What does personal belonging mean? Is personal belonging exempt from export and import duties in Vietnam?

What does personal belonging mean?

As stipulated in Clause 20, Article 4 of the Law on Customs 2014, personal belonging includes items and equipment used for daily living and work purposes by individuals, families, or organizations that are taken along upon ceasing residency or terminating operations in Vietnam or abroad.

Is personal belonging exempt from tax in Vietnam?

Based on Article 16 of the Export and Import Tax Law 2016 regarding entities eligible for tax exemption, the following is specified:

Tax Exemption

1. Exported or imported goods of foreign organizations or individuals enjoying preferential rights and immunities in Vietnam, within limits compatible with international treaties to which the Socialist Republic of Vietnam is a member; goods within duty-free allowances for travelers; and goods imported for sale at duty-free shops.

2. personal belonging, gifts, and presents within the allowances for foreign organizations or individuals giving to Vietnamese organizations or individuals, or vice versa.

personal belonging, gifts, and presents exceeding the duty-free allowance in quantity or value must pay tax on the excess, except where the recipient is an agency or organization with state budget funding for operations and is permitted by an authorized body to receive them, or in cases for humanitarian or charitable purposes.

3. Goods traded, exchanged across borders by border residents within the list of goods and in the allowances for production and consumption of border residents.

In cases where goods in the allowances are purchased or transported not for the production or consumption of border residents, and exported or imported goods of foreign merchants allowed to operate in border markets, taxes must be paid.

Thus, personal belonging is eligible for tax exemption but only within the stipulated allowances.

If personal belonging exceeds the duty-free allowance in quantity or value, taxes must be paid on the excess, except for cases where the recipient is an agency or organization funded by the state budget for operational expenses and permitted by an authorized body, or for humanitarian or charitable purposes.

What does personal belonging mean? Is personal belonging exempt from export and import duties in Vietnam? (Image from the Internet)

Subjects Eligible for Export, Import Tax Exemption for personal belonging

According to Clause 1, Article 7 of Decree 134/2016/ND-CP, the following subjects are eligible for export and import tax exemption:

- Foreigners, overseas Vietnamese coming to work or work in Vietnam for 12 months or more;

- Vietnamese organizations or citizens operating abroad for 12 months or more returning to Vietnam after their activity ends;

- Overseas Vietnamese who have registered permanent residence in Vietnam for the first time importing personal belonging.

Vietnam: What does the application for export and import tax exemption for personal belonging include?

The documents required for export and import tax exemption for personal belonging are specified in Clause 3, Article 7 of Decree 134/2016/ND-CP (amended by point d, Clause 20, Article 1 of Decree 18/2021/ND-CP; Clause 1, Article 10 of Decree 104/2022/ND-CP) and include:

(1) Customs dossier according to Law on Customs;

(2) Work permit or equivalent document issued by the competent authority for foreigners, overseas Vietnamese coming to work in Vietnam for 12 months or more: 01 photocopy;

(3) Document proving the termination of operation or end of labor contract abroad for Vietnamese organizations or citizens operating abroad for 12 months or more returning after the activity ends: 01 photocopy;

(4) Passport (stamped with entry verification by the immigration management agency at the checkpoint or stamped on the separate visa for passports with a separate visa)

Or equivalent documents to the passport with entry verification from the immigration management agency at the checkpoint for overseas Vietnamese who have registered permanent residence in Vietnam: 01 photocopy;

(5) Copy of one of the following documents: Citizen Identity Card, Identity Card, Residence Information Confirmation, Personal Identification Number Notification and Citizen Information in the National Population Database;

(6) Decision of the Minister of Finance on tax exemption for personal belonging exceeding the duty-free allowance: 01 original copy.