Tax Incentive Declaration for Imported Auto Parts by Businesses Checked

10:53:12 AM | 19/6/2019

Being warned of risks of declarations by enterprises and checking the application of tax incentive program for imported automobile parts, the General Department of Vietnam Customs recently told some local customs authorities to check declaration contents and zero tax requests for imported auto parts and accessories coded 98.49.

Specifically, the General Department required the implementation of the tax incentive program with imported automobile components not named in the group coded 98.49 but imported still declared them into the group coded 98.49.

Imported automotive components are listed in the category of products already manufactured by domestic companies, announced by the Ministry of Planning and Investment.

The product description did not properly represent the nature, utility and technical specifications of imported automobile components but still declared into the group coded 98.49.

Imported automobile components that fail to meet discrete level criteria, announced by the Ministry of Science and Technology, on methods of determining localization rates of cars and regulations stipulated in Point b.5.2, Clause 3.2, Section I, Chapter 98, Decree 125/2017/ND-CP will not be eligible to be applied tax incentives.

According to the General Department of Customs, if there is no strict inspection into two criteria: The degree of discrete level and conditions specified Point b.5.2, Clause 3.2, Section I, Chapter 98, Decree 125/2017/ND-CP will lead to wrong application of tax incentive.

Accordingly, while waiting for the construction of warning software, the General Department of Vietnam Customs required customs departments to check declaration contents and zero tax application specified for goods of A43 type as follows:

Checking descriptions of imported auto parts coded HS 98.49 registered by enterprises to join the program according to Article 7a, Decree 125/2017/ND-CP.

Checking and comparing with the regulations of the Ministry of Planning and Investment on the list of components, supplies and parts locally manufactured.

Checking the discrete level of imported auto parts according to the regulations of the Ministry of Science and Technology and conditions specified at Point b.5.2, Clause 3.2, Section I, Chapter 98, Decree 125/2017/ND-CP.

In addition, the General Department of Customs requested its subordinates to urgently check and control zero tax application documents in the last six months of 2018, compared information on the database system of the General Department of Customs, in case of necessity, conducting inspections at enterprises’ head offices. As for documents that meet the program conditions for preferential treatment, taxpayers will be get refunded for the excess value counted before June 15, 2019.

At the preliminary review meeting on auto parts tax incentive program according to Article 7a, Decree 125/2017/ND-CP chaired by Deputy General Director Nguyen Duong Thai and attended by leaders of provincial/municipal customs officers from localities that directly implemented this tax refund program, some provinces and cities reflected that importers of automobile component tend to declare their imports into the group coded 98.49 to enjoy tax incentives.

Hien Le