After a local newspaper reported that a luxury vehicle worth an estimated $1,000,000 US had been shipped to Ho Chi Minh City without import and value-added taxes being levied, as property of a returning expatriate, questions have arisen relating to how import and value-added taxes apply in these situations.
For example, what duties are returning expatriates exempt from when bringing property purchased outside Viet Nam home? What kind of procedures must be followed?
|Deputy Minister of Finance Truong Chi Trung|
In an attempt to clarify the situation, Deputy Minister of Finance Truong Chi Trung offered this advice:
According to current regulations, expatriates returning home are not subject to import and value-added taxes on any consumer goods accompanying them. This also applies as well, without limit, to any financial assets they may be carrying.
However, a special “consumption” tax is levied against commodities such as cigarettes, alcohol and cars.
What procedures are returning expatriates required to follow for exemption from import and value-added taxes?
They must register with the customs office and provide the following: a customs declaration, proof of authorization to repatriate, a detailed property list, and documents proving the origin of their belongings.
Once repatriated, would the previously exempted import and value-added taxes be levied if the property were to be transferred to another party within Viet Nam?
No, the taxes would not apply.