Tax imposed on some goods of overseas Vietnamese repatriates

Question (Mrs. Hoàng Thị Thu, No 220 Điện Biên Phủ St., Ward 22, Bình Thạnh District, Hồ Chí Minh City): What are the tax rates applied to automobiles and motorbikes that overseas Vietnamese people bring along with when they return to Việt Nam?

Answer (General Department of Taxation, Ministry of Finance): Pursuant to the Ministry of Finance-issued documents, including Circular 113/2005/TT-BTC dated on December 15, 2005 on applying import and export tax; Decision 39/2006/QĐ-BTC dated on July 28, 2006 and Decision 78/2005/QĐ-BTC dated on December 29, 2005; and Circular 62/2004/TT-BTC dated on June 24, 2004 on the implementation of valued added tax (VAT) on the basis of preferential import and export tariffs:

1. Tax rates:

* Automobiles for import:

- Below 5 seats: preferential import tax of 80%, special consumption tax: 50%, and valued added tax: 10%.

- From 6-15 seats: PIT: 80%, SCT: 30%, and VAT: 10%.

- From 16-24 seats: PIT: 80%, SCT: 15%, and VAT: 10%.

- From 24 seats up: PIT: 80% and VAT: 5%.

* Motorbikes for import: PIT: 90% and VAT: 10%.

2. Calculation of import tax:

Point 2, Section III, Part B, Circular 113/2005/TT-BTC dated on December 15, 2005 of the Ministry of Finance (for more details, please access to www.mof.gov.vn and search for legal documents).