(No.5/1998/QH10
of May 20, 1998)
To
direct the production and social consumption, to rationally regulate the
consumers' incomes for the State budget and to enhance the management over
production of and trading in a number of goods and services;
Pursuant
to the 1992 Constitution of the Socialist Republic of Vietnam;
This
Law prescribes the special consumption tax,
Chapter
I
GENERAL
PROVISIONS
Article
1.- Taxable objects:
The
following goods and services shall be subject to the special consumption tax:
1.
Goods:
a)
Cigarettes, cigars;
b)
Liquors;
c)
Beers;
d)
Under-24-seat cars;
e)
Gasoline of various kinds, naphtha, reformate components and other compounds
for mixing gasoline;
f)
Air conditioners with a capacity of 90,000 BTU or less;
g)
Playing cards;
h)
Votive gilt paper, votive objects.
2.
Services:
a)
Dancing halls, massage parlors, karaoke bar;
b)
Casinos, jackpot games;
c)
Horse race or car race bet tickets;
d)
Golf business: sale of membership cards, golf playing tickets.
Article
2.- Tax payers
Organizations
and individuals (hereafter collectively referred to as establishments) that
produce and/or import goods and provide services, which are subject to the
special consumption tax, shall be special consumption tax payers.
Article
3.- Goods not subject to the special consumption tax
Goods
defined in Clause 1, Article 1 of this Law shall not be subject to the special
consumption tax in the following cases:
1.
Goods which are directly exported, sold or consigned to export business
establishments for export by production or processing establishments;
2.
Goods which are imported in the following cases:
a)
Humanitarian aid or non-refundable aid goods; gifts for State agencies,
political organizations, socio-political organizations, social organizations,
socio-professional organizations, people's armed forces units; belongings of
foreign organizations and/or individuals that enjoy diplomatic immunities;
personal effects within the duty-free luggage limit;
b)
Goods which are transshipped, transited or transported through Vietnam's
border;
c)
Goods temporarily imported for re-export, or temporarily exported for re-import
during the tax-free period;
d)
Goods imported for duty-free sale under the prescribed regulations.
Article
4.- Obligations and responsibilities for implementing the Law on Special
Consumption Tax
1.
Those who are liable to the special consumption tax shall have obligation to
pay tax fully and within the time limit prescribed by this Law.
2.
The tax authorities shall, within their respective tasks and powers, have to
strictly comply with the provisions of this Law.
3.
State agencies, political organizations, socio-political organizations, social
organizations, socio-professional organizations and people's armed forces units
shall, within their respective functions and powers, have to supervise the
observance of this Law and coordinate with the tax authorities in enforcing
this Law.
4.
Vietnamese citizens shall have to help the tax authorities and tax officials to
enforce this Law.
Chapter
II
THE
TAX CALCULATION BASES AND
TAX
RATES
Article
5.- The tax calculation bases
The
bases for calculating the special consumption tax are the tax calculation
prices of taxable goods or services and tax rates.
Article
6.- Tax calculation prices
1.
For goods produced in the country, they shall be the sale prices set by the
production establishments at the production places, not yet including the
special consumption tax.
2.
For imported goods, they shall be the import tax calculation price plus (+) the
import tax.
3.
For processed goods, they shall be the tax calculation prices of the produced
goods of the same or equivalent types at the time of goods delivery.
4.
For services, they shall be service provision prices, not yet including the special
consumption tax.
5.
For goods or services used for purposes of exchange or internal consumption,
gift or donation, they shall be the special consumption tax calculation prices
of goods and services of the same or equivalent type at the time such
activities are conducted.
6.
For liquors made in the country, casinos, jackpot games and golf business, the
special consumption tax calculation prices shall be specified by the
Government.
The
special consumption tax calculation prices of goods and/or services defined in
this Article shall also include surcharges enjoyed by the establishments.
In
cases where the production and business establishments purchase and sell goods
and/or services in foreign currency(ies), they must convert such foreign
currency(ies) into Vietnam Dong at the exchange rate(s) announced by the State
Bank of Vietnam at the time such turnovers are generated to determine the
special consumption tax calculation prices.
Article
7.- Tax rates
The
special consumption tax rates for goods and services are specified in the
following special consumption tax table.
THE SPECIAL CONSUMPTION TAX TABLE
No.
Goods and services Tax
rates
(%)
I. Goods
1.
Cigarettes, cigars
a) Filter cigarettes produced
mainly from
imported raw
materials,
cigars 65
b) Filter cigarettes produced
mainly from
domestic raw
materials 45
c) Non-filter cigarettes 25
2.
Liquors
a) Of over 40% proof. 70
b) Of from 30% to 40% proof. 55
c) Of from 20 % to under 30 % proof. 25
d) Of under 20 % proof, including fruitwines 20
e) Medicated liquors 15
3. Beers
a) Bottled beer, fresh beer 75
b) Canned beer 65
c) Draught beer 50
4. Automobiles
a) Cars of 5 seats or less 100
b) Cars of from 6 to 15 seats 60
c) Cars of from 16 to under 24 seats 30
5.
Gasoline of various kinds,
naphtha, reformate components
and other
compounds for mixing gasoline 15
6.
Air conditioners of a capacity
of 90,000 BTU or less 20
7.
Playing cards 30
8.
Votive gilt paper, votive objects 60
II.
Services
1. Dancing halls, massage parlors,
karaoke bars 20
2. Casinos, jackpot games 25
3. Horse race and car race bet tickets 20
4.
Golf business: sale of
membership
cards, golf playing tickets 20
In
case of necessity, the National Assembly Standing Committee shall make
amendments and supplements to the list of goods and services subject to the
special consumption tax and/or the special consumption tax rates, then propose
them to the National Assembly for adoption at its nearest session.
Chapter
III
TAX
REGISTRATION, DECLARATION, PAYMENT AND FINAL SETTLEMENT
Article
8.- Tax registration
An
establishment which produces goods or provides services subject to special
consumption tax shall have to register the tax payment with the tax authority
of the locality where it conducts production or service activities under the
regulations on tax registration and guidance of the tax authority.
The
time limit for tax registration is ten days from the date it is granted the
business registration certificate.
In
case of a merger, amalgamation, division, splitting, dissolution, bankruptcy or
change in its business line or its business operation is terminated, the
production or business establishment shall have to make a declaration thereof
with the tax authority within five days before such change occurs.
Article
9.- Registration for use of trademarks, invoices and vouchers
1.
An establishment which produces goods items subject to the special consumption
tax and uses the trademarks thereof shall have to register such trademarks with
the tax authority of the locality where it conducts production or business
activities within five days from the date it uses such trademarks. When
changing the trademarks, the establishment shall have to notify the tax authority
thereof within five days from the date of changing such trademarks.
2.
The purchase and sale of goods and services as well as the transportation of
goods, which are subject to the special consumption tax, must have invoices and
vouchers as prescribed by law.
Article
10.- Tax declaration
1.
An establishment that produces goods and/or provides services which are subject
to the special consumption tax, shall have to make monthly special consumption
tax declaration and submit it to the concerned tax authority within the first
ten days of the following month. For a production or business establishment
with a large special consumption tax amount, the special consumption tax
declaration shall be made once every five days or every ten days in accordance
with the regulations of the tax authority.
Even
if there is no payable special consumption tax in the month, a production or
business establishment shall still have to make its tax declaration and submit
it to the tax authority.
2.
A goods importing establishment shall have to make a special consumption tax
declaration and submit it upon each importation together with the import tax
declaration with the import tax collecting agency.
3.
An establishment that produces goods items subject to the special consumption
tax from raw materials for which the special consumption tax has already been
paid, when making special consumption tax declaration for the production
process, shall be entitled to deduct the special consumption tax amount already
paid for such materials if it can produce valid vouchers.
4.
An establishment that produces and/or deals in different kinds of goods and/or
services, which are subject to the special consumption tax with different tax
rates, shall have to declare the special consumption tax according to the tax
rate applicable to each kind of goods or service; if such establishment fails
to determine payable tax amount according to each tax rate, it shall have to
calculate and pay tax at the highest rate applicable to a certain kind of goods
or service it produces and/or deals in.
The
establishments producing or importing goods and/or providing services which are
subject to the special consumption tax, shall have to fully declare the tax
according to the set form and take responsibility for the accuracy of their
declarations.
The
Ministry of Finance shall set the tax declaration form and guide the
declaration.
Article
11.- Tax payment
The
special consumption tax shall be paid 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,
shall have to pay the special consumption tax into the State budget at their
places of production or business according to the tax payment notices issued by
the tax authorities.
The
deadline for tax payment for a month as stated in a tax notice shall not be
later than the 20th of the following month;
2.
Establishments importing goods subject to the special consumption tax shall
have to pay the special consumption tax upon each importation.
The
deadline for issuing a notice and the deadline for payment of special
consumption tax on imported goods shall be the deadlines for the import tax
notice and payment;
3.
The special consumption tax shall be paid into the State budget in Vietnam
Dong.
Article
12.- Tax final settlement
Establishments
producing goods and/or providing services, which are subject to the special
consumption tax, shall have to make the annual final settlement of special
consumption tax with the tax authorities. A year of tax final settlement shall
be the solar calendar year. Within 60 days from the end of a year, the
establishments shall have to submit tax final settlement reports to the tax
authorities and fully pay the outstanding tax amounts to the State budget
within 10 days from the date of submitting the final settlement reports; in
case of overpayment, such overpaid amounts shall be deducted from the payable
tax amount of the following period.
In
case of a merger, amalgamation, division, splitting, dissolution, bankruptcy or
change in its business line, an establishment shall have to make the tax final
settlement and submit the report thereon to the tax authority within 45 days
from the date of issuance of the decision on such merger, amalgamation,
division, splitting, dissolution or bankruptcy, and fully pay the outstanding
tax amount into the State budget within ten days from the date of submitting
the final settlement report; in case of overpayment, the overpaid amount shall
be deducted from the payable tax amount of the following period or reimbursed
in accordance with Article 13 of this Law.
Article
13.- Tax reimbursement
An
establishment producing and/or importing goods subject to the special
consumption tax shall have its paid special consumption tax 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;
3.
It has an overpaid tax amount in the tax final settlement upon a merger,
amalgamation, division, splitting, dissolution or bankruptcy;
4.
It has a tax reimbursement decision issued by the competent agency as
prescribed by law.
The
Ministry of Finance shall define the procedures and competence for tax
reimbursement as prescribed in this Article.
Article
14.- Duties, powers and responsibilities of the tax authorities
The
tax authority shall have the following duties, powers and responsibilities:
1.
To guide the tax payers in implementing the regulations on tax registration,
declaration and payment as prescribed by this Law;
2.
To send the tax payers notices on the payable tax amounts and the tax payment
deadlines as prescribed; to issue another notice on the payable tax amount and
fine for late tax payment under Clauses 2 and 3, Article 17 of this Law if past
the deadline stated in the first notice, a tax payer fails to pay tax; if such
tax payer still fails to fully pay tax and fine for late tax payment stated in
the second notice, coercive measures prescribed in Clause 4, Article 17 of this
Law shall be applied to guarantee full collection of tax and fine; If such tax
payer once again fails to pay full amount of tax and fine even after such
coercive measures have been taken, the dossier of the case shall be transferred
to the competent State agency for handling as prescribed by law;
3.
To examine and inspect the tax declaration, payment and final settlement by tax
payers in order to ensure the strict observance of law;
4.
To handle tax-related administrative violations and settle complaints about
tax;
5.
To request the tax payers to provide accounting books, invoices, vouchers and
other records and documents related to the tax calculation and payment;
6.
To keep and use data and documents provided by the tax payers and other
subjects in accordance with the prescribed regime.
Article
15.- The right to determine tax
1.
The tax authority shall determine the payable special consumption tax amount
for a tax payer in the following cases when the latter:
a)
Fails to implement or has improperly implemented the regulations on accounting,
invoices and vouchers;
b)
Fails to declare tax or to submit the tax declaration within the notified time
limit; or has submitted the tax declaration but falsely declared the bases for
determining the special consumption tax amount;
c)
Refuses to produce accounting books, invoices, vouchers and necessary documents
relating to the calculation of special consumption tax;
d)
Is found to have conducted business without any business registration.
2.
The tax authority shall base itself on documents related to investigation of
production and business activities of concerned tax payers or on the payable
tax amounts of other production and business establishments with the same
business line and scale, to determine the payable tax amounts.
Chapter
IV
SPECIAL
CONSUMPTION TAX REDUCTION AND EXEMPTION
Article
16.- Cases eligible to be considered for special consumption tax reduction or
exemption
1.
Establishments producing goods subject to the special consumption tax, which
meet difficulties due to natural calamities, enemy sabotage or unexpected
accidents, shall be considered for tax reduction or exemption.
2.
Small beer-making establishments, which are operating, have fully paid tax
according to the special consumption tax table prescribed in Article 7 of this
Law but suffered from losses, shall be considered for special consumption tax
reduction corresponding to the loss incurred in the tax reduction year(s); the
tax reduction duration shall not exceed five years from the effective date of
this Law.
3.
If a domestic establishment engaged in the automobile assembly and/or
manufacture which has enjoyed a reduction of from 60%-100% of the tax rate in
the special consumption tax table stipulated in Article 7 of this Law in the
first five years from the effective date of this Law continues to suffer from
losses, the tax reduction duration may be extended for one to five more years.
4.
A golf business establishment shall be entitled to a 30% tax rate reduction
according to the special consumption tax table stipulated in Article 7 of this
Law for three years from the effective date of this Law.
The
Government shall specify the tax reduction and exemption prescribed in this
Article.
Chapter
V
HANDLING
OF VIOLATIONS, REWARDS
Article
17.- Handling of violations committed by tax payers
A
tax payer who violates the Law on Special Consumption Tax shall be handled as
follows:
1.
A tax payer who fails to strictly comply with the regulations on tax
registration, declaration, payment and final settlement, the regime of
accounting and keeping of invoices and vouchers as prescribed in Articles 8, 9,
10, 11 and 12 of this Law shall, depending on the nature and seriousness of
his/her violation, be administratively sanctioned for tax violations;
2.
A tax payer who fails to pay tax or fine on time as prescribed or as stated in
a sanctioning decision shall, in addition to the full payment of such tax and
fine amounts, be subject to a fine of to 0.1% (one thousandth) of the belated
payment amount per late day;
3.
A tax payer who falsely declares or evades tax shall, in addition to the full
tax payment under this Law, be subject to a fine equal to one to five times of
the fraudulent tax amount, depending on the nature and seriousness of his/her
violation. A tax payer who evades a large amount of tax or repeats a tax
violation for which he/she was administratively sanctioned, or commits another
serious violation, shall be examined for penal liability as prescribed by law;
4.
A tax payer who fails to pay tax or fine according to the notice or the tax
sanctioning decision shall be subject to the following coercive measures:
a)
The deduction of his/her deposit at the bank, credit institution or treasury
for the payment of such tax or fine.
The
bank, credit institution or treasury shall have to deduct an amount of money
from the tax payer's deposit account for payment of tax or fine into the State
budget according to the tax handling decision of the tax authority or the
competent State agency before the collection of debts;
b)
The seizure of goods and material evidences to guarantee the full collection of
tax or fine;
c)
The inventory of his/her property as prescribed by law so as to ensure the full
collection of outstanding tax or fine.
Article
18.- The competence of the tax authorities to handle tax violations
1.
The heads of the tax authorities that directly manage the tax collection shall
be entitled to handle violations committed by tax payers as defined in Clauses
1, 2 and 3, Article 17 of this Law.
2.
The heads of the tax departments or sub-departments that directly manage the
tax collection shall be entitled to apply handling measures prescribed in
Clause 4, Article 17 of this Law, and forward dossiers to the competent
agencies for handling according to the provisions of criminal law with regard
to the violations described in Clause 3, Article 17 of this Law.
Article
19.- Handling of violations committed by tax officials and other individuals
1.
A tax official or an individual who abuses his/her position and power to
illegally use or appropriate tax money or fines shall have to return to the
State the whole tax amount or fines he/she has illegally used or appropriated
and shall, depending on the nature and seriousness of his/her violation, be
disciplined or examined for penal liability as prescribed by law.
2.
A tax official or an individual who, due to irrespon-sibility or mishandling,
causes damage to tax payers, shall have to make compensation in accordance with
the provisions of the civil legislation; and he/she shall, depending on the
nature and seriousness of his/her violation, be disciplined or examined for
penal liability as prescribed by law.
3.
A tax official or an individual who abuses his/her position and power to act in
complicity with or cover up violator(s) of the special consumption tax law or
commits other acts of violating the provisions of this Law shall, depen-ding on
the nature and seriousness of his/her violation, be disciplined or examined for
penal liability as prescribed by law.
4.
Those who hinder or incite other people to hinder the enforcement of the Law on
Special Consumption Tax shall, depending on the nature and seriousness of their
violations, be administratively sanctioned or examined for penal liability as
prescribed by law.
Article
20.- Rewards
Tax
authorities or tax officials that well perform their assigned tasks;
organizations or individuals that record achievements in implementing the Law
on Special Consumption Tax; and tax payers who fulfill their tax obligations
shall be rewarded.
The
Government shall stipulate in detail the reward.
Chapter
VI
COMPLAINTS,
THE INITIATION OF LAWSUITS AND THE STATUTE OF LIMITATIONS
Article
21.- The rights and responsibilities of tax payers in making complaints about
tax
1.
Tax payers shall have the right to complain about acts of tax officials and tax
authorities they deem violating the Law on Special Consumption Tax.
Complaints
shall be lodged to the tax authority that directly manages the tax collection
within 30 days from the date of receipt of notices or handling decisions of tax
officials or tax authorities.
Pending
the settlement of complaints, the complainants shall still have to strictly
comply with the notices or the decisions of the tax officials or tax
authorities.
2.
In cases where a complainant disagrees with a decision of the agency in charge
of handling complaints, or his/her complaints is not settled within the time
limit prescribed in Article 22 of this Law, he/she shall be entitled to lodge
complaint to the immediate higher tax authority or initiate a lawsuit at the
court as prescribed by law.
Article
22.- The responsibilities and powers of tax authorities in settling tax
complaints
1.
Within 15 days from the date of receipt of a tax complaint, a tax authority
shall have to settle such complaint; for complicated cases, such time limit may
be extended but must not exceed 30 days; if the case is beyond its
jurisdiction, the tax authority shall have to forward the dossier or send a
report to a competent agency for settlement and inform the complainant thereof
within ten days from the date of receipt of the complaint.
2.
The complaint-receiving tax authority shall have the right to request
complainants to provide dossiers and documents relating to their complaints; if
the complainants refuse to do so, the tax authority shall be entitled to
decline the consideration and settlement of such complaints.
3.
The tax authority shall have to return to tax payers the amounts of tax or
fines improperly collected within 15 days from the date of receipt of decisions
from the superior tax authority or the competent agency as prescribed by law.
4.
Upon the discovery of and conclusion on a false tax declaration, tax evasion or
errors, the tax authority shall have to collect the tax or fine arrears or
reimburse tax payment dating back 5 years from the date of discovery of false
tax declaration, tax evasion or tax errors. In cases where tax payers fail to
register, declare and pay tax, the duration for collection of tax or fine
arrears shall be dated back to the date such tax payers commenced their
operation.
5.
The head of a superior tax authority shall have to settle tax complaints lodged
by tax payers against the subordinate tax authorities.
The
Minister of Finance's decisions on the settlement of tax complaints shall be
final.
Chapter
VII
ORGANIZATION
OF IMPLEMENTATION
Article
23.- The Government shall direct the organization of the implementation of the
Law on Special Consumption Tax throughout the country.
Article
24.- The Minister of Finance shall have to organize and inspect the
implementation of the Law on Special Consumption Tax throughout the country.
Article
25.- The People's Committees at all levels shall, within their respective tasks
and powers, direct the implementation and inspect the observance of the Law on
Special Consumption Tax in their respective localities.
Chapter
VIII
IMPLEMENTATION
PROVISIONS
Article
26.- This Law takes effect from January 1st, 1999.
This
Law replaces the Law on Special Consumption Tax of June 30, 1990, the Law on
the Amendments and Supplements to a Number of Articles of the Law on Special
Consumption Tax of July 5, 1993, and the Law on the Amendments and Supplements
to a Number of Articles of the Law on Special Consumption Tax of October 28,
1995.
To
annul the stipulations on special consumption tax in other legal documents as
from the effective date of this Law.
The
settlement of all remaining problems relating to tax, tax final settlement, tax
exemption and reduction and the handling of special consumption tax violations
before January 1st, 1999 shall comply with relevant stipulations of the Law on
Special Consumption Tax, the Laws on the Amendments and Supplements to a Number
of Articles of the Law on Special Consumption Tax and the stipulations on
special consumption tax in other legal documents.
Article
27.- In cases where an international agreement which the Socialist Republic of
Vietnam has signed or acceded to contains provision(s) different from those of
this Law, the special consumption tax shall be applied in accordance with the
provision(s) of such international agreement.
Article
28.- The Government shall stipulate in detail and guide the implementation of
this Law.
This
Law was passed by the Xth National Assembly of the Socialist Republic of
Vietnam, on May 20, 1998 at its 3rd session.
Chairman
of the National Assembly
NONG
DUC MANH