How much is the severance tax on forest fuelwood exploitation in Vietnam?
How much is the severance tax on forest fuelwood exploitation in Vietnam?
Pursuant to Article 7 of the Law on severance tax 2009, the tax rates are specified as follows:
- The framework for the severance tax rates is as follows:
| Group | Name | (%) |
| I | Metallic minerals | |
| 1 | Iron, manganese | 7 - 20 |
| 2 | Titanium | 7 - 20 |
| 3 | Gold | 9 - 25 |
| 4 | Rare earth elements | 12 - 25 |
| 5 | Platinum, silver, tin | 7 - 25 |
| 6 | Wolfram, antimony | 7 - 25 |
| 7 | Lead, zinc, aluminum, bauxite, copper, nickel | 7 - 25 |
| 8 | Cobalt, molybdenum, mercury, magnesium, vanadium | 7 - 25 |
| 9 | Other metallic minerals | 5 - 25 |
| II | Non-metallic minerals | |
| 1 | Soil for construction and land leveling | 3 - 10 |
| 2 | Stone (excluding lime stone and for cement production), gravel, sand (excluding sand for glass) | 5 - 15 |
| 3 | Soil for brick making | 5 - 15 |
| 4 | Granite, refractory clay | 7 - 20 |
| 5 | Dolomite, quartzite | 7 - 20 |
| 6 | Kaolin, mica, technical quartz, sand for glass | 7 - 15 |
| 7 | Pyrite, phosphorite, limestone and for cement production | 5 - 15 |
| 8 | Apatite, serpentine | 3 - 10 |
| 9 | Anthracite coal (underground) | 4 - 20 |
| 10 | Anthracite coal (open pit) | 6 - 20 |
| 11 | Brown coal, coking coal | 6 - 20 |
| 12 | Other coal types | 4 - 20 |
| 13 | Diamond, ruby, sapphire | 16 - 30 |
| 14 | Emerald, alexandrite, black opal | 16 - 30 |
| 15 | Garnet, rhodolite, pyrope, beryl, spinel, topaz | 12 - 25 |
| 16 | Amethyst, citrine, sunstone, cryolite, white opal, fire opal, feldspar, turquoise, nephrite | 12 - 25 |
| 17 | Other non-metallic minerals | 4 - 25 |
| III | Crude oil | 6 - 40 |
| IV | Natural gas, coal gas | 1 - 30 |
| V | Products from natural forests | |
| 1 | Group I timber | 25 - 35 |
| 2 | Group II timber | 20 - 30 |
| 3 | Group III, IV timber | 15 - 20 |
| 4 | Group V, VI, VII, VIII and other types of timber | 10 - 15 |
| 5 | Branches, tops, stumps, roots | 10 - 20 |
| 6 | Fuelwood | 1 - 5 |
| 7 | Bamboo, rattan, thorny bamboo, thatch, wild sugarcane | 10 - 15 |
| 8 | Agarwood, incense | 25 - 30 |
| 9 | Star anise, cinnamon, cardamom, amomum | 10 - 15 |
| 10 | Other products from natural forests | 5 - 15 |
| VI | Natural marine products | |
| 1 | Pearls, abalone, sea cucumbers | 6 - 10 |
| 2 | Other natural marine products | 1 - 5 |
| VII | Natural water | |
| 1 | Natural mineral water, natural hot water, purified natural water in bottles or cans | 8 - 10 |
| 2 | Natural water for hydroelectricity production | 2 - 5 |
| 3 | Natural water for production and business, excluding the water specified in points 1 and 2 of this group | |
| 3.1 | Surface water | 1 - 3 |
| 3.2 | Groundwater | 3 - 8 |
| VIII | Natural bird nests | 10 - 20 |
| IX | Other resources | 1 - 20 |
- The specific tax rate for crude oil, natural gas, and coal gas is determined progressively based on the average daily production.
- Based on the provisions in clauses 1 and 2 of this Article, the National Assembly Standing Committee shall specify the tax rate for each type of resource in each period to ensure the following principles:
+ In accordance with the list of resource groups and types within the tax rate framework stipulated by the National Assembly;
+ Contributing to state management of resources; protection, exploitation, and efficient use of resources;
+ Ensuring state budget revenue and market stability.
Thus, the severance tax on forest fuelwood exploitation ranges from 1 to 5% (depending on the extraction volume to determine).
How much is the severance tax on forest fuelwood exploitation? (Image from the Internet)
What are regulations on severance tax on forest fuelwood exploitation in Vietnam?
According to Article 2 of the Law on severance tax 2009 (amended by clause 1, Article 4 of the Law on Amendments to Tax Laws 2014), the tax subjects are specified as follows:
- Metallic minerals.
- Non-metallic minerals.
- Crude oil.
- Natural gas, coal gas.
- Products from natural forests, except animals.
- Natural marine products, including marine animals and plants.
- Natural water, including surface water and groundwater, except natural water used for agriculture, forestry, aquaculture, and salt production.
- Natural bird nests.
- Other resources as specified by the National Assembly Standing Committee.
Thus, according to regulations, products from natural forests (including forest fuelwood) are subject to severance tax.
Who is responsible for tax payment when individuals exploit small-scale natural fuelwood and sell it to intermediaries in Vietnam?
According to Article 3 of the Law on severance tax 2009, the taxpayers are specified as follows:
- severance taxpayers are organizations or individuals exploiting resources subject to severance tax.
- In certain cases, the taxpayers are specifically defined as follows:
+ Enterprises exploiting resources formed based on joint ventures shall consider the joint venture enterprise as the taxpayer;
+ Vietnamese and foreign parties participating in a business cooperation contract for resource exploitation must specifically define the tax payment responsibility in the business cooperation contract;
+ Organizations or individuals exploiting small-scale resources and selling them to intermediaries who commit in writing to declare and pay tax on behalf of the exploiting organizations or individuals shall have the intermediaries as the taxpayers.
Therefore, under the above regulations, if there is a written commitment to tax payment from the buyer, the buyer will pay the tax on behalf of the individual exploiting small-scale natural fuelwood and selling it to them.
