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THE
MINISTRY OF FINANC
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SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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No.
18/2005/TT-BTC
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Hanoi, March 8, 2005
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CIRCULAR
AMENDING
AND SUPPLEMENTING A NUMBER OF POINTS OF THE FINANCE MINISTRY’S CIRCULAR No.
119/2003/TT-BTC OF DECEMBER 12, 2003 WHICH GUIDES THE IMPLEMENTATION OF THE
GOVERNMENT’S DECREE No. 149/2003/ND-CP OF DECEMBER 4, 2003 DETAILING THE
IMPLEMENTATION OF THE SPECIAL CONSUMPTION TAX LAW AND THE LAW AMENDING AND SUPPLEMENTING
A NUMBER OF ARTICLES OF THE SPECIAL CONSUMPTION TAX LAW
Pursuant to May 20, 1998
Special Consumption Tax (SCT) Law No. 05/1998/QH10;
Pursuant to June 17, 2003 Law No. 08/2003/QH11 Amending and Supplementing a
Number of Articles of the SCT Law;
Pursuant to the Government’s Decree No. 149/2003/ND-CP of December 4, 2003
detailing the implementation of the SCT Law and the Law Amending and
Supplementing a Number of Articles of the SCT Law;
Pursuant to the Government’s Decree No. 77/2003/ND-CP of July 1, 2003 defining
the functions, tasks, powers and organizational structure of the Ministry of
Finance;
Pursuant to the Government Office’s Official Dispatch No. 1287/VPCP-KTTH of
March 19, 2004 correcting the time limit for business establishments to submit
SCT settlements and Official Dispatch No. 227/VPCP-KTTH of January 14, 2005
announcing the Prime Minister’s opinions on SCT on cars of under 24 seats
imported into export-processing zones,
The Finance Ministry hereby guides the amendments and supplements to a number
of points in its Circular No. 119/2003/TT-BTC of December 12, 2003 guiding the
implementation of the Government’s Decree No. 149/2003/ND-CP of December 4,
2003 as follows:
1. To amend and supplement
Section II of Part A as follows:
1.1. To amend Point 1, Section
II of Part A into new Point 1 as follows:
“1. Goods, including those sold
to, or processed for, export-processing enterprises, excluding cars of under 24
seats sold to export-processing enterprises, which are directly exported to foreign
countries by production and/or processing establishments.
Establishments that have
SCT-free goods prescribed at this Point must have dossiers proving that their
goods have been actually exported, concretely as follows:
- Goods sale contracts or contracts
on processing for foreign countries.
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- Export goods declarations with
the customs offices’ certification that goods have been exported.
- Via-bank payment vouchers.
Establishments producing
SCT-liable goods that conduct temporary export for re-import under the permits
for temporary export for re-import, during the period of non-payment of export
tax, import tax under the prescribed regime, shall not have to pay SCT when
conducting the re-import thereof, but have to pay SCT when selling such goods.”
1.2. To amend Point 8, Section
II of Part A into new Point 8 as follows:
“8. Goods imported from foreign
countries into export-processing zones and/or export-processing enterprises,
excluding cars of under 24 seats.
The dossiers, order and
competence for non-collection of SCT for cases prescribed at Points 4, 5, 6, 7
and 8 above shall comply with the regulations on import tax non-collection and
exemption under the provisions of the Law on Export Tax and Import Tax.”
1.3. To add Point 10 to the end
of Section II of Part A as follows:
“10. Passenger cars exclusively
used in recreation, entertainment and sport areas, which do not join in traffic
under the provisions of the Road Traffic Law.”
2. To amend Point 3, Section
I of Part B into new Point 3 as follows:
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SCT
Sans-VAT sale prices set by
calculation
the processee-establishments
prices for
=
—————————————
processed
1 + SCT rate”
goods
3. To add Point 5 to the end
of Section II of Part B as follows:
“5. The tax rate of 25% shall
apply to cars of between 16 and under 24 seats (including cars designed for transporting
both passengers and cargoes, and assorted lambrettas).
4. To amend and supplement
Point 2e, Section I of Part C into new Point 2e as follows:
“For exporting establishments
that purchase goods for export but do not export such goods and sell them in
the country, within 5 days after selling the goods, they must declare and fully
pay SCT on behalf of production establishments. SCT calculation prices in this
case shall be the sans-SCT and -VAT sale prices, which are
specifically determined as follows:
Sans-VAT domestic sale prices set
SCT
by the exporting establishments
calculation
=
—————————————————
prices
1 + SCT rate
In cases where the exporting
establishments declare the sale prices (inclusive VAT and SCT) for use as basis
for determining SCT calculation prices as 10% lower than the market sale
prices, the tax offices shall set SCT calculation prices according to the
provisions of Point 8e, Part D of Circular No. 119/2003/TT-BTC.”
5. To amend Point 5a, Section
I of Part C into new Point 5a as follows:
“5. SCT settlement:
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a/ Establishments producing
goods and/or providing services, which are subject to SCT, must make annual SCT
settlement with the tax offices. The establishments must fully declare the
norms on the payable tax amounts, the amounts already paid, the outstanding
amounts or the overpaid amounts by the time of settlement according to the set
tax settlement form and send them to the tax offices within the prescribed time
limits. The tax settlement year shall be the calendar year; in cases where the
business establishments are allowed to apply a financial settlement year other
than the calendar year, they shall still have to make SCT settlement according
to the calendar year. The time limit for production/business establishments to
submit the tax settlements to the tax offices shall be sixty days, counting
from December 31 of the tax settlement year.
In cases where production
establishments sell goods via their branches or attached units in localities
other than the places of production, the tax settlement shall be based on the
actual sale turnovers of such branches and attached units.
Both processee-establishments
and processor-establishments must make SCT settlement with the tax offices of
the localities where they conduct production/business activities.
Production/business
establishments must pay their outstanding SCT amounts into the State budget
within 10 days after submitting their tax settlement reports; in case of
overpayment, the overpaid amounts shall be deducted from the subsequent
period’s payable amounts or reimbursed according to regulations.”
6. To supplement and amend
Point 2 of Part D as follows:
“2. Tax notices, notices on tax
late payment, payment of fines, and handling of violations:
2.1. To notify the payable tax
amounts to the subjects being individuals and households producing goods and/or
providing services subject to SCT, that have failed to fully implement the
accounting, invoice and voucher regimes; to urge taxpayers to pay tax on time.
Tax payment notices must be sent to taxpayers 3 days before the tax payment
deadlines stated in the notices (made according to a set form). The tax payment
deadline shall be the last day of the month at the latest.
2.2. To notify and urge business
establishments that have not yet sent SCT declarations or settlements on time.
2.3. To notify the late-paid tax
amounts and fines for late payment according to the provisions of Clauses 2 and
3, Article 17 of the SCT Law.
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- from the 26th day
of the subsequent month, for production/business establishments.
- from the 1st day of
the subsequent month, for taxpayers being individual households producing goods
and/or providing services that have failed to fully implement the accounting,
invoice and voucher regimes.
- from the date following the
tax payment deadlines prescribed by the Law on Export Tax and Import Tax for
import goods.
2.5. To apply measures for
handling tax-related administrative violations or propose competent agencies to
apply measures prescribed in Clause 4, Article 17 of the SCT Law in order to
ensure the full collection of tax and fine amounts. In cases where tax-related
administratively-handling measures have been applied, the production/business
establishments still fail to fully pay the tax and/or fine amounts, the tax
offices shall transfer the dossiers of the cases to competent agencies for
handling according to law.”
This Circular takes effect 15
days after its publication in the Official Gazette. The provisions of the
Finance Ministry’s Circular No. 119/2003/TT-BTC of December 12, 2003, which are
not amended or supplemented under this Circular, shall still be effective. Any
problems arising in the course of implementation should be promptly reported by
organizations and individuals to the Finance Ministry for study and solution.
FOR
THE FINANCE MINISTER
VICE MINISTER
Truong Chi Trung