Are bird’s nests collected from the construction of houses to attract and raise natural swifts to collect their nest in Vietnam subject to severance tax?

Are bird’s nests collected from the construction of houses to attract and raise natural swifts to collect their nest in Vietnam subject to severance tax?

The severance tax-liable items stipulated in Article 2 of the Severance tax Law 2009 (amended by Clause 1, Article 4 of the Law on Amendments to the Laws on Taxation 2014) are as follows:

Severance tax-liable objects

1. Metallic minerals.

2. Non-metallic minerals.

3. Crude oil.

4. Natural gas, coal gas.

5. Natural forest products, other than animals.

6. Natural aquatic products, including marine animals and plants.

7. Natural water, including surface water and groundwater.7. Natural water, including surface water and underground water, except for natural water used for agriculture, forestry, aquaculture, and salt production.

8. Natural swallow's nests.

9. Other resources prescribed by the National Assembly Standing Committee.

At the same time, based on Clause 6, Article 2 of Circular 152/2015/TT-BTC, the following regulations are set:

Taxable items

The items subject to severance tax prescribed in this Circular are natural resources within the land, islands, internal waters, territorial sea, contiguous zones, exclusive economic zone, and continental shelves under the sovereignty and jurisdiction of Socialist Republic of Vietnam, including:

1. Metallic minerals.

2. Non-metallic minerals.

3. Products of natural forests, including plants and other products of natural forests other than animals, anise, cinnamon, cardamom planted by taxpayers within the area of natural forests they are given to cultivate and protect.

4. Natural aquatic organisms, including marine animals and plants.

5. Natural water, including: surface water and groundwater other than natural water used for agriculture, forestry, aquaculture, salt production, and seawater used for cooling machines.

Seawater used for cooling machines mentioned in this Clause must comply with regulations on environment, effectiveness of water recirculation, and technical requirements certified by competent authorities. The act of causing pollution when using seawater or using seawater without satisfying environmental standards shall be dealt with in accordance with the Government's Decree No. 179/2013/ND-CP dated November 14, 2013, its instructional documents and/or amendments and/or replacements (if any).

6. Natural bird’s nests other than those collected from construction of houses to attract and raise natural swifts to collect their nest.

Bird’s nests collected from construction of houses to attract and raise natural swifts to collect their nest must comply with Circular No. 35/2013/TT-BNNPTNT dated July 22, 2013 of the Ministry of Agriculture and Rural Development, its instructional documents and/or amendments and/or replacements (if any).

7. The Ministry of Finance shall cooperate with relevant Ministries and agencies in reporting other natural resources to the Government.

Under the above regulations, natural bird's nests will be subject to severance tax.

However, bird’s nests collected from construction of houses to attract and raise natural swifts to collect their nests are not subject to severance tax.

Therefore, bird’s nests collected from the construction of houses to attract and raise natural swifts to collect their nests are not subject to severance tax.

Are bird’s nests collected from the construction of houses to attract and raise natural swifts to collect their nest in Vietnam subject to severance tax? (Image from the Internet)

What is the severance tax rate for natural bird's nests in Vietnam?

Under the Tax Rate Schedule for severance tax issued together with Resolution 1084/2015/UBTVQH13, the severance tax rate for natural bird's nests is clearly defined as follows:

Thus, according to the aforementioned provisions, if it is required to pay tax when exploiting natural bird's nests, the applicable severance tax rate is 20%.

What are the regulations for managing swiftlet breeding facilities in Vietnam?

The requirements for swiftlet breeding facilities are stipulated in Clause 2, Article 25 of Decree 13/2020/ND-CP as follows:

Regulations for swiftlet breeding facilities:

- Swiftlet nest farms and equipment used for swiftlet breeding must be relevant to swiftlet behaviors.

The swiftlet nest farms operating before the effective date of this Decree but failing to comply with the regulation laid down in Point a Clause 1 of this Article shall remain intact and not be expanded;

- Sufficient water that ensures quality shall be provided for swiftlet breeding and measures shall be taken to protect the environment in accordance with regulations of the law on environmental protection;

- Records shall be in place to contain information about swiftlet breeding, preliminary processing and storage of swiftlet nests, thereby facilitating the tracing of swiftlet products;

- Sounding device used to lure swiftlets must have a sound intensity not exceeding than 70 dBA (decibel A) measured at the loudspeaker’s mouth; loudspeakers used to lure swiftlets shall be active only from 5:00 to 11:30 and from 13:30 to 19:00 every day, except for the case specified in Point d of this Clause;

- The swiftlet nest farms operating before the effective date of this Decree but failing to comply with the regulation laid down in Point a Clause 1 of this, swiftlet nest farms located in populated areas and swiftlet nest farms that are less than 300 m away from populated areas are not allowed to use loudspeakers;

- It is not allowed to hunt and lure swiftlets for any purposes other than raising of swiftlets for their nests and scientific research.