What is the preferential tax rate for imported goods in Vietnam?

What is the preferential tax rate for imported goods in Vietnam?

Based on point a, clause 3, Article 5 of the Law on Export and Import Tax 2016, it is stipulated as follows:

The taxable base for export and import goods applying the tax calculation method by percentage

...

3. The tax rates for imported goods include preferential tax rates, special preferential tax rates, and ordinary tax rates, and are applied as follows:

a)** Preferential tax rates*** apply to imported goods originating from countries, groups of countries, or territories that grant the most-favored-nation treatment in trade relations with Vietnam; goods from non-tariff zones imported into the domestic market meeting the origin conditions from countries, groups of countries, or territories granting the most-favored-nation treatment in trade relations with Vietnam;

Thus, the preferential tax rate for imported goods is a type of tax applied to imported goods originating from countries, groups of countries, or territories that grant the most-favored-nation treatment in trade relations with Vietnam.

At the same time, the preferential tax rate for imported goods also applies to goods from non-tariff zones imported into the domestic market meeting the origin conditions from countries, groups of countries, or territories granting the most-favored-nation treatment in trade relations with Vietnam.

What is the preferential tax rate for imported goods in Vietnam? (Image from the Internet)

How many types of tax rates are there for imported goods in Vietnam?

Based on clause 3, Article 5 of the Law on Export and Import Tax 2016, it is stipulated as follows:

The taxable base for export and import goods applying the tax calculation method by percentage

...

3. The tax rates for imported goods include preferential tax rates, special preferential tax rates, and ordinary tax rates, and are applied as follows:

a)** Preferential tax rates*** apply to imported goods originating from countries, groups of countries, or territories that grant the most-favored-nation treatment in trade relations with Vietnam; goods from non-tariff zones imported into the domestic market meeting the origin conditions from countries, groups of countries, or territories granting the most-favored-nation treatment in trade relations with Vietnam;

b)** Special preferential tax rates*** apply to imported goods originating from countries, groups of countries, or territories having special preferential agreements on import tax in trade relations with Vietnam; goods from non-tariff zones imported into the domestic market meeting the origin conditions from countries, groups of countries, or territories having special preferential agreements on import tax in trade relations with Vietnam;

c)** Ordinary tax rates*** apply to imported goods not falling under the cases specified at points a and b of this clause. The ordinary tax rate is set at 150% of the preferential tax rate for the respective goods. In case the preferential tax rate is 0%, the Prime Minister of Vietnam shall decide the application of the ordinary tax rate based on the provisions of Article 10 of this Law.

Accordingly, based on the regulations, there are three types of tax rates for imported goods as follows:

[1] Preferential tax rates.

[2] Special preferential tax rates.

[3] Ordinary tax rates.

Are entrusted exporters and importers taxpayers of export and import tax in Vietnam?

Based on Article 3 of the Law on Export and Import Tax 2016, it is stipulated as follows:

Taxpayers

1. Owners of exported and imported goods.

2. Organizations entrusted with exporting and importing goods.

3. Individuals entering and leaving Vietnam carrying goods, or sending or receiving goods through the border gateways or checkpoints of Vietnam.

4. Persons authorized, guaranteed, and paying taxes on behalf of taxpayers, including:

a) Customs brokers authorized by taxpayers to pay export or import tax;

b) Enterprises providing postal services, international express delivery services paying taxes on behalf of taxpayers;

c) Credit institutions or other organizations operating under the Law on Credit Institutions guaranteeing and paying taxes on behalf of taxpayers;

d) Persons authorized by goods owners in cases where goods are gifts from individuals; pre-shipment or post-shipment luggage of individuals entering or leaving Vietnam;

đ) Branches of enterprises authorized to pay taxes on behalf of the enterprise;

e) Other persons authorized to pay taxes on behalf of taxpayers as stipulated by law.

5. Persons purchasing, transporting goods within the tax exemption limit of border residents but not for production, consumption, and selling in the domestic market, and foreign traders permitted to trade goods for export and import at border markets as stipulated by law.

6. Persons having exported and imported goods exempted from tax but later changed and became subject to tax in accordance with the law.

7. Other cases as stipulated by law.

Accordingly, based on the above regulations, entrusted exporters and importers are taxpayers of export and import tax.