The Vietnamese government has just issued a ruling that regulates preferential import and export taxes, basically coming up with a new tariff table that reflects many changes in the tax rates applied to specific commodities.
New Decree 122/2016/ND-CP took effect from September 1, 2016, specifically removing two decisions of the Prime Minister and nine circulars of the Ministry of Finance issued before this date.
The order comes with four appendices that provide a list of taxable export and import goods, the absolute tax rates for the list of taxable goods, the mixed tax for vehicles with less than 15 seats, and the import tax for goods subject to quota, according to a report by state-run Customs News.
According to the new regulation, fertilizer products under heading 31.01, 31.02, 31.03, 31.04, and 31.05 merit an export tax rate of 5% if the value of natural resources and minerals plus energy costs accounts for 51% of the goods.
For fertilizer products not under these headings, the tax rate will be based on the export tariff specified in Appendix I.
Charcoal products with code 4402.90.90 can obtain an export tax rate of 5% if they meet four criteria, including ash content of up to 3% only and sulfur content of up to 0.2%.
The decree also stipulates that jewelry products and parts thereof, gold or jewelry (heading 71.13), furniture and parts of golden furniture (heading 71.14), and other products of gold (heading 71.15) will carry an export tax rate of 0% if they meet all the conditions it stipulates.
In addition, besides the requisite Customs documents for exports of gold products, enterprises must produce test results from a licensed testing organization indicating the gold content if it falls below 95%.
For jewelry products and parts thereof, gold or jewelry (heading 71.13), furniture and parts of golden furniture (heading 71.14), and other products of gold (heading 71.15) that are exported in processed form or produced from imported raw materials, there is no need to present any test results on the gold content.
In addition, the new decree identifies a number of petrochemical commodities which can enjoy a preferential import tax rate of 1% during the period September 1, 2016 to December 31, 2016. From January 1, 2017, the tax rate will be 3%.
Also stipulated in the new regulation are the preferential import tax rates for some commodities according to World Trade Organization commitments from 2017.
Moreover, the Prime Minister has issued Decision 36/2016/QD-TTg to regulate the normal tax rate for imported goods.
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