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At the request of Bao Ngoc Xanh Shipping Co., Ltd. for guidance on tax exemption procedures for a shipment of masks donated by Shinhan Bank from Korea to the State Bank of Vietnam, the General Department of Customs said Article 1 of Resolution 106/NQ-CP dated September 11, 2021 of the Government stipulates: "Goods imported by Vietnamese organizations and individuals to be provided as aid to the Government, the Ministry of Health, provincial-level People's Committees and Vietnam Fatherland Front Committees to serve the prevention and control of the Covid-19 pandemic, shall be subject to import duty and value-added tax policies applicable to goods imported for use as humanitarian aid and non-refundable aid.”

According to this provision, the imported shipment of Bao Ngoc Xanh Shipping company is not eligible for import tax and value-added tax policies applicable to goods imported for use as humanitarian aid and non-refundable aid as prescribed in Resolution 106/NQ-CP.

The General Department of Customs said clause 2, Article 16 of the Law on Import and Export Tax 107/2016/QH13 provided that gifts from foreign entities to Vietnamese entities and vice versa within the tax-free allowance are exempt from tax.

Clause 1, Article 8 of Government’s Decree 134/2016/ND-CP dated September 1, 2016 stipulates: Gifts exempt from duties specified in Clause 2 Article 16 of the Law on Export and import duties are those that are not enumerated in the List of goods banned from import, banned from export, suspended from export, suspended from import and not enumerated on the List of goods subject to special excise tax (excluding those serving national defense and security purposes) as prescribed by law.

Point b, clause 2, Article 8 of Decree 134/2016/ND-CP as amended and supplemented in Clause 3, Article 1 of Decree 18/2021/ND-CP of the Government stipulates: Gifts given by a foreign organization or individual to a Vietnamese organization whose operating cost is covered by state budget as prescribed by state budget laws and allowed by a competent authority for receiving or gifts as use for humanitarian and charity purposes with full value of gifts shall be exempt from duties no more than four times per year.

Under this regulation, the General Department of Customs said, for the shipment of masks of the Shinhan Bank in Korea to the State Bank of Vietnam, Bao Ngoc Xanh shipping Co., Ltd proposes to the State Bank of Vietnam to carry out tax exemption procedures for imported goods including gifts according to regulations.

Tax exemption dossiers for imported gifts comply with the provisions of Clause 3, Article 8 of Decree 134/2016/ND-CP, as amended and supplemented at Point a, Clause 20, Article 1, Point a, Clause 2 Article 2 Decree 18/2021/ND-CP. Tax exemption procedures comply with the provisions of Article 131 of Decree 134/2016/ND-CP as amended and supplemented in Clause 14, Article 1 of Decree 18/2021/ND-CP.