Viet kieu (Overseas Vietnamese or OV), who are intellectuals, experts and skilled workers, have been granted a tax exemption on used cars they bring to Viet Nam, according to a new Government decree.

A German Audi car (Source: VNA)

The tax exemption is granted to OVs who have signed a contract of one year or more to work in a State-owned agency. The tax exemption includes import tax, special consumption tax and value-added tax (VAT).

To be eligible for the tax exemption, the cars must meet certain conditions and technological standards required under Vietnamese regulations.  The car, for example, must have been registered for circulation for at least 6 months in the country where the Viet kieu had been living or working.

It also must have had at least 10,000 km on its odometer by the time of arrival at a Vietnamese port.

After the overseas Vietnamese's working contract ends, the car must be re-exported to its original location. If the car is sold or leased in Viet Nam, the OV must pay taxes prescribed under Vietnamese law.

(Source: VNA)