VietnameseCircular No. 59/2007/TT-BTC dated June 14, 2007 of the Ministry of Finance, guiding the implementation of import tax and export tax and administration of taxes on imports and exports
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Circular No. 59/2007/TT-BTC dated June 14, 2007 of the Ministry of Finance, guiding the implementation of import tax and export tax and administration of taxes on imports and exports
| Issuing body: | Ministry of Finance | Effective date: | Known Please log in to a subscriber account to use this function. Don’t have an account? Register here |
| Official number: | 59/2007/TT-BTC | Signer: | Truong Chi Trung |
| Type: | Circular | Expiry date: | Known Please log in to a subscriber account to use this function. Don’t have an account? Register here |
| Issuing date: | 14/06/2007 | Effect status: | Known Please log in to a subscriber account to use this function. Don’t have an account? Register here |
| Fields: | Export - Import , Tax - Fee - Charge |
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THE MINISTRY OF FINANCE ------- | SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom - Happiness ---------- |
No. 59/2007/TT-BTC | Hanoi, June 14, 2007 |
CIRCULAR
GUIDING THE IMPLEMENTATION OF IMPORT TAX AND EXPORT TAX AND ADMINISTRATION OF TAXES ON IMPORTS AND EXPORTS
Pursuant to June 14, 2005 Law No. 45/2005/QH11 on Import Tax and Export Tax;
Pursuant to June 29, 2001 Customs Law No. 29/2001/QH10 and June 14, 1005 Law No. 42/2005/QH11 Amending and Supplementing a Number of Articles of the Customs Law;
Pursuant to November 29, 2006 Law No. 78/2006/QH11 on Tax Administration;
Pursuant to the Government’s Decree No. 149/2005/ND-CP of December 8, 2005, detailing the implementation of the Law on Import Tax and Export Tax;
Pursuant to the Government’s Decree No. 154/2005/ND-CP of December 15, 2005, detailing the implementation of a number of articles of the Customs Law regarding customs procedures, inspection and supervision;
Pursuant to the Government’s Decree No. 85/2007/ND-CP of May 25, 2007, detailing the implementation of the Law on Tax Administration;
Pursuant to the Government’s Decree No. 66/2002/ND-CP of July 1, 2002, on luggage quotas for persons on entry or exit and gifts and donations eligible for tax exemption;
The Ministry of Finance guides the implementation of import tax and export tax and administration of taxes on imports and exports as follows:
Part A
GENERAL GUIDANCE
I. TAXABLE OBJECTS:
Except for those specified in Section II, Part A of this Circular, goods in the following cases are liable to import tax or export tax.
1. Goods imported or exported through Vietnam’s border gates or border, including goods imported or exported through road or waterway border gates, seaport, airport or transnational railway checkpoints, international posts and other places for customs clearance established under decisions of competent state agencies.
2. Goods brought from the domestic market into non-tariff zones and vice versa.
3. Other traded or exchanged goods that are considered imports or exports.
II. TAX-FREE OBJECTS:
Goods in the following cases are not liable to import tax or export tax:
1. Goods transited or transported by border-gate transfer through Vietnam’s border gates or border under the customs law.
2.Humanitarian aid goods, non-refundable aid goods provided by foreign governments, United Nations organizations, inter-governmental organizations, international organizations, foreign non-governmental organizations (NGOs), foreign economic organizations or individuals to Vietnam and vice versa, for socio-economic development or other humanitarian purposes, under official documents between the two sides which are approved by competent authorities; humanitarian aid and emergency relief for overcoming consequences of wars, natural disasters or epidemics.
3.Goods exported from non-tariff zones to abroad; goods imported from abroad into non-tariff zones and for use within these zones only; goods brought from one non-tariff zone to another.
4. Exported petroleum liable to the State’s royalties tax.
Procedures and dossiers applicable to the above cases comply with the provisions of the Customs Law, documents detailing and guiding the implementation of the Customs Law and other relevant documents.
III. TAXPAYERS; SUBJECTS AUTHORIZED TO PAY TAX, GUARANTEEING TAX PAYMENT OR PAYING TAX ON OTHERS’ BEHALF, BELOW COLLECTIVELY REFERRED TO AS TAXPAYERS:
1. Taxpayers for imports or exports include:
1.1. Owners of imports or exports.
1.2. Organizations entrusted to import or export.
1.3. Individuals having imports or exports on entry or exit; sending or receiving goods through Vietnam’s border gates or border.
2. Subjects authorized to pay tax, guaranteeing tax payment or paying tax on others’ behalf include:
2.1. Customs procedure clearance agents, when they are authorized by taxpayers to pay tax for imports or exports.
2.2. Enterprises providing international postal or express mail services, when they pay tax on taxpayers’ behalf.
2.3. Credit institutions or other organizations operating under the Law on Credit Institutions, when they provide guarantee for, or pay tax on behalf of, taxpayers under the provisions of Section IV, Part C of this Circular.
IV. APPLICATION OF TREATIES:
Where a treaty to which the Socialist Republic of Vietnam is a contracting party contains provisions on taxes on imports and exports different from those of this Circular, the provisions of that treaty prevail.
V. TAX ON GOODS PURCHASED, SOLD OR EXCHANGED BY BORDER INHABITANTS:
Goods purchased, sold or exchanged by border inhabitants within certain quotas are exempt from import tax and export tax. Their extra-quota quantities are taxed.
Tax-free quotas of goods purchased, sold or exchanged by border inhabitants comply with current provisions of a Prime Minister decision.
VI. EXCHANGE RATES FOR TAXABLE-VALUE DETERMINATION, TAX PAYMENT CURRENCY:
1. The exchange rate between Vietnam dong and a foreign currency used for determining the taxable value is the average transaction exchange rate on the inter-bank foreign exchange market announced by the State Bank of Vietnam at the time of tax calculation, published daily on Nhan Dan (People) newspaper and the website of the State Bank of Vietnam. On a day when Nhan Dan newspaper is not published or is published without exchange rate information or no exchange rate information is posted on the website or reaches the border gate, the preceding day’s exchange rate already used for tax calculation will be used.
If a taxpayer makes declaration before the date of registration of the customs declaration, the exchange rate for tax calculation is that applied on the date of declaration, provided that date preceeds not more than three days the date of registration of the customs declaration.
For a foreign currency for which the average transaction exchange rate on the inter-bank foreign exchange market has not yet been announced by the State Bank of Vietnam, its exchange rate may be determined on the basis of the US dollar (USD)-Vietnam dong (VND) exchange rate and the exchange rate between the USD and that foreign currency announced by the State Bank of Vietnam at the time of tax calculation.
2. Tax payment currency: Import tax and export tax are paid in Vietnam dong or a freely convertible foreign currency. That foreign currency must be converted into VND at the average transaction exchange rate on the inter-bank foreign exchange market announced by the State Bank of Vietnam at the time of tax calculation.
VII. TAX ADMINISTRATION PRINCIPLES:
Administration of taxes on imports and exports must be conducted in a public, transparent and equal manner, ensure lawful rights and benefits of taxpayers, be based on the evaluation of taxpayers’ tax law observance, and give priority and create favorable conditions for taxpayers with good tax law observance records.
Taxpayers with good tax law observance records are goods owners that have well observed the customs law and owe no overdue tax amounts or no fines for late tax payment at the time of registration of customs declarations.
Goods owners with good customs law observance records shall comply with the guidance in the Ministry of Finance’s Circular guiding customs procedures, customs inspection and supervision.
VIII. TAX DOSSIERS:
1. Tax dossiers referred to in this Circular include dossiers for tax declaration, tax exemption, consideration of tax exemption, reduction or refund, remission of outstanding tax or fine amounts, extension of tax payment time limit or retrospective collection of tax.
2. If copies or Vietnamese translations are required in tax dossiers guided in this Circular, taxpayers or their authorized representatives shall certify true copies or verbatim translations of original papers, append their signatures and seals on those copies or translations, and bear responsibility before law for their legality.
3. Apart from papers to be submitted according to regulations, taxpayers shall enclose with their tax dossiers lists of dossier documents.
Part B
TAX BASES, TAX CALCULATION METHODS
I. GOODS SUBJECT TO THE APPLICATION OF AD VALOREM TAX RATES:
1. Import tax and export tax bases:
1.1. Quantity of imports or exports:
The quantity of imports or exports used as a tax base is the actually imported or exported quantity of each goods item.
1.2. Taxable value complies with the guidance in the Ministry of Finance’s Circular guiding the customs valuation of imports and exports.
1.3. Tax rates:
1.3.1. Export tax rates: Export tax rates for exports are specified for every goods item in the Export Tariff promulgated by the Minister of Finance.
1.3.2. Import tax rates: Import tax rates for imports, which are specified for every goods item, include preferential tax rates, particularly preferential tax rates and ordinary tax rates:
1.3.2.1. Preferential tax rates are applicable to imports originating from countries or groups of countries or territories which grant most-favored-nation treatment in trade relations with Vietnam (these countries, groups of countries and territories are announced by the Ministry of Trade). Preferential tax rates are specified for every goods item in the Preferential Import Tariff promulgated by the Minister of Finance. Taxpayers shall declare the origin of goods by themselves and be held responsible before law for the origin of goods.
1.3.2.2. Particularly preferential tax rates are specified for every goods item in the Minister of Finance’s decisions and guided in the Ministry of Finance’s Circular No. 45/2007/TT-BTC of May 7, 2007.
1.3.2.3. Ordinary tax rates are applicable to imports originating from countries, groups of countries or territories which do not grant most-favored nation treatment or special import tax preferences to Vietnam. The uniformly applied ordinary tax rate is equal to 150% of the preferential tax rate of each goods item specified in the Preferential Import Tariff.
Ordinary tax rate = Preferential tax rate x 150%
The classification of goods for the purpose of determining different tax rates stated at Point 1.3 of Section I must adhere to the goods classification principles and comply with the Ministry of Finance’s Circular guiding classification of imports and exports and other current relevant documents.
1.3.3. Apart from being taxed under Points 1.3.2.1, 1.3.2.2 and 1.3.2.3 of this Section, if goods are excessively imported into Vietnam, are subsidized or dumped, or there is discrimination against Vietnamese exports, anti-dumping tax, anti-subsidy tax, anti-discrimination tax or safeguard tax shall be imposed on these goods in accordance with separate guiding legal documents.
2. Import tax and export tax calculation methods:
On the basis of the actually imported or exported quantity of each goods item stated in the customs declaration, the taxable value and the tax rate of the goods item concerned, the payable tax amount is determined according to the following formula:
Actually imported or
Payable exported quantity Taxable Tax rate of
import tax = of units of each goods x value of each x the goods
or export tax item specified in unit of goods item concerned
the customs declaration
If the actually imported or exported quantity of goods is different from that indicated in the commercial invoice due to the characteristics of goods in compliance with the delivery conditions and payment conditions stated in the goods sale and purchase contract, the payable import tax or export tax amount shall be determined on the basis of the value actually paid for the imports or exports and the tax rate of the goods item concerned.
Example: In a commercial invoice of petrol-importing enterprise A, the value actually paid for an imported lot of petrol is: 100 liters of petrol x VND 6,000/liter = VND 600,000. However, upon customs clearance, the actually imported volume of petrol is 95 liters in compliance with the delivery and payment conditions stated in the goods sale and purchase contract. In this case, the payable import tax amount shall be determined on the basis of the amount of VND 600,000 actually paid for the imported lot of petrol and the import tax rate of petrol.
II. GOODS SUBJECT TO SPECIFIC TAX:
1. Import tax or export tax bases:
1.1. Quantity of imports or exports:
The quantity of imports or exports used as a tax base is the actually imported or exported quantity of each goods item on the list of goods subject to specific tax.
1.2. Level of specific tax per unit of goods
2. Import tax or export tax calculation method:
The amount of specific tax payable for goods subject to specific tax shall be determined according to the following formula:
Actually imported Level
Payable or exported quantity of of specific
import or export = units of each goods item x tax per
tax amount written in the customs unit of
declaration goods
Payable or exported quantity of of specific
import or export = units of each goods item x tax per
tax amount written in the customs unit of
declaration goods
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