Vietnam Increases Taxes On Car Imports

With effect from August 15, 2011, Vietnam’s Customs Department has begun to implement new duties on second-hand cars with a capacity of less than 15 people (including the driver) imported into the country.

Under the new tax directive, second-hand vehicles holding up to nine persons (including the driver) and with an engine capacity of less than 1,000cc will be charged an import tariff of USD3,500 per vehicle. Those with an engine capacity of between 1,000cc and 1,500cc will be liable for a USD8,000 tariff.

Second-hand cars for up to nine people, with an engine capacity above 1,500 but less than 2,500cc will pay an additional tariff equal to the duty on an equivalent imported new car plus USD5,000; while the additional tariff on those of 2,500cc and above will be the new car duty plus USD15,000.

Imports of second-hand cars holding between 10 and 15 people will be charged even more. Those with an engine size of less than 2,000cc will be subject to a duty of USD9,500; those between 2,000cc and 3,000cc will pay USD13,000; and those of over 3,000cc will be subject to a tax of USD17,000.

August 22, 2011

Source: Tax News