The car import tax system in VietNam
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The document discusses car taxes in Vietnam. It explains how to calculate the after-tax price of a car, which includes impost, excise tax, and VAT. The government sets high car taxes to protect domestic automobile production, fund transport infrastructure, and increase government revenues. The impost rate is projected to decrease over time, reaching 0% for ASEAN countries by 2018.
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The car import tax system in VietNam
- 1. HANOI FOREIGN TRADE UNIVERSITY
- 2. 3 main points 1. How to calculate the after-tax car price. 2. The reasons why the GOV sets the tax high. 3. Forcast the car impost in few years after.
- 3. 1. Calculate the after-tax car price Excise tax Impost VAT Taxable price + Tax total = The after-tax price
- 4. 1. Calculate the after-tax car price • 1.1 Impost Impost = (Taxable price) x (Impost rate) Impost rate : based on the cylinder capacity •83% Less than 2500 cc Need fosusing! •80% 2500 cc or more
- 5. 1. Calculate the after-tax car price • 1.2 Excise tax ( the special consumption tax ) Excise tax = (Taxable price + Impost) x Excise tax rate Excise tax rate : based on the cylinder capacity too. •45% •50% •60% Less than 2000 cc Need fosusing! From 2000 to 3000 cc More than 3000 cc
- 6. 1. Calculate the after-tax car price • 1.3 VAT VAT = (Taxable price + Impost + Excise tax) x 10% VAT rate is fixed at 10% for every kinds of goods. Need fosusing!
- 7. Example
- 8. Example
- 9. Toyota Camry 3.5 LE 2009 Price in America: $20.000
- 10. Toyota Camry 3.5 LE 2009 Impost rate Excise tax rate VAT
- 11. 1. Calculate the after-tax car price TAX TOTAL EXAMPLE Impost = $20.000 x 80% = $16.000 + Excise tax = ($20.000 + $16.000) x 60% = $21.600 + VAT = ($20.000 + $16.000 + $21.600) x 10% = $5.760 $ 43.360
- 12. 1. Calculate the after-tax car price EXAMPLE The after-tax price: $ 20.000 + $ 43.360 :-ss $63.360 / $20.000 = 3.168 = $ 63.360
- 13. 2. The reasons why the GOV sets the tax high
- 14. 2. The reasons why the GOV sets the tax high Protect the domestic automobile production Transport infrastructure Increase the government’s revenues
- 15. 2. The reasons why the GOV sets the tax high Protect the domestic automobile production Transport infrastructure Increase the government revenues
- 16. 2. The reasons why the GOV sets the tax high Protect the domestic automobile production Transport infrastructure Increase the government revenues
- 17. 2. The reasons why the GOV sets the tax high Protect the domestic automobile production Transport infrastructure Increase the government’s revenues
- 18. 3. Forcast the impost rate a few years after Impost rate 90 80 70 60 50 40 30 20 10 0 Impost rate 2012 2014 2017 - In 2018, the impost rate will be 0% But just inside ASEAN :D
- 19. 1. Calculate the after-tax car price Excise tax Impost VAT Taxable price + Tax total = The after-tax price
- 20. 2. The reasons why the GOV sets the tax high Protect the domestic automobile production Transport infrastructure Increase the government revenues
- 21. 3. Forcast the impost rate a few years after Impost rate 90 80 70 60 50 40 30 20 10 0 Impost rate 2012 2014 2017 - In 2018, the impost rate will be 0% But just inside ASEAN