Is the import duty payment guarantee in Vietnam required to be carried out in the form of a separate guarantee?
- Is the import duty payment guarantee in Vietnam required to be carried out in the form of a separate guarantee?
- What are the cases where the guarantor shall fully pay tax and late payment interest on behalf of the taxpayer in Vietnam?
- May microfinance institutions in Vietnam provide the import duty payment guarantee?
Is the import duty payment guarantee in Vietnam required to be carried out in the form of a separate guarantee?
Pursuant to the provisions of Clause 2, Article 4 of Decree 134/2016/ND-CP:
Deadline for paying tax, duty payment guarantee and tax deposit
1. Deadlines for paying tax specified in Article 9 of the Law on Export and import duties are applied to dutiable exports and imports prescribed by tax laws.
2. Export and import duty payment guarantee is either a separate or joint guarantee.
a) Separate guarantee means guarantee of full payment of duty on an export/import declaration offered by a credit institution which operates under the Law on credit institutions;
b) Joint guarantee means guarantee of full payment of duty on more than one export/import declaration opened at one or more Sub-department of Customs offered by a credit institution which operates under the Law on credit institutions; Guaranteed amount of duty under a joint guarantee shall vary according to the amount of paid duty;
c) Where a credit institution (the guarantor) offers a separate guarantee or joint guarantee but the taxpayer has failed to pay duty and late payment interest (if any), the credit institution shall fully pay the duty and late payment interest owed by the taxpayer according to information on the customs information processing system or notification given by the customs authority;
d) Contents of a guarantee letter, submission, verification, monitoring and processing of guarantee letters shall comply with tax administration laws.
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Export and import duty payment guarantee is either a separate or joint guarantee.
Thus, import duty payment guarantee is not required to be carried out in the form of a separate guarantee.
Is the import duty payment guarantee in Vietnam required to be carried out in the form of a separate guarantee? (Image from the Internet)
What are the cases where the guarantor shall fully pay tax and late payment interest on behalf of the taxpayer in Vietnam?
Pursuant to the provisions of Article 9 of the Law on Export Tax and Import duties 2016 on tax payment deadline:
Tax payment deadline
1. Duties on exports and imports have to be paid before customs clearance or release as prescribed by the Law on Customs, except for the case in Clause 2 hereof.
Where a credit institution provides guarantee for the amount of tax payable, customs clearance or release shall be granted. However, late payment interest shall be paid for the period from the date of customs clearance or release to the tax payment date in accordance with the Law on Tax administration. The guarantee period shall not exceed 30 days from the day on which the customs declaration is registered.
If the taxpayer fails to pay tax and late payment interest by the end of the guarantee period, the guarantor shall fully pay tax and late payment interest on behalf of the taxpayer.
2. The taxpayer given priority as prescribed by the Law on Customs shall pay tax on the customs declarations granted customs clearance or release in the month by the 10th of the next month. If the taxpayer fails to pay tax by the aforesaid deadline, the taxpayer shall fully pay outstanding tax and late payment interest as prescribed by the Law on Tax administration.
If the taxpayer fails to pay tax and late payment interest by the end of the guarantee period, the guarantor shall fully pay tax and late payment interest on behalf of the taxpayer.
The guarantee period shall not exceed 30 days from the day on which the customs declaration is registered.
May microfinance institutions in Vietnam provide the import duty payment guarantee?
Pursuant to the provisions of Clause 4 Article 3 of the Law on Export Tax and Import duties 2016 on taxpayers’ guarantors:
Taxpayers
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Taxpayers’ guarantors and other entities authorized to pay tax on behalf of taxpayers, including:
a) Customs brokerage agents in case authorized by the taxpayer to pay export and import duties;
b) Providers of postal services or international express mail services paying tax on behalf of taxpayers;
c) Credit institutions or other organizations operating under the Law on credit institutions that provide guarantee or pay tax on behalf of taxpayers;
d) People authorized by goods owners in case goods are gifts of individuals; any luggage sent before or after its owner’s arrival or departure;
dd) Any branch of an enterprise authorized to pay tax on its behalf;
e) Other people authorized to pay tax on behalf of taxpayers as prescribed by law.
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Credit institutions or other organizations operating under the Law on credit institutions 2010 may provide tax guarantee.
In addition, microfinance institutions are established and operate according to the provisions of Section 6, Chapter III of the Law on credit institutions 2010.
Thus, microfinance institutions may provide import duty payment guarantee.
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