Are imported machinery used for printing and minting money subject to import-export duty in Vietnam?

Are imported machinery used for printing and minting money subject to import-export duty in Vietnam?

Based on Clause 17, Article 16 of the 2016 Law on Export and Import Taxes:

Tax Exemption

1. Goods exported and imported by foreign organizations and individuals enjoying preferential rights, exemptions in Vietnam within the limits consistent with international treaties to which the Socialist Republic of Vietnam is a member; goods within the duty-free baggage allowance of outgoing and incoming persons; goods imported for sale at duty-free shops.

2. Movable assets, gifts within the limits of foreign organizations and individuals given to Vietnamese organizations and individuals or vice versa.

Movable assets, gifts with quantity or value exceeding the duty-free limit must pay tax on the excess, except in cases where the recipient unit is a state budget-funded organization and is permitted by competent authorities to receive or in case of humanitarian and charitable purposes.

3. Goods bought and exchanged across borders by border residents from the list and within limits to serve the production and consumption of border residents.

In case of purchasing and transporting goods within the limit but not using them for the production and consumption of border residents and goods exported, imported by foreign traders allowed to do business in border markets, tax must be paid.

4. Goods exempt from export and import taxes 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 level.

6. Raw materials, supplies, and components imported for processing export products; finished products imported to be incorporated into processed products; processed export products.

Processed export products made from domestic raw materials and supplies subject to export tax are not exempt from tax on the value of domestic raw materials and supplies constituting the export product.

Exported goods for processing and then re-imported are exempt from export and import taxes on the value of the exported raw materials constituting the processed products. In the case of exported goods for processing and then re-imported, if they are natural resources, minerals, or products with a total value of natural resources, minerals, and energy costs accounting for 51% or more of the product's cost, they are not exempt from tax.

7. Raw materials, supplies, and components imported for the production of export goods.

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

9. Goods temporarily imported, re-exported, temporarily exported, and 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, artistic events, or other events; machinery and equipment temporarily imported, re-exported for testing, research, and product development; machinery, equipment, professional tools temporarily imported, re-exported, temporarily exported, re-imported for work within a certain period or for processing for foreign traders, except for machinery, equipment, tools, means of transport of organizations and individuals permitted for temporary import, re-export for investment projects, construction installation, project service, production service;

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

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

d) Recycled means according to the method of temporary import, re-export, or temporary export, re-import to contain exported and imported goods;

dd) Goods temporarily imported for re-export business within the temporary import, re-export period (including the extension period) with a guarantee from a credit institution or a deposit equivalent to the import tax amount of temporarily imported goods, re-exported goods.

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

11. Imported goods to create fixed assets of entities eligible for investment incentives in accordance with investment laws, including:

a) Machinery, equipment; parts, components, and accessories for assembly or use in tandem with machinery, and equipment; raw materials, supplies used to manufacture machinery, equipment, or to manufacture parts, components, and accessories of machinery and equipment;

b) Special-use transport vehicles in the technological line directly serving the production activities of the project;

c) Building materials domestically not produced.

Import tax exemption for imported goods under this clause applies to both new investment projects and expansion investment projects.

12. Plant varieties; animal breeds; fertilizers, pesticides domestically not produced, necessary for import according to regulations of competent state management agencies.

13. Raw materials, supplies, components domestically not produced, imported for the production of investment projects in the investment incentive industry list or regions with particularly difficult socio-economic conditions according to investment laws, high-tech enterprises, science and technology enterprises, science and technology organizations are exempted from import tax for a period of 5 years from the start of production.

Import tax exemption under this clause does not apply to investment projects for mineral exploitation; projects producing products with a total value of natural resources, minerals, and energy costs accounting for 51% or more of the product's cost; projects producing or trading goods and services subject to excise tax.

14. Raw materials, supplies, components domestically not produced, imported for the production, assembly of medical equipment, prioritized for research and manufacturing, are exempted from import tax for a period of 5 years from the start of production.

15. Imported goods to serve oil and gas activities, including:

a) Machinery, equipment, spare parts, specialized transport vehicles necessary for oil and gas activities, including temporary import, re-export;

b) Components, details, and accessories for assembly or use in tandem with machinery, equipment; raw materials, supplies used to manufacture machinery, equipment, or to manufacture components, details, and accessories of machinery and equipment necessary for oil and gas activities;

c) Necessary supplies for oil and gas activities domestically not produced.

16. Investment projects, shipbuilding facilities in the investment incentive industry list according to investment laws are exempt from tax on:

a) Imported goods to create fixed assets of the shipbuilding facility, including: machinery, equipment; parts, components, and accessories for assembly or use in tandem with machinery, equipment; raw materials, supplies used to manufacture machinery, equipment, or to manufacture parts, components, and accessories of machinery, equipment; transport vehicles in the technology line directly serving shipbuilding activities; Building materials domestically not produced;

b) Imported goods are machinery, equipment, raw materials, supplies, components, and semi-finished products domestically not produced for shipbuilding;

c) Exported ships.

17. Machinery, equipment, raw materials, supplies, components, parts, and accessories imported for printing and minting money activities.

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Thus, according to the above regulations, machines imported for printing and minting money are subject to import-export tax exemption.

Are imported machinery used for printing and minting money subject to import-export duty in Vietnam? (Image from Internet)

What are conditions for machines imported for printing and minting money to qualify for import-export tax exemption in Vietnam?

Based on Clause 1, Article 26 of Decree 134/2016/ND-CP, the conditions for machines imported for printing and minting money to qualify for import-export tax exemption are as follows:

- Machines, equipment, raw materials, supplies, components, parts, and accessories imported for printing and minting money are exempt from import tax according to Clause 17, Article 16 of the 2016 Law on Export and Import Taxes must be listed by the Governor of the State Bank of Vietnam.

- Goods eligible for import tax exemption under Clause 1, Article 26 of Decree 134/2016/ND-CP must be imported by organizations designated by the State Bank.

How to determine machines imported for printing and minting money in Vietnam?

Based on Clause 2, Article 26 of Decree 134/2016/ND-CP, machines imported for printing and minting money will be identified as follows:

- The basis for determining machines, equipment, raw materials, supplies, components, parts, and accessories imported for printing and minting money is performed according to the regulations of the State Bank of Vietnam.