Which agency in Vietnam has the authority to issue import and export tariffs and tax rates?

Which agency in Vietnam has the authority to issue import and export tariffs and tax rates?

Pursuant to Article 11 of the Law on Export and Import Duties 2016:

Authority to issue tax schedules and rates

1. The Government of Vietnam, based on the provisions of Article 10 of this Law, the Export Tax Schedule according to the list of taxable groups and the framework of export tax rates for each taxable group issued together with this Law, the preferential tax schedules committed in the Protocol on Accession to the World Trade Organization (WTO) ratified by the National Assembly and other international treaties to which the Socialist Republic of Vietnam is a member, shall issue:

a) Export tax schedules; Preferential export tax schedules;

b) Preferential import tax schedules; Special preferential import tax schedules;

c) List of goods and absolute tax levels, mixed tax, import tax beyond tariff quotas.

2. In necessary cases, the Government of Vietnam shall submit to the Standing Committee of the National Assembly proposals to amend and supplement the Export Tax Schedule according to the list of taxable groups and the framework of export tax rates for each taxable group issued together with this Law.

3. The authority to apply anti-dumping duties, countervailing duties, and safeguard duties shall be implemented according to the provisions of Chapter III of this Law.

Thus, according to the regulations, the Government of Vietnam is the agency with the authority to issue:

- Export tax schedules; preferential export tax schedules;

- Preferential import tax schedules; special preferential import tax schedules;

- List of goods and absolute tax levels, mixed tax, import tax beyond tariff quotas.

Which agency in Vietnam has the authority to issue import and export tariffs and tax rates? (Image from the Internet)

What are principles for issuance of the export and import tax schedules in Vietnam?

According to Article 10 of the Law on Export and Import Duties 2016, the issuance of export and import tax schedules and rates must ensure the following principles:

(1) Encourage the import of raw materials, materials, prioritizing those that domestic production cannot meet;

Focus on the development of high technology fields, source technology, energy saving, and environmental protection.

(2) Conform to the socio-economic development orientation of the state and the commitments on export and import taxes in international treaties to which the Socialist Republic of Vietnam is a member.

(3) Contribute to market stabilization and state budget revenue.

(4) Be simple, transparent, and facilitate taxpayers and implement administrative tax reform.

(5) Apply a consistent tax rate to goods with the same nature, structure, use, and similar technical features;

The import tax rate decreases from finished products to raw materials;

The export tax rate increases from finished products to raw materials.

What are the bases for calculating export and import duties in Vietnam?

Pursuant to Article 5 of the Law on Export and Import Duties 2016, the bases for calculating export and import duties are as follows:

- Export and import tax amounts are determined based on the dutiable value and tax rate in percentage (%) of each item at the time of tax calculation.

- The export tax rate is specifically provided for each item in the export tax schedule.

In cases where exported goods are destined for countries, groups of countries, or territories that have preferential tax agreements in trade relations with Vietnam, these agreements shall be implemented.

- Import tax rates include preferential tax rates, special preferential tax rates, and ordinary tax rates, and are applied as follows:

+ Preferential tax rates apply to imported goods originating from countries or territories that apply 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 or territories that apply the most-favored-nation treatment in trade relations with Vietnam;

+ Special preferential tax rates apply to imported goods originating from countries, groups of countries, or territories that have special preferential tax agreements 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 that have special preferential tax agreements in trade relations with Vietnam;

+ Ordinary tax rates apply to imported goods not falling within the above cases. The ordinary tax rate is set at 150% of the preferential tax rate for each corresponding item. In cases where the preferential tax rate is 0%, the Prime Minister of Vietnam shall base on the provisions of Article 10 of the Law on Export and Import Duties 2016 to decide on the application of the ordinary tax rate.