Overseas Vietnamese may have to satisfy stricter regulations to claim exemptions from import tax and value added tax on cars and motorbikes they bring back home.
A draft circular outlines several measures to control the number of vehicles brought back by overseas Vietnamese - and make sure their owners are not trying to avoid paying taxes.
Under the draft circular, they will only be able to bring home cars less than five years old (from the production date to the date of arrival in Viet Nam). Motorbikes must be less than three years old and must be models permitted in Viet Nam.
The vehicles must clear customs with certificates of technical safety and environmental protection granted by quality inspection agencies.
Currently, every repatriate bringing a car back to Viet Nam is exempt from both import tax and the VAT.
The number of luxury vehicles brought in by repatriating viet kieu has rapidly increased, with more than 1,140 cars in 2012 compared with 164 in 2011.
Do you think Viet Nam should continue allowing imported cars and motorbikes to enter the country as expatriate assets? How can the Government prevent people from taking advantage of this to avoid taxes? Will the influx of cars overcrowd the streets? When you first come to the country, are you surprised by the sight of luxury cars in the street?
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