The responsibility for paying the Due Tax is outlined in the following manner within the context of this Decree-Law. When any individual engages in activities mentioned in clause 2 of Article 2, they are obligated to pay the applicable tax. This provision seeks to ensure that those benefiting from specific activities are also responsible for contributing their fair share to the tax system, thereby supporting public funds and government operations.
In cases where the person who conducts the activity fails to fulfill their tax obligation, the responsibility for paying the Due Tax is shifted to the person involved in those activities as specified in the Executive Regulation of this Decree-Law. This clause acts as a safeguard to prevent tax evasion or avoidance by individuals conducting the activities. By holding those involved in the activities accountable for the tax payment, the legislation strengthens the tax enforcement mechanisms, ensuring that the government’s revenue collection is not compromised.
Another scenario where responsibility for the tax payment arises is when Excise Goods are released from a Designated Zone without the payable tax having been previously paid. In such cases, the Warehouse Keeper is entrusted with the responsibility of settling the tax dues, as specified in the Executive Regulation of this Decree-Law. This measure aims to ensure that the taxes on Excise Goods, which might otherwise remain untaxed due to their movement in designated zones, are collected before entering the mainstream market or reaching end consumers. By designating the Warehouse Keeper as responsible for tax payment, the legislation holds them accountable for fulfilling this obligation and minimizes the possibility of tax evasion through the exploitation of designated zones.
However, there are specific exceptions to the provisions outlined in clause 1 of this Article. Individuals who import Excise Goods of a value lower than the specified amount in the Customs Legislation are exempt from the responsibility to pay Due Tax. To qualify for this exemption, the Excise Goods must be personally accompanied by the individual during an international journey and intended for non-commercial purposes. This exclusion recognizes that certain imports may be for personal use and not intended for commercial gain. As a result, the legislation allows for a tax exemption in such circumstances, preventing unnecessary burdens on individuals for their personal consumption.
Similarly, the concept of a Stockpiler is also addressed in the legislation. A Stockpiler refers to an individual or entity involved in the accumulation or holding of goods for future use or sale. In cases where the Stockpiler meets the specific conditions outlined in the Executive Regulation of this Decree-Law, they are exempt from paying the Due Tax. This provision acknowledges that the storage or accumulation of goods for legitimate reasons may not warrant immediate tax payment. The conditions specified in the Executive Regulation act as a guideline to determine eligibility for this exemption and ensure that the tax system does not impede genuine business practices or hinder economic growth.
This Decree-Law clarifies the responsibility for paying the Due Tax, primarily focusing on individuals engaged in specific activities and holding them accountable for fulfilling their tax obligations. It also addresses situations involving Excise Goods released from Designated Zones and the role of Warehouse Keepers in tax payment. Nevertheless, the legislation recognizes that certain scenarios warrant exemptions, such as personal imports and legitimate stockpiling activities, in order to strike a balance between tax collection and fostering economic activities within the country.
This article was published on 18 August 2023
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