What are cases of tax exemption for import and export duties in Vietnam in 2024?

What are cases of tax exemption for import and export duties in Vietnam in 2024?

Based on Article 16 of the Law on export and import duties 2016, the tax exemption for import and export duties cases are as follows:

- Goods exported or imported by foreign organizations and individuals entitled to preferential treatment and immunity in Vietnam within the limits in accordance with international treaties to which the Socialist Republic of Vietnam is a member; duty-free goods in the exit and entry luggage of individuals; goods imported to be sold in duty-free shops.

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

Moving assets, gifts that exceed the tax-exempt limit must pay tax on the excess, except where the recipient unit is an agency or organization whose operational funds are guaranteed by the state budget and authorized by a competent authority to accept or in case of humanitarian, charitable purposes.

- Goods traded across the border by border residents that fall under the list of goods and within limits for production and consumption by border residents.

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

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

- Goods have a value or a payable tax amount below the minimum threshold.

- Raw materials, supplies, and components imported to process export products; finished products imported to be attached to processed products; processed exported products.

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

Goods exported for processing and then imported are exempt from export and import taxes on the value of exported raw materials constituting the processed product. Goods exported for processing and then imported which are natural resources, minerals, or products with a total value of resources and minerals plus energy costs accounting for 51% or more of the product cost are not exempted from tax.

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

- Goods manufactured, processed, recycled, assembled in non-tariff zones not using imported raw materials and components when imported into the domestic market.

- Goods temporarily imported and re-exported or temporarily exported and re-imported within a fixed period, including:

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

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

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

+ Reusable items in the form of temporary import and re-export or temporary export and re-import to contain export and import goods;

+ Goods for temporary import and re-export business within the temporary import and re-export period (including the extension time) guaranteed by a credit institution or already deposited an amount equivalent to import tax on temporarily imported, re-exported goods.

- Non-commercial goods in the following cases: samples; pictures, films, models substituting for samples; small quantities of advertising publications.

- Imported goods to create fixed assets of investment preferential subjects under the law on investment, including:

+ Machinery, equipment; components, spare parts, accessories, and tools to assemble or use synchronized with machinery and equipment; materials and supplies used to manufacture machinery, equipment or to manufacture components, spare parts, accessories, and tools of machinery and equipment;

+ Specialized transport vehicles in the technology line used directly for production activities of the project;

+ Construction materials not produced domestically.

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

- Plant varieties; animal breeds; fertilizers, pesticides not yet produced domestically, requiring import under the regulations of competent state management agencies.

- Raw materials, supplies, and components not yet produced domestically imported for the production of investment projects in the list of specially preferential investment professions or geographical areas with particularly difficult socio-economic conditions under the law on investment, high-tech enterprises, science and technology enterprises, science and technology organizations are exempt from import tax for 5 years from the start of production.

The import tax exemption specified in this clause does not apply to investment projects for mineral exploitation; projects producing products with a total value of resources and minerals plus energy costs accounting for 51% or more of the product cost; projects producing, trading goods, and services subject to special consumption tax.

- Raw materials, supplies, and components not yet produced domestically imported for the production and assembly of prioritized research and manufacture medical equipment are exempt from import tax for 5 years from the start of production.

- Goods imported to serve oil and gas activities, including:

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

+ Components, spare parts, accessories, and tools to assemble or use synchronized with machinery and equipment; materials and supplies used to manufacture machinery, equipment, or manufacture components, spare parts, accessories, and tools of machinery and equipment necessary for oil and gas activities;

+ Materials necessary for oil and gas activities not produced domestically.

- Projects, shipbuilding facilities in the list of preferential professions under the law on investment are exempt from tax on:

+ Goods imported to create fixed assets of the shipbuilding facility, including: machinery, equipment; components, spare parts, accessories, and tools to assemble or use synchronized with machinery and equipment; materials and supplies used to manufacture machinery, equipment, or manufacture components, spare parts, accessories, and tools of machinery and equipment; transport vehicles in the technology line directly serving shipbuilding activities; construction materials not produced domestically;

+ Imported goods are machinery, equipment, materials, supplies, components, and semi-finished products not produced domestically serving shipbuilding;

+ Exported ships.

- Machinery, equipment, materials, supplies, components, spare parts imported for printing and minting money activities.

- Imported goods are materials, supplies, and components not yet produced domestically directly serving information technology product production, digital content, and software.

- Exported or imported goods to protect the environment, including:

+ Machinery, equipment, vehicles, specialized tools, materials not produced domestically for collecting, transporting, treating, processing waste water, waste, emissions, monitoring, and analyzing the environment, producing renewable energy; treating environmental pollution, responding, handling environmental incidents;

+ Export products produced from waste recycling and processing activities.

- Imported goods are specifically used in education not produced domestically.

- Imported goods are machinery, equipment, spare parts, specialized materials not produced domestically, documents, scientific magazines directly used for scientific research, technology development, incubation of technology, and enterprise incubation in science and technology, technology renewal.

- Goods specifically imported to directly serve security, defense, of which specialized transport vehicles must be the type not produced domestically.

- Goods exported, imported to ensure social security, overcome consequences of natural disasters, disasters, epidemics, and other special cases.

What are cases of tax exemption for import and export duties in Vietnam in 2024? (Image from the Internet)

What are cases of tax refund for import and export duties in Vietnam?

Based on Clause 1, Article 19 of the Law on export and import duties 2016, the cases of tax refund for import and export duties are as follows:

- Taxpayers who have paid import and export duties but have no goods imported, exported, or have imported, exported fewer goods than they have paid tax on; (1)

- Taxpayers who have paid export tax but the exported goods must be re-imported receive a refund of export tax and are not required to pay import tax; (2)

- Taxpayers who have paid import tax but the imported goods must be re-exported receive a refund of import tax and are not required to pay export tax; (3)

- Taxpayers who have paid tax on goods imported for production and business but have put them into the production of export goods and have exported the products;

- Taxpayers who have paid tax on machinery, equipment, tools, and transport vehicles of organizations and individuals allowed to temporarily import and re-export, except for rental cases to implement investment projects, construction, installation, and production, when re-exporting abroad or exporting into free trade zones.

The amount of import tax refunded is determined based on the remaining value of goods when re-exporting, calculated according to the usage time and retention in Vietnam. If the goods have exhausted their value of use, the paid import tax is not refunded.

No tax refund is granted for amounts below the minimum refund level as regulated by the Government.

*Note: Goods specified in (1) (2) (3) are refunded the tax only if they have not been used, processed, or altered.

Which subjects are liable to import and export duties in Vietnam?

Based on Article 2 of the Law on export and import duties 2016, the subjects liable to import and export duties are:

- Goods exported, imported through Vietnam’s borders and customs gates.

- Goods exported from the domestic market to non-tariff zones and goods imported from non-tariff zones into the domestic market.

- Goods exported, imported on the spot, and goods exported, imported by enterprises exercising export-import rights, distribution rights.

- Subjects liable to import and export duties do not apply to the following cases:

+ Goods in transit, transshipment, and temporary storage;

+ Humanitarian aid, non-refundable aid goods;

+ Goods exported from non-tariff zones abroad; goods imported from abroad into non-tariff zones and used only in non-tariff zones; goods transferred from one non-tariff zone to another;

+ The portion of oil and gas used to pay resource tax to the State when exported.