Special Preferential Import Tax on Used Automobiles

According to the current legal regulations, the List of goods and special preferential import tax rates for used motor vehicles applying tariff quotas to implement the CPTPP Agreement specified in Appendix II issued together with Decree 57/2019/ND-CP includes codes, descriptions of goods, special preferential import tax rates, and absolute tax rates according to stages imported into Vietnam from member countries of the CPTPP Agreement, including: Australia; Canada; Japan; The United Mexican States; New Zealand; Republic of Singapore; Socialist Republic of Vietnam (Goods from the non-tariff zone imported into the domestic market).

Illustration (source internet)

To be specific, the special preferential import tax for used motor vehicles under groups 87.02, 87.03, 87.04 applying tariff quotas is implemented as follows:

Firstly, for used motor vehicles imported within the tariff quota to implement the CPTPP Agreement, the special preferential import tax is a mixed tax rate including: percentage tax rate (%) and absolute tax rate of used motor vehicles specified in the List of goods and special preferential import tax rates specified in Appendix II issued together with this Decree at the time of customs declaration registration.

The tax amount applying the mixed tax calculation method for used motor vehicles = X + Y.

Where:

- X = Taxable value of used motor vehicles according to legal provisions multiplied (x) by the tax rate of the same type of used motor vehicles at the time of customs declaration registration.- Y = Absolute tax rate of corresponding used motor vehicles at the time of customs declaration registration.

Secondly, for used motor vehicles imported outside the tariff quota to implement the CPTPP Agreement, the import tax is applied according to Decree 125/2017/ND-CP dated November 16, 2017, amending and supplementing certain articles of Decree 122/2016/ND-CP dated September 1, 2016, on Export Tariff, Preferential Import Tariff, List of goods and absolute tax rates, mixed taxes, import taxes outside the tariff quota, and amended and supplemented documents.

See the full text of the regulations at Decree 57/2019/ND-CP effective from June 26, 2019.

Thu Ba

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