What is the duty-free allowance on gifts given for humanitarian in Vietnam?
What is the duty-free allowance on gifts given for humanitarian in Vietnam?
Based on Clause 2, Article 8 of Decree 134/2016/ND-CP as amended by Clause 3, Article 1 of Decree 18/2021/ND-CP, the duty-free allowance for gifts and donations are regulated as follows:
Tax Exemption for Gifts and Donations
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- Duty-free allowance:
a) Gifts, donations from foreign organizations or individuals to Vietnamese organizations or individuals; gifts, donations from Vietnamese organizations or individuals to foreign organizations or individuals with a customs value not exceeding VND 2,000,000 or with a customs value over VND 2,000,000 but the total payable tax amount is less than VND 200,000 are exempt from tax no more than 4 times per year.
b) For gifts, donations from foreign organizations or individuals to Vietnamese agencies and organizations whose operating expenses are guaranteed by the state budget according to the law on the budget and are permitted by a competent authority to receive, or gifts for humanitarian or charitable purposes, the full value of the gifts and donations is exempt from tax no more than 4 times per year.
In cases where the tax exemption limit is exceeded for agencies and organizations with state-budget-guaranteed operating expenses, the Ministry of Finance shall decide on tax exemption for each case.
c) Gifts, donations from foreign organizations or individuals to Vietnamese individuals consisting of medicines or medical equipment for patients with serious illnesses listed in Appendix IV of this Decree with a customs value not exceeding VND 10,000,000 are exempt from tax no more than 4 times per year.
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Thus, the tax exemption limit on import-export for gifts intended for humanitarian purposes is the full value of the gift and no more than 4 times per year.
What is the duty-free allowance on gifts given for humanitarian in Vietnam? (Image from the Internet)
Vietnam: What does the application for duty exemption of gifts given for humanitarian include?
Based on Clause 3, Article 8 of Decree 134/2016/ND-CP as amended by Point a, Point d, Clause 20, Article 1 and Point a, Clause 2, Article 2 of Decree 18/2021/ND-CP, the documents for tax exemption related to gifts given for humanitarian include:
- Customs documents as regulated by customs law.
- 01 copy of the gift agreement in the case where the gift recipient is an organization.
- 01 original document from the superior governing body regarding permission to receive tax-free goods.
- 01 original document proving the organization is state-funded for operational expenses concerning gifts to state-budget-assured organizations.
- 01 original document from the Chairman of the People's Committee of provinces, cities, or ministries and central authorities in charge, regarding gifts for humanitarian purposes.
What are procedures for duty exemption while following customs procedures in Vietnam?
Based on Clause 3, Article 31 of Decree 134/2016/ND-CP as amended by Clause 14, Article 1 of Decree 18/2021/ND-CP, the procedures for import-export tax exemption are defined as follows:
- Step 1: The taxpayer independently determines, declares goods, and tax amounts for exemption (except for declaring tax amounts on exported, imported goods for processing as supplied by the processing party) on the customs declaration during customs procedures.
- Step 2:
+ The customs office where customs procedures take place bases on tax exemption documents, cross-checking with current regulations to implement tax exemption accordingly.
+ If imported goods are determined not to be eligible for tax exemption as declared, tax collection and violation fines (if any) shall be enforced as per regulations.
- Step 3:
+ The electronic data processing system automatically deducts the quantity of exported, imported goods corresponding to the quantity in the tax exemption list.
+ In the case of paper-based tax exemption notification, the customs office updates and deducts the exported, imported quantity corresponding to the goods in the tax exemption list.
+ For tax-exempt imports in assembly or production lines:
++ Taxpayers must complete customs procedures at the customs office where the machinery and equipment are installed and provide detailed declarations of the goods.
++ If detailed declarations cannot be made, the taxpayer prepares a detailed list of imported goods according to information criteria in Form 04 Appendix VIIa attached to Decree 18/2021/ND-CP through the electronic data processing system or as per Form 15 Appendix VII attached to Decree 18/2021/ND-CP and attach the customs declaration.
++ Within 15 days from the date of completion of the final import shipment for each assemblage or production line, the taxpayer is responsible for notifying the customs office about the tax exemption notification as per the information criteria in Form 05 Appendix VIIa attached to Decree 18/2021/ND-CP through the electronic data processing system or as per Form 16 Appendix VII attached to Decree 18/2021/ND-CP.
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