How to determine the the environmental protection fee in Vietnam? What is the list of environmental protection activities eligible for incentives and assistance in Vietnam?

Which entities are the environmental protection taxpayers in Vietnam?

According to Article 5 of the Environmental Protection Tax Law 2010, the entities responsible for paying the environmental protection tax include:

- The entities obligated to pay the environmental protection tax are organizations, households, and individuals producing or importing goods subject to taxation as specified in Article 3 of the Environmental Protection Tax Law 2010.

- In some specific cases, the responsibility for paying the environmental protection tax is determined as follows:

+ In case of entrustment for importing goods, the entrusted importer is the taxpayer;

+ In case organizations, households, or individuals are the focal point for purchasing coal from small-scale exploiters and cannot provide documents proving that goods have been taxed, such organizations, households, or individuals are considered taxpayers.

How to determine the the environmental protection fee in Vietnam? What is the list of environmental protection activities eligible for incentives and assistance in Vietnam? (Image from the Internet)

How to determine the the environmental protection fee in Vietnam?

Based on Clause 2, Article 3 of the Law on Environmental Protection 2020, environmental protection activities are those that prevent and minimize adverse impacts on the environment; respond to environmental incidents; remedy pollution and environmental degradation, improve the quality of the environment; rational use of natural resources, biodiversity, and respond to climate change.

Furthermore, as stipulated in Article 136 of the Law on Environmental Protection 2020, the determination of environmental protection fees is as follows:

Tax and fee policies on environmental protection

...

2. The environmental protection fee is prescribed as follows:

a) The environmental protection fee applies to activities that discharge waste into the environment; exploit minerals or cause adverse impacts on the environment; public services related to environmental protection as prescribed by fee and charge law;

b) The amount of the environmental protection fee is determined based on the volume, toxicity level of pollutants discharged into the environment, the characteristics of the environment receiving the waste; the degree of negative impact on the environment of mineral exploitation activities; the nature of the public services in the field of environmental protection;

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Thus, the environmental protection fee is determined based on the volume, toxicity level of pollutants discharged into the environment, the characteristics of the environment receiving the waste; the degree of negative impact on the environment of mineral exploitation activities; the nature of the public services in the field of environmental protection.

What is the list of environmental protection activities eligible for incentives and assistance in Vietnam?

Based on Appendix 30 of the list of environmental protection activities eligible for incentives and assistance, issued together with Decree 08/2022/ND-CP, regulations on entities eligible for incentives and support include organizations and individuals involved in investment projects related to environmental protection; production, business, and service activities related to environmental protection in sectors and industries prioritized for investment. Specifically, the list of environmental protection activities eligible for incentives and assistance is as follows:

Download the list of environmental protection activities eligible for incentives and assistance.

- Investment projects in sectors and industries for collection, treatment, recycling, or reuse of waste, including:

+ Treatment and disposal of solid waste (garbage);

+ Collection of solid waste (garbage);

+ Collection and treatment of wastewater;

+ Recycling or reuse of waste.

- Enterprises manufacturing and providing technology, equipment, products, and services for environmental protection requirements, including:

+ Providing waste treatment technology combined with energy recovery, energy-saving technology evaluated or appraised, or commented by law on technology transfer;

+ Providing services for treating domestic wastewater; co-treatment of domestic solid waste; ambient environmental monitoring services;

+ Production of clean energy; renewable energy; environmental monitoring equipment;

+ Production, provision of on-site domestic wastewater treatment equipment for household-scale production, business facilities; products, services friendly to the environment certified by the Ministry of Natural Resources and Environment with the Vietnam Green Label;

+ Products produced from recycling and waste treatment activities meeting the legal requirements on product and commodity quality;

+ Manufacturing public transport vehicles, excluding public transport vehicles using oil; manufacturing vehicles using electricity, renewable energy, low fuel consumption, low emissions, or zero emissions; public transport services using electrical energy, clean fuel, renewable fuel.

- Environmental protection activities that are not investment and business activities, including:

+ Renewing technology, renovating, upgrading waste treatment facilities to comply with the roadmap issued by competent state agencies according to Law on Environmental Protection;

+ Relocating families out of concentrated production, business, service zones, and industrial clusters;

+ Relocating existing facilities to meet the safe environmental distance or to implement the roadmap issued by competent state agencies according to Law on Environmental Protection;

+ Investing in the development of naturally regenerable capital that can provide ecosystem services; protect natural heritage;

+ Researching, developing systems for collecting and treating marine and oceanic floating plastic waste;

+ Treating and renovating the environment of municipal solid waste landfills.