On April 21, 2022, the General Department of Customs issued Official Letter 1400/TCHQ-TXNK 2022 on the tax treatment of goods rented and borrowed from export processing enterprises (“Dispatch 1400”).

Accordingly, Dispatch 1400 has recorded the guidance of the General Department of Customs related to handling overpaid tax amounts for goods rented or borrowed from export processing enterprises, the following will be detailed:
Subjects of application: Goods leased or borrowed by domestic enterprises from export processing enterprises in the form of temporary import for re-export to serve processing and production for export.
– In case an enterprise is entitled to additional declaration due to incorrect declaration of taxable value, resulting in the amount of tax paid being greater than the amount of tax payable, the overpaid tax amount will be refunded when the taxpayer no longer owes tax, late payment interest, fines.
– The customs authority shall check the reasons for additional declarations, customs declarations, relevant vouchers, and documents to determine the customs value and tax policy in accordance with regulations.

Dispatch 1400 takes effect from April 21, 2022.

* This newsletter is only for information about newly issued legal regulations, not used to advise or apply to specific cases.

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