Guidelines on the implementation of import- export tax
On December 15, 2005, Ministry of Finance issued Circular No.113/2005/TT-BTC providing guidelines on the implementation of import-export tax. Accordingly, subjects liable to import-export tax include: goods imported or exported through Vietnam’s border gates, goods brought from domestic market to non-tariff areas or vice versa; traded or exchanged goods being considered as imports or exports. Ministry of Finance also provided guidelines on basis and method of import-export tax calculation; import-export tax declaration and payment principles; and circumstances subject to import-export tax exemption, reduction, reimbursement or collection etc.
Corporate income tax exemption or reduction applied to newly established business units
A business unit, which is newly established under an investment project in industrial zone, shall be subject to exemption from corporate income tax for three years since making profit (or since its taxable income is generated). It also shall be subject to 50% reduction for the next seven years.
(According the Official Letter No.4593/TCT--ÄTNN by General Department of Taxation dated December 20, 2005)
Guidelines on personal income tax declaration, payment and balance applied to foreign individuals working in Vietnam
The resident foreign individuals have to make personal income tax declaration and payment monthly and personal income tax balance annually. They also have to calculate temporarily exempted personal income tax monthly and fix official exempted ones at the end of each year. Non-resident foreign individuals have to calculate personal income tax pursuant to current legal documents in force and fix exempted ones when making declaration and payment.
(According to the Official Letter No.4666/TCT-TNCN by General Department of Taxation dated December 23, 2005).
Guidelines on value added tax reimbursement for exported goods whose quantity and value stated in customs declaration and in VAT invoice are not the same
In case there is a difference between an enterprise's customs declaration and VAT invoice in quantity and value of exported goods, it must correct VAT invoice in accordance with the quantity and value of really exported goods. If an enterprise can't make the correction, its export turnover shall be fixed base on the value of goods and money paid by foreign partner in accordance with signed contract and really exported goods.
(According to the Official Letter No.4663/TCT--ÄTNN by General Department of Taxation dated December 23, 2005)
Guidelines on authority, order and procedure on registration, state management and information provision of financial leasing contracts
According to Circular No.09/2005/TT-BTP by Ministry of Justice dated December 6, 2005, offices having authority to register and provide information on financial leasing contracts are Property and Transaction Registration Centers under the National Department of Guaranteed Transaction Registration under the Ministry of Justice. Organizations and individuals have the right to register and require provision of information on financial leasing contracts pursuant to the laws.
Legal value of financial leasing contract registration will be clearly stated in the case that the leased property under the registered financial leasing contract is seized by the state authority because leaseholder violates the laws or transfers leased property to the third party without the agreement of lessor. At that time, the certificate or information provision document granted by the Property and Transaction Registration Center shall be the legal basis on which lessor would get the leased property back unless it is seized in accordance with the laws.
Accordingly, the registration and reception of information on property under financial leasing contracts are the bases on which property right of lesser shall be confirmed within the contract's period of validity.
(According to Circular No.09/2005/TT-BTP by the Ministry of Justice dated December 6, 2005)
Guidelines on expenses of building head office on leased land
An enterprise can allocate expenses of building head office on leased land if having all documents as follows:
o Leasing contract certified by the State notarization
o Settlement invoice of work's volume, building contract and liquidation document in which name, address and tax code of an enterprise are clearly stated
However, an enterprise is not allowed to receive deduction of input VAT of the above expenses.
(According to the Official Letter No.4577/TCT-DNK by General Department of Taxation dated December 19, 2005)
Necessary documents filed for the deduction of input VAT on the batch of goods being exported and then temporarily imported for repair because of being damaged
In case an enterprise exported goods which satisfy all conditions to be imposed the tax rate of 0% and were subject to reimbursement, and then temporarily imported for repair because of being damaged, it shall be subject to the deduction of input VAT if having the following documents:
· An agreement signed by foreign party and Vietnamese enterprise, regulating that Vietnamese enterprise shall be responsible for the repair of goods being damaged,
· Import declaration stating that goods are imported for repair;
· Export declaration stating that goods are re-exported after being repaired
· Invoice stating all expenses of repair in accordance to the laws. Invoice of VAT payment for import (if any)
In case the value of temporarily imported goods for repair equal to the value of exported goods after repair, accountant shall not make an entry of turnover decrease when temporarily importing and shall not make any invoice when re-exporting.
Issuance of temporary regulations on granting priority cards for import-export enterprises
In order to encourage enterprises execute customs policies, on December 19, 2005, General Administration of Customs issued Decision No.952 providing guidelines on granting and using priority customs cards for import-export enterprises. The Decision also provides specific conditions for granting cards and priority on customs procedures of enterprises having cards. The priority card will take affect for 6 months since the day it was granted. The card will be granted to enterprises free of charge.
April 24–25, 2026
Kinh Bac Cultural Center, Bac Ninh Province
Vietnamese
