Does goods imported for investment incentives project subjected to tax exemption?

The General Department of Vietnam Customs (GDVC) has outlined the relevant legal documents and procedures for individuals and organizations seeking import tax exemption under the Import-Export Tax Law, Customs Law, and Decree 59/2018/ND-CP and Decree 18/2021/ND-CP.

Accordingly, Article 31.3.c of Decree 134/2016/ND-CP (amended by Article 1.14 of Decree 18/2021/ND-CP), for import tax exemption of machinery and equipment imported for assembly into complete sets or production lines, customs procedures must be conducted at the customs office where the machinery and equipment will be installed.

Customs officer of Cai Mep Customs Branch instructed business to carry out procedures. Photo: Nguyễn Hiền

At the time of customs declaration, the taxpayer must provide detailed information about the imported goods on the customs declaration form.

If detailed information cannot be included on the customs declaration form, the taxpayer must prepare a detailed list of imported goods according to the information criteria specified in Form No. 04 of Appendix 7a issued with Decree 18/2021/ND-CP. This list can be submitted electronically through the electronic data processing system or in hard copy using Form No. 15 of Appendix 7 issued with Decree 18/2021/ND-CP and attached to the customs declaration form.

Within 15 days from the date of completing the import of the last consignment of each complete set or production line, the taxpayer is responsible for notifying the customs office where the Tax-Exempt List was declared, using the information criteria specified in Form No. 5 of Appendix 7a issued with Decree 18/2021/ND-CP. This notification can be submitted electronically through the electronic data processing system or in hard copy using Form No. 16 of Appendix 7 issued with Decree 18/2021/ND-CP.

Moreover, at Clause 1, 2 of Articles 31 of Decree 134/2016/NĐ-CP, in addition to the standard documentation, the taxpayer must submit the supply contract for the goods, including the bid document or bid selection document. The contract must clearly state that the supply price excludes import tax if the organization or individual is the winner of the bid for importing the goods.

Also, at Point b, Clause 5 of Article 31 Decree 134/2016/NĐ-CP, organizations and individuals importing goods under a subcontracting agreement or winning a bid to import goods for supply to entities specified in Article 1 of the Import-Export Tax Law are exempt from import tax on the imported goods under the condition that the supply price in the subcontracting agreement or the bid-winning price in the bid decision excludes import tax.

In light of the current regulations, the General Department of Vietnam Customs recommends that Ba Ria - Vung Tau Customs Department carefully review the relevant legal documents on import-export taxes to handle procedures within their authority.