Vietnam: What are the codes of sub-sections for severance tax payment in 2024?

What are the codes of sub-sections for severance tax payment in Vietnam in Vietnam?

According to point b clause 1 Article 4 of Circular 324/2016/TT-BTC, the sub-section (also known as economic content code - NDKT) is a detailed classification of the section, used to classify state budget revenues and expenditures in detail according to the management objects within each section.

Appendix 3 on List of sections and sub-sections issued together with Circular 324/2016/TT-BTC stipulates the sub-sections for severance tax payment in Vietnam in 2024 as follows:

See the full list of chapter codes in detail: Here

What are the codes of sub-sections for severance tax payment in Vietnam in Vietnam? (Image from the internet)

Which items are subject to severance tax in Vietnam?

According to Article 2 of Circular 152/2015/TT-BTC, items subject to severance tax 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:

- Metallic minerals.

- Non-metallic minerals.

- 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.

- Natural aquatic organisms, including marine animals and plants.

- 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 by legal regulations.

- 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 the legal regulations.

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

What is the frame severance tax tariff in Vietnam?

Pursuant to Article 7 of the Law on Severance Tax 2009, the severance tax rates are specified as follows:

- The frame severance tax tariff is specified below:

- 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 Article 7 of the Law on Severance Tax 2009, the National Assembly Standing Committee shall stipulate specific severance tax rates for each category of natural resource in each period on the following principles:

+ Ensuring conformity with the list of groups and categories of natural resource and within the severance tax rate bracket prescribed by the National Assembly:

+ Contributing to the state management of natural resources; protection, exploitation and rational, economical and effective use of natural resources:

+ Contributing to assuring state budget revenues and market stabilization.