Can I gift my family in Vietnam a 100% new car ?

Hi DMS Law firm in Vietnam! I am an overseas Vietnamese. Can I gift my family in Vietnam a 100% new car ?  Can you advise me about conditions, procedures, taxes and charges for import of a 100% new car gifted from abroad ? 

Hi!

Conditions for import of cars:

According to provisions in Annex I, Section II promulgated together with Decree No. 187/2013/NĐ-CP dated November 20, 2013, 100% brand new cars are not subject to the list of goods which is banned from import.

Based on requirements of management in each period, the Government shall assign the Ministry of Industry and Trade to stipulate the import of types of cars carrying people with less than or equal to 09 seats (Point b Clause 1 Article 9 Decree No. 187/2013/NĐ-CP dated November 20, 2013.

If Vietnamese organizations or individuals that belong to entities stipulated in Clause 4 Article 2 wish to import motorcycles in a form of gifts or donations, within 01 (one) year, each of them shall only be allowed to import 01 motor vehicle and 01 motorcycle given by overseas organizations or individuals.

Entities stipulated in Clause 4 Article 2 wish to import in a form of gifts or donations, within 01 year, each Vietnamese organization or individual shall only be allowed to import 01 motor vehicle and 01 motorcycle given by overseas organizations or individuals (Clause 3 Article 3 Circular No. 143/2015/TT-BTC dated 11 September 2015).

Application for permission to import a motor vehicle

Written request for import of motor vehicles, passport: 01 copy; bill of transport or equivalent documents: 01 copy; other papers relating to the imported car; written letter confirming term of office of the foreign expert assigned to work abroad: 01 original; written notification or confirmation or agreement about the gift, donation of the foreign organization, individual: 01 authenticated Vietnamese translation (Clause 1 Article 4 Circular No. 142/2015/TT-BTC dated 11 September 2015).

Procedures for import of motor vehicles:

Permission for import of motor vehicles: 02 originals; bill of transport or other equivalent documents: 01 copy; Declaration form of imported goods promulgated together with Circular No. 38/2015/TT-BTC dated 25 March 2015,Declaration form for quality, technical safety quality and environmental protection inspection for imported motor vehicles: 01 original; Authorization letter for objects mentioned in Clauses 1,2,3 and 4 Article 2 of this Circular, to authorize other organizations, individuals in Vietnam to implement customs procedure for import of cars (if applicable): 01 original. 

Import duties on cars:

Annex II Preferential import tariff schedule of taxable products on the list, issued together with Decree No. 125/2017/ND-CP dated November 16,  2017 by the Government.

Special consumption tax on cars:

Article 2 Law No. 106/2016/QH13 dated April 06, 2016 amending and supplementing a number of articles of the Law on Value-Added Tax, the Law on Excise Tax and the Law on Tax Administration

Decree No.18/VBHN-BTC dated October 21, 2016 detailing some articles of the Law on Excise Tax and the Amended Law on Excise Tax.

Value Added Tax (VAT) on cars:

10% tax shall be levied on the goods and services that are not mentioned in Clauses 1 and 2 of this Article (Clause 3 Article 8 Law on Value Added Tax No. 01/VBHN-VPQH dated April 28, 2016).

Therefore, you may follow the above regulations to gift a 100% new car to your family in Vietnam.  

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Can I gift my family in Vietnam a 100% new car ?