Lecture taxation chapter 3 export and import duties

TAXATION Chapter 3 Export and Import Duties REFERENCES • Law on export and import duties No 107/2016/QH13 dated 06 April 2016, effective from September 01, 2016 • Decree 134/2016/ND CP dated 01 Septem[.]

Chapter 3: Export and Import Duties

• Law on export and import duties No.107/2016/QH13 dated 06 April 2016, effective from September 01, 2016.

• Decree 134/2016/ND-CP dated 01 September 2016, effective from September 01, 2016.

• Circular 38/2015/TT-BTC dated 25 March 2015, effective from April 01, 2015.

• Circular 39/2015/TT-BTC dated 25 March 2015, effective from April 01, 2015.

LEARNING OBJECTIVES

• LO 3-1: Explain concept, characteristics and role of export and

import duties (EID).

• LO 3-2: Identify goods to incur export and import duties and

goods not to incur export and import duties.

• LO 3-3: Recognize taxpayers of Vietnamese export and import

duties.

• LO 3-4: Define tax calculation methods, taxable price and tax

rate of Vietnamese export and import duties.

• LO 3-5: Understand exemption, reduction and refund of

Vietnamese export and import duties.

INTRODUCTION OF EXPORT IMPORT DUTIES

• EID is an indirect tax, levied on goods permitted to cross-border trade by countries or groups of countries, formed and associated with operation of international trade.

• Characteristics:

✓ A less stable tax;

✓ Having a direct impact on the prices of imported and exported goods, causing negatively affect on the prices of domestic goods

or services, which can destabilize the economy.

✓ Having a significant impact on a country's international trade and economic growth.

LO 3-1: Explain concept, characteristics and role of EID

INTRODUCTION OF EXPORT IMPORT DUTIES (CONT.)

• Roles:

➢A source of revenue for the state budget, particularly in developing countries

➢Establishment of tariff barriers to protect domestic goods

➢Contribute to the control and regulation of imports to improve balance of trade and goods supply and demand

TAXABLE OBJECTS

1 Goods exported and imported through Vietnam’s border and

checkpoints. Free trade zone means an economic

zone located within Vietnam’s territory, established in accordance with law, having a definite geographic boundary, and separated from the outer area by hard fences

in order to facilitate customs inspection and customs control by the customs authority and relevant agencies with regard to exports and imports, inbound and outbound vehicles and passengers; the trading relationship between the free trade zone and the outside area is consider exportation and importation.

2 Goods exported from the domestic market into

free trade zones ; goods imported from free

trade zones into the domestic market.

3 Goods indirectly exported-imported; goods

exported and imported by enterprises exercising

their right to export, import, or distribute.

4 Goods of an export processing enterprise which

exercises its rights to export, import or

distribution.

LO 3-2: Identify goods to incur EID and goods not to incur EID.

NON-TAXABLE OBJECTS

1 Goods in transit

2 Goods that are humanitarian aid or grant aid

3 Goods exported from a free trade zone to abroad; goods

imported from abroad to a free trade zone and used within such free trade zone; goods transported from one free trade zone to another

4 Goods as amounts of petroleum used to pay royalties for the

State when exporting

1 Owners of exports and imports.

2 Entrusted exporters and importers.

3 Individuals carrying exports or imports when entering and leaving Vietnam,

sending or receiving goods through Vietnam’s border and border checkpoints.

4 Taxpayers’ guarantors and other entities authorized to pay tax on behalf of

taxpayers, including:

✓ Customs brokerage agents in case authorized by the taxpayer to pay export and import duties;

✓ Providers of postal services or international express mail services paying tax

on behalf of taxpayers;

✓ Credit institutions or other organizations that provide guarantee or pay tax

on behalf of taxpayers;

LO 3-3: Recognize taxpayers of export and import duties in Vietnam.

QUICK CHECK

1 FUSEN Company located in Linh Trung processing zones

specializes to produce clothes Its activities are as follows:

- Imported materials abroad to produce clothes

- Exported these clothes to foreign countries thereafter

Are materials and clothes subject to export and import duties?

2 Tan Phu Company authorizes to Binh Tan Corporation to

import a passenger car What is the taxable object? Who is subject to pay import tax?

TAX BASES AND TAX CALCULATION METHODS

• Export

EID calculation methods

Goods subject

to an ad valorem duty

Goods subject

to a specific

duty

Quantity

Taxable value

Tax rate

LO 3-4: Define tax calculation methods, taxable value and tax rate of

Vietnamese export and import duties.