agreement of the carrier for loss caused by the carrier (if any): 01 photocopy;

- Damage confirmation record by the local authority where the damage occurred (fire incident confirmation record by the local fire police; confirmation document by one of the following related agencies: commune-level police; Commune People’s Committee; industrial zone management board; export-processing zone management board; economic zone management board; border gate management board; maritime port authority; aviation port authority where the natural disaster, calamity, epidemic, sudden accident causing damage to raw materials, imported machinery, equipment occurred): 01 original copy.

- Inspection certificate from a trader providing inspection services on the quantity of lost goods or the actual damage percentage of the goods: 01 original copy.

*Where to submit the file:

Customs Branch where customs procedures are carried out.

*Submission time:

- At the time of customs procedures; or

- No later than 30 working days from the date of the damage confirmation document;

Processing time:

- At the time of customs procedures, if the taxpayer submits sufficient documents as prescribed, the Customs Branch shall check the documents, inspect the actual goods, verify the tax reduction conditions, and perform the tax reduction within the customs procedure time.

- If the taxpayer submits documents after the customs procedure time:

Within 30 days from the date of receiving the complete documents, the provincial/municipal customs department is responsible for filing, checking information, appraising the accuracy and completeness of the documents, and deciding on the tax reduction according to Sample No. 12, Appendix VII Download issued with this Decree or notifying the taxpayer of the reason for not being eligible for the tax reduction and the payable tax amount. If the documents are incomplete, the customs authority shall notify the taxpayer within 03 working days from the date of receiving the documents.

In case of needing to inspect the actual goods that have passed through the customs supervision area to have enough grounds to handle the tax reduction, an after-clearance inspection decision is issued at the taxpayer's office, and the procedures prescribed at this point within a maximum of 40 days from the date of receiving the complete documents are carried out.