VCN- Corresponding with Hai Phong Customs Department on Tax assessment for goods temporary exports for re-imports for construction under a lease contract, the General Department of Vietnam Customs said that these goods are not subject to Tax exemption or Tax refund.
According to Article 50 Decree 08/2015/ ND-CP, Customs procedures for equipment, means temporary exports for re-imports for construction shall not be distinguished as temporary exports for re-imports under a lease contract or serve for construction of a business.
For items subject to Tax exemption, according to the General Department of Vietnam Customs, machinery, equipment and tools temporarily exported under lease contract are not for construction of business aboard and are not the machinery, equipment, tools temporarily exported for re-imports for a certain period, so they are not subject to Tax exemption. When exporting these goods, a business must pay tax (if any), when importing goods, and a business must pay import duty in accordance with provisions.
For the items subject to Tax refund, according to the General Department of Vietnam Customs, Clause 1, Article 19 of Import and Export Duty Law, stipulates that goods temporarily exported – re-imported for construction under the lease contract are not subject to tax refund.