Circular No. 39/1998/TT-BTC guiding import tax for movable assets returning to Vietnam from organizations and companies operating abroad.

CIRCULAR

Guidelines on import tax for assets repatriated to Vietnam by organizations and companies performing overseas missions
repatriation of organizations and foreign companies performing overseas missions 

Pursuant to Decree No. 54/CP dated August 28, 1993 of the Government detailing the implementation of the Law on Export, Import Tax, and the Law Amending and Supplementing Certain Provisions of the Law on Export Tax and Import Tax;

Pursuant to the guidance of the Prime Minister in Circular No. 432/CP-KTTH dated February 9, 1998;

The Ministry of Finance provides guidelines on the application of import tax for assets repatriated to Vietnam by organizations and companies performing overseas missions as follows:

I. OBJECTS AND SCOPE OF APPLICATION

1. Organizations and companies with assets being repatriated must be Vietnamese organizations and companies working, operating, or producing abroad after completing their missions and returning to Vietnam, including: embassies, representative offices, trade representatives, companies, branches of companies, units that have won bids for construction projects abroad when bringing assets back to Vietnam.

2. Repatriated assets must be fixed assets owned by the organization and company, recorded in the financial statements of the managing and using unit according to current financial regulations. These assets were purchased abroad and actually used in production, business operations, or activities of the unit abroad for at least six months.

II. DETERMINATION OF IMPORT TAX AND SPECIAL CONSUMPTION TAX (IF APPLICABLE) FOR REPAITED ASSETS OF ORGANIZATIONS AND COMPANIES

Repatriated assets of organizations and companies when imported into Vietnam must pay import tax and special consumption tax (if applicable). The taxable value for calculating import tax and special consumption tax (if applicable) is determined based on the remaining useful value of the asset at the time of importation.

The remaining useful value of the asset at the time of importation is determined based on the quality inspection results of the state-authorized inspection agency. In cases where the asset's history, usage period, depreciation rate, and actual condition do not match the inspection results, the tax collection agency has the right to request a re-inspection. The tax collection agency requesting the re-inspection shall bear the inspection costs if the re-inspection results match the original inspection results requested by the unit or enterprise; the unit or enterprise shall be responsible for paying the inspection costs if the re-inspection results do not match the original inspection results requested by the unit or enterprise.

Based on the quality inspection results of the repatriated assets by the state-authorized inspection agency, the customs authority determines the taxable value for import tax and special consumption tax (if applicable) in accordance with the principles stipulated in Circular No. 65 TC/TCT dated September 24, 1997 of the Ministry of Finance guiding the determination of the taxable value for import tax and special consumption tax for imported goods of entities previously exempted from taxes but now changing the reasons for tax exemption or reduction.

III. VIOLATION HANDLING:

Organizations and companies specified in Section I above, when importing, if they engage in false declarations or tax evasion, in addition to being required to pay all due import tax and special consumption tax, will be subject to penalties under the current Law on Import Tax and Law on Special Consumption Tax.

IV. IMPLEMENTATION

This Circular takes effect from the date of signature.

All previous provisions contrary to this Circular are hereby abolished. Any difficulties encountered during implementation should be promptly reported to the Ministry of Finance and the General Department of Taxation for review and appropriate amendments.