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Circular No 25/2015/TT-BTC, Vietnam–Japan Tax Incentives

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MoF’s issued circular No 25/2015/TT-BTC, 3,234 tax lines, or 33.8 percent of the total, will be subject to the zero percent tariff, in implementing the Vietnam-Japan economic partnership agreement for the 2015-2019 period. Besides, 354 products outside the preferential tariff policy will be taxed under the current Most Favoured Nation (MFN) level. Products subject to the new tax rates include plastic materials, chemicals, machinery and equipment, tools, computers, electronic products and spare parts, fibres, textile and garment materials and accessories, footwear and pharmaceuticals.

Conditions for zero percent tariff VJEPA:

- Properties issued in this Circular.

- Imported from Japan to Vietnam.

- Are shipped directly from Japan to Vietnam.

- Have the Vietnam - Japan Certificate of origin (C / O - Form VJ)

The Japan – Vietnam Economic Partnership Agreement (JVEPA) was signed on December 25, 2008 in Japan and approved by the Vietnam Prime Minister in Decision 57/2009/ QD-TTg dated April 16, 2009. To comply with the agreement, the Ministry of Finance issued Circular 20/2012/ TT-BTC dated on February 15, 2012 on Special Preferential Import Tariff in accordance with the ASEAN-Japan Comprehensive Economic Partnership Agreement (EPA) in the period of 2012-2015; Circular 21/201 /TT-BTC dated February 15, 2012 on promulgating Vietnam's Special Preferential Import Tariff to implement the JVEPA in the period of 2012-2015 period; and Circular 63/2012/TT-BTC dated April 23, 2012 to amend Vietnam's Special Preferential Import Tariff. To realise the commitment in the next phase, the Ministry of Finance continues to promulgate Circular 24/2015/TT-BTC dated February 14, 2015 on Vietnam's Special Preferential Import Tariff in accordance with the EPA for the period of 2015 and 2019 and Circular 25/2015/TT-BTC dated February 14, 2015 on the import tariff special offers from Vietnam to implement the JVEPA in the period of 2015 and 2019.
 
As of April 1, 2015, in the list of tariff lines of ASEAN and Japan, as many as 2,874 tariff lines (equivalent to 30 percent of total tariff lines) are set at zero; and 413 tariff lines are applied at the MFN rate. In the list of tariff lines between Vietnam and Japan, there are 3,234 tariff lines (equivalent to 33.8 percent of the total tariff lines) that are set at 0 percent tax rate and 354 tariff lines are imposed at the MFN rate. The tax-exempted products include groups: plastic materials, chemicals, machinery, tools, spare parts, computer products, electronic components, fibre type, textile materials, leather, pharmaceutical products; the imported goods that are subject to the Special Preferential Import Tariff of ASEAN and Japan require origin certificates as regulated by the Ministry of Industry and Trade and on the list of countries that are the tax preference lists of the Circular.
 
The tax incentive programme of Vietnam and Japan is part of the tax commitment programme under the free trade agreement (FTA) since 2014. The Ministry of Finance has issued guidance on implementing the Special Preferential Import Tariff and tax reductions in accordance with the FTAs in effect from April 01, 2015.