THE
GOVERNMENT
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SOCIALIST
REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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No.
149/2003/ND-CP
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Hanoi,
December 4, 2003
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DECREE
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
THE
GOVERNMENT
Pursuant to the December 25,
2001 Law on Organization of the Government;
Pursuant to May 20, 1998 Special Consumption Tax Law No.
05/1998/QH10 and June 17, 2003 Law No. 08/2003/QH11 Amending and Supplementing
a Number of Articles of the Special Consumption Tax Law;
At the proposal of the Minister of Finance,
DECREES:
Chapter I
OBJECTS AND SCOPE OF APPLICATION OF THE SPECIAL
CONSUMPTION TAX
Article 1.-
Subject to the special consumption tax are the following goods and services,
except for cases prescribed in Article 3 of this Decree:
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a/ Cigarettes, cigars;
b/ Liquors;
c/ Beer;
d/ Under-24 seat cars;
e/ Gasoline of various kinds,
naphtha, reformade components and other components for mixing gasoline;
f/ Air conditioners of a
capacity of 90,000 BTU or under;
g/ Playing cards;
h/ Votive gilt paper, votive
objects.
2. Services:
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b/ Casino, jackpot games;
c/ Entertainment with bet
tickets;
d/ Golf business: sale of golf
club membership cards, golf playing tickets;
e/ Lottery business.
Article 2.-
Special consumption tax payers include organizations and individuals (referred
collectively to as establishments) that produce and/or import goods and/or
provide services, which are subject to the special consumption tax as
prescribed in Article 1 of this Decree.
Establishments producing goods
subject to the special consumption tax shall have to pay special consumption
tax thereon at the production stage.
Establishments importing goods
subject to the special consumption tax shall have to pay special consumption
tax thereon at the importation stage.
Establishments providing
services subject to the special consumption tax shall have to pay special
consumption tax on the services subject to the special consumption tax.
Article 3.-
Goods defined in Clause 1, Article 1 of this Decree shall not be subject to the
special consumption tax in the following cases:
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In cases where the export
business establishments purchase goods subject to the special consumption tax
from production establishments for export but do not export the goods and
consume them in the country, such export business establishments must declare
and pay the special consumption tax.
2. Goods which are imported in
the following cases:
a/ Import goods are:
- Humanitarian aid or
non-refundable aid goods;
- Foreign organizations and
individuals gifts for State agencies, political organizations, socio-political
organizations, social organizations, socio-professional organizations and
peoples armed force units. Such gifts shall be presented within the limits
prescribed by the Government;
- Belongings of foreign organizations
and/or individuals that enjoy the diplomatic immunities prescribed by the
Vietnamese Government in accordance with the international treaties which
Vietnam has signed or acceded to;
- Personal effects within the
import tax-free luggage limits;
b/ Goods which are transshipped,
transited or transported through Vietnamese territory in the following forms:
- Goods transported directly
from the exporting countries ports to the importing countries ports without
arriving at Vietnamese ports;
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- Goods deposited in bonded
warehouses then transported to other countries without carrying out the
procedures for import into Vietnam under the Regulation on Bonded Warehouses;
- Goods transited and/or
transported through Vietnams border gates and/or borders on the basis of the
agreements signed between the two governments or between branches or
localities, as permitted by the Prime Minister;
c/ Goods temporarily imported
for re-export and goods temporarily exported for re-import during the grace
period, as prescribed by the Law on Import Tax and Export Tax;
d/ Goods imported for duty-free
sale to Vietnam-based foreign agencies and foreigners that enjoy the diplomatic
immunities and are exempt from import tax under the prescribed regimes;
Goods imported for duty-free
sale at duty-free shops at international airports, seaports and railway
stations or border gates.
Establishments, which import
goods items not subject to the special consumption tax under the provisions in
Clause 2 of this Article, and use them for other purposes, shall have to make
special consumption tax declaration and payment within 3 days after such goods
are delivered for use for other purposes.
Chapter II
TAX CALCULATION BASES AND TAX RATES
Article 4.-
The bases for special consumption tax calculation are the tax calculation
prices of taxable goods or services and tax rates.
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1. For home-made goods, they
shall be the sale prices set by the production establishments, not yet covering
the special consumption tax and value added tax.
The prices for calculating the
special consumption tax on home-made liquors and beers are prescribed as
follows:
a/ For bottled liquors and beers
which are sold by the domestic production establishments at the prices which
already include the value of empty bottles, the sale prices serving as bases
for determining the special consumption tax calculation prices shall exclude
the value of the empty bottles at the actual prices, not yet covering the
special consumption tax and value added tax.
b/ For canned beers which are
sold by the domestic production establishments at the prices which already
cover the value of empty cans, the sale prices serving as bases for determining
the special consumption tax calculation prices shall exclude the value of the
empty cans at the price set for one liter of beer. The Ministry of Finance
shall be assigned to specify the prices of empty cans to be excluded suitable
to each period.
2. For import goods, they shall
be the import tax calculation prices plus the import tax. In cases where import
goods are eligible for import tax exemption or reduction, the tax calculation
prices shall not include the exempted/reduced import tax amounts.
3. For processed goods, they
shall be the sale prices, not yet including special consumption tax and value
added tax, set by the processee-establishments.
4. For goods sold by mode of
payment in installments, they shall be the special consumption tax calculation
prices of such goods sold by mode of lump-sum payment (excluding installment
payment interests).
In cases where
production/business establishments sell goods via their branches, shops,
dependent establishments or commission-enjoying sale agents, the special
consumption tax calculation prices shall be based on the actual sale prices set
by such shops, branches, dependent establishments or commission-enjoying sale
agents.
5. For services, they shall be
the service provision prices, not yet covering the special consumption tax and
value added tax.
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- For golf business, they shall
be the sale prices of membership cards and golf playing tickets.
- For casino, jackpot games and
entertainment with bet tickets, they shall be the turnovers from these
activities minus the prize money already paid to players.
6. For goods and/or services
used for exchange, internal consumption, gift or donation, sale promotion, they
shall be the special consumption tax calculation prices of goods and services
of the same or equivalent types at the time such activities are conducted.
The special consumption tax
calculation prices of goods and/or services prescribed in this Article shall
also include the surcharges apart from the sale prices of goods and services
enjoyed by the business establishments.
In cases where the tax payers
have turnovers in foreign currencies, they must convert such foreign currency
amounts into Vietnam dong at the exchange rates announced by Vietnam State Bank
at the time such turnovers are generated to determine the tax calculation
prices.
The Ministry of Finance shall
guide in detail the determination of sans-special consumption tax prices
serving as bases for calculating tax on taxable goods and services prescribed
in this Article.
Article 6.-
The special consumption tax rates for goods and services are prescribed in the
following special consumption tax rate table:
SPECIAL
CONSUMPTION TAX TARIFF
Ordinal
number
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Tax
rate (%)
I
Goods
1
Cigarettes, cigars
a/ Filter cigarettes produced
mainly from imported raw materials, cigars
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b/ Filter cigarettes produced
mainly from home-made raw materials
45
c/ Non-filter cigarettes
25
2
Liquors
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a/ Of 40% proof or higher
75
b/ Of between 20% and under
40% proof
30
c/ Of under 20% proof,
fruitwines
20
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15
3
Beer
a/ Bottled beer, canned beer,
fresh beer
75
b/ Draught beer
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4
Cars
a/ Cars of 5 seats or under
80
b/ Cars of between 6 and 15
seats
50
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c/ Cars of between 16 and
under 24 seats
25
5
Gasoline of various kinds,
naphtha, reformade components and other components for mixing gasoline
10
6
Air conditioners of a capacity
of 90,000 BTU or under
15
7
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40
8
Votive gilt paper, votive
objects
70
II
Services
1
Dancing halls, massage
parlors, karaoke bars
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2
Casinos, jackpot games
25
3
Entertainment with bet tickets
25
4
Golf business; sale of
membership cards, golf playing tickets
10
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Lottery business
15
The application of the special
consumption tax rates to a number of goods and services is specified as
follows:
1. For goods subject to the
special consumption tax, the special consumption tax rates shall apply
regardless of whether they are import goods or home-made goods.
2. Filter cigarettes produced
mainly from imported raw materials are those produced with the imported shred
tobacco raw materials accounting for 51% or more of the total volume of shred
tobacco raw materials used therefor.
3. For medicated liquors, the
tax rates shall apply irrespective of their alcoholic strength. Medicated
liquor production establishments must obtain medicated liquor production
permits and certificates of registration of the names, trademarks, labels and
quality of their medicated liquor products, issued by medical agencies or
competent agencies. Import medicated liquors must be certified by medical
agencies or competent agencies. If failing to obtain all the above-said papers,
the production/business establishments must pay the special consumption tax at
the rates set for liquors of the same alcoholic strength.
4. Votive objects subject to the
special consumption tax shall not include those being children toys and those
used for decoration.
5. For the special consumption
tax-liable goods items under heading gasoline of various kinds, naphtha,
reformade components and other components for mixing gasoline, the Ministry of
Finance shall coordinate with relevant agencies in providing specific
regulations thereon.
Chapter
III
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Article 7.-
Establishments producing goods and/or providing services, which are subject to
the special consumption tax, must register the tax payment with the tax
agencies of the localities where the establishments are headquartered under the
tax registration regulations and the guidance of the tax agencies.
The time limit for tax
registration shall be within ten days after the business registration
certificates are issued.
In case of a merger,
consolidation, separation, splitting, dissolution, bankruptcy or ownership-form
transformation; assignment, sale, contracting or lease of State enterprises,
change of production/business lines or business cessation, the
production/business establishments must declare such with the tax agencies at
least five days before the above-said changes are made.
Article 8.-
Establishments which produce special consumption tax-liable goods items and use
trademarks therefor must register such trademark specimens with the tax
agencies of the localities where they conduct production/business activities
within five days after such trademarks are used. When changing the trademarks,
the establishments must declare such with the tax agencies and register
specimens of the new trademarks used in replacement of the old ones within five
days after the trademarks are changed.
Article 9.-
Establishments producing and/or importing goods or providing services, which
are subject to the special consumption tax, must make the special
consumption tax declaration according to the following regulations:
1. Establishments producing
goods and/or providing services, which are subject to the special consumption
tax must make monthly special consumption tax declaration when selling goods
and/or providing services and submit tax declarations to the tax agencies
within the first ten days of the subsequent month. For production/business
establishments with large amounts of payable special consumption tax, the
special consumption tax declaration shall be made once every five or ten days
according to the tax agencies regulations.
Even if there is no payable
special consumption tax in the month, the production/business establishments
shall have also to make tax declarations and send them to the tax agencies.
2. The goods-importing
establishments must make special consumption tax declarations and submit them
upon each importation together with import tax declarations with the customs
offices where goods are imported.
3. Establishments producing
special consumption tax-liable goods items from raw materials for which the
special consumption tax has been already paid, when making special consumption
tax declaration at the production stage, shall be entitled to deduct the
special consumption tax amounts already paid for such raw materials if they can
produce lawful vouchers. The deducted special consumption tax amounts for raw
materials shall not exceed the special consumption tax amounts to be paid at
the production stage.
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The Ministry of Finance shall
provide for tax declaration forms and guide the tax declaration prescribed in
this Article.
Article
10.- Special consumption tax shall be remitted into the State budget
according to the following regulations:
1. Establishments producing
goods and/or providing services, which are subject to the special consumption
tax, must remit the special consumption tax into the State budget at their
production and/or business places.
The deadline for monthly tax
payment shall be the 25th day of the subsequent month; in cases
where the production/business establishments have large amounts of payable
special consumption tax, they must pay the tax once every five or ten days in
accordance with the tax agencies regulations.
For individuals and households
producing goods and/or providing services, which are subject to the special
consumption tax, that are based far from the State treasuries, the tax agencies
shall collect tax and remit it into the State budget. The time limit for the
tax agencies to remit money into the State budget shall be within three days after
such money is collected.
The Ministry of Finance shall
guide in detail the tax declaration and payment procedures, suitable to the
requirements of administrative procedure reforms, raising business
establishments sense of responsibility before law, and at the same time
enhancing the work of inspection, examination and handling of law violations by
tax agencies in order to ensure the strict and efficient management of tax
collection.
2. Establishments importing
goods subject to the special consumption tax must pay the special consumption
tax upon each importation at the places of tax declaration. The time limits for
notification and payment of special consumption tax on import goods shall be
the time limits for the import tax notification and payment.
3. The special consumption tax
shall be remitted into the State budget in Vietnam dong. In cases where the
production/business establishments have goods sale/service provision turnovers
in foreign currencies, they must convert such foreign currencies into Vietnam
dong at the exchange rates announced by the State Bank at the time the
turnovers are generated to determine the payable special consumption tax
amounts in Vietnam dong.
Article
11.- Establishments producing goods and/or providing services, which are subject
to the special consumption tax, must make special consumption tax settlement
according to the following regulations:
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2. In case of merger,
consolidation, separation, splitting, dissolution, bankruptcy or change of
ownership form; assignment, sale, contracting, lease of State enterprises or
change in business lines, the establishments must make tax settlement with the
tax agencies and send tax settlement reports to the tax agencies within forty
five days after the issuance of the decisions on such merger, consolidation,
separation, splitting, dissolution, bankruptcy or change of ownership form;
assignment, sale, contracting, lease of State enterprises or change in business
lines, and must fully remit the deficit tax amounts into the State budget
within ten days after submitting the settlement reports; in case of
overpayment, the overpaid amounts shall be deducted from the payable tax
amounts of the following period or reimbursed according to regulations.
Article
12.- Establishments producing and/or importing goods subject to the special
consumption tax shall have their paid special consumption tax amounts
reimbursed in the following cases where:
1. Goods are temporarily
imported for re-export.
2. Goods are raw materials
imported for the production or processing of export goods under production or
processing contracts with foreign countries.
3. They have overpaid tax
amounts in the tax settlement upon the merger, consolidation, separation,
splitting, dissolution, bankruptcy or change of ownership form; assignment,
sale, contracting, lease of State enterprises or change in business lines.
4. They acquire tax
reimbursement decisions issued by competent agencies as prescribed by law.
The special consumption tax reimbursement
prescribed in Clauses 1 and 2 of this Article shall apply only to actually
exported goods.
The Ministry of Finance shall
specify the procedures and competence for tax reimbursement prescribed in this
Article.
Article
13.- Establishments producing and/or importing goods or providing services,
which are subject to the special consumption tax, shall have to:
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2. Strictly observe the
accounting, invoice and voucher regimes when purchasing, selling and/or
transporting goods, or providing services subject to the special consumption
tax according to law provisions.
3. Fully supply dossiers,
documents, data and bases related to the special consumption tax calculation,
payment, settlement and requests for tax reimbursement to the tax agencies.
Article
14.- The tax agencies shall have the following tasks, powers and
responsibilities:
1. To guide tax payers in tax
registration, declaration and payment strictly according to the provisions of
the legislation on special consumption tax.
2. To notify the payable tax
amounts to the business establishments which have not fully declared the
payable tax amounts and to the households or individuals producing goods and/or
providing services, which are subject to the special consumption tax, that have
not fully complied with the accounting, invoice and voucher regimes; to urge
the tax payers to pay tax on time; if past the prescribed time limits, the tax
payers fail to pay tax, to notify them of the payable tax amounts and fine
amounts for deferred payment according to the provisions in Clauses 2 and 3,
Article 17 of Special Consumption Tax Law No. 05/1998/QH10 of May 20, 1998; if
the tax payers still fail to fully pay the tax and fine amounts stated in the
notices, the coercive measures prescribed in Clause 4, Article 17 of Special
Consumption Tax Law No. 05/1998/QH10 of May 20, 1998 may be applied so as to
ensure the full collection of the tax amounts and fines; if the above-mentioned
measures have been applied, the tax payers still fail to fully pay the tax and
fine amounts, the dossiers of the cases shall be transferred to competent State
agencies for handling according to law provisions.
3. To examine and inspect the
tax declaration, payment and settlement by the tax payers strictly according to
law provisions.
4. To handle tax-related
administrative violations and settle tax-related complaints.
5. To request tax payers to
provide accounting books, invoices, vouchers as well other dossiers and
documents related to tax calculation and payment.
6. To archive and use data and
documents provided by tax payers and other subjects in accordance with the
prescribed regime.
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1. The tax agencies may set
payable special consumption tax amounts in the following cases where:
a/ Tax payers fail to implement
or improperly implement the regimes on accounting, invoices and vouchers;
b/ Tax payers fail to declare
tax or submit tax declarations beyond the prescribed time limits; or they have
submitted declarations but falsely declared the bases for determining the
special consumption tax amounts;
c/ Tax payers refuse to produce
accounting books, invoices, vouchers and necessary documents related to the
calculation of special consumption tax;
d/ Tax payers conduct business
without business registration or have been detected not declaring tax payment;
e/ Tax payers have declared the
sale prices serving as bases for determining the special consumption tax
calculation prices as 10% lower than the market sale prices of such goods
and/or services. The Ministry of Finance shall guide in detail the
determination of the market prices serving as bases for determining the special
consumption tax.
2. The tax agencies shall base
themselves on the documents related to the investigation of tax payers
production/business activities, the market sale prices of goods and services or
on the tax amounts to be paid by other production/business establishments
engaged in the same production/business lines with equivalent scales to
determine the tax amounts to be paid by the subjects prescribed in Clause 1 of
this Article.
Chapter IV
SPECIAL CONSUMPTION TAX REDUCTION AND EXEMPTION
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1. Establishments producing
goods subject to the special consumption tax, which meet with difficulties due
to natural disasters, enemy sabotage or accidents, shall be considered for
special consumption tax reduction or exemption. The tax reduction or exemption
shall be settled in the year when losses are incurred. The reduction levels
shall be determined on the basis of the extents of the losses caused by natural
disasters, enemy sabotage or accidents, which shall not exceed 30% of tax
amounts to be paid under law. In cases where the establishments suffer from
great losses, thus being incapable of conducting production/business activities
and paying tax, they shall be considered for exemption of special consumption
tax.
2. Establishments engaged in the
manufacture and/or assembly of automobiles shall enjoy a reduction of the tax
rates defined in the special consumption tax tariff prescribed in Article 6 of
this Decree as follows:
a/ A 70% reduction for 2004;
b/ A 50% reduction of 2005;
c/ A 30% reduction for 2006;
d/ From 2007 on, tax shall be
paid at the prescribed rates.
The Ministry of Finance shall
guide the procedures, order and competence for considering tax reduction or
exemption prescribed in this Article.
Chapter V
HANDLING OF VIOLATIONS AND COMMENDATION
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Article
18.- Tax agencies and tax officials that well fulfil the assigned tasks;
organizations and individuals that record achievements in the implementation of
the Special Consumption Tax Law; and tax payers that well fulfil their tax
payment obligations shall be commended and/or rewarded according to the
Governments regulations.
Chapter VI
ORGANIZATION OF IMPLEMENTATION
Article
19.- This Decree takes implementation effect as from January 1, 2004 and
replaces the Governments Decree No. 84/1998/ND-CP of October 12, 1998 detailing
the implementation of the Special Consumption Tax Law.
The solution of problems and the
handling of violations related to special consumption tax before January 1,
2004 shall comply with the corresponding regulations of the Special Consumption
Tax Law and the regulations in legal documents on special consumption tax which
are effective at that time.
Article
20.- In cases where international treaties which the Socialist Republic of
Vietnam has signed or acceded to contain provisions different from those of the
Special Consumption Tax Law, the special consumption tax shall comply with such
treaties.
Article
21.- The special consumption tax collection is prescribed as follows:
1. The tax agencies shall have
to collect special consumption tax from establishments producing goods and/or
providing services, which are subject to the special consumption tax.
2. The customs offices shall
have to collect special consumption tax from establishments importing goods
subject to the special consumption tax.
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The Ministry of Finance shall
specify the collection of special consumption tax prescribed in this Article.
Article
22.- The Ministry of Finance shall guide the implementation of this Decree.
The ministers, the heads of the
ministerial-level agencies, the heads of the agencies attached to the
Government and the presidents of the provincial/municipal Peoples Committees
shall have to implement this Decree.
ON BEHALF OF THE GOVERNMENT
PRIME MINISTER
Phan Van Khai