10 / 12
10
-
V
IETNAM
B
RIEFING
|
December 2014
How to Establish a Trading Company in Vietnam
Depending on the trade conditions, Vietnam imposes a number
of different types of duties on the import and export of goods.
Companies wishing to find in-depth information on a range of goods
would be well advised to visit the website of
Vietnam Customs.Imports
Vietnam imposes a tax on almost every type of product that is
imported into the country. The import tax rates range depending
on the type of product, for example, consumer products and
luxury goods are highly taxed while machinery, equipment, and
rawmaterials, tend to receive lower taxes and even tax exemptions.
Imports are subject to import tax, Value-added tax (VAT) and, for
certain goods, Special Consumption Tax (SCT).
Tax rates applicable to imported goods include preferential tax rates,
special preferential tax rates, and ordinary tax rates:
• Preferential tax rates apply to goods originating from countries,
groups of countries, or territories, which apply the most favored
nation treatment in their trade relations with Vietnam
• Special preferential tax rates apply to goods originating from
countries, groups of countries, or territories, which apply special
preferences on import tax to Vietnam
• Ordinary tax rates apply to goods originating from countries,
groups of countries, or territories, which do not apply the most
favored nation treatment of special preferences on import tax
to Vietnam. Ordinary tax rates will be no more than 70 percent
higher than the preferential tax rates specified by the government
VAT rates range from zero to ten percent, with ten percent being the
most common rate. Detailed information can be found in Decree
No. 83/2014/TT-BTC.
Exports
Only certain commodities are liable for export tax. Export taxes range
fromzero to 45 percent. Many goods are also subject toValue-added
Tax. In addition, the Lawon Special ConsumptionTax (SCT) stipulates
that exporters who purchase SCT tax-liable goods for export, but
instead sell the products domestically, are liable for SCT.
The export tax rates applicable to exported goods shall be specified
for each item in the Export Tariff. For the year 2014, the tax tariff can
be found in Circular 164/2013/TT—BTC; Circular 17/2014/TT-BTC
and Circular 30/2014/TT-BTC. Whenever there is an update in the
tax tariff, the Ministry of Finance will issue new Circulars which will
either replace or supplement the previous ones. VAT on exported
goods is zero percent.
Tax exempt goods
In certain situations, imported and exported goods are exempt from
tax, these include the following:
• Goods temporarily imported for re-export or temporarily exported
for re-import
• Goods imported for processing for foreign partners then exported
or goods exported to foreign countries for processing for Vietnam
then re-imported under processing contracts
• Goods imported to create fixed assets for projects entitled to
investment incentives or investment projects funded with official
development assistance (ODA) capital sources
• Goods imported in service of petroleum activities
• Goods imported for direct use in activities of scientific research
and technological development
Tax Calculation
The payable import/export tax amount is equal to the unit
volume of each actually imported/exported goods item. These
are inscribed in the customs declarations and are multiplied by
the tax calculation price and the tax rate of each item, which is
stated in the tariff at the time of tax calculation.
The tax calculation methods are specified below:
• Payable Tax = unit volume of each actually imported/exported
goods item x the tax calculation price x the tax rate of each
item at time of calculation
• For goods items subject to absolute tax: Payable tax = unit
volume of each actually imported/exported goods item x
the absolute tax rate provided for a goods unit at time of tax
calculation
Vietnam’s Key Tax Rates
CIT
22%
VAT
0%/5%/10% *
Withholding
Tax
Divid.
0%
Interests
5%
Royalties
10%
Individual
Income Tax
Min.
5%
Max
35%
* 0% on exported goods