Are import-export duties exempted for personal belongings of foreign entities to Vietnamese entities?

Are import-export duties exempted for personal belongings of foreign entities to Vietnamese entities?

Based on Clause 2, Article 16 of the Law on Export and import duties 2016 which stipulates:

Tax exemption

1. Goods exported and imported by foreign entities or individuals that enjoy privileges and immunities in Vietnam within the limits in accordance with international treaties to which the Socialist Republic of Vietnam is a member; goods within the tax-free luggage standards of those exiting and entering the country; goods imported for sale at duty-free shops.

2. personal belongings, gifts, and donations within the limits by foreign entities or individuals to Vietnamese entities or individuals or vice versa.

personal belongings, gifts, and donations exceeding the tax-free limit must pay duties on the excess portion, unless the recipient unit is an agency or organization funded by the state budget and is permitted by competent authorities, or in the case of humanitarian or charitable purposes.

3. Goods purchased, exchanged across the border by border residents, which are on the list of goods and within the limits to serve production and consumption needs of border residents.

In the case of purchasing or transporting goods within the limits but not for the production and consumption needs of border residents, and goods exported, imported by foreign traders allowed to do business at border markets, duties must be paid.

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

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

6. Imported materials, supplies, and components for processing exported products; complete products imported to attach to processed products; processed products for export.

Exported processed products produced from domestic materials and supplies subject to export tax shall not be exempt from tax for the corresponding value of domestic materials and supplies constituting the exported product.

Goods exported for processing and then imported shall be exempt from export and import duties calculated on the value portion of exported materials constituting the processed products. For goods exported for processing and then imported, which are minerals, resources, or products in which the total value of minerals, resources, and energy costs accounts for 51% or more of the product's cost, tax exemptions are not applied.

7. Imported materials, supplies, and components for producing export goods.

8. Goods produced, processed, recycled, or assembled in non-tariff zones without using imported materials, 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 participating in fairs, exhibitions, product introductions, sports, cultural, or artistic events, or other events; machinery and equipment temporarily imported, re-exported for testing, product research and development; machinery, equipment, professional instruments temporarily imported, re-exported, temporarily exported, re-imported for work purposes within a certain period or for processing for foreign merchants, except in cases where machinery, equipment, tools, means of transportation from entities or individuals are allowed to be temporarily imported, re-exported to implement investment projects, construction installation works, production service;

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

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

d) Circulation tools under the temporarily imported, re-exported, or temporarily exported, re-imported method to contain export-import goods;

dd) Goods for temporary import and re-export within the temporary import period (including extension time) guaranteed by credit institutions or having deposited an amount equivalent to the import tax amount of temporarily imported and re-exported goods.

10. Goods not intended for commercial purposes in the following cases: samples; photos, films, models replacing samples; small quantities of promotional materials.

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Thus, according to the above regulations, personal belongings of foreign entities to Vietnamese entities will be exempt from import-export duties.

Are import-export duties exempted for personal belongings of foreign entities to Vietnamese entities? (Image from the Internet)

What are 3 cases where personal belongings are exempted from import-export duties in Vietnam?

Based on Clause 1, Article 7 of Decree 134/2016/ND-CP, there are 3 cases where personal belongings will be exempted from import-export duties, including:

[1] Foreigners, overseas Vietnamese coming to work, stay in Vietnam for 12 months or more;

[2] Vietnamese entities, citizens working overseas for 12 months or more, after completing their activities and returning to the country;

[3] Overseas Vietnamese who have registered permanent residence in Vietnam for the first-time importation of personal belongings.

How to determine the import tax exemption limit for personal belongings in Vietnam?

According to Clause 1, Article 7 of Decree 134/2016/ND-CP the import tax exemption limit for personal belongings is as follows:

- The import tax exemption limit for personal belongings (including used or unused household and working items, except for automobiles and motorcycles) is 1 item or 1 set per organization or individual.

- In cases where personal belongings exceed the tax exemption limits of an agency or organization funded by the state budget, the Ministry of Finance shall decide tax exemptions for each specific case.