Circular No. 20/1998/TT-BTC stipulates the taxable value for special consumption tax on foreign brand cigarettes produced and consumed in Vietnam. The selling price serving as the basis for determining the tax value must not be lower than 10% of the average price sold by foreign cigarette branches.
Scope of application
Cigarette companies and factories under the Vietnam Tobacco Corporation; foreign cigarette branches in Vietnam; Tax authorities.
Key points
- Cigarette companies and factories under the Vietnam Tobacco Corporation → shall determine the selling price serving as the basis for calculating tax at no less than 10% of the average price sold by foreign cigarette branches.
- Foreign cigarette branches in Vietnam → must sell cigarettes at a price no less than 10% of the average price sold by foreign cigarette branches.
- Tax authorities → have the authority to set the taxable value if the producing company or factory does not determine a reasonable price.
🌐 Social impact of this document
- Positive impact: Ensuring fairness in taxing imported cigarettes, preventing the sale of cigarettes at excessively low prices that harm the state.
- Negative impact: It may increase production and distribution costs for cigarettes, affecting the profits of tobacco businesses.
❓ Frequently asked questions
What is the minimum selling price serving as the basis for determining the tax value?
Not lower than 10% of the average price sold by foreign cigarette branches (Article 1).
Which authority has the right to set the taxable value?
The tax authority has the right to set the taxable value if the producing company or factory does not determine a reasonable price (Article 1).
When does this circular take effect?
This circular takes effect 15 days from the date of issuance (Article 2).
When are the temporary regulations on the taxable value for foreign brand cigarettes abolished?
The temporary regulations of the Ministry of Finance on the taxable value for foreign brand cigarettes produced and consumed in Vietnam will be abolished from the date this circular takes effect (Article 2).
How must cigarette companies and factories under the Vietnam Tobacco Corporation determine their selling price?
Cigarette companies and factories under the Vietnam Tobacco Corporation must determine the selling price at no less than 10% of the average price sold by foreign cigarette branches (Article 1).
Full text
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MINISTRY OF FINANCE |
SOCIALIST REPUBLIC OF VIETNAM |
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NUMBER: 20/1998/TT-BTC |
HA NOI, FEBRUARY 13, 1998 |
CIRCULAR
GUIDELINES ON THE TAXABLE VALUE FOR SPECIAL CONSUMPTION TAX ON FOREIGN BRAND TOBACCO PRODUCTS PRODUCED AND CONSUMED IN VIETNAM ISSUED BY THE MINISTRY OF FINANCE NUMBER 20/1998/TT-BTC ON FEBRUARY 13, 1998
BASED ON THE LAW ON SPECIAL CONSUMPTION TAX AND THE LAW AMENDING AND SUPPLEMENTING CERTAIN PROVISIONS OF THE LAW ON SPECIAL CONSUMPTION TAX;
BASED ON DECREE NO. 97/CP OF DECEMBER 27, 1995 OF THE GOVERNMENT PROVIDING DETAILS FOR THE IMPLEMENTATION OF THE LAW ON SPECIAL CONSUMPTION TAX AND THE LAW AMENDING AND SUPPLEMENTING CERTAIN PROVISIONS OF THE LAW ON SPECIAL CONSUMPTION TAX; AND CIRCULAR NO. 98 TC/TCT OF DECEMBER 30, 1995 OF THE MINISTRY OF FINANCE GUIDING THE IMPLEMENTATION OF DECREE NO. 97/CP OF DECEMBER 27, 1995 OF THE GOVERNMENT PROVIDING DETAILS FOR THE IMPLEMENTATION OF THE LAW ON SPECIAL CONSUMPTION TAX AND THE LAW AMENDING AND SUPPLEMENTING CERTAIN PROVISIONS OF THE LAW ON SPECIAL CONSUMPTION TAX;
THE MINISTRY OF FINANCE GUIDES THE TAXABLE VALUE FOR SPECIAL CONSUMPTION TAX ON FOREIGN BRAND TOBACCO PRODUCTS PERMITTED TO BE PRODUCED AND CONSUMED IN VIETNAM AS FOLLOWS:
1. THE SALES PRICE USED AS THE BASIS FOR DETERMINING THE TAXABLE VALUE FOR SPECIAL CONSUMPTION TAX ON FOREIGN BRAND TOBACCO PRODUCTS PRODUCED BY COMPANIES AND FACTORIES UNDER THE VIETNAM TOBACCO CORPORATION IS THE PRICE AT WHICH THESE COMPANIES AND FACTORIES SELL TO FOREIGN TOBACCO BRANCHES FOR SALE IN VIETNAM, BUT IT MUST NOT BE LOWER THAN 10% OF THE AVERAGE PRICE AT WHICH FOREIGN TOBACCO BRANCHES SELL THEIR PRODUCTS. IN CASE THE PRODUCING COMPANIES AND FACTORIES DO NOT ESTABLISH A REASONABLE TAXABLE PRICE, THE TAX AUTHORITY SHALL DETERMINE THE TAXABLE PRICE BY SUBTRACTING 10% FROM THE AVERAGE SELLING PRICE OF FOREIGN TOBACCO BRANCHES.
THIS CIRCULAR SHALL TAKE EFFECT 15 DAYS AFTER ITS DATE OF ISSUE AND ABOLISH ANY TEMPORARY GUIDELINES OF THE MINISTRY OF FINANCE REGARDING THE TAXABLE VALUE FOR FOREIGN BRAND TOBACCO PRODUCTS PRODUCED AND CONSUMED IN VIETNAM FROM THE DATE THIS CIRCULAR TAKES EFFECT.
ANY DIFFICULTIES ENCOUNTERED DURING THE IMPLEMENTATION OF THIS CIRCULAR SHOULD BE REPORTED PROMPTLY TO THE MINISTRY OF FINANCE FOR STUDY AND ADDITIONAL GUIDANCE./.
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Vu Mong Giao (Signed) |
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