Resolution No. 487-NQ/QHK4 On the Issuance of the Goods Tax Regulation

RESOLUTION

OF THE STANDING NATIONAL ASSEMBLY

NATIONAL ASSEMBLY STANDING COMMITTEE

SOCIALIST REPUBLIC OF VIET NAM

WHEREAS Article 41 and Article 53 of the Constitution of the Socialist Republic of Vietnam;

WHEREAS Resolution dated April 10, 1965 of the National Assembly;

AFTER HEARING the Council of Ministers' report on amending the Goods Tax Regulation to suit new circumstances and tasks;

AFTER HEARING the opinions of the Planning and Budget Committee and the Law Project Committee of the National Assembly;

RESOLUTION:

1- From now on, goods tax shall be determined according to the Regulation and Tax Table attached hereto.

2- The Council of Ministers shall implement this resolution.

CHARTER

GOODS TAX

2. Individuals who have registered as the principal investigator of a Research Project or Pilot Production Project and those participating in its implementation shall not participate in the Evaluation and Selection Council for that Research Project or Pilot Production Project (hereinafter referred to as the Council). In necessary cases, members of the Council may be staff members of the organization registering as the principal investigator of the Research Project or Pilot Production Project, but not more than one person and they cannot serve as Chairperson, Vice-Chairperson, or reviewing member.

Article 1

Goods tax shall be determined based on the following principles:

- Encouraging the development of small-scale industries and handicrafts in accordance with the Party's and State's policies, contributing to implementing industry planning, guiding people to consume reasonably;

- Contributing to strengthening market management and stabilizing prices, helping state commerce grasp sources of goods, ensuring necessary needs of the people;

- Mobilizing fair and reasonable contributions from the people.

Article 2

Goods tax applies to the types of goods listed in the Tax Table attached hereto, including:

- Goods produced by collective organizations (production cooperatives, production groups...) and individual producers who produce or extract and sell directly to the market (not under processing or purchase systems of the State).

- Goods entering the country by individuals in the form of luggage or through international transport routes as gifts or presents exceeding the tax-exempt standard.

Article 3

Each item only pays goods tax once from production until consumption.

Depending on the item, goods tax shall be paid by the producer, extractor, seller, or importer.

II. GOODS SUBJECT TO TAX, TAX RATE, AND BASIS FOR CALCULATION

Article 4

Goods listed in the Tax Table attached hereto must pay goods tax at the rates specified in Articles 6 and 7 below.

For each type of goods listed in the Tax Table, the Council of Ministers will specify the specific items that must pay goods tax.

Article 5

For ethnic minority areas, the Council of Ministers may decide not to collect taxes on certain goods for the time being, aiming to address initial difficulties in production in those areas.

Article 6

Goods tax is levied based on the value of the goods (referred to as taxable value) and the applicable tax rate listed in the Tax Table. The taxable value is determined by the provincial or centrally-administered city financial authority:

- For domestically-produced goods, the taxable value is the average retail price on the market minus 10%; if it is a new product without a retail price on the market, then the taxable value is taken from a similar product with a retail price.

- For imported goods, the taxable value is the higher price, if the state trade sells the goods at two prices; if the state trade only sells the goods at one price, then the taxable value is the average retail price on the market of that product, or of a similar product with a retail price.

, Clause 1, Clause 2 Article 7a of this Regulation.

For goods produced using raw materials purchased from the State and sold to state enterprises, in cases where the state enterprise does not purchase all of them, the goods tax on the remaining products directly sold to the market by the production unit will be the difference between the free market retail price and the directed purchase price of the state enterprise, plus the necessary circulation fee depending on the type of goods.

Article 8

For producers or consumers illegally engaging in goods under unified state management, no goods tax will be collected but they must be handled according to current laws regarding illegal production and consumption of goods.

Article 9

Exemptions and reductions of tax for specific cases must be decided by the Minister of Finance.

III. TAX COLLECTION AND DECLARATION PROCEDURES, GOODS TRANSPORTATION

Article 10

The task of collecting goods tax is assigned to the collection organizations of the finance sector.

For imported goods, the Ministry of Finance may delegate to the customs authorities responsible.

Article 11

Tax collectors must be honest, impartial, and comply strictly with tax policies and laws.

While performing their duties, tax collectors must have appropriate conduct and attitude; they must present identification, issue receipts when collecting taxes, and fully implement state regulations on inspection, temporary detention, confiscation, storage, and handling of goods and evidence.

Tax collectors are protected by law while performing their duties; if they achieve merit, they will be rewarded according to the general system of the State; if they violate the above regulations on performing tax collection duties, they will be disciplined administratively or criminally depending on the severity of the violation.

Article 12

For domestically-produced goods, goods tax can be collected in one of three ways:

- Collecting immediately when the goods are produced and warehoused,

- Collecting when the goods are removed from the warehouse for sale on the market,

- Collecting according to declared production volume over a period.

The method of collecting tax for each establishment and item is determined by the finance authority.

For imported goods, goods tax is collected immediately upon import.

Article 13

Goods that have already paid tax must have a tax payment certificate issued by the tax collection authority.

When transporting goods, a tax payment certificate must accompany the goods.

Article 14

Production and business establishments dealing with goods subject to goods tax must comply with state regulations on declaration, opening workshops or stores, accounting records, tax payment, and goods transportation.

Those liable for tax must declare truthfully, provide necessary documents, and facilitate easy inspections by tax collectors of books, vouchers, goods, warehouses, and must not refuse or delay such inspections.

IV. REWARD AND PENALTY MATTERS

Article 15

Handling violations of the Goods Tax Regulation is regulated as follows:

1. If the provisions on declaration and accounting records as stipulated in Article 14 of this Regulation are not followed, a fine of 10 to 100 dong will be imposed; if the matter is serious or repeated, a fine up to 1000 dong may be imposed.

2. If tax is not paid within the prescribed deadline, an additional 1% of the overdue tax amount must be paid for each day of delay.

3. In case of tax evasion or smuggling, such as false declaration of quantity, price, quality of goods, storage, transportation, and sale without valid documentation, inaccurate record-keeping, penalties may be imposed from one to two times the amount of fraudulent tax or confiscation of part or all of the smuggled goods, or both. In cases of repeat offenses, the penalty may be up to three times the amount of fraudulent tax and all smuggled goods will be confiscated. Smuggled goods (excluding those already confiscated) must still be subject to taxation after payment of fines.

4. If producing taxable goods without authorization, penalties shall be imposed from one to three times the amount of fraudulent tax and all fraudulent goods will be confiscated. In cases of repeat offenses, the penalty may be up to five times the amount of fraudulent tax and all fraudulent goods will be confiscated.

5. Additionally, if there are serious actions such as repeated offenses, falsification of documents, organized smuggling, resistance to tax collection, then prosecution before the People's Court will be initiated.

Article 16

The authority to handle violations of this Tax Regulation is as follows:

- The Head of the Tax Station has the right to impose fines up to fifty dong;

- The Head of the County, City District, or Ward Finance Department has the right to impose fines up to one thousand dong, or both fines and confiscation of goods up to one thousand dong;

- The Director of the Department, the Head of the Provincial Finance Office has the right to impose fines over one thousand dong, or both fines and confiscation of goods over one thousand dong.

If the party appeals, the Administrative Committee at the same level will examine and decide.

While waiting for the appeal to be resolved, the person fined must still pay the fine according to the decision of the imposing agency.

Article 17

Every citizen has the duty to assist financial agencies in implementing tax policies and detecting fraudulent tax activities.

Those who help financial agencies will be rewarded.

Those who obstruct tax collection may be criticized, warned, or prosecuted before the People's Court, depending on the severity of the offense.

V IMPLEMENTATION PROVISIONS

Article 18

This Regulation replaces previous regulations on taxes applicable to collective and individual economies.

Article 19

The Government Council will provide detailed implementation guidelines for this Regulation.

This Regulation was adopted by the Standing Committee of the National Assembly in Hanoi on September 26, 1974.

DUTY SCHEDULE

GOODS TAX

Name of Goods Tax Rate (%)

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I- Food and Beverages, Tobacco

1. Cooking Oil 10

2. Vermicelli 10

3. Shrimp Paste 10

4. Fish Sauce, Dipping Sauce (soy sauce, maggi, xiang xiu) 15

5. Betel Nut (fresh or dried) 20

6. Fresh Tea 20

7. Dried Tea 30

8. Honey, Various Types of Sugar 25

9. Machine Cream 25

10. Special Seafood: bird's nest, abalone,

sea cucumber, conch 30

11. Pepper 40

12. Hand-Rolled Cigarettes, Threaded Cigarettes 40

13. Various Fruit-Based Wines 40

II- Vegetable Oils Used in Industry

1. Castor Oil, Sesame Oil (Vegetable Oil) 20

III- Clothing

1. Textiles Made from Waste Yarns That State-Owned Enterprises Do Not Use 15

2. Textiles Made from Silk and Cotton 20

3. Textiles Made from Velvet, Wool, and Cashmere 25

4. Textiles Made from Cotton Yarn 20

5. Textiles Made from Silk Yarn 40

IV- Daily Use Items (1)

1. Various Types of Paper 10

2. Items Made from Horn, Mother-of-Pearl 10

3. Items Made from Granite 15

4. Ordinary Porcelain and Glazed Earthenware 10

5. Ordinary Glassware 10

6. Ordinary Wood Products 10

7. Expensive Wood Products (mirror cabinets, tea tables,

rosewood beds, sofas, etc.) 20

8. Musical Instruments and Accessories 15

9. Ordinary Iron, Aluminum Products 15

10. Ordinary Tin, Steel, Galvanized Iron, Cast Iron Products 15

11. Small Metal Items with Plating Such As

nail clippers, lighters, utility knives,

keychains, etc. 20

12. Copper Items 20

13. Rubber Items (including recycled rubber),

Leather, Artificial Leather 15

14. Plastic and Nylon Items (including recycled plastic,

nylon) 20

15. Household Electrical Appliances (electric irons,

electric stoves, electric heaters, etc.) 20

16. Various Decorative Craft Items Made of Porcelain, Ceramic, Glass, Ivory,

Bone, Bamboo, Lacquer 20

17. Bicycle Parts 15

18. Motorcycle Parts 20

19. Sewing Machine Parts 20

20. Watch Parts 30

V- Other Items

1. Candles 40

2. Incense, Paper Money, Fireworks 50

3. Cosmetics: powder, wax, perfume 50

4. Playing Cards 50

VI- Items Permitted to Enter the Country with Individuals Under the Form

of Luggage or Imported Through International Transportation

as Gifts or Presents Exceeding the Tax-Free Allowance

1. Cloth, Ready-Made Garments 25

2. Wool, Cashmere 40

3. Various Fountain Pens, Eyeglasses 20

4. Typewriters 20

5. Various Electrical and Electronic Items and Accessories 20

7. Various Audio Equipment and Accessories 50

8. Various Desk Clocks 25

9. Various Wristwatches 50

10. Various Sewing Machines and Accessories 30

11. Various Refrigeration Units 30

12. Various Motorcycles and Accessories 30

13. Various Bicycles and Accessories 40

14. Various Cameras and Accessories 40

15. Various Canned Goods 25

16. Monosodium Glutamate 50

17. Various Alcoholic Beverages 50

(1) Except for children's toys which are exempt from taxation.

15. Canned goods 25

16. Monosodium glutamate 50

17. Types of alcohol 50

(1) Exempted from taxation are children's toys.