Imported cars on sale at a shop on Nguyen Van Cu Street in Ha Noi. Overseas Vietnamese may have to satisfy stricter regulations to claim exemption from import tax and value added tax on cars and motorbikes they bring back home. — VNS Photo Truong Vi

HA NOI (Biz Hub)— Overseas Vietnamese may have to satisfy stricter regulations to claim exemption from import tax and value added tax on cars and motorbikes they bring back home.

Regulations to this effect are now being drafted by the Ministry of Finance. The new rules apply to overseas Vietnamese with or without permanent residence in Viet Nam.

The new circular will replace Circular 118/2009/TT-BTC issued in 2009.

The draft circular outlines several measures to control the number of vehicles brought back by overseas Vietnamese - and to make sure their owners are not avoiding tax.

Under the draft circular, they will only be able to bring home cars under five years old (from the production date to the date of arrival in Viet Nam). As for motorbikes, they must be less than three years old and models permitted in Viet Nam.

The vehicles must clear customs with certificates of technical safety and environmental protection granted by quality inspection agencies.

Local customs offices will be instructed to accept applications and send the data to the General Department of Customs for approval. Notice will be given within five working days.

The draft circular is currently open for public comment.

Stricter controls on cars and motorcycles imported by overseas Vietnamese has become necessary because many cases of tax evasion have been reported.

Last year, there was a sharp rise in the number of vehicles brought in by Vietnamese individuals. — VNS