The document discusses Vietnam's Law on Import Tax and Export Tax. It provides definitions of import and export taxes, including that they are indirect taxes levied on imported and exported goods. It outlines the key provisions of Vietnam's tax law, including that taxpayers are importers and exporters, tax bases are goods crossing borders or entering/exiting non-tariff zones, and taxes are calculated based on tax rates applied to the value or quantity of goods. The law aims to generate government revenue while regulating international trade and protecting domestic markets.

1. Chapter 2Chapter 2
LAW ON IMPORT TAX ANDLAW ON IMPORT TAX AND
EXPORT TAXEXPORT TAX
CONTENT:CONTENT:
** General knowledgeGeneral knowledge
** Provisions of EProvisions of E xcise taxxcise tax
LawLaw
By:By: Nguyen Thi Thuy TrangNguyen Thi Thuy Trang

2. MaterialsMaterials
Textbooks:Textbooks:
 Hanoi Law University (2012),Hanoi Law University (2012), Vietnamese Tax LawVietnamese Tax Law, P. 57-P., P. 57-P.
104104
Legal document:Legal document:
 The National Assembly of Vietnam,The National Assembly of Vietnam,
No 45/2005/QH11,No 45/2005/QH11, Law on import tax and export taxLaw on import tax and export tax
 The Government,The Government, Decree No 149/2005/ND-Decree No 149/2005/ND-
CP,CP, Detailing and guiding the implementaion of a numberDetailing and guiding the implementaion of a number
of articles of the Law on import tax and export taxof articles of the Law on import tax and export tax

3. A. GENERAL KNOWLEDGEA. GENERAL KNOWLEDGE
1.1. Definition of Import tax and export taxDefinition of Import tax and export tax
 In the USA:In the USA:
A tariff or duty (the words are used interchangeably)A tariff or duty (the words are used interchangeably)
is a tax levied by governments on the value includingis a tax levied by governments on the value including
freight and insurance of imported/exported products.freight and insurance of imported/exported products.
http://export.gov/logistics/eg_main_018130.asphttp://export.gov/logistics/eg_main_018130.asp
A tax collected on imports and some exports by theA tax collected on imports and some exports by the
customs authorities of a country. This tax is used tocustoms authorities of a country. This tax is used to
raise state revenue. It is based on the value of goodsraise state revenue. It is based on the value of goods
called ad valorem duty or the weight, dimensions, orcalled ad valorem duty or the weight, dimensions, or
other criteria of the item such as its size.other criteria of the item such as its size.
http://www.investopedia.com/terms/i/import-duty.asphttp://www.investopedia.com/terms/i/import-duty.asp

4. A. GENERAL KNOWLEDGEA. GENERAL KNOWLEDGE
 In India: Customs Duties (Import Duty andIn India: Customs Duties (Import Duty and
Export Tax)Export Tax)
Customs Duty is a type of indirect tax levied on goodsCustoms Duty is a type of indirect tax levied on goods
imported into India as well as on goods exported from India.imported into India as well as on goods exported from India.
Taxable event is import into or export from India. Import ofTaxable event is import into or export from India. Import of
goods means bringing into India of goods from a place outsidegoods means bringing into India of goods from a place outside
India. India includes the territorial waters of India which extendIndia. India includes the territorial waters of India which extend
upto 12 nautical miles into the sea to the coast of India. Exportupto 12 nautical miles into the sea to the coast of India. Export
of goods means taking goods out of India to a place outsideof goods means taking goods out of India to a place outside
India.A tax collected on imports and some exports by theIndia.A tax collected on imports and some exports by the
customs authorities of a country. This tax is used to raise statecustoms authorities of a country. This tax is used to raise state
revenue. It is based on the value of goods called ad valoremrevenue. It is based on the value of goods called ad valorem
duty or the weight, dimensions, or other criteria of the itemduty or the weight, dimensions, or other criteria of the item
such as its size.such as its size.

5. A. GENERAL KNOWLEDGEA. GENERAL KNOWLEDGE
 In Vietnam:In Vietnam:
A tax imposed on the imported/exportedA tax imposed on the imported/exported
goodsgoods being tax-liable objectsbeing tax-liable objects

6. Main Features of Excise TaxMain Features of Excise Tax
♦ In Vietnam: Is indirect/direct tax.
In other countries: Customs duty is a kind of indirect tax
which is levied on the import and export of goods of
international trade. In economic sense, it is also a kind of
consumption tax.
♦ Tax objects: Goods which are :
+ exported or imported through Vietnam's border-gates
or borders
+ brought from the domestic market into non-tariff
zones or from non-tariff zones into the domestic market.
♦ Special function: Protect domestic market and coordinate
import/export activities.

7. A.A. GENERAL KNOWLEDGEGENERAL KNOWLEDGE
2.2. Definition of Law on import tax andDefinition of Law on import tax and
export taxexport tax
♦ Applied early (since 1954).
♦ Vietnam: Law on import tax and export tax
2005
♦ Law on import tax and export tax is a system of
enforceable norms governing social relations which arise
from levying and paying import tax and export tax
process between customs agencies and taxpayers to
mobilize revenue resources.

8. Tax law’s Roles
 To create the fundermental and stableTo create the fundermental and stable
legal frame for revenue resourceslegal frame for revenue resources
mobilization.mobilization.
 An instrument to coordinateAn instrument to coordinate
export/import activities.export/import activities.
 To protect domestic market.To protect domestic market.

9. B. PROVISIONS OF THE TAXB. PROVISIONS OF THE TAX
1. Taxpayers1. Taxpayers
2. Tax bases2. Tax bases
3. Import/export tax administration3. Import/export tax administration

10.  Organizations and individuals that haveOrganizations and individuals that have
import or export goods being tax-liableimport or export goods being tax-liable
objects.objects.
 In fact:In fact:
 An exporter/importer who directly carry outAn exporter/importer who directly carry out
the procedures of import/export operations.the procedures of import/export operations.
 Who is entrusted to import/export goods.Who is entrusted to import/export goods.
Ex: customs agents; enterprises supplying taxEx: customs agents; enterprises supplying tax
administrative services/postal services…etcadministrative services/postal services…etc
1. Taxpayers1. Taxpayers

11.  Importers/Exporters that:Importers/Exporters that:
 Import or export through Vietnam's border-gates orImport or export through Vietnam's border-gates or
borders;borders;
 Bring goods from the domestic market into non-tariffBring goods from the domestic market into non-tariff
zones or from non-tariff zones into the domestic market.zones or from non-tariff zones into the domestic market.
 Non-tariff zones:Non-tariff zones:
Economic areas lying within the Vietnamese territory whichEconomic areas lying within the Vietnamese territory which
are determined by geographical boundaries and set up underare determined by geographical boundaries and set up under
decisions of the Prime Minister; the goods sale, purchase anddecisions of the Prime Minister; the goods sale, purchase and
exchange between these zones and outside areas constituteexchange between these zones and outside areas constitute
import and export relations.import and export relations.
1. Taxpayers1. Taxpayers

12. Taxable objectsTaxable objects
Taxable objectsTaxable objects
 1. Goods imported or exported through1. Goods imported or exported through
Vietnam's border-gates or borders;Vietnam's border-gates or borders;
 2. Goods brought from the domestic2. Goods brought from the domestic
market into non-tariff zones or from non-market into non-tariff zones or from non-
tariff zones into the domestic market.tariff zones into the domestic market.
Excluding non-taxable objects.Excluding non-taxable objects.

13. Non-taxable objectsNon-taxable objects
 1. Goods in transit or being transported across1. Goods in transit or being transported across
Vietnam's border-gates or borders; goodsVietnam's border-gates or borders; goods
transferred through border-gates as provided for bytransferred through border-gates as provided for by
the Government;the Government;
 2. Humanitarian aid, non-refundable aid;2. Humanitarian aid, non-refundable aid;
 3. Goods exported from non-tariff zones to foreign3. Goods exported from non-tariff zones to foreign
countries, goods imported from foreign countriescountries, goods imported from foreign countries
into non-tariff zones for use in non-tariff zonesinto non-tariff zones for use in non-tariff zones
only, and goods transported from one non-tariffonly, and goods transported from one non-tariff
zone to another;zone to another;
 4. Goods being petroleum portions paid to the4. Goods being petroleum portions paid to the
State in value as natural resource tax whenState in value as natural resource tax when
exported.exported.

14. 2. Import and Export Tax bases2. Import and Export Tax bases
and Tax calculation methodsand Tax calculation methods
2.1. For goods items subject to percentage tax2.1. For goods items subject to percentage tax
Tax basesTax bases the unit volume of each actuallythe unit volume of each actually
imported or exported goods item(1)imported or exported goods item(1)
inscribed in the customs declarationsinscribed in the customs declarations
tax calculation prices (2)tax calculation prices (2)
tax rates in percentage (%) (3)tax rates in percentage (%) (3)
The payable import tax or export tax amountThe payable import tax or export tax amount = (1) X (2) X (3)= (1) X (2) X (3)

15. 2.2.2.2. FFor goods items subject to absolute tax
the unit volume of each actuallythe unit volume of each actually
imported or exported goods itemimported or exported goods item
inscribedinscribed in the customs declarationsin the customs declarations
Tax basesTax bases
the absolute tax rate provided forthe absolute tax rate provided for
a goods unita goods unit atat the time of tax calculation.the time of tax calculation.
The payable import tax or export tax amountThe payable import tax or export tax amount = (1) X (2)= (1) X (2)

16. The tax payment currency:The tax payment currency:
- Is the Vietnamese dong- Is the Vietnamese dong
- In cases where it is permitted to pay tax in- In cases where it is permitted to pay tax in
foreign currencies, tax must be paid in freelyforeign currencies, tax must be paid in freely
convertible currencies.convertible currencies.

17. Tax calculation prices:Tax calculation prices:
 1.1. For export goodsFor export goods: the tax calculation: the tax calculation
prices are the contractual sale prices at theprices are the contractual sale prices at the
exporting border-gates.exporting border-gates.
 2.2. For import goodsFor import goods: the tax calculation: the tax calculation
prices are the actually paid prices at theprices are the actually paid prices at the
first importing border-gate underfirst importing border-gate under
contracts, in conformity withcontracts, in conformity with
international commitments.international commitments.

18. 2.2. Import & Export Tax Rate2.2. Import & Export Tax Rate
1. Tax rates applicable to export goods shall be specified for1. Tax rates applicable to export goods shall be specified for
each goods item in the Export Tariff.each goods item in the Export Tariff.
2.2. Tax rates applicable to import goods include preferentialTax rates applicable to import goods include preferential
tax rates, special preferential tax rates and ordinary taxtax rates, special preferential tax rates and ordinary tax
rates:rates:
 a/ The preferential tax rates shall apply to import goods originatinga/ The preferential tax rates shall apply to import goods originating
from countries, groups of countries or territories, which apply the mostfrom countries, groups of countries or territories, which apply the most
favored nation treatment in their trade relations with Vietnam;favored nation treatment in their trade relations with Vietnam;
 b/ The special preferential tax rates shall apply to import goodsb/ The special preferential tax rates shall apply to import goods
originating from countries, groups of countries or territories, whichoriginating from countries, groups of countries or territories, which
apply special preferences on import tax to Vietnam;apply special preferences on import tax to Vietnam;
 c/ The ordinary tax rates shall apply to import goods originating fromc/ The ordinary tax rates shall apply to import goods originating from
countries, groups of countries or territories, which do not apply thecountries, groups of countries or territories, which do not apply the
most favored nation treatment or special preferences on import tax tomost favored nation treatment or special preferences on import tax to
Vietnam. The ordinary tax rates shall not be 70% higher than theVietnam. The ordinary tax rates shall not be 70% higher than the
preferential tax rates of the same goods items specified by thepreferential tax rates of the same goods items specified by the
Government.Government.

19. T H E E N DT H E E N D