Tax treatments of scrap, raw materials, and other supplies under toll manufacturing contracts

28 November, 2017

On 26 October, the Ministry of Finance issued Official letter 14475/BTC-TCHQ re. the tax treatment of scrap, raw materials, and other supplies for toll manufacturing contracts.

Scrap, imported raw materials, and other supplies not exceeding 3% of the total quantity imported under toll manufacturing contracts are entitled to import duty exemption when sold domestically. 

Latest Tax NewsBriefs

Customs Update: Stricter checks on application of special preferential import tariffs

Recently during some post-clearance audits, there have been a number of cases of Customs rejecting submitted Certificates of Origin (“C/O”) claiming special preferential import tariffs in accordance with Free Trade Agreements between Vietnam and other countries. Customs seem to be more stringent on the verification of the validity of the C/O before such C/O is accepted to allow the importers to apply the rates committed in the FTAs.

Get in touch

Richard J. Irwin
Chairman/Partner, Tax Services, PwC Vietnam
Tel: +84 28 3823 0796
Email

Follow us