On 14 June 2005, Law No. 45/2005/QH1 on export - import tax (“Law”) was issued by the National Assembly to replace, once the this Law taking effects, its version 1993 and previous amendments and annul regulations on export - import tax prescribed in the Law on encouragement for domestic investment, Law on foreign investment in Vietnam, Law on science and technology and Law on Petroleum. The below are some remarkable points of the Law:
Tax methods for self-defense, anti-dumping, anti-subsidy, anti-differential treatment in importing imports: Beside tax rate regulated under the Import-Export Tax Law, imported goods may be applied one of following measures on taxation: (i) increasing import tax rate, (ii) anti-dumping tax, (iii) anti-subsidy tax, (iv) anti-differential treatment tax.
Competence for issuance of tax tariff, tax rate: upon submission of the Government, the Standing Committee of National Assembly promulgates Export Tariff, Preferential Export Tariff. Accordingly, the Ministry of Finance provides for import tax rate, import tax applicable to each article.
The Prime Minister decides on the articles which are applied absolute tax and absolute tax level in necessary cases.
Payment period of import tax: under the Import-Export Tax Law, payment period is 30 days from the date of tax payer's registration of declaration sheet, except for the following cases: (i) in respect of goods as consumer goods, tax must be fully paid before receiving such goods, if payable amount is guaranteed, payment period shall be guarantee period but not exceed 30 days from the date of tax payer's registration of declaration sheet; (ii) in respect of goods as raw materials used for manufacturing exports, payment period is 275 days (more than 275 days for special cases) from the date of tax payer's registration of declaration sheet; (iii) in respect of goods as temporarily imported, re-exported goods or temporarily exports, re-imported goods, payment period is 15 days from the date of expiry for temporary import, re-export or temporary export, re-import according to the regulations of competent state authorities.
Refund of import tax: the Import-Export Tax Law supplements cases for tax refund caused by mistakes in enumerating, calculating tax. Tax balance shall be refunded if such mistakes take place within 365 days prior to the date of checking and finding out such mistakes.
Tax refund period is shorter than former regulations. Accordingly, competent state authorities must refund tax within 15 days from the date of receiving full dossier applying for tax refund.
The Import-Export Tax Law shall take effect from 01 January 2006.
Consulted by INVESTCONSULT GROUP
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