The following concerns need to be noted when Company leases
machineries, equipment, spare parts and means of transportation serving for
petroleum operations, including cases of temporary importation and
1. Import duty
- Not subject to import duty in accordance with point a clause
15 Article 16 of the Law on Export and Import duties No. 107/2016/QH13. A
notification of the duty-free list is required for goods eligible for import
tax exemption complying with Article 30 of Decree 134/2016/NĐ-CP. In other
words, such imported goods shall fail to satisfy the conditions for eligibility
for import duty exemption in case of without the duty-free list.
- Regarding imported goods which are not subject to import
duty exemption in accordance with point a clause 9 Article 16 of Law on Export and
Import duties No. 107/2016/QH13, Company is required to make declaration and payment of import duty. It is
noted that the assessable price for import duty is the rental price as
prescribed in clause 9 Article 17 Circular No. 39/2015/TT-BTC, modified and
supplemented in clause 9 Article 1 Circular No. 60/2019/TT-BTC.
2. Value added tax (“VAT”)
- Not be required to declare VAT according to the provisions in clause 20 Article 4 Circular
3. Additional tax declaration and deadline of tax payment
- If Company carried out the temporary import procedures and
paid import duty, then requested an extension of time limit for temporary
importation, the period of temporary importation is followed in accordance with
the provisions of clause 5 Article
50 Decree No. 08/2015/NĐ-CP dated 21/01/2015, amended and supplemented in
clause 23 Article 1 Decree No. 59/2018/NĐ-CP dated 20/4/2018.
- The tax payable
increasing due to extension of the time limit for temporary import and deferral
of tax payment is implemented according to Article 106 of tax
Administration Law No. 78/2006/QH13, amended and supplemented in clause 32 Article
1 of Law No. 21/2012/QH13, Article 3 Law No. 106/2016/QH13.