What kind of taxes do old cars go to Vietnam?

What kind of taxes do old cars go to Vietnam?

 Your question:

     Let me ask, do I have a brother who is currently residing in the United States, want to give me a car Lexus Rx350 2017, the old car through the auction, at the time of purchase of cars have run more than 10,000km . So when I came back to Vietnam, what expenses and taxes did I have to pay? I sincerely thank!

Lawyer's answer:

     Hello! We offer the following advice:

Legal grounds:

Law on Export Tax and Import Tax in 2016
Law on Special Consumption Tax in 2008 amended and supplemented in 2014 and 2016
Law on value added tax of 2008 amended and supplemented in 2013
Decree No. 134/2016 / ND-CP detailing a number of articles and measures to implement the Law on Export Tax and Import Tax
Decree No. 122/2016 / ND-CP on export tariffs, preferential import tariffs, list of commodities and absolute tariffs, mixed taxes and import taxes outside tariff quotas
Advisory content:

     When the car is shipped from the US to Vietnam, you will be required to pay the following taxes: import tax, excise tax and value added tax.

     1. Import tax on used cars to Vietnam
     Goods exported or imported through Vietnamese border or border shall be subject to export tax and import tax according to the provisions of the Export Tax and Import Tax Law.

     Pursuant to Clause 2, Article 16 of the Law on Import Tax and Export Tax, on exemption of tax on property transferred, gifts and presents in the norms of foreign organizations and individuals to Vietnamese organizations and individuals Male or vice versa, as follows: "Moving property, gifts or presents with a quantity or value exceeding the duty-free quotas shall have to pay tax on the excess, except for cases where the units receive such agencies or organizations It is funded by the state budget and authorized by the competent authority or the case for humanitarian or charitable purposes. "

     If your case is subject to tax exemption, however, the excess will be subject to tax. Norms of gifts and gifts for gifts donated by individuals to Vietnamese individuals are specified in Article 8 of Decree No. 134/2016 / ND-CP as follows:

     "first. Presents and gifts entitled to tax exemption according to the provisions of Clause 2, Article 16 of the Law on Import Tax and Export Tax are those not on the list of goods banned from import, export, suspended from export or temporarily suspended from import. They are not on the list of goods subject to excise tax (except for cases where gifts or gifts are subject to special consumption tax for the purposes of national security and defense) according to the provisions of law.

     2. Tax exemption norms:

     a / Presents and gifts of foreign organizations and individuals to Vietnamese organizations and individuals; Gifts and presents of Vietnamese organizations and individuals to foreign organizations and individuals that have customs value not exceeding VND 2,000,000 or customs value of over VND 2,000,000 but must have a total tax amount. Paying less than VND 200,000 shall be exempted from tax not exceeding four times per year.

     b / Gifts and presents given by foreign organizations and / or individuals to Vietnamese agencies and organizations funded by the State budget for operation according to the legislation on budget; Gifts and gifts for humanitarian or charitable purposes with customs value not exceeding VND 30,000,000 shall be exempted from tax no more than 04 times / year.

     In case of exceeding the duty-free quotas of agencies and organizations funded by the state budget, the Ministry of Finance shall decide on tax exemption on a case-by-case basis.

     c / Gifts and presents given by foreign organizations or individuals to Vietnamese individuals being drugs and medical equipment for persons suffering from diseases on the list of dangerous diseases prescribed in Appendix IV to this Decree The tax exemption shall not exceed VND 10,000,000 per year. "
So you are only exempted from tax in the limit value of car not exceeding 2,000,000 VND or exceeding 2,000,000 VND, but the total tax amount is less than 200,000 VND. If the amount exceeds VND 2,000,000 or exceeds VND 2,000,000 but the total payable amount is more than 200,000, you still have to pay tax.

     Because you do not know the type of car to bring back to Vietnam, including seat number, cylinder capacity; Therefore, you can refer to the tax code of your car as stipulated in Article 7 and Appendix III of Decree 122/2016 / ND-CP to determine the corresponding import tax rate.

     2. Special consumption tax on secondhand automobiles back to Vietnam
     According to the provisions of Article 5 and Article 6 of the Law on Special Consumption Tax of 2008, amended and supplemented in 2014 and 2016:

     Excise tax = (Price for import tax calculation + Import tax) x Special consumption tax rate

     Apply the tax table promulgated in the Law on Special Consumption Tax, which has special consumption tax rates depending on the specific cylinder volume and seating.

3. Value added tax on old automobiles to Vietnam
      According to Article 6 and Article 7 of the Law on Value Added Tax:

      Value-added tax = (Price for import tax calculation + Import tax + Special consumption tax) x Value-added tax

      Under the provisions of Clause 3, Article 8 of the Value Added Tax Law, the value added tax applicable to automobiles is 10%.