New guidance on calculating import tax rates

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For goods on the list specified in the Annex to Decision No. 36/QD-TTg of the Prime Minister on September 1, 2016, the tax rate is 5%. Photo: Thu Trang.

Imported goods specified in Point a, Clause 3, Article 5 of the Law on export tax and import tax shall attract preferential tariff rates according to Section I, Section II, Section III, and Annex II of Government Decree 122/2016/ND-CP regulating preferential export tax and import tax, the list of goods with the absolute tax rate, the mixed tax, and import tax for the amount of goods over quota.

Imported goods specified in Point b, Clause 3, Article 5 of the Law on export tax and import tax, shall attract preferential tariff rates according to the decrees promulgating the special preferential import taxes between Vietnam and other countries, including the Vietnam-Korea Free Trade Agreement (VKFTA), ASEAN-Korea Free Trade Agreement (AKFTA), Vietnam-Japan Free Trade Agreement (VJFTA), ASEAN-Japan Free Trade Agreement (AJFTA) ASEAN-China Free Trade Agreement (ACFTA), ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA), ASEAN-India Free Trade Agreement (AIFTA), and Vietnam-Chile Free Trade Agreement (VCFTA), ATIGA, and a bilateral trade agreement between Vietnam and Laos.

Imported goods specified in Point c, Clause 3, Article 5 of the Law on export tax and import tax (not in the case of enjoying preferential tax rates or special preferential tax provisions in Point 1 and Point 2) shall attract tax rates as follows:

For goods on the list specified in the Annex to Decision No. 36/QD-TTg of the Prime Minister on September 1, 2016, the tax rate is 5%.

For goods not on the list specified in the Annex to Decision No. 36/QD-TTg of the Prime Minister on September 1, 2016:

The tax rate is 150% of the preferential tax rate for each item stipulated in Section I, Section II, Section III and Annex II, issued together with Government Decree No. 122/2016/ND-CP regulating export tax and import tax, the list of goods with an absolute tax rate, the mixed tax, and import tax for the amount of goods over quota.

In order to instruct Customs Departments of provinces and cities, the General Department of Vietnam Customs has provided several examples. First, A Ltd. Co imports Superphosphate fertilizer with HS code 3103.10.10 from Malaysia which has a signed MFN treatment agreement with Vietnam. Normally, A Ltd. Co must pay import tax of 6% under the preferential tax rates issued with Decree No. 122/2016 / ND-CP. However, if A Ltd. Co presents C / O form D and meets the special preferential conditions, it shall only attract a special preferential tax rate of 5% under ATIGA.

Another example is B Ltd. Co imports bones processed with acid with HS Code 0506.10.00 from Ethiopia which has not signed an MFN treatment agreement with Vietnam. Accordingly, this item is subject to the import tax rate prescribed in Point c, Clause 3, Article 5 of the Law on export tax and import tax. This item is on the list specified in the Annex attached to Decision No. 36/2016/QD-TTg with a tax rate of 5%, so B Ltd. Co must pay a normal tax rate of 5%.

Tax exemption under new provisions of Law on import tax and export tax VCN- To implement new regulations of Law on import tax and export tax No. 107/2016/ QH13, from ...

Another example given by the General Department of Vietnam Customs is that C Ltd. Co imports mats made from rattan with HS code 4601.22.00 from Ethiopia which has not signed an MFN treatment agreement with Vietnam. This item is subject to the import tax rate prescribed in Point c, Clause 3, Article 5 of the Law on export tax and import tax. This item is not on the list specified in the Annex attached to Decision No. 36/2016 / QD-TTg. The Preferential tax rate of this item specified in Decree No. 122/2016/ND-CP is 20%. Therefore, C Ltd. Co must pay import tax at the normal rate: 150% x 20% = 30%.