Are belongings of foreigners on business trip to Vietnam exempt from tax?

Nu Bui/ Huyen Trang

14:23 | 09/11/2024 Regulations Follow english.haiquanonline.com.vn on

VCN - That is the question of Nhat Viet Relocation Company Limited, which has just been answered by the Customs Department and given specific instructions on providing a confirmation of residence of foreigners on business trip to Vietnam to follow tax exemption procedures for movable assets.

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Article 33 of the 2014 Customs Law stipulates that individuals and organizations exporting and importing (XNK) goods that are movable assets must have documents proving their residence and work in Vietnam or abroad.

Clause 2, Article 16 of the Law on Import and Export Tax and Clauses 1 and 2, Article 7 of Decree 134/2016/ND-CP clearly stipulate that movable assets are subject to tax exemption.

Illustrative Photo: Source: NIA

Also Clause 1, 2, Article 31 of Decree 134/2016/ND-CP amended and supplemented in Decree 18/2021/ND-CP; and Article 14 of Circular 06/2021/TT-BTC stipulates procedures for tax exemption upon customs clearance.

In particular, on December 21, 2022, the Government issued Decree 104/2022/ND-CP amending and supplementing a number of articles of the decrees related to the submission and presentation of household registration books and temporary residence books when carrying out administrative procedures and public services.

Accordingly, Article 10 of Decree 104/2022/ND-CP amended and supplemented Point d, Clause 3, Article 7 and Point b, Clause 3, Article 9 of Decree 134/2016/ND-CP stipulates that customs declarants and taxpayers must present: “A copy of one of the following documents: Citizen Identification Card, Identity Card, Confirmation of Residence Information, Notification of Personal Identification Number and Citizen Information in the National Population Database”.

In addition, Clause 3, Article 31 of Decree 134/2016/ND-CP amended and supplemented in Decree 18/2021/ND-CP stipulates that the Customs authority where customs procedures are carried out shall, based on the tax exemption dossier, compare with current regulations to implement tax exemption.

Compared with current regulations, according to the General Department of Customs, movable assets of foreigners working in Vietnam for 12 months or more are exempt from import tax according to the tax exemption limit prescribed in Clause 2, Article 7 of Decree 134/2016/ND-CP.

Tax exemption dossiers are implemented according to the provisions of Clause 3, Article 7 of Decree 134/2016/ND-CP amended and supplemented in Clause 1, Article 10 of Decree 104/2022/ND-CP; Clauses 1 and 2, Article 31 of Decree 134/2016/ND-CP amended and supplemented in Decree 18/2021/ND-CP and Article 14 of Circular 06/2021/TT-BTC, including: "Confirmation of residence information".

The General Department of Customs requests Nhat Viet Relocation Company Limited to compare current legal documents for implementation.

Nu Bui/ Huyen Trang

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tax exemption belonging foreigners movable assets

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