Circular No. 39/TC-TCT guiding the implementation of Decision No. 156-HĐBT and Decision No. 157-CT dated May 16, 1991 of the Council of Ministers.

CIRCULAR

Guidelines for implementing Decision No. 156/HĐBT

and Decision No. 157/CT dated May 16, 1991 of the Council of Ministers

Implementing Decision No. 156/HĐBT dated May 16, 1991 of the Council of Ministers on amending and supplementing the regime for goods and foreign currency of individuals going abroad for labor cooperation, expert cooperation, work, and study to be brought with them or sent back to Vietnam, and Decision No. 157-CT dated May 16, 1991 of the Chairman of the Council of Ministers on the regime for goods and foreign currency of overseas Vietnamese returning to Vietnam to visit family and of Vietnamese residing abroad sending back to help relatives. The Ministry of Finance provides guidance on the implementation of specific provisions in the aforementioned decisions as follows:

I. REGARDING INDIVIDUALS GOING ABROAD FOR LABOR COOPERATION, EXPERT COOPERATION, STUDY, AND WORK.

1. Regarding the subjects exempted from import tax: According to Article 1 and Article 3 of Decision No. 156/HĐBT dated May 16, 1991 of the Council of Ministers, individual citizens of Vietnam dispatched by the State for labor cooperation, expert cooperation, work, and short-term or long-term study abroad, regardless of the country, are exempted from non-commercial import tax on goods they bring with them or send back to Vietnam according to the following tax exemption quotas:

2. Regarding tax exemption quotas and methods of determination:

a) Number of times goods can be sent or brought back to Vietnam exempt from tax: During the period dispatched by the State for labor cooperation, expert cooperation, work, and study abroad, each person may only enjoy one tax exemption per year (from January 1 to December 31), regardless of whether they bring or send goods multiple times during that year. For those who have been abroad for several years and did not send or bring goods back in previous years, from now on, they will also only be exempted once per year through either bringing or sending goods back.

b) Tax exemption quota for goods:

The tax exemption quota for goods in each time of sending or bringing back to Vietnam mentioned in point a above includes quotas based on item type and value, specifically:

If the goods brought or sent back include two motorcycles or televisions and video players, then one motorcycle or one television and one video player can be exempted from tax. In cases where the sender only brings one television or one video player, they can choose to be exempted from tax on two televisions or two video players, depending on their choice. Other items, if permitted for import, must pay non-commercial import tax (for items listed in the tariff).

If the goods brought or sent back do not include motorcycles or televisions and video players, the sender is exempted from tax based on the value of the consignment at the following levels (the remaining goods must pay non-commercial import tax):

Value of $1,000 for encouraged imports.

Value of $500 for restricted imports.

If the consignment includes both encouraged and restricted imports, the sender can choose one of the two tax exemption quotas. If neither type of goods brought or sent back reaches the tax exemption quota, the two types of goods can be combined to meet the quota for tax exemption. The combination of the two types of goods is determined based on the ratio of 1 USD of restricted goods equaling 2 USD of encouraged imports.

Example: Mr. Nguyen Van A went to Germany for labor cooperation and sent back a consignment valued at $1,200 in the first year, including $800 worth of encouraged imports and $400 worth of restricted imports.

If Mr. A chooses to be exempted from tax on encouraged imports, in addition to the $800 worth of encouraged imports being exempted, he can also be exempted from tax on $100 = ($1,000 - $800) / 2 worth of restricted imports. Thus, the total value of goods exempted from tax for Mr. A is $900.

Conversely, if Mr. A chooses to be exempted from tax on restricted imports, according to the ratio of 1/2, in addition to the $400 worth of restricted imports, he can also be exempted from tax on $200 = ($500 - $400) x 2 worth of encouraged imports. Thus, the total value of goods exempted from tax for Mr. A is $600.

Method of determining the tax exemption quota: Based on the inventory list of goods brought or sent back classified according to encouraged and restricted imports (the list of these two types of goods is defined by the Ministry of Commerce). Based on the import tax price list for non-commercial goods issued by the Ministry of Finance, customs authorities calculate the value of the goods listed. At the same time, based on the exchange rate between Vietnamese Dong and USD at the time of inspection and the tax exemption quota, the total value of goods exempted from tax in Vietnamese Dong is determined.

On this basis and upon the request of the sender, the customs authority compares to determine the specific quantity of goods exempted from tax according to the quota for the sender.

d) Regarding the time limit for paying tax and confiscation of goods exceeding the quota for motorcycles, televisions, and video players: Within three months from May 20, 1991, for motorcycles, televisions, and video players exceeding the quota when arriving at the border, the sender or recipient must pay non-commercial import tax. From August 21, 1991 onwards, all motorcycles, televisions, and video players brought back exceeding the quota will be considered as illegal imports and confiscated for handling according to current regulations.

3. Bringing or sending foreign currency back to purchase tax-exempt goods:

According to Decision No. 156-HĐBT dated May 16, 1991 of the Council of Ministers, all Vietnamese going abroad for labor, expertise, work, or study are only exempted from tax according to the quotas guided above.

For Vietnamese workers who recently returned from Iraq, they still follow the provisions of Point 4 of Circular No. 1058-PPLT dated April 9, 1991 of the Council of Ministers' Office regarding tax-exempt purchases. Sales of tax-exempt goods to these groups are carried out in accordance with the spirit of Circular No. 406-TC-TCT/NV3 dated May 30, 1991 of the General Department of Taxation.

For Vietnamese workers in Germany who returned before May 20, 1991, temporarily suspended pending a decision from the Council of Ministers.

II. REGARDING GOODS OF VIETNAMESE OVERSEAS BRANCHES CARRIED WHEN RETURNING TO THE COUNTRY TO VISIT FAMILY AND OF VIETNAMESE RESIDENTS ABROAD SENT BACK TO ASSIST RELATIVES.

1. Pursuant to Decision No. 157-CT dated May 16, 1991 of the Chairman of the Council of Ministers, all goods permitted for import carried by Vietnamese overseas branches when returning to the country to visit family and sent back by Vietnamese residents abroad to assist relatives must pay non-trade import tax and customs fees. When visiting family, personal luggage and items according to the standard defined by Customs are exempt from import tax.

2. The collection of non-trade import tax on goods permitted for import by the above subjects shall be implemented in accordance with the provisions of Decree No. 391-HĐBT dated November 10, 1990 of the Council of Ministers and Circular No. 62-TCT/CT dated December 10, 1990 of the Ministry of Finance. For goods that are materials, equipment, machinery serving production brought back by Vietnamese overseas branches and Vietnamese residents abroad, based on the State's import encouragement policy at each time, the Ministry of Finance will consider exemptions and reductions of non-trade tax for specific cases.

III. IMPLEMENTATION

1. The exemption of tax on goods carried or sent back by Vietnamese going abroad for labor cooperation, expert cooperation work, and study shall be organized and implemented by the Customs Department in accordance with the tax exemption quota specified in Decision No. 156-HĐBT and this Circular.

The Ministry of Finance assigns the General Tax Department to coordinate in monitoring and inspecting the implementation of the above regulations by the Customs Department.

2. This Circular replaces previous guiding documents of the Ministry of Finance regarding import tax on goods imported by the above subjects./.