Circular No. 52/2000/TT-BTC provides tax exemptions and fee reductions for foreign experts participating in programs and projects funded by ODA in Vietnam. The benefits include exemption from import tax, special consumption tax, VAT, and initial registration fee for imported goods; exemption from personal income tax on income derived from implementing ODA programs and projects.
Scope of application
Foreign experts participating in programs and projects funded by official development assistance (ODA) in Vietnam.
Key points
- Foreign experts are exempted from import tax, special consumption tax, VAT, and initial registration fee for imported goods that are personal luggage within the specified limit.
- Foreign experts who reside in Vietnam for 183 days or more may be exempted from import tax on cars, motorcycles, and other items, exempted from special consumption tax, VAT, and initial registration fee for temporarily imported assets.
- Income of foreign experts from implementing ODA programs and projects in Vietnam is exempted from personal income tax during their working period in Vietnam.
- When the work period ends, temporarily imported cars and motorcycles must be re-exported or sold according to regulations on back taxes.
- Customs and Tax authorities implement tax exemption and fee reduction procedures based on the documentation provided by the project management agency.
🌐 Social impact of this document
- Positive impact: Helps foreign experts focus on their work without worrying about import costs and various taxes, enhancing the effectiveness of ODA programs.
- Negative impact: May cause inequality between foreign experts and domestic workers due to preferential benefits.
- Foreign experts benefit from tax exemptions and fee reductions, while Customs and Tax authorities have to handle complex procedures.
❓ Frequently asked questions
What imported items are foreign experts exempt from import tax on?
Foreign experts are exempt from import tax on goods that are personal luggage within the specified limit as stipulated in Decree No. 17/CP and Decree No. 79/1998/NĐ-CP. Additionally, foreign experts residing in Vietnam for 183 days or more may be exempt from import tax on cars, motorcycles, and other items as stipulated in this Circular.
During which period is the income of foreign experts from implementing ODA programs in Vietnam exempt from personal income tax?
Income of foreign experts from implementing ODA programs and projects in Vietnam is exempt from personal income tax during their working period in Vietnam.
According to which regulation must temporarily imported cars and motorcycles be re-exported when the work period ends?
When the work period ends, temporarily imported cars and motorcycles must be re-exported. If used improperly or sold in Vietnam, foreign experts must pay back taxes on import tax, special consumption tax, or VAT according to current tax laws.
How are foreign experts refunded if they have already paid taxes but later become eligible for tax exemption?
In cases where foreign experts are not required to pay taxes and initial registration fees as stipulated in this Circular but have already paid, refunds will be made. Refunds of paid taxes and fees will be processed according to current tax laws.
Which authority is responsible for reviewing the documentation and determining the amount of back taxes?
The Customs authority receiving declarations for back tax payments will review the documentation, determine the amount of back taxes, and collect the tax revenue into the state budget.
Full text
CIRCULAR
Guidelines for exempting taxes and fees for foreign experts implementing programs and projects using official development assistance (ODA) funds.
These guidelines apply to programs and projects utilizing ODA funds.
Pursuant to tax laws and tax decrees;
Pursuant to Decree No. 87/CP dated August 5, 1997 of the Government on the management and utilization of official development assistance (ODA) funds;
Pursuant to Decision No. 211/1998/QĐ-TTg dated October 31, 1998 of the Prime Minister promulgating the regulations for foreign experts implementing ODA-funded programs and projects in Vietnam;
The Ministry of Finance provides guidelines for exempting taxes and fees for foreign experts implementing ODA-funded programs and projects in Vietnam (hereinafter referred to as Foreign Experts) as stipulated in the regulations for foreign experts issued together with Decision No. 211/1998/QĐ-TTg dated October 31, 1998 of the Prime Minister as follows:
I. EXEMPTION OF TAXES AND FEES FOR FOREIGN EXPERTS
Foreign Experts are exempt from paying the following types of taxes and fees:
1. Import duties, special consumption taxes, and value-added taxes on personal luggage imported by Foreign Experts and their relatives according to the quota specified in Decree No. 17/CP dated February 6, 1995, and Decree No. 79/1998/NĐ-CP dated September 29, 1999 of the Government regarding the standard for duty-free personal luggage for travelers.
2. For Foreign Experts permitted to reside in Vietnam for 183 days or more:
2.1. Exempted from paying import duties on:
Goods listed from point 2 to point 16 of Appendix II attached to the regulations for foreign experts (only exempted once upon initial import).
One passenger car with up to 12 seats and one motorcycle under 175 cm³ temporarily imported.
One passenger car with up to 12 seats and one motorcycle under 175 cm³ temporarily imported to replace a previously imported car or motorcycle that was exempted from import duties in case of accidents, irreparable damage, loss not due to the fault of the Foreign Expert, or when the Foreign Expert has been permitted to reside in Vietnam for four years or more.
2.2. Exempted from paying special consumption taxes on goods imported within the scope mentioned in point 2.1, Section I of this Circular.
2.3. Not required to pay value-added taxes on goods imported within the scope mentioned in point 2.1, Section I of this Circular.
2.4. Exempted from paying registration fees when registering the right to use assets such as temporarily imported cars and motorcycles mentioned in point 2.1, Section I of this Circular.
3. Exempted from individual income tax on income earned by Foreign Experts and their relatives from implementing ODA programs and projects in Vietnam during their working period in Vietnam.
II. DOCUMENTATION AND PROCEDURES FOR EXEMPTION OF TAXES AND FEES
1. For personal luggage imported:
The customs authority at the place where Foreign Experts and their relatives handle import procedures shall implement tax exemptions and refrain from collecting import duties, special consumption taxes, and value-added taxes on personal luggage as guided in Circular No. 07/1998/TT-TCHQ dated October 14, 1998 of the General Department of Customs guiding the implementation of Decree No. 17/CP, Decree No. 79/1998/NĐ-CP of the Government on the standard for duty-free personal luggage for travelers and Circular No. 89/1998/TT-BTC dated June 27, 1998 of the Ministry of Finance guiding the implementation of Decree No. 28/1998/NĐ-CP dated May 11, 1998 of the Government detailing the implementation of the Law on Value-Added Tax.
2. For goods imported by Foreign Experts permitted to reside in Vietnam for 183 days or more as mentioned in point 2, Section I of this Circular:
2.1. Foreign Experts must present to the customs authority at the place of importation the following documents to avoid paying import duties, special consumption taxes, or value-added taxes including:
A letter from the project management agency requesting exemption from import duties, special consumption taxes, and value-added taxes on imported goods of Foreign Experts;
Confirmation from the Ministry of Planning and Investment that the Foreign Expert participates in implementing ODA programs and projects, specifying: name, nationality, passport number, duration of residence in Vietnam, income from implementing programs and projects in Vietnam, list of accompanying relatives... (a copy stamped by the project management agency);
A statement or confirmation from the police or insurance agency where the accident or theft of the temporarily imported car or motorcycle occurred, which does not require payment of taxes - a copy stamped by the project management agency (applicable in cases where a temporarily imported car that does not require payment of taxes is lost or irreparably damaged);
Documents proving the legitimate origin of imported goods.
The customs authority at the place where the Foreign Expert handles import procedures shall refrain from collecting import duties, special consumption taxes, and value-added taxes and clearly note on the export/import declaration form "goods exempted from taxes according to the regulations for foreign experts."
2.2. The documents presented to the local tax authority where the project implementation agency is located to avoid paying registration fees are similar to those presented to the customs authority as mentioned in point 2.1, Section II of this Circular, supplemented with the temporary import/export permit for the temporarily imported car or motorcycle issued by the customs authority at the place of importation.
The tax authority shall refrain from collecting registration fees for cars and motorcycles of Foreign Experts and clearly note the reason for non-payment of registration fees on the registration fee declaration form: "Exempted from paying registration fees according to the regulations for foreign experts."
3. For income from implementing programs and projects in Vietnam:
Foreign Experts must present to the local tax authority where the project implementation agency is located the following documents to be exempted from individual income tax:
A letter from the project management agency requesting exemption from individual income tax on income from implementing ODA programs and projects by Foreign Experts;
Confirmation from the Ministry of Planning and Investment that the Foreign Expert participates in implementing ODA programs and projects, specifying: name, nationality, passport number, duration of work in Vietnam, income received, list of accompanying relatives... (a copy stamped by the project management agency);
Relevant documents related to income of Foreign Experts that are not subject to taxation.
The tax authority shall not collect personal income tax on income from the implementation of programs and projects in Vietnam by foreign experts and issue a certificate exempting personal income tax for foreign experts (as attached to this Circular).
III. COLLECTING BACK TAXES
Imported automobiles and motorcycles are exempt from taxes. Upon expiration of their working period in Vietnam, they must be re-exported. If they are misused or sold in Vietnam, import duties, special consumption taxes, or VAT must be paid retrospectively according to current tax laws, except when foreign experts sell imported automobiles or motorcycles to other beneficiaries of diplomatic exemptions under the Foreign Expert Regulations or diplomatic exemptions replacing permitted imports.
Within two working days from the date of sale, foreign experts must declare and pay back import duties, special consumption taxes, or VAT on the goods sold. Procedures for declaration and determination of back taxes are guided by Circular No. 172/1998/TT-BTC dated December 22, 1998, issued by the Ministry of Finance. The basis for calculating back VAT is the selling price including import duties and the applicable VAT rate according to the Law on Value Added Tax for the sold items subject to VAT. The Customs Authority receiving the declaration for back tax payment will check the documents, determine the amount of back taxes due, and collect the tax into the State budget.
Foreign experts purchasing automobiles or motorcycles are exempt from taxes and stamp duty as stipulated in Point 2, Section I of this Circular. Documents presented to the tax authority to avoid stamp duty do not include import documents but instead a transfer document confirmed by the project management agency.
IV. IMPLEMENTATION
This Circular takes effect 15 days after the date of signature.
Foreign experts who have been granted a confirmation certificate by the Ministry of Planning and Investment before the issuance of this Circular are exempt from taxes and stamp duty as directed in this Circular. In cases where foreign experts are exempt from taxes and stamp duty as prescribed in this Circular but have already paid them, refunds will be made. Refunds of paid taxes and stamp duty will be carried out according to current tax laws.
During implementation, if any issues arise, units are advised to report to the Ministry of Finance for consideration and decision./.
CERTIFICATE OF EXEMPTION FROM PERSONAL INCOME TAX ON INCOME FROM THE IMPLEMENTATION OF ODA PROGRAMS AND PROJECTS IN VIETNAM BY FOREIGN EXPERTS
Respectfully submitted to:(Name of the Project Management Agency)
Pursuant to Clause 2, Article 7 of the Foreign Expert Regulations promulgated by Decision No. 211/1998/QĐ-TTG dated October 31, 1998, of the Prime Minister;
Pursuant to the guidance provided in Circular No. ... dated ... issued by the Ministry of Finance regarding the exemption of taxes and fees for foreign experts implementing programs and projects using official development assistance (ODA) funds;
Pursuant to the request of ... (name of the project management agency) at Document No. ... dated month day year concerning the exemption of personal income tax for Mr./Ms. ... as a foreign expert under the Foreign Expert Regulations;
The Provincial Tax Department of ... confirms that Mr./Ms. ... nationality: ..., passport number ..., is exempt from personal income tax in Vietnam for an income amount of: ..., for implementing ODA programs and projects in Vietnam during the period from ... to ...
Note:. DIRECTOR PROVINCIAL TAX DEPARTMENT ...
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