Decree 18: Extension of tax exemption regulations

Decree 18 has amended regulations on tax-free quotas for gifts of foreign organizations and individuals to Vietnamese agencies and organizations that are funded by the State budget (state budget). in accordance with the law on the State budget and permitted by the competent authority to receive or receive a gift or gift for humanitarian or charitable purposes is the total value of a gift or gift in accordance with the provisions of Clause 2. Article 16 of the Law on Export Tax and Import Tax.

Accordingly, Decree 18 stipulates that gifts or gifts have an amount or value that exceed the tax-free limit, but in case the recipient is an agency or organization that is funded by the State budget and is provided with the authority to permit the reception or for the humanitarian or charitable purpose, the whole value of the gift or gift is exempt from tax.

In order to limit problems arising in the implementation process, especially when exporting processed products on the spot, Decree 18 has amended and supplemented to clarify the regulations that the processed products for export are exempt from tax specified in Clause 1, Article 10 of Decree 134 (including exports to foreign countries or exports to non-tariff zones, on-spot exports) to comply with Clause 6, Article 16 of the Law on Import Duty and Export Duty.

As for the provisions of Article 11 of Decree 134 on tax exemption for goods exported for processing and imported processed products, the representative of the Import-Export Tax Department said that in Clause 6, Article 16 of the Law on Import and Export Taxes: Goods exported for processing and then imported are exempt from export tax and import tax is calculated on the value of the exported raw materials that constitute the processed product. For goods exported for processing and then imported which are natural resources, minerals, products with the total value of resources and minerals plus energy costs accounting for 51% or more of the product cost, they are not exempt from tax. .

In Clause 1, Article 11 of Decree 134 regulates this issue in order to limit the abuse of preferential policies to export natural resources and minerals in the country in the form of processing for export and then re-importing the processed products. Out.

However, according to the principle and purpose of export tax is to limit the export of domestic natural resources and minerals to protect domestic non-renewable resources and reduce environmental pollution, Decree 18 has adding regulations on the elimination of scrap forming during the production, processing and export of imported goods specified in Article 10 and Article 12 to comply with the provisions of Clause 6, Article 16 of the Law on Export Tax and Import Tax has just facilitated It is beneficial for taxpayers to reuse scrap products formed during the production, processing and export of imported goods, and at the same time handle problems arising in practice.

Also according to the representative of the Import-Export Tax Department, related to tax exemption for imported goods to create fixed assets of subjects enjoying investment incentives, Article 14 of Decree 134 does not provide a basis for determining tax-exempt subjects. . Therefore, Decree 18 has supplemented the basis for identifying tax-exempt subjects in order to accurately identify those eligible for tax exemption under the provisions of Clause 11, Article 16 of the Law on Import Tax and Export Tax and in accordance with the Law on Investment. Similarly, Article 15 of Decree 134 is also amended and supplemented to be consistent with the provisions of Clause 13, Article 16 of the Law on Import Tax and Export Tax and the Law on Investment, Decree 118/20215 / ND-CP.

Regarding the provisions of Article 28 of Decree 134 on tax exemption for imported and exported goods to ensure social security, overcome consequences of natural disasters, catastrophes, epidemics and other special cases, according to The Department of Import-Export Tax Department, in Clause 1, added 2 tax-free objects, which are agarwood products produced from gourd plants and python skin derived from breeding; Unprocessed agricultural products in accordance with the competence to promulgate current regulations.

The representative of the Import-Export Tax Department said that through the implementation of tax exemption dossiers for imported and exported goods in other cases problems have arisen from reality, so Decree 18 has also added this provision at Article 15.- Decree 18 has also added provisions on tax exemption procedures for import and export goods mentioned in Clause 5, Article 15 of Decree 134 to serve social security and overcome consequences of natural disasters and catastrophes. epidemics, epidemics and other special cases to ensure legal basis during the implementation process, in accordance with Article 82 of the Law on Tax Administration No. 38/2019 / QH14 and at the same time handling problems in time. past time.

In particular, in Decree 134 does not stipulate documents and procedures for export tax exemption for frankincense products produced from gourd plants and python skin products originating from breeding; Unprocessed agricultural products, supported by the Vietnamese side, are grown in Cambodia and imported back home.

The representative of the Import-Export Tax Department noted that Decree 18 supplements this provision on the basis of inheriting the provisions of Circular 90/2011 / TT-BTC dated June 20, 2011 of the Ministry of Finance regulating export tax exemption for with agarwood produced, created from gourd plant; Circular 201/2012 / TT-BTC dated November 16, 2012 of the Ministry of Finance regulating import tax exemption for goods that are unprocessed agricultural products supported by Vietnamese investment, grown in Cambodia and imported to the country. ; Circular 81/2013 / TT-BTC dated June 19, 2013 amending and supplementing Circular 201/2012 / TT-BTC; Circular 116/2013 / TT-BTC dated 20/8/2013 of the Ministry of Finance regulating export tax exemption for python skin products originating from breeding.

Along with that, Decree 18 has supplemented the provisions on tax exemption for goods with minimum value, goods sent by post and courier services as stated in Article 29 of Decree 134. Representatives of the Department of Taxation Import-export said that, according to the provisions of Article 52 of the Customs Law, the concept of enterprises providing postal services, enterprises providing international express services is used. However, in Decree 134 stipulates that goods sent via express services are entitled to a tax exemption of VND 1 million and an unlimited number of times a year. Therefore, in order to ensure fairness between postal enterprises and express delivery companies (which are operating under the Post Law), Decree 18 has added “goods sent via postal services” to enjoy the same tax-free quota. Express delivery company.

Also in Article 29 of Decree 134 does not provide tax exemption for imported and exported goods under international treaties. Therefore, Decree 18 has amended the authority to determine the category and quantity of duty-free goods from the Prime Minister to assign responsibility to the proposing agency to sign or join international treaties certifying the duty-free list. to solve problems, reduce administrative procedures, reduce time for appraisal of dossiers and time of tax exemption approval, and facilitate customs procedures for projects under international treaties that the Government or Home Vietnam has signed.

Decree 18 also adds provisions on procedures for certifying duty-free imported goods in case international treaties do not stipulate the category and quantity of duty-free goods for transparency of administrative procedures. To supplement regulations on procedures for notification of the duty-free list and responsibility of the customs office where the duty-free list is received; Responsibilities of organizations and individuals notifying the duty-free list comply with Clauses 4, 5, 6 and 7, Article 30 of this Decree in order to ensure the management of the customs office in order to determine determine the right subjects, right goods imported tax-free and consistent with the management method of tax-free goods of the investment project.

According to Customs Newspaper