Gifts not subject to tax incentives under Resolution 106

VCN - According to the General Department of Customs, imported gifts or presents from a foreign organization to an organization in Vietnam will not be subject to import tax and value-added tax policies applicable to goods imported for use as humanitarian aid and non-refundable aid under Resolution 106.
Video: Customs seizes over 60,000 tablets of Covid-19 medication in gifts and donations Video: Customs seizes over 60,000 tablets of Covid-19 medication in gifts and donations
Amending a number of regulations on customs procedures stipulated in Decree 08/2015/NĐ-CP Amending a number of regulations on customs procedures stipulated in Decree 08/2015/NĐ-CP
According to this provision, the imported shipment of Bao Ngoc Xanh Shipping company is not eligible for import tax and value-added tax policies applicable to goods imported for use as humanitarian aid and non-refundable aid as prescribed in Resolution 106/NQ-CP.
Illustrative Photo

At the request of Bao Ngoc Xanh Shipping Co., Ltd. for guidance on tax exemption procedures for a shipment of masks donated by Shinhan Bank from Korea to the State Bank of Vietnam, the General Department of Customs said Article 1 of Resolution 106/NQ-CP dated September 11, 2021 of the Government stipulates: "Goods imported by Vietnamese organizations and individuals to be provided as aid to the Government, the Ministry of Health, provincial-level People's Committees and Vietnam Fatherland Front Committees to serve the prevention and control of the Covid-19 pandemic, shall be subject to import duty and value-added tax policies applicable to goods imported for use as humanitarian aid and non-refundable aid.”

According to this provision, the imported shipment of Bao Ngoc Xanh Shipping company is not eligible for import tax and value-added tax policies applicable to goods imported for use as humanitarian aid and non-refundable aid as prescribed in Resolution 106/NQ-CP.

The General Department of Customs said clause 2, Article 16 of the Law on Import and Export Tax 107/2016/QH13 provided that gifts from foreign entities to Vietnamese entities and vice versa within the tax-free allowance are exempt from tax.

Clause 1, Article 8 of Government’s Decree 134/2016/ND-CP dated September 1, 2016 stipulates: Gifts exempt from duties specified in Clause 2 Article 16 of the Law on Export and import duties are those that are not enumerated in the List of goods banned from import, banned from export, suspended from export, suspended from import and not enumerated on the List of goods subject to special excise tax (excluding those serving national defense and security purposes) as prescribed by law.

Point b, clause 2, Article 8 of Decree 134/2016/ND-CP as amended and supplemented in Clause 3, Article 1 of Decree 18/2021/ND-CP of the Government stipulates: Gifts given by a foreign organization or individual to a Vietnamese organization whose operating cost is covered by state budget as prescribed by state budget laws and allowed by a competent authority for receiving or gifts as use for humanitarian and charity purposes with full value of gifts shall be exempt from duties no more than four times per year.

Under this regulation, the General Department of Customs said, for the shipment of masks of the Shinhan Bank in Korea to the State Bank of Vietnam, Bao Ngoc Xanh shipping Co., Ltd proposes to the State Bank of Vietnam to carry out tax exemption procedures for imported goods including gifts according to regulations.

Customs seizes over 60,000 tablets of Covid-19 medication in gifts and donations Customs seizes over 60,000 tablets of Covid-19 medication in gifts and donations

Tax exemption dossiers for imported gifts comply with the provisions of Clause 3, Article 8 of Decree 134/2016/ND-CP, as amended and supplemented at Point a, Clause 20, Article 1, Point a, Clause 2 Article 2 Decree 18/2021/ND-CP. Tax exemption procedures comply with the provisions of Article 131 of Decree 134/2016/ND-CP as amended and supplemented in Clause 14, Article 1 of Decree 18/2021/ND-CP.

By Nu Bui/ Huyen Trang

Related News

Preliminary assessment of Vietnam international merchandise trade performance in the first 9 months of 2024

Preliminary assessment of Vietnam international merchandise trade performance in the first 9 months of 2024

Highlights 1. According to trade statistics of Vietnam Customs, in September of 2024, a 8.0% downwards in total external merchandise turnover of Vietnam was recorded as compared to the result of August 2024. Exports went down 9.8 %, to USD 34.08 billion and imports decreased 5.9%, to USD 31.76 billion in terms of month-on-month basis. As a result, there was a USD 2.32 billion surplus in Vietnam’s trade balance in this month.
Preliminary assessment of Vietnam international merchandise trade performance in the second half of September, 2024

Preliminary assessment of Vietnam international merchandise trade performance in the second half of September, 2024

The Vietnam Customs Statistics announced that in the second half of September, 2024 the total Vietnam’s exports of US dollars 19.71 billion and imports of nearly US dollars 16.74 billion resulted in a trade surplus of US dollars 2.97 billion.

Latest News

Hanoi Customs resolves tax policy queries for enterprises

Hanoi Customs resolves tax policy queries for enterprises

VCN - Queries regarding customs consultation procedures and tax refunds due to price reduction clauses were addressed by the Hanoi Customs Department, providing clarity for businesses.
Regularly check tax obligations to avoid temporary exit suspension

Regularly check tax obligations to avoid temporary exit suspension

VCN - In order to avoid the situation of arriving at the airport or border gate and only finding out that you owe taxes and being temporarily suspended from leaving the country by the Tax Authority, the Tax Authority recommends that taxpayers regularly look up their tax obligations to have a plan to pay taxes on time, not letting the tax debt situation drag on and drag on.
Implementing the SAFE framework in Vietnam: Assessment through the lens of international standards

Implementing the SAFE framework in Vietnam: Assessment through the lens of international standards

VCN - In June 2005, the World Customs Organization (WCO) developed and adopted the SAFE Framework of Standards to Secure and Facilitate Global Trade. The SAFE Framework plays a crucial role in encouraging countries to modernize, enhance security, and facilitate trade within global supply chain management and Authorized Economic Operator (AEO) programs. This approach introduces a comprehensive method for cross-border goods management and promotes closer cooperation between Customs, businesses, and stakeholders. The Customs News presents a two-part series on implementing the SAFE Framework in Vietnam.
Proposing the Tax Authority be flexible in applying tax debt enforcement measures simultaneously

Proposing the Tax Authority be flexible in applying tax debt enforcement measures simultaneously

VCN - In the draft revised Law on Tax Administration, the Ministry of Finance proposed amending regulations on measures to enforce administrative decisions on tax administration to remove obstacles in policy mechanism and improve the effectiveness of tax administration.

More News

Many shortcomings in process and manual book on handling administrative violations

Many shortcomings in process and manual book on handling administrative violations

VCN - Legal policies on handling administrative violations have effectively supported the technical work of the Customs sector. However, some legal bases and regulations have been amended, replaced, and supplemented, which have limited the efficiency of handling administrative violations of the customs sector.
Implementing the SAFE Framework in Vietnam: Lessons from practice

Implementing the SAFE Framework in Vietnam: Lessons from practice

VCN - The Framework of Standards to Secure and Facilitate Global Trade (SAFE Framework) is a strategic international instrument introduced by the World Customs Organization (WCO) to enhance security and trade facilitation in global supply chains. It contributes significantly to the economic development of the 21st century.
Implementing the SAFE Framework in Vietnam: Solutions and Recommendations

Implementing the SAFE Framework in Vietnam: Solutions and Recommendations

VCN - Recognizing the significance, impact, and benefits of the SAFE Framework in customs modernization and reform, Vietnam Customs is advancing the implementation of SAFE. This involves both capacity building and phased deployment aligned with Vietnam Customs’ development strategy and practical needs.
Abolishing regulations on tax exemption for small-value imported goods must comply with international practices

Abolishing regulations on tax exemption for small-value imported goods must comply with international practices

VCN - The Ministry of Finance said that the abolition of regulations on tax exemption for imported goods valued at less than VND1 million must comply with international practices in the context of the growing trend of cross-border e-commerce activities.
Policy adaptation and acceleration of digital transformation in tax and customs management

Policy adaptation and acceleration of digital transformation in tax and customs management

VCN - In order to contribute to economic growth, tax, customs and logistics management policies need to ensure high adaptability, stability and predictability so that they require little amendment or supplementation.
Implement regulations on special preferential import tariffs under VIFTA

Implement regulations on special preferential import tariffs under VIFTA

VCN - The General Department of Vietnam Customs (GDVC) requests provincial and municipal customs departments to implement Vietnam's special preferential import tariffs under the Free Trade Agreement between the Government of the Socialist Republic of Vietnam and the Government of the State of Israel for the period 2024-2027 (referred to as the VIFTA) from October 15, 2024.
Perfecting tax policy for goods traded via e-commerce

Perfecting tax policy for goods traded via e-commerce

VCN - In order to ensure the goal of developing e-commerce activities without causing loss of state budget revenue, the Customs authority is actively coordinating with policy advisory units of the Ministry of Finance to research and review regulations on tax exemption for import and export goods transacted via e-commerce.
Are belongings of foreigners on business trip to Vietnam exempt from tax?

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

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.
Amending regulations on enforcement measures in tax administration

Amending regulations on enforcement measures in tax administration

VCN - In draft of 1 law amending 7 laws in the financial sector, the Ministry of Finance proposed to amend the regulations on enforcement measures in tax administration in the Law on Tax Administration.
Read More

Your care

Latest Most read
Hanoi Customs resolves tax policy queries for enterprises

Hanoi Customs resolves tax policy queries for enterprises

Queries regarding customs consultation procedures and tax refunds due to price reduction clauses were addressed by the Hanoi Customs Department, providing clarity for businesses.
Regularly check tax obligations to avoid temporary exit suspension

Regularly check tax obligations to avoid temporary exit suspension

Tax Authority recommends that taxpayers regularly look up their tax obligations to have a plan to pay taxes on time, not letting the tax debt situation drag on and drag on.
Implementing the SAFE framework in Vietnam: Assessment through the lens of international standards

Implementing the SAFE framework in Vietnam: Assessment through the lens of international standards

The SAFE Framework plays a crucial role in encouraging countries to modernize, enhance security, and facilitate trade within global supply chain management and Authorized Economic Operator (AEO) programs
Proposing the Tax Authority be flexible in applying tax debt enforcement measures simultaneously

Proposing the Tax Authority be flexible in applying tax debt enforcement measures simultaneously

VCN - In the draft revised Law on Tax Administration, the Ministry of Finance proposed amending regulations on measures to enforce administrative decisions on tax administration to remove obstacles in policy mechanism and improve the effectiveness of tax
Many shortcomings in process and manual book on handling administrative violations

Many shortcomings in process and manual book on handling administrative violations

VCN - Legal policies on handling administrative violations have effectively supported the technical work of the Customs sector. However, some legal bases and regulations have been amended, replaced, and supplemented, which have limited the efficiency of h
Mobile Version