Are gifts from foreign organizations to Vietnamese organizations exempt from import-export duties?

Are import-export duties exempted for gifts from foreign organizations to Vietnamese organizations?

Based on Clause 2, Article 16 of the Law on Export and Import duties 2016, the regulation is as follows:

Tax Exemption

1. Export and import goods belonging to foreign organizations and individuals enjoying privileges and immunities in Vietnam, within limits appropriate to international treaties to which the Socialist Republic of Vietnam is a party; goods within the duty-free luggage allowance of persons leaving or entering the country; imported goods for sale in duty-free shops.

2. Moving assets, gifts, presents within limits from foreign organizations and individuals to Vietnamese organizations and individuals, or vice versa.

Moving assets, gifts, presents with a quantity or value exceeding tax-exempt limits must pay duties on the exceeding portion, except in cases where the receiving unit is an agency or organization with state budget-assured operating funds and is permitted by competent authorities to accept, or in cases for humanitarian or charity purposes.

3. Goods traded or exchanged through border residents within the List of goods and within limits for the production and consumption of border residents.

In cases of purchasing and transporting goods within limits but not for production or consumption by border residents and export-import goods by foreign traders allowed to conduct business at border markets, duties must be paid.

4. Goods exempted from export and import duties according to international treaties to which the Socialist Republic of Vietnam is a party.

5. Goods with a value or tax payable below the minimum level.

6. Materials, raw supplies, and components imported for manufacturing export products; completely assembled products imported to include in processed products; processed export goods.

Processed export products produced from domestic materials and raw supplies having export duties are not exempt from duties on the value portion of domestic materials and raw supplies incorporated in export products.

Goods exported for processing and then imported are exempt from export and import duties on the value portion of export materials incorporated in processed products. For goods exported for processing and then imported that are resources, minerals, or products with total resource, mineral value plus energy costs accounting for at least 51% of the product cost, tax exemption is not applicable.

7. Materials, raw supplies, and components imported for producing export goods.

8. Goods produced, processed, recycled, assembled in non-tariff areas without using imported raw materials and components from abroad when imported into the domestic market.

9. Goods temporarily imported, re-exported, or temporarily exported, re-imported within a certain period, including:

a) Goods temporarily imported, re-exported, temporarily exported, re-imported for organizing or attending fairs, exhibitions, product introductions, sports, cultural, artistic events or other events; machinery and equipment temporarily imported, re-exported for testing, research and development of products; professional equipment temporarily imported, re-exported, temporarily exported, re-imported to serve work within a certain period or for processing for foreign traders, except machinery, equipment, tools, or transportation means of organizations and individuals allowed to temporarily import, re-export to carry out investment projects, construction, installation of works, production service;

b) Machinery, equipment, components, and spare parts temporarily imported to replace or repair foreign ships or aircraft or temporarily exported for replacing or repairing Vietnamese ships or aircraft abroad; goods temporarily imported, re-exported to supply foreign ships, aircraft docking at Vietnamese ports;

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

d) Rotating equipment under the method of temporary import, re-export or temporary export, re-import to contain export-import goods;

dd) Goods traded temporarily imported, re-exported within the temporary import, re-export period (including the extension period) with credit guarantees or deposits equivalent to the import duty on temporary imported, re-exported goods.

10. Goods not for commercial purposes in the following cases: samples; pictures, films, models replacing samples; small quantity advertising publications.

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Thus, according to the above regulations, gifts from foreign organizations to Vietnamese organizations will be exempt from import and export duties.

Are gifts from foreign organizations to Vietnamese organizations exempt from import-export duties? (Image from the Internet)

Are gifts exempt from import-export duties with exceptions in Vietnam?

Based on Clause 1, Article 8 of Decree 134/2016/ND-CP gifts will be exempt from import-export duties with exceptions as follows:

- Gifts are exempt from duties under the provisions of Clause 2, Article 16 of the Law on Export and Import duties 2016, which are items not included in the list of prohibited imports, prohibited exports, temporarily suspended exports, temporarily suspended imports, not within the list of items subject to special consumption tax (except gifts subject to special consumption tax for security and defense purposes) according to legal regulations.

Thus, gifts will be exempt from import-export duties but not include items on the list of prohibited imports, prohibited exports, temporarily suspended exports, temporarily suspended imports, and not within the list of items subject to special consumption tax.

What are the tax exemption limits for tax-exempt gifts in Vietnam?

According to Clause 2, Article 8 of Decree 134/2016/ND-CP, the regulation on tax exemption limits for tax-exempt gifts is as follows:

- Gifts from foreign organizations and individuals to Vietnamese organizations and individuals; gifts from Vietnamese organizations and individuals to foreign organizations and individuals have a customs value not exceeding 2,000,000 VND or have a customs value over 2,000,000 VND but the total tax payable is below 200,000 VND, exempt from duties not exceeding 4 times a year.

- Gifts from foreign organizations and individuals to Vietnamese agencies and organizations with state budget-assured funding in accordance with budget laws; gifts for humanitarian or charity purposes with a customs value not exceeding 30,000,000 VND are exempted from duties not exceeding 4 times a year.

In cases exceeding the tax exemption limits of agencies and organizations with state budget-assured funding, the Ministry of Finance decides on tax exemption for each case.

- Gifts from foreign organizations and individuals to Vietnamese individuals are medicines, medical devices for patients with diseases listed in the dangerous disease catalogue as specified in Appendix IV of Decree 134/2016/ND-CP with a customs value not exceeding 10,000,000 VND, exempt from duties not exceeding 4 times a year.