Tax payable increases by more than VND1,400 billion after re-valuation of cars as gifts

	Tax payable of banks and real estate enterprises have reduced by trillions of VND
	Government proposes to reduce 30% of corporate income tax payable by 2020

Customs officers at Sai Gon port zone 3 Customs Branch inspect imported cars. Photo: T.H

According to the information given at the press conference on customs management for imported cars as gifts and donations, Deputy Director of Import and Export Tax Department Mr. Tran Bang Toan said from January 1, 2021 till the end of the first quarter, a total number of imported cars is 1,013 units.

The total tax amount declared by businesses is VND3,302 billion. However, after the customs agency re-determines value of imported cars, the tax payable must be VND4,745 billion, the tax difference is VND1,443 billion.

The customs agency shall check declared value by businesses and information provided by the registration agency. If there is a difference in the value of cars, the customs agency shall work with businesses to collect full tax to the State budget. This tax amount will be paid before customs clearance.

Regarding the tax policies, for imported cars as gifts and donations, the customs declarant must pay import tax, excise tax and value-added tax before customs clearance. In addition, the customs agency shall send related documents to a domestic tax agency to collect extra income tax.

Regarding the management policy, under Decree 116/2017 dated October 17, 2017 and Decree 69/2018 dated May 15, 2018, the imported cars for trade must obtain a permit issued by the Ministry of Industry and Trade, and the imported cars as gifts and donations are not governed by this Decree 116/2017.

In terms of quality inspection, imported cars must meet requirements on quality prescribed by the Ministry of Transportation. For used cars, the manufacturing year is not beyond five years from the manufacturing year to the import time, thus imported cars as gifts and donations must go through quality inspection described by the Ministry of Transportation before customs clearance.

The General Department of Customs is finishing the review of the legal framework and assessing the performance of Circular 143/2015 to propose specific, reasonable, feasible and appropriate solutions to manage imported cars and temporarily imported cars not for trade purposes.

The Ministry of Finance directs GDVC to clarify the import of supercars as gifts

Moreover, the customs agency shall report to the Ministry of Finance asking for comments from relevant ministries and agencies for a draft report to the Prime Minister and a draft circular in direction of abolishing the authority of import licensing.