Is stone subject to severance tax in Vietnam?

Is stone subject to severance tax in Vietnam?

According to Article 2 of Circular 152/2015 ND-CP on taxable items:

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.

Thus, stone is also subject to severance tax as it belongs to the group of non-metallic minerals.

The types of stone subject to severance tax include: stone, gravel, limestone for lime kiln and cement production, and white marble.

Is stone subject to severance tax in Vietnam? (Image from the Internet)

What is the severance tax rate applicable to stone in Vietnam?

Under the severance tax tariff issued together with Resolution 1084/2015/UBTVQH13, the current severance tax tariff for natural resources is specified as follows:

Thus, the tax rate for the 3 types of stone subject to severance tax is as follows: the tax rate for stone and gravel is 10%, the tax rate for limestone for lime kiln and cement production is 10%, and the tax rate for white marble is 15%.

What are the 06 cases of severance tax exemption in Vietnam?

Under Article 10 of Circular 152/2015/TT-BTC stipulating the cases of tax exemption according to Article 9 of the Law on severance tax 2009 and Article 6 of Decree 50/2010/ND-CP:

- Entities extracting natural marine organisms.

- Entities extracting branches, firewood, bamboo, rattan, etc. serving everyday life.

- Entities extracting natural water for hydroelectricity generation serving everyday life of households and individuals.

- Natural water extracted by households and individuals serving their everyday life.

- Land areas given/leased out to organizations and individuals and used on the spot; earth used for leveling, construction of security, military works, dykes.

Earth extracted and used on the spot eligible for tax exemption include sand, rock, gravel in the earth without specific substances and is used as is for leveling or construction. If earth is transport elsewhere for use or for sale, severance tax must be paid as prescribed.

- The Ministry of Finance shall cooperate with relevant Ministries and agencies in proposing other cases of exemption from severance tax to the government, which will be considered and decided by Standing Committee of the National Assembly.