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What’s new about the export-import taxes taken effect from September

Summary

Updated on : 06-09-2017

From 1 September 2016, the Export-import tax Law has effect. With many new points in the direction of progressive amendment in order to satisfy the requirement of intergration and development, the 2016 Law is expected to bring about positive effects and to promote economy development.

Reasonable protection of domestic production and business 

The 2016 Law of Export-import taxes added the rules of anti-dumping tax, anti-subsidy, anti-discrimination to protect the domestic production and business in conditions of international intergration, based on upgrading and supplementing the provisions of the relevant current Ordinance.

Specifically, the Law added the tax regulations applicable to exports and imports including anti-dumping duty, anti-subsidy duty, and safeguard duty include conditions applied, the principle applied and the time limits applicable to each type of tax.

Based on tax levels, quantity or values of goods subject to anti-dumping duty, anti-subsidy duty, and safeguard duty, customs declarant shall declare and pay tax according to legal regulations of tax management.

At the same time, the Law was amended guidelines issued tariffs and tax rates. Encourage imports of raw materials, materials and priorities which can not meet the demand; focus on developing high-tech sectors, technology resources, save energy, protect the environment; in line with economic development orientations - of the State and social commitments on export taxes, import duties in the international treaties to which Vietnam is a member. The principles will contribute to stabilizing the market and the state budget revenues; simplicity, transparency, facilitates the taxpayers and reform of tax administration procedures.

Reforrm the authority to issue the export tariff, import tarriff and export tax brackets. Accordingly, the Government has the authority to issue: Export tariff; preferential export tariff; preferential import tariff; Special preferential import tarriff; the list of goods and the absolute tax rate, the tax mix, import duties beyond the tariff quota.

In needed case, the Gov submits to the National Assembly Standing Committee for amending and supplementing the export tariff according to the List of taxable commodity groups and export tax brackets for each taxable commodity group, issued together with the Law.

The Law also supplemented, amended regulations on import tax exemption for certain commodities such as: Goods with a value or the amount of tax payable under the minimum level; Raw materials, supplies and components imported for production of export goods; plant breeds; animal breeds; fertilizers, plant protection products which can not be domestically produced, imported necessity as prescribed by the State management agencies competent; Machinery, equipment, raw materials, supplies, components, parts and accessories imported for printing and minting money; Goods exports and imports to protect the environment...

Additional provisions to improve the system of tax law

To contribute to improve the legal system, consistent with relevant legal documents, while overcoming the problems arising during the implementation of the current Export-Import Tax Law, Law has been amended and supplemented several notably provisions. 
To supplement spot export and import goods and export goods of enterprises to implement the export and import rights, distribution rights on taxable; Transshipment of goods not subject to the tax.

To supplement taxpayers for Import Export organization entrusted, persons authorized, guaranteed pay tax on behalf of taxpayers, including: 

- Agents to do customs procedures authorized by taxpayers in case of export and import tax payment
- Enterprises providing postal services, international courier services internationally in cases of tax payment on behalf of taxpayers.
- Credit institutions or other organizations operating under the provisions of the Law on Credit Institutions in the case of guarantee or pay tax on behalf of taxpayers.
- Persons authorized cargo owners in cases where goods are gifts, personal gifts; luggage consigned before or after the trip of the exit and entry.
- Branches of enterprises authorized pay tax on behalf of the enterprises; for the purchasers and transporters of goods in the duty-free allowance of border residents, but not used for the production and consumption that are sold in the domestic market and foreign traders licensed to trade goods export and import in border markets in accordance with law; whose exports and imports not subject to tax, tax exemption, but then there is a change and switch to taxable under the provisions of law.

To supplement mixed tax calculation method which the total amount of tax is relative and absolute amount of tax; duties on goods imported tariff-quota; time tax calculation for the case of changes of subjects to tax, tax exemption and apply absolute duty tariff quota.
To amend regulations on ordinary tax rates, the taxable value, tax calculation time; tax exemption for goods sold or exchanged by border residents...

Additional provisions in cases of exemption from import duties, export duties on machinery, equipment, vehicles, tools and supplies used to be imported which can not be produced according to the list of goods environmental protection by the Ministry of Planning and Investment regulations and export products of environmental protection activities to conform to the provisions of the Law on environmental protection.

At the same time, additional import duty exemption on machinery, raw materials, materials for direct production software products to conform to the provisions in the Law on Science and Technology.

With many provions revised in the direction of progress, meet the requirements of integration and development, the Law on Export and Import Tax in 2016 is expected to bring a positive effect, promoting economic development.

Edit Law toward conformity with international practices

To conform to international practices, Export-Import Tax Law 2016 has added provisions on export tax applicable to cases where the goods exported to countries, groups of countries or territories with preferential export tax agreement in trade relations with Vietnam.
Regulations on preferential tax rates applied to goods from non-tariff areas imported into the domestic market to meet the conditions from countries or groups of countries or territories made to MFN treatment trade in relations with Vietnam.

The law also provides for special preferential tax applied to goods from non-tariff areas imported into the domestic market to meet the conditions from countries, groups of countries or territories with preferential import tax agreement in trade relation with Vietnam. The ordinary tax rates apply to goods imported under the circumstances non-applicable preferential tax and special tax incentives.

The ordinary tax rates prescribed by the preferential tax rate are 150% of each category respectively. In case the preferential tax rate of 0%, the Prime Minister grounds specified in Article 10 of the Law to decide on the application of the ordinary tax rate.

Additional provisions for tax payment deadline taxpayers applying the priority regime under the provisions of the Customs Law towards tax payment is made to the customs declaration clearance or release of goods at the latest on the 10th of next month ...

Simplified administrative procedures

Law amends and supplements several provisions to simplify, facilitate the taxpayers; contribute to improve the administrative reforms, improve the business environment and improve national competitiveness, such as: Transfer of goods as raw materials imported for production of export goods from taxable objects at the import stage and make refunds when exported to the tax exemption to encourage the production of export goods, simple administrative procedures, in line with international practice; cargo temporary import for re-export from taxable objects at the import stage and make refunds when exported to the tax exemption is conditional on the guarantee, deposit matching international practices ...

Quicky put the Law into practice 

Import-Export Tax Law 2016 with lots of new content, progressive, more suitable to the international integration process of Vietnam as mentioned above. But, to the Law quickly come to life, in addition to construction and promulgate documents guiding the implementation of laws in a timely manner, specific, objective and ensure respect for the guiding ideology and principles specified in the Law, then the phase to implement fully and promptly, uniformly extremely important role.

Therefore, the State management agencies need timely training, common for officials and civil servants to do their duty to understand, grasp the basic content, core, especially the new contents and guidelines in order to ensure implementation of law enforcement in uniform, consistent and timely.

Regularly monitor the implementation of Export-Import Tax Law 2016, especially in the early stages to implement timely grasp the issues, problems and difficulties arising from the business trading Export-Import activities, which have measures to solve, resolve and respond quickly, facilitating the enterprise; or suggestions and proposals to the Government and the relevant authorities to consider and resolve the problems beyond their competence.

Strengthen inspection and surveillance of the implementation of the Law; improve professional capability, moral quality of cadres and civil servants in charge of ensuring the effective and efficient management of state on taxes on export and import goods.

Together with the quick practise of the State management agencies, businesses trading Export-Import activities and the industry associations also need to monitor and update new contents amended and supplemented, ensuring grip and compliance.

Timely detection, reflected with the relevant State authorities about the problems and difficulties arising during the tax procedures for exports and imports, also to propose suggestions and proposals for solutions to solve problems arising.

To coordinate with the State agencies in monitoring, detecting negative behavior of taking advantage of the provisions of law for fraud, profiteering on taxes on exports and imports of both staff public and businesses to timely rectify and prevent and strictly handle violations of the Law.

Source: Chinhphu.vn