Circular No. 68/1998/TT-BTC provides detailed regulations on the taxpayers of freight tax and their obligation to declare and pay taxes for foreign transport organizations and individuals using ships to conduct cargo transportation at Vietnamese seaports.
Scope of application
Foreign transport organizations and individuals using ships owned by themselves or leased from others, including cases where they do not own ships but engage in cargo transportation business from Vietnamese seaports to foreign seaports or between Vietnamese seaports.
Key points
- Foreign transport organizations and individuals must declare and pay freight tax for all cargo transportation activities from Vietnamese seaports to foreign seaports or between Vietnamese seaports.
- The ship owner has the responsibility to accurately declare the taxable revenue for freight tax, provide complete relevant documents to the agency acting as agent for the purpose of determining the amount of freight tax payable.
- Payment of freight tax must be recorded on the tax receipt for freight tax issued by the agency acting as agent for collecting and remitting freight tax on behalf of foreign transport organizations and individuals.
- If the regulations on declaration and payment of tax are not complied with, foreign transport organizations and individuals will be subject to recovery of unpaid taxes and penalties under the Law on Business Income Tax and the Law on Corporate Income Tax.
🌐 Social impact of this document
- Positive impact: Ensuring uniform and transparent implementation of freight tax collection for foreign transport organizations and individuals, increasing revenue for the state budget.
- Negative impact: It may impose additional legal costs and administrative procedures on foreign transport enterprises.
❓ Frequently asked questions
What regulations must foreign transport organizations and individuals comply with?
Foreign transport organizations and individuals must accurately declare the taxable revenue for freight tax and pay taxes according to the regulations. They also have the responsibility to provide complete relevant documents to the agency acting as agent.
What consequences will foreign transport organizations and individuals face if they do not comply with the regulations on declaration and payment of tax?
If foreign transport organizations and individuals do not comply with the regulations on declaration and payment of tax, they will be subject to recovery of unpaid taxes and penalties under the Law on Business Income Tax and the Law on Corporate Income Tax.
Who is responsible for declaring and paying freight tax?
The ship owner has the responsibility to accurately declare the taxable revenue for freight tax and pay taxes according to the regulations. They also have the responsibility to provide complete relevant documents to the agency acting as agent.
How is the payment of freight tax carried out?
Payment of freight tax must be recorded on the tax receipt for freight tax issued by the agency acting as agent for collecting and remitting freight tax on behalf of foreign transport organizations and individuals.
To whom does this circular apply?
This circular applies to all foreign transport organizations and individuals using ships owned by themselves or leased from others to conduct cargo transportation from Vietnamese seaports to foreign seaports or between Vietnamese seaports.
Full text
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MINISTRY OF FINANCE |
SOCIALIST REPUBLIC OF VIETNAM |
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Number: 68/1998/TT-BTC |
Hanoi, May 19, 1998 |
CIRCULAR
Supplemental Guidance on Certain Provisions of Circular No. 85-TC/TCT dated October 24, 1994 of the Ministry of Finance
After implementing Circular No. 85-TC/TCT dated October 24, 1994 of the Ministry of Finance regarding "Guidance on the Collection of Freight Tax for Foreign Ships Engaged in Cargo Transport at Vietnamese Sea Ports," some issues have arisen that require clarification to ensure uniform implementation. The Ministry of Finance hereby provides additional guidance as follows:
1. Regarding the Tax Payers:
According to point 1, Section I of Circular No. 85-TC/TCT dated October 24, 1994 of the Ministry of Finance, the taxpayers subject to freight tax are all organizations and individuals from foreign countries using ships owned by themselves or leased from others, including cases where there is no ship but they engage in cargo transport activities from Vietnamese sea ports to foreign sea ports or between Vietnamese sea ports, whether directly transporting goods or indirectly through other foreign transportation units which bear legal responsibility for the goods of the consignor.
2. Regarding the Obligation to Declare and Pay Taxes:
According to point 2, Section IV of Circular No. 85-TC/TCT, the obligation to declare and pay taxes applies to ship owners, including foreign transportation organizations and individuals when entering Vietnamese ports to carry out export cargo transport or cargo transport between Vietnamese ports, who must accurately declare the taxable revenue from freight, provide all relevant documents to the agency for their basis in determining the freight tax payable.
Payment or acceptance of payment of the freight tax due must be recorded on the tax receipt for freight issued by the agency responsible for collecting and remitting the freight tax on behalf of foreign transportation organizations and individuals.
Foreign transportation organizations and individuals failing to comply with the above provisions shall be subject to back taxes and penalties under the Law on Value Added Tax and the Law on Corporate Income Tax.
Taxpayers, withholding organizations, and tax authorities are responsible for complying with the guidance provided in Circular No. 85-TC/TCT dated October 24, 1994 of the Ministry of Finance and the specific guidance provided in this Circular.
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DEPUTY MINISTER (Signed) Pham Van Trong
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