Customs responds to information about tax arrears of some enterprises in Binh Duong
A company was fined and collected tax arrears of nearly VND 50 billion | |
Make false declaration for tax fraud of billion VND | |
What is included in the tax relief dossiers for each case? |
Binh Duong Customs Department’s officers instruct enterprises to register customs declarations. Photo: T.D. |
It is known that Chutex International Co., Ltd., PungKook Saigon II Co., Ltd (hereinafter referred to as enterprises) signed a processing contract with a foreign trader but hired an enterprise in the non-tariff area to process products (outsourcing service). In which, these enterprises provide all raw materials and components to the outsourcing enterprise in the non-tariff area for processing and then receive processed goods for export abroad.
The above enterprises petitioned against the tax arrears by the Customs for goodsprocessed by the outsourcing enterprise in the non-tariff area upon exporting to the domestic market.
Facing the problems of the enterprises, the General Department of Customs said that the current tax policy for goods manufactured, processed, recycled and assembled in the non-tariff area has been clearly specified in the Law on Export and Import Duties No. 107/2016 / QH13, Decree 134/2016 / ND-CP.
Specifically, in Clause 1, Article 4 of the Law on Export and Import Duties No. 107/2016 / QH13,the non-tariff area means an economic zone located within Vietnam’s territory, established in accordance with the law, having a definite geographic boundary, and separated from the outer area by hard fences in order to facilitate customs inspection and customs control by the customs authority and relevant agencies with regard to exports and imports, inbound and outbound vehicles and passengers; the trading relationship between the free trade zone and the outside area is considered exportation and importation.
Also, Clause 8, Article 16 of the Law on Export and Import No. 107/2016 / QH13 stipulates that if products produced, processed, recycled and assembled in the non-tariff area do not use imported raw materials and components, they will be exempt from import duty upon importing to the domestic market.
Article 22 of Decree No. 134/2016 / ND-CP of the Government detailing a number of articles and measures to implement the Law on Export and Import Duties stipulates: “1. Goods manufactured, processed, recycled and assembled in a non-tariff area without using imported raw materials and components importedare exempt from import duty when they are imported to the domestic market as prescribed in Clause 8, Article 16 of the Law on Export and Export Duties.
2. Where goods manufactured, processed, recycled or assembled in the non-tariff area use imported raw materials or components, they shall be dutiable when they are imported into the domestic market according to the duty rates and their dutiable values”.
According to the above regulations, in order to deal with problems of the enterprises, the General Department of Customs has issued an official dispatch No. 5864 / TCHQ-TXNK dated September 4, 2020 instructing the provincial and municipal customs departments to inspect the import and export dossiers, accounting books, payment documents and relevant documents for the case where the enterprises sign processing contracts with foreign traders but hire anotherenterprise in the non-tariff area to process (outsourcing) and to handle as follows:
If the outsourcing enterprises in the non-tariff area do not use raw materials and components imported from abroad (domestic enterprises provide all raw materials and components to the outsourcing enterprises in the non-tariff area), the processed goods will be exempt from import duty when they are imported to the domestic market according to the provisions of Clause 8, Article 16 of the Law on Export and Import Duties No. 107/2016 / QH13, Clause 1 of Article 22 of Decree No. 134/2016 / ND-CP and Official Dispatch No. 6519 / BTC-TCHQ dated May 19, 2017 by the Ministry of Finance.
If the outsourcing enterprises in the non-tariff area use raw materials and components imported from abroad, the processed goods, must declare and pay tax when they are imported into the domestic market, according to the provisions of Clause 2, Article 22 of Decree 134/2016 / ND-CP and Point 2 of Official Dispatch No. 3018 / TCHQ-TXNK dated May 11, 2020 by the General Department of Customs.
Thus, in the case where an enterprise signs a processing contract with a foreign trader but hires an enterprise in a non-tariff zone to process products (outsourcing) and that enterprise provides all raw materials and components to the enterprise in the non-tariff area for processing and then receives the processed goods for export abroad is exempt from import duty.
HCM City Tax Department: Collecting tax arrears and reducing losses of more than VND 2,000 billion via inspection and checking VCN – Through inspection and checking in the first two months of 2020, HCM City Tax Department ... |
The General Department of Customs recommends enterprises to contact the customs office where import procedures are carried out to enjoy tax exemption according to the above guidance.
Related News
Many "big enterprises" pay taxes after enforcement
09:00 | 05/11/2024 Anti-Smuggling
Kien Giang Customs’ revenue reaches over 190% of target
10:36 | 02/11/2024 Customs
Revise regulations on implementing administrative procedures under the National Single Window
09:28 | 31/10/2024 Customs
Latest News
Director of Dong Nai Customs engages monthly with enterprises
08:59 | 05/11/2024 Customs
Ha Nam Ninh Customs gathers feedback from the business community
09:55 | 04/11/2024 Customs
Facilitating trade and bolstering customs enforcement at Vinh Xuong border crossing
07:14 | 03/11/2024 Customs
3 items have a big impact on the budget revenue of Ho Chi Minh City Customs
19:38 | 02/11/2024 Customs
More News
Quang Ninh Customs collects 85.75% of the budget revenue through the seaport area
19:37 | 02/11/2024 Customs
Regulating goods across Huu Nghi International Border Gate during peak times
19:37 | 02/11/2024 Customs
Quang Ninh Customs seeks solutions to promote import and export
10:34 | 02/11/2024 Customs
Businesses get a fair hearing under Customs' new 'three no' rule
09:31 | 31/10/2024 Customs
Khanh Hoa Customs reaches revenue target 1 quarter early
09:29 | 31/10/2024 Customs
WCO Permanent Technical Committee Meeting in Belgium: The managerial mark of the Vietnamese customs representative
09:29 | 31/10/2024 Customs
Launch of the “Proud of 80 years of construction and development of Vietnam Customs” contest
09:08 | 30/10/2024 Customs
Cat Lai Port sees over 1,000 export shipments cleared by customs each day
08:56 | 30/10/2024 Customs
Quang Ninh Customs: Innovation in developing Customs-Business partnership
09:27 | 29/10/2024 Customs
Your care
Director of Dong Nai Customs engages monthly with enterprises
08:59 | 05/11/2024 Customs
Ha Nam Ninh Customs gathers feedback from the business community
09:55 | 04/11/2024 Customs
Facilitating trade and bolstering customs enforcement at Vinh Xuong border crossing
07:14 | 03/11/2024 Customs
3 items have a big impact on the budget revenue of Ho Chi Minh City Customs
19:38 | 02/11/2024 Customs
Quang Ninh Customs collects 85.75% of the budget revenue through the seaport area
19:37 | 02/11/2024 Customs