New provisions on tax exemption on the basis of the norms
Under new regulations in Decree 134, the movable assets such as automobiles and motorcycles are not exempted from tax. Photo: Thu Trang. |
Remove norms for duty-free goods of diplomatists
Regarding tax exemption for imported and exported goods of international organizations and members of international organizations who enjoy privileges and immunities, as provided in Article 39, Article 40, Article 41 of the Ordinance on privileges and immunities for diplomatic agencies, consular offices and representatives of international organizations in Vietnam, international organizations of the United Nations system, representatives of international organizations, agencies, representatives and members of non-governmental organizations shall enjoy the privileges and immunities under international treaties which Vietnam has signed with these organizations.
To be consistent with the current situation, Decree 134 has removed norms for duty-free goods (mainly home appliances) of diplomatists, such as: televisions, refrigerators and air conditioners; only applied norms for goods attracting special consumption tax such as cars, motorcycles, alcohol, beer and tobacco, which conforms with the provisions on the jurisdiction of the Prime Minister stipulated in the Law on export tax and import tax 2016 and in Article 5 of Decree 134 regulating temporary imports exempted from tax for cars, motorcycles in excessive quantities.
The norms for duty-free goods, including cars, motorcycles; and alcohol, beer and tobacco are specified in Annex I, II and III attached to Decree 134 on the basis of the current regulations. For goods not on the above list, diplomatic agencies, consular offices and organizations of the United Nations system are exempted from tax on the basis of certification by the Ministry of Foreign Affairs, in accordance with the principle of reciprocity and international practice.
Luggage on entry: 90 days for 1 time of tax exemption
In order to ensure consistency with the provisions of the Law on Special Consumption Tax on classification of alcohol content, Article 6 of Decree 134 has regulated the classification of alcohol content for luggage on entry by below 20% alc/vol and above 20% alc/vol.
Therefore, in order to be consistent with international practices of many countries, Article 6 of Decree 134 specifies norms for goods exempted from tax, including alcohol and cigars as follows: "Alcohol above 20% alc/vol: 1.5 liters, alcohol below 20% alc/vol: 2 liters or alcoholic beverages and beer: 3 liters"; "Cigarettes: 200 cigarettes, or tobacco: 250 grams, or cigars: 20 cigarettes". Also, the Decree regulates that individuals with regular immigration such as pilots and flight attendants; international train drivers and staff on international trains, etc shall not enjoy duty-free luggage norms for each entry but only every 90 days of tax exemption.
Movable assets such as automobiles and motorcycles which are exempted from tax according to Decision 31/QD-TTg of August 4, 2015, include used automobiles and motorcycles of Vietnamese citizens residing abroad, and intellectuals, professionals, skilled workers to Vietnam for a year or more at the invitation of the Vietnamese Government.
In order to fix loopholes of the policy, in Article 7 of Decree 134, the Ministry of Finance has submitted to the Government to remove tax exemption for automobiles and motorcycles of the above people. Also, the Ministry of Finance has proposed to add regulations on the time of residence or work in Vietnam for 12 months or more, in line with the provisions of the labor law on granting work permits with a term of 12 months or more.
Gifts for tax exemption to not exceed 4 times per year
In order to amend the policy, Article 8 of Decree 134 has specified the norms on tax exemption for gifts of organizations and foreign individuals to organizations and individuals in Vietnam; gifts of organizations and individuals in Vietnam to foreign organizations and individuals with Customs value not exceeding 2 million vnd or Customs value of more than 2 million vnd but the total amount of payable tax under 200 thousand vnd, not more than 4 times per year.
For agencies and organizations in Vietnam sponsored by the State budget, gifts for the purpose of humanitarian and charity, the norms are not to exceed 30 million vnd, not more than 4 times per year (in line with the norms prescribed in Decision No. 31/2015 / QD-TTg).
Draft resolution on tax exemption and deduction to support enterprise development VCN- As already understood, the Ministry of Finance is drafting a Resolution on some tax solutions to ... |
In the case where the norms of tax exemption are exceeded, the Ministry of Finance shall conduct careful consideration and settlement of tax exemption for each specific case. The Decree also stipulates that gifts of foreign organizations and foreign individuals such as medicines and medical equipment to individuals who are ill or who have serious diseases, with Customs value not exceeding 10 million vnd are exempt from import tax. Thus, the Decree has specified the list of serious diseases as a basis for the Ministry of Finance to implement personal income tax.
Related News
Seafood exporters are worried about some inadequacies from the two new decrees
06:47 | 30/04/2024 Regulations
Wood exports started well
13:26 | 20/04/2024 Import-Export
Leverage to increase the scale of Vietnam - Laos trade turnover
10:51 | 15/04/2024 Import-Export
Vietnam-China trade reaches over US$ 27 billion
09:29 | 10/04/2024 Import-Export
Latest News
Risk prevention solutions for processing and export manufacturing businesses
07:52 | 29/04/2024 Regulations
Reporting to the National Assembly for considering VAT reduction in the second half of 2024
17:09 | 14/04/2024 Regulations
The Prime Minister requested that before April 25, complete the revision of regulations on import and export of medicinal materials
10:33 | 13/04/2024 Regulations
No need to reduce the output of manufacturing and assembling automobile to enjoy preferential tariff
09:09 | 11/04/2024 Regulations
More News
Hundreds of tons of cinnamon essential oil are left in inventory due to export regulations
09:31 | 10/04/2024 Regulations
Business suspension of temporary import and re-export of Monazite ores and ore concentrates will be valid on May 13th
20:09 | 07/04/2024 Regulations
Improving the customs legal system to be modern, synchronous, unified and transparent
10:33 | 07/04/2024 Regulations
New points about rules of origin in AKFTA
08:05 | 03/04/2024 Regulations
It is necessary to build a national database on cross-border trade and transport
15:23 | 29/03/2024 Regulations
Removing difficulties in tax exemption and refund policies for export processing enterprises
14:48 | 27/03/2024 Regulations
Reviewing the list of scrap that is temporarily suspended from temporary import and re-export business
15:41 | 24/03/2024 Regulations
New law expected to boost financial leasing
14:05 | 22/03/2024 Regulations
5% VAT on fertilisers to create fairer market: domestic producers
14:03 | 22/03/2024 Regulations
Your care
Seafood exporters are worried about some inadequacies from the two new decrees
06:47 | 30/04/2024 Regulations
Risk prevention solutions for processing and export manufacturing businesses
07:52 | 29/04/2024 Regulations
Reporting to the National Assembly for considering VAT reduction in the second half of 2024
17:09 | 14/04/2024 Regulations
The Prime Minister requested that before April 25, complete the revision of regulations on import and export of medicinal materials
10:33 | 13/04/2024 Regulations
No need to reduce the output of manufacturing and assembling automobile to enjoy preferential tariff
09:09 | 11/04/2024 Regulations