|
THE NATIONAL ASSEMBLY |
SOCIALIST REPUBLIC OF VIET NAM Independence – Freedom – Happiness ——— |
| No. 45/2009/QH12 |
Hanoi, November 25, 2009 |
LAW ON SEVERANCE TAX
Pursuant to the 1992 Constitution of the Socialist Republic of Vietnam, which was amended and supplemented under Resolution No. 51/2001/QH10;
The National Assembly promulgates the Law on Severance tax.
Chapter I
GENERAL PROVISIONS
Article 1. Scope of regulation
This Law provides for severance tax-liable objects, severance tax payers, severance tax bases, and severance tax declaration, payment, exemption and reduction.
Article 2. Severance tax-liable objects
- Metallic minerals.
- Non-metallic minerals.
- Crude oil.
- Natural gas, coal gas.
- Natural forest products, other than animals.
- Natural aquatic products, including marine animals and plants.
- Natural water, including surface water and groundwater.
- Natural swallow’s nests.
- Other resources prescribed by the National Assembly Standing Committee.
Article 3. Severance tax payers
- Severance tax payers include organizations and individuals that exploit severance tax-liable natural resources.
- In some cases, severance tax payers shall be defined as follows:
(a) For a mining enterprise established on the basis of joint venture, the joint-venture enterprise shall pay severance tax:
(b) For Vietnamese and foreign parties to a business cooperation contract to exploit natural resources, the parties’ liability to pay severance tax must be specified in such contract:
(c) In case an exploiter conducts small-scale exploitation of natural resources and sells them to a principal purchaser that has a written commitment or an approval to declare and pay severance tax on the exploiter’s behalf, the principal purchaser shall pay severance tax.
Chapter II
SEVERANCE TAX BASES
Article 4. Severance tax bases
Severance tax bases include natural resource output used for severance tax calculation, severance tax-liable price and severance tax rate.
Article 5. Natural resource output used for severance tax calculation
- For an exploited natural resource the quantity, weight or volume of which can be determined, the natural resource output used for royally calculation is the quantity, weight or volume of natural resource actually exploited in a severance tax period.
- For an exploited natural resource the quantity, weight or volume of which cannot be determined because this natural resource contains different substances and impurities, the natural resource output used for severance tax calculation shall be determined based on the quantity, weight or volume of each substance obtained from sorting and classification.
- For natural resources which are not sold but used for turning out other products, if their actually exploited quantity, weight or volume cannot be directly determined, the natural resource output used for severance tax calculation shall be determined based on the output of products turned out in a severance tax period and the use norm of natural resource per unit of product.
- For natural water used for hydropower generation, the natural resource output used for severance tax calculation is the output of electricity sold by a hydropower generation establishment to an electricity buyer under an electricity purchase and sale contract or the output of delivered electricity, in case such contract is unavailable, which is determined according to the metering system up to Vietnam’s measurement and quality standards, certified by the purchaser and seller or the deliverer and recipient.
- For natural mineral water, natural thermal water and natural water used for industrial purposes, the natural resource output used for severance tax calculation shall be determined in cubic meter On1) or liter (I) according to the metering system up to Vietnam’s measurement and quality standards.
- For natural resources exploited on a manual, scattered or mobile, irregular basis, if the planned output of exploited natural resources in a year is valued at under VNI) 200 million, a fixed output of exploited natural resources may be determined on a regular or seasonal basis for severance tax calculation. Tax offices shall coordinate with local concerned agencies in determining the fixed output of exploited natural resources for severance tax calculation.
The Government shall detail this Article.
Article 6. Severance tax-liable prices
- The severance tax-liable price is the exploiter’s selling price of a unit of natural resource product, exclusive of value-added tax.
- In case the natural resource’s selling price cannot be determined yet. the severance tax-liable price shall be determined based on either of the following grounds:
(a) The regional market’s actual selling price of a unit of natural resource product of the same grade, which must not be lower than the royally-liable price set by the People’s Committee of a province or centrally run city (below collectively referred to as provincial-level People’s Committee);
(b) In case the exploited natural resource contains different substances, the severance tax-liable price shall be determined based on the unit selling price and content of each substance, which must not be lower than the severance tax-liable price set by the provincial-level People’s Committee.
- In some cases, the severance tax-liable price shall be determined as follows:
(a) For natural water used for hydropower generation, it is the average selling price of commodity electricity:
(b) For timber, it is the selling price at the place of delivery; if the selling price at the place of delivery cannot be determined, the severance tax-liable price shall be determined based on the severance tax-liable price set by the provincial-level People’s Committee;
(c) For exploited natural resources which are not domestically sold but exported, it is the export price;
(d) For crude oil. Natural gas and coal gas. It is the selling price at the place of delivery. The place of delivery is a place agreed upon in the oil and gas contract under which the ownership over crude oil. Natural gas and coal gas is transferred to the contractual parties.
- Provincial-level People’s Committees shall set specific severance tax-liable prices of natural resources for which unit selling prices of natural resource products cannot be determined, except crude oil. Natural gas. Coal gas. And natural water used for hydropower generation.
The Government shall detail this Article.
Article 7. Severance tax rates
- The frame severance tax tariff is specified below:
| No. | Group or category of natural resource | Severance tax rate (%) |
| I | Metallic minerals | |
| 1 | Iron and manganese | 7-20 |
| 2 | Titan | 7-20 |
| 3 | Gold | 9-25 |
| 4 | Rare earths | 12-25 |
| 5 | Platinum, silver and tin | 7-25 |
| 6 | Wolfram and antimony | 7-25 |
| 7 | Lead, zinc, aluminum, bauxite, copper and nickel | 7-25 |
| 8 | Cobalt, molybdenum, mercury, magnesium and vanadium | 7-25 |
| 9 | Other metallic minerals | 5-25 |
| II | Non-metallic minerals | |
| 1 | Soil exploited for ground leveling and work construction | 3-10 |
| 2 | Rock, except rock used for lime baking and cement production; gravel; sand, except sand used for glass-making | 5-15 |
| 3 | Soil used for brick-making | 5-15 |
| 4 | Granite and refractory clay | 7-20 |
| 5 | Dolomite and quartzite | 7-20 |
| 6 | Kaolin, mica, technical quartz, and sand used for glass-making | 7-15 |
| 7 | Pyrite, phosphorite, and stone for lime baking and cement production | 5-15 |
| 8 | Apatite and serpentine | 3-10 |
| 9 | Pit anthracite coal | 4-20 |
| 10 | Open-cast anthracite coal | 6-20 |
| 11 | Lignite and fat coal | 6-20 |
| 12 | Other coals | 4-20 |
| 13 | Diamond, ruby and sapphire | 16-30 |
| 14 | Emerald, alexandrite and black precious opal | 16-30 |
| 15 | Adrite, rodolite, pyrope, berine. Spinel and topaz | 12-25 |
| 16 | Bluish-purple, greenish-yellow or orange crystalline quartz; chrysolite; white or scarlet precious opal; feldspar; birusa; and nephrite | 12-25 |
| 17 | Other non-metallic minerals | 4-25 |
| III | Crude oil | 6-40 |
| IV | Natural gas and coal gas | 1-30 |
| V | Natural forest products | |
| 1 | Timber of group I | 25-35 |
| 2 | Timber of group II | 20-30 |
| 3 | Timber of groups III and IV | 15-20 |
| 4 | Timber of groups V, VI, VII and VIII and of other categories | 10-15 |
| 5 | Tree branches, tops, stumps and roots | 10-20 |
| 6 | Firewood | 1-5 |
| 7 | Bamboo of all kinds | 10-15 |
| 8 | Sandalwood and calambac | 25-30 |
| 9 | Anise, cinnamon, cardamom and liquorice | 10-15 |
| 10 | Other natural forest products | 5-15 |
| Natural aquatic resources | ||
| 1 | Pearl, abalone and sea-cucumber | 6-10 |
| 2 | Other natural aquatic resources | 1-5 |
| VII | Natural water | |
| 1 | Natural mineral water, natural thermal water and refined natural water, bottled or tinned | 8-10 |
| 2 | Natural water used for hydropower generation | 2-5 |
| 3 | Natural water used for production and business activities, except water mentioned at Points 1 and 2 of this group | |
| 3.1 | .Surface water | 1-3 |
| 3.2 | Groundwater | 3-8 |
| VIII | Natural swallow’s nests | 10-20 |
| IX | Other resources | 1-20 |
- Specific severance tax rates for crude oil. natural gas and coal gas shall be determined as partially progressive based on their daily exploited average output.
- Pursuant to Clauses 1 and 2 of this Article, the National Assembly Standing Committee shall stipulate specific severance tax rates for each category of natural resource in each period on the following principles:
(a) Ensuring conformity with the list of groups and categories of natural resource and within the severance tax rate bracket prescribed by the National Assembly:
(b) Contributing to the state management of natural resources; protection, exploitation and rational, economical and effective use of natural resources:
(c) Contributing to assuring state budget revenues and market stabilization.
Chapter III
SEVERANCE TAX DECLARATION. PAYMENT. EXEMPTION AND REDUCTION
Article 8. Severance tax declaration and payment
Severance tax payers shall register, declare, calculate and pay severance tax under the law on tax administration.
Article 9. Severance tax exemption and reduction
- Severance tax payers that encounter natural disasters, fires or unexpected accidents, causing losses of natural resources for which severance tax have been declared and paid, may be considered for exemption from or reduction of payable severance tax for the lost volumes of natural resources. The paid severance tax amount will be refunded or cleared against the subsequent period’s payable severance tax amount.
- Severance tax are exempted for natural aquatic resources.
- Severance tax are exempted for tree branches and tops, firewood and bamboo of all kinds which individuals are permitted to exploit for their daily-life needs.
- Severance tax are exempted for natural water used for hydropower generation by households and individuals for their daily-life needs.
- Severance tax are exempted for natural water used for agriculture, forestry, fishery and salt-making; natural water exploited by households and individuals for their daily-life needs.
- Severance tax are exempted for soil exploited and used right on allocated and leased land areas; and soil exploited for ground leveling and construction of security and military works and dikes.
- Others cases eligible for severance tax exemption or reduction as prescribed by the National Assembly Standing Committee.
Chapter IV
IMPLEMENTATION PROVISIONS
Article 10. Effect
- This Law takes effect on July 1. 2010.
- On the effective date of this Law, the following legal documents cease to be effective:
(a) Ordinance No. 05/1998/PL-UBTVQH10 on Severance tax;
(b) Ordinance No. 07/2008/PL-UBTVQH12 Amending and Supplementing Article 6 of the Ordinance on Severance tax.
- For investment projects or oil and gas contracts signed before July 1. 2010. with severance tax specified in their investment licenses, investment certificates or oil and gas contracts, the provisions of these investment licenses, investment certificates or signed oil and gas contracts apply. In case severance tax incentives indicated in these investment licenses, investment certificates or oil and gas contracts are lower than those provided in this Law. the severance tax incentives specified m this Law will apply for the remaining duration.
Article 11. Implementation detailing and guidance
The Government shall detail and guide the implementation of articles and clauses assigned to it under this Law: and guide other necessary contents of this Law to meet state management requirements.
This Law was passed on November 25, 2009, by the XIIth National Assembly of the Socialist Republic of Vietnam at its 6th session.-
|
CHAIRMAN OF THE NATIONAL ASSEMBLY Nguyen Phu Trong |
