Law Amending and Supplementing Certain Articles of the Special Consumption Tax Law number 08/2003/QH11

LAW

Amending and supplementing certain articles of the Special Consumption Tax Law

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Pursuant to the Constitution of the Socialist Republic of Vietnam in 1992, amended and supplemented by Resolution No. 51/2001/QH10 dated December 25, 2001 of the National Assembly, tenth session;

This Law amends and supplements certain articles of the Special Consumption Tax Law dated May 20, 1998.

Article 1. Amending and supplementing certain articles of the Special Consumption Tax Law:

1. Article 1 shall be amended and supplemented as follows:

"Article 1. Objects subject to tax The following goods and services are objects subject to special consumption tax:
1. Goods:
a) Cigarettes, cigars;
b) Alcohol;
c) Beer;
d) Cars with less than 24 seats;
đ) Various types of gasoline, naphtha, reformate component, and other products used to blend gasoline;
e) Air conditioners with cooling capacity up to 90,000 BTU;
g) Playing cards;
h) Paper money, paper offerings;
2. Services:
a) Operating nightclubs, massage parlors, karaoke;
b) Operating casinos, jackpot games;
c) Operating entertainment services involving betting;
d) Operating golf: selling membership cards, golf playing tickets;

d) Operating lottery."

2. Clause 6 of Article 6 shall be amended and supplemented as follows:

"6. For domestically produced alcohol, operating casinos, machine jackpot games, golf operations, the taxable value for special consumption tax shall be specified by the Government.

The taxable value for special consumption tax for goods and services stipulated in this Article includes additional income that the business entity enjoys.

In cases where the taxpayer has sales and purchases denominated in foreign currency, such foreign currency must be converted into Vietnamese Dong at the exchange rate published by the State Bank of Vietnam at the time of transaction occurrence to determine the taxable value."

3. Article 7 shall be amended and supplemented as follows:

"Article 7. Tax rates The special consumption tax rates for goods and services are prescribed in the following Special Consumption Tax Table:

SPECIAL CONSUMPTION TAX TABLE

4. Clause 1 of Article 11 shall be amended and supplemented as follows:

"1. Production facilities producing goods and service providers subject to special consumption tax must pay the special consumption tax into the state budget at the place of production or operation.

The deadline for monthly payment is no later than the 25th day of the following month;"

đ) The deduction of input tax for certain special cases shall be regulated by the Government. 2. The basis for determining the amount of input tax deductible is the value-added tax amount stated on the value-added tax invoice when purchasing goods or services or the tax payment certificate for imported goods; in cases where purchased goods or services do not have a value-added tax invoice or have a value-added tax invoice but do not comply with the provisions of the law, the business shall not be entitled to deduct tax."

"4. The Government shall specify detailed procedures for declaration and payment of taxes in accordance with requirements for administrative reform, enhancing the sense of responsibility of businesses towards the law, while strengthening inspection and supervision to ensure effective tax collection."

6. Clause 2 of Article 14 shall be amended and supplemented as follows:

"2. Notify the amount of tax due to the taxpayer as prescribed by the Government, urge the taxpayer to pay on time; if the taxpayer fails to pay within the deadline, notify the amount of tax due and the late payment penalty as stipulated in Clause 2 and Clause 3 of Article 17 of this Law; if the taxpayer still does not pay the full amount of tax and penalty as notified, have the right to apply the measures provided for in Clause 4 of Article 17 of this Law to ensure full payment of tax and penalty; if the measures mentioned above have been implemented but the taxpayer still does not pay the full amount of tax and penalty, transfer the file to the competent authority for handling according to the provisions of the law."

7. Supplement Point d to Clause 1 of Article 15 as follows:

"d) Declare selling price lower than 10% of the market price of the goods or services."

8. Article 16 shall be amended and supplemented as follows:

"Article 16Cases eligible for reduction or exemption of special consumption tax

1. Production facilities producing goods subject to special consumption tax encountering difficulties due to natural disasters, enemy attacks, or unexpected accidents may be considered for tax reduction or exemption.

2. Production and assembly plants manufacturing automobiles shall have their tax rates reduced according to the Special Consumption Tax Table prescribed in Article 7 of this Law as follows:

- In 2004, reduce by 70%.

- In 2005, reduce by 50%.

- In 2006, reduce by 30%.

- From 2007 onwards, pay the prescribed tax rate.

The Government shall specify in detail the implementation of tax reductions and exemptions as prescribed in this Article."

Article 2

This Law shall take effect from January 1, 2004.

Article 3

The Government shall promulgate detailed regulations and provide guidance on the implementation of this Law.

This Law was adopted by the National Assembly of the Socialist Republic of Vietnam, the 11th term, third session, on June 17, 2003.