Integrated Document No. 06/VBHN-VPQH dated December 11, 2014 of the National Assembly integrates the Laws on special excise duty

THE OFFICE OF NATIONAL ASSEMBLY

Integrated Document No.06/VBHN-VPQH dated December 11, 2014 of the National Assembly integrates the Laws on special excise duty

The National Assembly’s Law on Special Excise Duty No. 27/2008/QH12 dated November 14, 2008 into effect from April 1, 2009 is amended and supplemented by:

1. The National Assembly s Law No. 70/2014/QH13 dated November 26, 2014 on amending and supplementing several articles of the Law on Special Excise Duty into effect from January 1, 2016:

2. The National Assembly s Law No. 71/2014/QH13 dated November 26, 2014 on amending and supplementing several articles of the Law on Tax into effect from January 1, 2015.

Pursuant to the 1992 Constitution of the Socialist Republic of Vietnam of which several articles have been amended and supplemented according to the Resolution No. 51/2001/QH10;  

The National Assembly hereby passes the Law on Special Excise Duty1

Chapter I

GENERAL PROVISIONS

Article 1. Scope ofadjustment

This Law provides for taxable and non-taxable subject matters, taxpayers, bases for assessment, refund, deduction and reduction of special excise duty.

Article 2. Taxable subject matters

1. Goods:

a) Cigarettes, cigars and other tobacco products used for smoking, inhaling, chewing, sniffing or keeping in mouth;

b) Liquor;

c) Beer;

d) Under-24 seat transport vehicles, including those for both passenger and cargo transportation with at least two rows of seats and fixed partitions between passenger and cargo compartments;

dd) Two- and three-wheeled motorcycles of a cylinder capacity of over 125 cm³;

e) Aircraft and yachts;

g)2Gasoline of all kinds;

h) Air-conditioners of 90,000 BTU or less;

i) Playing cards;

k) Votive gilt papers and votive objects.

2. Services:

a) Dance halls;

b) Massage parlors and karaoke bars;

c) Casinos; prize-winning video games, including jackpot and slot games, and games on similar machines;

d) Betting;

dd) Golf business, including the sale of membership cards and golf tickets;

e) Lottery business.

Article 3. Non-taxable subject matters

Goods specified in Clause 1, Article 2 of this Law are not subject to special excise duty if they fall into one of the following cases:

1. Goods which are directly exported by producers or processors, or which are sold or entrusted by these producers or processors to other business establishments for export.

2. Imported goods, including:

a) Goods as humanitarian aid or non-refundable aids; gifts for state agencies, political organizations, socio-political organizations, socio-political-professional organizations, social organizations, socio-professional organizations or people’s armed forces units; and donations or gifts for individuals in Vietnam in accordance with the Government’s statutory amounts;

b) Goods transited or transported via Vietnamese border gates or borders, and merchanting goods the Government’s regulations;

c) Goods temporarily imported for re-export and temporarily exported for re-import which are not subject to import or export duty within the time limit specified in the law on import and export duty;

d) Personal effects of foreign organizations and individuals in conformity with diplomatic immunity standards; personal belongings within duty-free luggage allowance; and goods imported for duty-free sale under laws;

3.3Aircraft, yachts used for transport of goods, passengers, tourists, and aircraft used for national defense and security purposes.

4. Ambulances; prison transport vans; hearses; cars designed with both seats and standing places for transporting 24 or more people; cars running in recreation, entertainment and spoils areas which neither are registered for circulation nor move on roads.

5. Goods imported from abroad into non-tariff areas, goods sold from the inland into non-tariff areas for use only in non-tariff areas, and goods traded between non-tariff areas, except under-24 seat motor vehicles.

Article 4. Taxpayers

Excise taxpayers include producers and importers of goods and providers of services which are subject to excise tax.

Exporters that purchase excise tax-liable goods from producers for export and do not export but sell them domestically shall pay excise tax.

Chapter II

TAX ASSESSMENT BASES

Article 5. Tax assessment bases

Special excise duty bases include the assessable price of dutiable goods or service and the duty rate. The amount of special excise duty payable is the excise assessable price multiplied by the special excise duty rate.

Article 6. Assessable price4

Assessable prices of excise dutiable goods/services are selling prices of goods services, exclusive of special excise tax, environmental protection tax, and VAT, and are prescribed as follows:5

1. For domestically produced goods, it is the selling price set by the producer.

2. For imported goods, it is the import-duty calculation price plus the import duty. For imported goods eligible for import duty exemption or reduction, it is exclusive of the exempted or reduced import duty amount.

3. For processed goods, it is the assessable price of the goods sold by processing-ordering establishment or the selling price of the product of the same or similar kind at the same time with the time of goods sale.

4. For goods sold on installment or deferred payments, it is the one-off selling price of such goods, exclusive of the installment or deferred payment interest.

5. For services, it is the service charge set by the service provider. The service provision in a number of cases is specified as follows:

a) For golf business, it is the selling price of the membership card or golf-playing ticket, inclusive of the golf playing charge and deposit (if any);

b) For casino, prize-winning video game and betting business, it is the turnover from such business minus the prize already paid to customers;

c)For dance hall, massage parlor and karaoke bar business, it is the turnover from such business;

6. For goods and services used for barter, internal consumption or donation, it is the excise assessable price of the goods or service of the same or similar kind at the time of barter, internal consumption or donation.

Excise assessable prices of goods and services specified in this Article are inclusive of additional charges and revenues (if any) enjoyed by business establishments.

Assessable prices are calculated in Vietnam dong. In case taxpayers have foreign-currency turnover, foreign-currency amounts must be converted into Vietnam (long at the average exchange rate on the inter-bank foreign currency market, announced by the State Bank of Vietnam at the time of turnover generation, for determination of assessable prices.

The Government shall provide detailed provisions of this Article.

Article 7. Duty rate6

Excise duty rates for goods and services are specified in the Excise Duty Schedule below:

SPECIAL EXCISE DUTY SCHEDULE

Chapter III

TAX REFUND, DEDUCTION AND REDUCTION

Article 8. Tax refund and deduction

1. Excise taxpayers may have the paid tax amounts refunded in the following cases:

a)Goods temporarily imported for re-export;

b) Goods which are raw materials imported for export production and processing;

c) Finalization of overpaid tax amounts upon merger, consolidation, separation, split-up, dissolution, bankruptcy, ownership change, enterprise transformation or operational termination;

d) Upon issuance of tax refund decisions by competent agencies under laws and cases of excise duty refund under treaties to which the Socialist Republic of Vietnam is a contracting party.

The excise tax refund under Points a and b of this Clause is applicable only to actually exported goods.

2. Taxpayers that produce excise dutiable goods from raw materials for which excise duty has been paid and that can produce lawful documents on tax payment may have the tax amounts paid for raw materials deducted upon the determination of payable excise tax amounts at the stage of production.

The Government shall provide detailed provisions of this Article.

Article 9. Tax reduction

Taxpayers that produce excise dutiable goods and face difficulties resulting from natural disasters or unexpected accidents are entitled to tax reduction.

The tax reduction level shall be determined based on the actual extent of damage caused by natural disasters or unexpected accidents but must neither exceed 30% of the payable tax amount in the year the damage occurs nor exceed the balance between the value of damaged assets and the received compensation (if applicable).

Chapter IV

IMPLEMENTARY PROVISIONS7

Article 10. Effect

1. This Law takes effect on April 1, 2009; the provisions applicable to liquor and beer will take effect on January 1, 2010.

2. Provisions set forth in the Special Excise Duty Law No. 05/1998/QH10; Law No. 08/2003/QH11 Amending and Supplementing a number of Articles of the Special Excise Duty Law; and Article 1 of Law No. 57/2005/QH11 Amending and Supplementing a number of Articles of the Special Excise Duty Law and Value-Added Tax Law, except the provisions applicable to liquor and beer which continue to be effective through December 31, 2009, shall be repealed.

Article 11. Guidance on implementation

The Government shall specify and provide guidance on implementation of the articles and clauses set forth in this Law, and on other necessary provisions of this Law to meet state management requirements./.

Certification of the Integrated Document

The Chief of the Office of National Assembly

Nguyen Hanh Phuc

1The Law No. 70/2014/QH13 amending and supplementing several articles of the Law on Special Excise Duty has the following bases:

“Pursuant to the Constitution of the Socialist Republic of Vietnam;

The National Assembly passes the Law on Amending and Supplementing several articles of the Law on Special Excise Duty No. 27/2008/QH12.”

The Law No. 71/2014/QH13 on amending and supplementing several articles of the Law on Tax has the following bases:

“Pursuant to the Constitution of the Socialist Republic of Vietnam;

The National Assembly passes the Law on Amending and Supplementing several articles of the Law on Corporate Income Tax No. 14/2008/QH12 of which several Articles have been amended or supplemented according to the Law No. 32/2013/QH13, the Law on Personal Income Tax No. 04/2007/QH12 of which several Articles have been amended and supplemented according to the Law No. 26/2012/QH13, the Law on Value-Added Tax No. 13/2008/QH12 of which several Articles have been amended and supplemented according to the Law No. 31/2013/QH13, the Law on Natural Resources Tax No. 45/2009/QH12, the Law on Tax Administration No. 78/2006/QH11 of which several Articles have been amended and supplemented according to the Law No. 21/2012/QH13, the Law on Special Excise Duty No. 27/2008/QH12, the Law on Import and Export Duty No. 45/2005/QH11, and the Law on Customs No. 54/2014/QH13.”

2This Point is amended and supplemented according to the provisions laid down in Clause 1 Article 1 of the Law No. 70/2014/QH13 amending and supplementing several articles of the Law on Special Excise Duty into effect from January 1, 2016.

3This Point is amended and supplemented according to the provisions laid down in Clause 2 Article 1 of the Law No. 70/2014/QH13 amending and supplementing several articles of the Law on Special Excise Duty into effect from January 1, 2016.

4Provisions on exchange rates upon determination of revenue, expenses, assessable price, assessable income, taxable income and tax payments to state budget laid down in this Article according to the provisions of Point d Clause 2 Article 6 of the Law No. 71/2014/QH13 amending and supplementing several articles of laws on taxes into effect from January 1, 2015 shall be repealed.

5This paragraph is amended and supplemented according to the provisions laid down in Clause 3 Article 1 of the Law No. 70/2014/QH13 amending and supplementing several articles of the Law on Special Excise Duty into effect from January 1, 2016.

6This paragraph is amended and supplemented according to the provisions laid down in Clause 4 Article 1 of the Law No. 70/2014/QH13 amending and supplementing several articles of the Law on Special Excise Duty into effect from January 1, 2016.

7Article 2 of the Law No. 70/2014/QH13 on amending and supplementing several articles of the Law on Special Excise Duty into effect from January 1, 2016 includes the following provisions:

“Article 2

This Law takes effect on January 01, 2016.”

Article 6 of the Law No. 71/2014/QH13 on amending and supplementing several articles of laws on taxes into effect from January 1, 2016 includes the following provisions:

“Article 6

1. This Law takes effect on January 1, 2015.

2. Provisions on exchange rates upon determination of revenue, expenses, assessable price, assessable income, taxable income and tax payments to state budget laid down in:

a) Article 8 and Clause 3 Article 9 of the Law on Corporate Income Tax No. 14/2008/QH12 of which several articles have been amended and supplemented according to the Law No. 32/2013/QH13;

b) Clause 1 Article 6 of the Law on Personal Income Tax No. 04/2007/QH12 of which several articles have been amended and supplemented according to the Law No.26/2012/QH13;

c) Clause 3 Article 7 of the Law on Value-Added Tax No. 13/2008/QH12 of which several articles have been amended and supplemented according to the Law No.31/2013/QH13;

d) Article 6 of the Law on Special Excise Duty No. 27/2008/QH12;

dd) Clause 3 Article 9 and Article 4 of the Law on Import and Export Tax No.45/2005/QH11;

e) Clause 4 Article 86 of the Law on Customs No. 54/2014/QH13.

shall be repealed.

3. Point c Clause 1 Article 49 of the Law on Tax Administration No. 78/2006/QH11 of which several articles have been amended and supplemented according to the Law No.21/2012/QH13.

4. Clause 1 Article 19, Clause 1 Article 20 and Clause 1 Article 21 of the Law on Personal Income Tax No. 04/2007/QH12 of which several articles have been amended and supplemented according to the Law No.26/2012/QH13.

5. The Government and competent authorities shall specify binding articles and clauses in the Law.”