Goods and gifts are no longer subject to preferential tariff under Resolution 106
However, when Bao Ngoc Xanh Shipping Co. Ltd. requested guidance on carrying out tax exemption procedures for a shipment of facemasks donated by Shinhan Bank from Korea to the State Bank of Vietnam. The General Department of Vietnam Customs said that "goods imported by Vietnamese organizations and individuals to finance the Government, the Ministry of Health and other faculties serving the Covid-19 pandemic prevention, are entitled to the same import duty and value-added tax policies as imported goods in the case of humanitarian aid, non-refundable aid".
illustration image |
Considering this, the case of Bao Ngoc Xanh Shipping Co. Ltd. does not meet regulations stipulated in Resolution No. 106/NQ-CP.
The General Department of Vietnam Customs added that the tax policy for gifts is clearly specified in Clause 2, Article 16 of the Law on Import and Export Tax No. 107/2016/QH13. Accordingly, gifts that are within this quota are exempted from tax.
Clause 1, Article 8 of Decree 134/2016/ND-CP, dated September 1 2016, stipulates that: gifts and goods which are not in the list of goods will be banned from import, export, and be held in temporary suspension (except for gifts subject to excise tax for security and defense purposes) as prescribed by law. They will be exempted from tax, complying with the provisions of Clause 2, Article 16 of the Law on Import and Export Tax.
Also, Point b, Clause 2, Article 8 of Decree 134/2016/ND-CP stipulates: Vietnamese agencies and organizations who are guaranteed by the State budget are permitted to receive gifts by competent agencies. Gifts are served for humanitarian purposes and charities are permitted to receive gifts no more than 4 times/year.
Compared with this regulation, the case of Shinhan Bank in Korea sending a shipment of facemasks to the State Bank of Vietnam, Bao Ngoc Xanh Transport Co. Ltd. should require the State Bank of Vietnam to carry out tax exemption procedures for imported goods as gifts, in order to comply with the regulations.
Tax exemption dossiers for imported gifts should be carried out complying with the provisions of Clause 3, Article 8, of Decree 134/2016/ND-CP, as amended and supplemented in Point A, Clause 20, Article 1, and Point A, Clause 2, Article 2 of Decree 18/2021/ND-CP.
Tax exemption procedures should be complied 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.
Related News
Vietnam automobile market and support problem
07:54 | 04/06/2024 Import-Export
No need to reduce the output of manufacturing and assembling automobile to enjoy preferential tariff
09:09 | 11/04/2024 Regulations
Take advantage to increase fruit and vegetable exports to nearby markets
09:30 | 10/04/2024 Import-Export
Rate of use of preferential tariffs in CPTPP
09:49 | 16/10/2023 Import-Export
Latest News
Hanoi Customs resolves tax policy queries for enterprises
09:26 | 22/11/2024 Regulations
Regularly check tax obligations to avoid temporary exit suspension
09:47 | 21/11/2024 Regulations
Implementing the SAFE framework in Vietnam: Assessment through the lens of international standards
09:14 | 20/11/2024 Regulations
Proposing the Tax Authority be flexible in applying tax debt enforcement measures simultaneously
09:40 | 19/11/2024 Regulations
More News
Many shortcomings in process and manual book on handling administrative violations
15:53 | 18/11/2024 Regulations
Implementing the SAFE Framework in Vietnam: Lessons from practice
10:03 | 18/11/2024 Regulations
Implementing the SAFE Framework in Vietnam: Solutions and Recommendations
09:18 | 17/11/2024 Regulations
Abolishing regulations on tax exemption for small-value imported goods must comply with international practices
13:54 | 15/11/2024 Regulations
Policy adaptation and acceleration of digital transformation in tax and customs management
10:03 | 14/11/2024 Regulations
Implement regulations on special preferential import tariffs under VIFTA
08:32 | 13/11/2024 Regulations
Perfecting tax policy for goods traded via e-commerce
09:24 | 10/11/2024 Regulations
Are belongings of foreigners on business trip to Vietnam exempt from tax?
14:23 | 09/11/2024 Regulations
Amending regulations on enforcement measures in tax administration
10:05 | 08/11/2024 Regulations
Your care
Hanoi Customs resolves tax policy queries for enterprises
09:26 | 22/11/2024 Regulations
Regularly check tax obligations to avoid temporary exit suspension
09:47 | 21/11/2024 Regulations
Implementing the SAFE framework in Vietnam: Assessment through the lens of international standards
09:14 | 20/11/2024 Regulations
Proposing the Tax Authority be flexible in applying tax debt enforcement measures simultaneously
09:40 | 19/11/2024 Regulations
Many shortcomings in process and manual book on handling administrative violations
15:53 | 18/11/2024 Regulations