Circular No. 68/1998/TT-BTC guiding the implementation of the collection of freight tax for foreign ships engaged in cargo transportation at Vietnamese seaports, supplementing certain provisions of Circular No. 85 TC/TCT issued in 1994. This document identifies taxpayers and their tax declaration obligations, and specifies the consequences of non-compliance.
Scope of application
Foreign organizations and individuals using ships owned by themselves or leased from others to engage in cargo transportation from Vietnamese seaports to foreign seaports or between Vietnamese seaports.
Key points
- The entities subject to the payment of freight tax include all foreign organizations and individuals using ships owned by themselves or leased for cargo transportation from Vietnamese seaports to foreign seaports or between Vietnamese seaports.
- Ship owners have the responsibility to declare accurately the revenue subject to freight tax and provide complete relevant documentation to the agency, serving as the basis for 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.
- Foreign transport organizations and individuals failing to comply with the above regulations will be subject to back taxes and penalties under the Law on Value Added Tax and the Law on Income Tax.
- The tax authority is responsible for supervising the implementation of the guidelines set forth in Circular No. 85 TC/TCT issued in 1994 and this circular.
🌐 Social impact of this document
- Positive impact: Ensuring the correct and full collection of freight tax from foreign ships, increasing revenue for the state budget.
- Negative impact: It may cause difficulties in cargo transportation if organizations and individuals fail to comply with tax declaration and payment regulations.
❓ Frequently asked questions
Who must pay the freight tax?
All foreign organizations and individuals using ships owned by themselves or leased for cargo transportation from Vietnamese seaports to foreign seaports or between Vietnamese seaports.
What responsibilities does the ship owner have?
The ship owner must declare accurately the revenue subject to freight tax and provide complete relevant documentation to the agency, serving as the basis for determining the amount of freight tax payable.
How is the payment of freight tax made?
Payment of freight tax must be recorded on the tax receipt for freight tax issued by the agency.
What penalties will foreign transport organizations and individuals face if they do not comply with the regulations?
Foreign transport organizations and individuals failing to comply with the above regulations will be subject to back taxes and penalties under the Law on Value Added Tax and the Law on Income Tax.
Which authority is responsible for supervising the implementation of this circular?
The tax authority is responsible for supervising the implementation of the guidelines set forth in Circular No. 85 TC/TCT issued in 1994 and this circular.
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
OF THE MINISTRY OF FINANCE NO. 68/1998/TT-BTC DATE MAY 19, 1998 GUIDING SUPPLEMENTARY PROVISIONS ON CERTAIN POINTS OF REGULATION IN CIRCULAR NO. 85 TC/TCT DATE OCTOBER 24, 1994 OF THE MINISTRY OF FINANCE
During the implementation of Circular No. 85 TC/TCT dated October 24, 1994 of the Ministry of Finance guiding the collection of freight tax for foreign ships engaged in cargo transportation at Vietnamese seaports, 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:
The taxpayers subject to freight tax as stipulated in Point 1, Section I of Circular No. 85 TC/TCT dated October 24, 1994 of the Ministry of Finance include all organizations and individuals from abroad using their own ships or leasing ships owned by others, including cases where there are no ships but engage in cargo transportation business from Vietnamese seaports to foreign seaports or between Vietnamese seaports, 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:
The obligation to declare and pay taxes as prescribed in Point 2, Section IV of Circular No. 85 TC/TCT is incumbent upon ship owners, including foreign transportation organizations and individuals when entering Vietnamese ports for export cargo transportation or cargo transportation between Vietnamese ports, who must accurately declare the taxable freight revenue, provide all relevant supporting documents to the agency, serving as the basis for 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 shall comply with the guidelines set forth in Circular No. 85 TC/TCT dated October 24, 1994 of the Ministry of Finance and the specific guidelines provided in this Circular.
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Pham Van Trong (Signed) |
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