The Ministry of Finance has proposed removing tax exemptions for cars and motorcycles that overseas Vietnamese, or Viet Kieu, who return home in a draft Government decree guiding the implementation of the export and import tariff law prepared by the ministry.

At present, each of overseas Vietnamese intellectuals, experts and skilled laborers can import one used car and one motorbike as personal properties tax-free if they register to live permanently and work within 12 months or longer in Vietnam at the invitation of State agencies.

The tax waiver is specified in Decision 31/QD-TTg dated August 2015. However, some individuals have taken advantage of the Government’s policy to import luxurious cars for sale in Vietnam to earn profit.

Statistics of the ministry showed that nearly 100 out of more than 1,000 cars imported as movable properties of overseas Vietnamese returnees have been registered under the names of the owners, and the rest have been transferred to organizations and individuals in the country.

The customs has found that most vehicles imported by Viet Kieu are new and expensive.

Such vehicles can be imported as properties of Vietnamese citizens who reside abroad and those people have completed procedures for permanent residence in Vietnam. Otherwise, they must pay taxes and fees such as excise tax, value added tax (VAT), and registration tax.

The ministry said it is easy for overseas Vietnamese to register permanent residence in Vietnam though they do not really live permanently in the country as the registration policy has been made favorable for them.

Therefore, the ministry suggested removing tax exemptions for cars and motorcycles brought by Viet Kieu returnees from the Government’s draft decree detailing a number of articles and measures to implement the export and import tariff law so as to eliminate policy loopholes which a small number of individuals take advantage of to enjoy tax incentives.

SGT