A policy on special consumption tax for imported petrol and oil

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Businesses which directly import petrol and oil must declare the tax payment. Photo: H.V

According to the Ministry of Finance, an importing business which purchases petrol and oil from domestic manufacturers or from other leading traders, must not declare the SCT payment for selling the petrol and oil. But an importing business which directly imports petrol and oil, must declare the SCT payment on the selling price of that importing business.

The importing business must carry out private accounting and determine the imported petrol and oil sources that were sold in the period according to the accounting methods to implement the declaration and calculation of SCT as described.

The Ministry of Finance guides the price for calculating the SCT for imported petrol sold in the country as follows: for petrol and oil imported directly by an importing company, then sold to its mother company, its subsidiary companies or subsidiary companies in the same mother company or associate companies, the price for calculating the SCT is the selling price that the importing company sells to these leading companies, but not lower than 7% compared to the average selling price of these companies that sell to other trade and business companies which are not in relationship of the mother company, the subsidiary companies or the subsidiary companies in the same mother company, or associated with the importing company.

If the importing company directly imports petrol and then sells to other leading traders, distribution traders, general agents and agents who are not in the above category, the price for calculating the SCT will be the selling price of the importing company for traders.

About the SCT deduction, the Ministry of Finance specified: the payable SCT amount of sold petrol and oil in the period of the importing business which is deducted, is equivalent to the SCT amount of the sold imported petrol and oil volume. For the case where the importing business raises an SCT amount which is not deducted equivalent to the sold petrol and oil volume in the period, the SCT deduction will be calculated on the expenses when determine the revenues subject to corporate income Tax.

The SCT amount which is deducted is on the basis of paid SCT per unit of imported item that is determined by the following formula.

The SCT amount deducted for one sold item in the period = (Total SCT amount of inventory imported petrol and oil at the beginning of the period and oil + total SCT amount of imported petrol and oil arising in the period) / Volume of inventory imported petrol and oil at the beginning of the period + volume of imported petrol and oil arising in the period)

For bio-petrol goods which are produced in the country from petrol sources that were directly imported, or purchased from direct importers or purchased from a direct manufacturer, the deducted SCT amount is equivalent to the paid SCT amount for input material unit for bio-petrol production, and the deducted SCT amount for one mineral petrol unit for bio-petrol production is determined by the weighted average of the previous tax declaration period.

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For the case where the business has an SCT amount which is not deducted completely of raw materials for bio-petrol sold in the period, the business is allowed to transfer the SCT amount which is not deducted completely to the next period or balance the SCT amount with another payable SCT amount consistent with the Law on tax administration and the guidelines.