Goods of domestic enterprises hiring other enterprises for export processing must be declared

20:00 | 29/03/2022 Regulations Follow english.haiquanonline.com.vn on

VCN - According to regulations, when domestic enterprises import goods to produce and process goods for export, then they hire other enterprises engaged in export production and processing to manufacture goods. When importing them back into the country, they must declare and pay import tax as prescribed for processed products when imported into the domestic market.

Regarding BHFLEX VINA Co., Ltd.'s problems with declaring and paying tax on goods that domestic enterprises hire export processing enterprises to re-process, according to the General Department of Vietnam Customs, BHFLEX VINA CO., LTD is a domestic enterprise with 100% foreign investment capital.

If they hire an export processing enterprise, the company must carry out customs procedures following the procedures for ordering goods to be processed from abroad as prescribed in Article 67 of Circular 38/2015/TT-BTC that is amended and supplemented in Clause 44, Article 1 of Circular 39/2018/TT-BTC.

Ho Chi Minh City Customs checks imported processing materials. Photo: T.H

Regarding the declaration and payment of tax when importing goods, in case a domestic enterprise imports goods for export production or export processing, then delivers the imported and semi-finished goods which are manufactured from all imported goods to hire a processing enterprise to manufacture or process. When imported goods back into the country, the enterprise must declare and pay import tax on processed products as prescribed in Clause 2, Article 22 of Decree 134/2016/ND-CP.

Furthermore, the import tax calculation value is the processing rent, the value of raw materials used in the processing provided by the export processing enterprise and the adjustments (if any) as prescribed in Clause 3, Article 17 of Circular 39/2015/TT-BTC.

The value of supplies and raw materials that domestic enterprises send for processing at export processing enterprises would not be included in the taxable value.

By Nụ Bùi/Thanh Thuy

Tags:

Related News

Increase competitiveness when export turnover comes from domestic enterprises

20:38 | 01/04/2023 Import-Export

VCN - According to the Vietnam Chamber of Trade and Industry (VCCI), export-oriented industrialized countries, especially when export turnover comes from domestic private enterprises, are likely to more competitive and sustainable.

Enterprises’ worry is being in the debt group for banks

13:39 | 31/03/2023 Import-Export

VCN - Many domestic enterprises are facing the situation of not being able to repay bank loans despite being supported with restructuring. This leads to the risk of switching to a group of bad debts, making it even more difficult to access new capital.

Seven new customs broker agents are recognized

15:22 | 27/02/2023 Customs

VCN – The General Department of Vietnam Customs issued decisions to recognize seven enterprises that are eligible to operate as customs broker agents.

Hai Phong Customs hits record in import-export turnover of US$112 billion

10:18 | 29/12/2022 Import-Export

VCN – The import-export turnover which was carried out procedures at Hai Phong Customs increased by nearly US$14 billion over the same period last year.

Latest News

Enterprises have the right to pre-determine HS codes

09:55 | 06/04/2023 Regulations

VCN - At the dialogue conference between Ho Chi Minh City Customs Department and import-export enterprises at the weekend, enterprises raised many problems related to HS code application, and post-clearance audit.

Amendment to Decree 14 to prevent goods congestion at border gates

11:39 | 01/04/2023 Regulations

VCN – When Government Decree No14/2018/ND-CP dated January 23, 2018, is revised to shift the border trade from unofficial-quota trade to official-quota trade to prevent goods congestion at border gates at harvest season or on holidays and Tet, there will be some changes in the management of the border trade.

Notes for businesses on tax policy

13:44 | 31/03/2023 Regulations

VCN - According to experts, some businesses do not understand clearly tax documents and policies, especially new ones, leading to many risks in implementation.

Revising Law on Corporate Income Tax: Promoting resources for socio-economic development

13:43 | 27/03/2023 Regulations

VCN - After a long time of implementation and many changes in reality, it is time to amend the Law on Corporate Income Tax (CIT) to remove difficulties for production and business activities, and open up and promote resources for economic and social development.

More News

Apply 609 preferential export tax lines, 11,526 special preferential import tax lines to implement the CPTPP Agreement

09:33 | 26/03/2023 Regulations

VCN - To enjoy the preferential export tax rates under the Preferential Export Tariff and the Special Preferential Import Tariff of Vietnam implementing the CPTPP Agreement from 2022 to 2027, exported goods must have transport documents and import customs declarations or documents replacing customs declarations showing that the destination is in the territory of the member countries in which the CPTPP Agreement has entered into force, regulated in the scope of Decree No. 115/2022 /ND-CP dated December 30, 2022.

Difficulties in determining samples for testing

09:32 | 26/03/2023 Regulations

VCN – Customs face challenges in determining whether imported food samples for testing are exempt from state inspection for food safety, as well as in identifying which products require registration for announcement purposes.

GDVC instructs application of C/O form D

10:16 | 25/03/2023 Regulations

VCN – ASEAN member states must declare HS code 2022 on Certificate of Origin from April 1.

Goods imported from export processing enterprises must pay tax

09:03 | 24/03/2023 Regulations

VCN - According to the Law on Import and Export Duties provisions, if a domestic enterprise imports products of export processing enterprises, they must pay tax.

Review, perfect regulations on decentralization of public property management

11:55 | 22/03/2023 Regulations

VCN - The Ministry of Finance has sent an official letter to ministries, central and local agencies on improving legal documents under the power for promulgation of ministries, central and local agencies on the management and use of public property.

MoF develops excise tax policy to promote electric vehicle production

17:21 | 13/03/2023 Regulations

VCN – The Ministry of Finance is considering adjusting excise tax rates for some environmentally friendly products in the revised Law on Excise Tax.

Enterprises must submit dossiers and documents to identify authenticity of goods' value

10:09 | 13/03/2023 Regulations

VCN – According to regulations, for customs declarations selected for customs valuation, customs declarants must submit dossiers and documents to identify the authenticity of the declared goods' value.

Removing difficulties in the implementation of VAT policy

15:10 | 27/02/2023 Regulations

VCN - For businesses to understand and strictly comply with the regulations on the declaration of value-added tax (VAT) rate for import and export goods, the General Department of Customs has continuously issued guiding documents, which is considered an important part of bringing policies into practice.

Correcting policy to avoid overlaps in inspection and supervision at land border gates

14:13 | 26/02/2023 Regulations

VCN - Currently, the draft Decree amending and supplementing Decree No. 08/2015/ND-CP dated January 21, 2015 is being submitted to the Government for signing and promulgation of amendments related to customs inspection and supervision procedures for means of transport on exit, entry and transit in the draft Decree that was amended and supplemented to meet the requirements of administrative procedure reform.

Your care

The system has not recorded your reading habits.

Please Login/Register so that the system can provide articles according to your reading needs.

Latest Most read