Export production goods will not eligible for tax exemption if they are in-country imported between two domestic enterprises

VCN – Article 16 of the Law on Import and Export Duties only stipulates that tax exemption will be applied for raw materials, supplies, and components imported for export production. It does not regulate that export production goods imported in-country between two domestic enterprises are subject to tax exemption.

Pouchen Group proposed to amend import duty policy for in-country imports for export production as prescribed in Clause 6, Article 1, Decree 18/2021/NĐ-CP, similar to the tax policy applied to in-country imports to process.

Production of high-tech goods in export processing enterprises. Photo: H.Nụ
Production of high-tech goods in export processing enterprises. Photo: H.Nụ

Pouchen Group said that the regulation on tax policy for export production goods as stated in Clause 6, Articles 1, Decree 18/2021/NĐ-CP is not appropriate with provisions in Clause 7, Article 16 of Law on Import and Export Duties.

Regarding this issue, according to the General Department of Vietnam Customs, Clause 3, Article 2 of the Law on Import and Export Duties stipulated that “in-country imports and exports” are subject to import and export duties.

Clause 7, Article 16 of the Law on Import and Export Duties also states that “raw materials, supplies and components importing for export production” are subject to tax exemption.

With the current regulations, the General Department of Vietnam Customs said article 16 of the Law on Import and Export Duties only stipulates that tax exemption will be applied for raw materials, supplies, and components imported for export production. It does not regulate that export production goods imported in-country between two domestic enterprises are subject to tax exemption.

The competence for granting regulations on tax exemption as stipulated in Clause 24, Article 16 of Law on Import and Export Duties is assigned to the Government by the National Assembly in order to regulate cases of tax exemption in detail.

Therefore, the regulation in Clause 6, Articles 1, Decree 18/2021/NĐ-CP is appropriate to the provisions in Clause 7, Articles 16 of Law on Import and Export Duties and appropriate to the competence of the Government.

By Nụ Bùi/Thanh Thuy

Related News

Hanoi Customs: Thoroughly addressing the concerns of processing, export production, and export processing enterprises

Hanoi Customs: Thoroughly addressing the concerns of processing, export production, and export processing enterprises

VCN - Processing, export production, and export processing enterprises account for 65% of the total customs declarations and 85% of the total import-export turnover through the Hanoi Customs Department. Therefore, addressing policy and procedural issues for this type of business is a priority for the department.
Hanoi Customs held dialogues with businesses on policies on export processing and production

Hanoi Customs held dialogues with businesses on policies on export processing and production

According to Hanoi Customs Department, the unit carries out regular procedures for more than 20,000 businesses every year, including more than 1,000 businesses operating outsourcing, export production, and export processing. However, the number of declarations and turnover of this type accounts for a large proportion of the structure of declarations and turnover of imported and exported goods that are processed by the unit.
Are goods imported on-spot for export production eligible for tax refund?

Are goods imported on-spot for export production eligible for tax refund?

VCN - That is a problem of the Binh Duong Customs Department related to the process of handling tax refunds for goods imported to produce exported goods and exported by Thai Binh Investment Joint Stock Company.
Seafood exporters are worried about some inadequacies from the two new decrees

Seafood exporters are worried about some inadequacies from the two new decrees

VCN - From May 2024, two new Government decrees directly related to the enforcement of fisheries laws by seafood exporting enterprises will take effect, but have inadequate contents, makes businesses worried.

Latest News

Tax payment deadline for domestic cars extended

Tax payment deadline for domestic cars extended

The Government has decided to extend the deadline for special consumption tax payment for domestically manufactured or assembled automobiles.
13 cases must register for tax at Tax office

13 cases must register for tax at Tax office

VCN - The Ministry of Finance is collecting comments on a draft Circular guiding tax registration to replace Circular 105/2020/TT-BTC. According to the draft, in case the National Population Database proactively transmits information to the Tax Database when issuing personal identification numbers, the Tax agency will immediately update the personal identification number into the Tax registration system to use as a tax code for individuals without requiring individuals to carry out tax registration procedures with the Tax authority.
Considering to impose 5% of VAT on fertilizers

Considering to impose 5% of VAT on fertilizers

VCN - Under the draft amended Law on Value-Added Tax (VAT), fertilizers are expected to be included in the category of goods subject to VAT at a rate of 5% to address the difficulties faced by domestic production enterprises and ensure that this item can compete effectively with imported products of the same type.
Fixing VAT rates with fertilizers brings dual benefits to "3 houses"

Fixing VAT rates with fertilizers brings dual benefits to "3 houses"

VCN - According to representatives of various businesses, the current regulations regarding value-added tax (VAT) rates on fertilizers have created significant challenges for these businesses. The proposed amendments to the VAT Law for fertilizers, if implemented, have the potential to alleviate many of these difficulties, providing enterprises with better opportunities to capture market share and foster a more equitable market environment.

More News

Regulations on bad debt trading, settlement revised

Regulations on bad debt trading, settlement revised

The State Bank of Vietnam (SBV) has issued Circular 03/2024/TT-NHNN on bad debt trading and settlement of the Vietnam Asset Management Company (VAMC) to make the work more effective.
Policy on business registration to be revised

Policy on business registration to be revised

The revised decree (No. 01/2021/NĐ-CP) aims to streamline lots of processes, creating maximum favourable conditions for enterprises, respecting the autonomy of enterprises and protecting the legitimate rights and interests of the company.
Proposal to extend the special consumption tax payment deadline for domestically produced and assembled cars

Proposal to extend the special consumption tax payment deadline for domestically produced and assembled cars

VCN - According to calculations by the Ministry of Finance, the total amount of special consumption tax (SCT) on domestically produced and assembled cars, if extended, is about VND 8,560 billion. However, the latest tax payment deadline is November 20, 2024, it does not affect the state budget revenue estimate for 2024.
Proposal to reduce the collection rates of 36 fees and charges in 2024

Proposal to reduce the collection rates of 36 fees and charges in 2024

VCN - According to the draft circular regulating the collection rates of some fees and charges in 2024, the Ministry of Finance is consulting with ministries, branches, People's Committees of provinces and cities, and the drafting agency proposes to reduce the collection rates from 10- 50% of 36 fees and charges.
Removing problems on settlement reports and archive for export processing enterprises

Removing problems on settlement reports and archive for export processing enterprises

VCN - During the customs clearance process, issues such as management of raw materials, supplies or settlement reports are always of concern to export manufacturing and production and export processing enterprises. Hanoi Customs Department has answered many questions about customs procedures for export processing enterprises.
Clear policies needed for addressing violations of new generation tobacco products

Clear policies needed for addressing violations of new generation tobacco products

VCN - Although the authorities have rigorously inspected and handled violations related to new generation tobacco products, to improve management efficiency, it is urgent to develop clear policies for managing these products.
Inventory of public assets aims to accurately reflect the true nature of state budget resources

Inventory of public assets aims to accurately reflect the true nature of state budget resources

VCN - Implementing Decision No. 213/QD-TTg of the Prime Minister on the Project for a total inventory of public assets (TSC), currently the lead unit, the Ministry of Finance, is implementing work to carry out a total inventory of TSC at agencies, organizations, units and infrastructure assets invested and managed by the State in ministries, branches and localities across the country.
Perfecting the legality of cryptocurrencies, supporting the prevention of violations

Perfecting the legality of cryptocurrencies, supporting the prevention of violations

VCN - The addition of many regulations in Decree No. 52/2024/ND-CP on non-cash payments is considered to help meet the requirements of digital transformation and promote non-cash payments in the economy.
Hanoi Customs: thoroughly addressing concerns of processing, export production, and export processing enterprises

Hanoi Customs: thoroughly addressing concerns of processing, export production, and export processing enterprises

VCN - Processing, export production, and export processing enterprises account for 65% of the total customs declarations and 85% of the total import and export turnover through the Hanoi Customs Department. Therefore, issues related to policies and procedures for these types of enterprises are of great interest and resolution by the unit.
Read More

Your care

Latest Most read
Tax payment deadline for domestic cars extended

Tax payment deadline for domestic cars extended

The Government has decided to extend the deadline for special consumption tax payment for domestically manufactured or assembled automobiles.
13 cases must register for tax at Tax office

13 cases must register for tax at Tax office

VCN - The Ministry of Finance is collecting comments on a draft Circular guiding tax registration to replace Circular 105/2020/TT-BTC. According to the draft, in case the National Population Database proactively transmits information to the Tax Database w
Considering to impose 5% of VAT on fertilizers

Considering to impose 5% of VAT on fertilizers

Under the draft amended Law on Value-Added Tax (VAT), fertilizers are expected to be included in the category of goods subject to VAT at a rate of 5%
Fixing VAT rates with fertilizers brings dual benefits to "3 houses"

Fixing VAT rates with fertilizers brings dual benefits to "3 houses"

The proposed amendments to the VAT Law for fertilizers, if implemented, have the potential to alleviate many of these difficulties, providing enterprises with better opportunities
Regulations on bad debt trading, settlement revised

Regulations on bad debt trading, settlement revised

The State Bank of Vietnam (SBV) has issued Circular 03/2024/TT-NHNN on bad debt trading and settlement of the Vietnam Asset Management Company (VAMC) to make the work more effective.
Mobile Version