Tax exemption and international remittances: Businesses must be aware of the changes in Vietnam
From February 15, 2023, materials that can be used to produce information technology products will be imported into Vietnam tax-free. Another change also effective on this date regulates the unilateral transfer of capital from Vietnam to foreign countries. Ecovis consultants know exactly what companies need to consider.
Exemption from import tax on information technology production components
According to Circular No. 25/2022/TT-BTTTT issued by the Ministry of Information and Communications on April 28, 2022, import tax will be exempted for raw materials, supplies, and components imported directly for use. to produce information technology products, digital content and software under two conditions:
- They are imported to manufacture products belonging to any of the following lists
- List of software, hardware, electronics as prescribed in Circular No. 09/2013/TT-BTTTT and Circular amending and supplementing Circular No. 20/2021/TT-BTTTT, or
- The list of digital content products is regulated by the Ministry of Information and Communications
The above conditions are periodically reviewed and changed by the Ministry of Information and Communications.
- Not included in the list of machinery, equipment, raw materials, supplies and components serving the telecommunications industry, information technology, digital content and software that can be produced domestically in Appendix 8 of Circular No. 05/ 2021/TT-BKHDT.
Synchronize regulations on transferring money abroad
In order for Vietnam’s regulations on remittance abroad to comply with international standards, the State Bank of Vietnam issued Circular No. 20/2022/TT-NHNN dated December 30, 2022. The Circular regulates regulates regulations on one-way money transfer from Vietnam to foreign countries and payments and money transfers for other current transactions of organizations and individuals permanently residing in Vietnam. There are some important points:
- Organizations residing in Vietnam are allowed to buy, transfer, and bring foreign currency abroad in the form of one-way money transfer for:
- Sponsorship or aid
- Rewarding non-resident individuals and organizations participating in programs and competitions held in Vietnam
- Providing funding for overseas members to participate in scientific research projects in Vietnam and abroad
- Refund of funding for project implementation in Vietnam according to agreement with foreign parties
- Payment and money transfer activities for current transactions of organizations and individuals include:
- Temporary import/export, re-export/re-import, transit, receiving goods processed for foreign traders, ordering goods to be processed abroad and other activities related to international purchase and sale of goods according to law commercial law
- Social insurance contributions and payments
- Fines and compensation for property damage or injuries not covered by insurance
- Other items as prescribed in the circular
- Organizations residing in Vietnam are allowed to buy, transfer, and bring foreign currency abroad in the form of one-way money transfer for: