Vietnam: What does the application for deferral of fee for grant of right to mineral extraction in case of land clearance difficulties include?
Vietnam: What does the application for deferral of fee for grant of right to mineral extraction in case of land clearance difficulties include?
Pursuant to Clause 1, Article 20 of Decree 126/2020/ND-CP stipulating the application for extending the payment of mineral extraction rights fee when there are issues with land lease clearance includes:
- A request letter for extension by the taxpayer following Form No. 01/GHKS in Appendix III issued together with Decree 126/2020/ND-CP, stating clearly the reasons for not being able to implement the project or temporary suspension of extraction, the amount of the mineral extraction rights fee proposed for extension, requested extension period, the land area with clearance issues, and the total land area as per the extraction license.
- A document confirmed by a competent state authority (commune-level People's Committee or district-level Compensation and Land Clearance Board or another agency with a similar function) verifying that the taxpayer has issues with land lease clearance, clearly stating the land area with such issues.
- Other related documents (if any).
Download Form No. 01/GHKS
Vietnam: What does the application for deferral of fee for grant of right to mineral extraction in case of land clearance difficulties include? (Image from the Internet)
What are procedures for for deferral of fee for grant of right to mineral extraction in case of land clearance difficulties in Vietnam?
According to Clause 4, Article 20 of Decree 126/2020/ND-CP, the procedure for deferral of fee for grant of right to mineral extraction in case of land clearance difficulties is as follows:
(1) In case the extension application is incomplete according to Clause 1, Article 20 of Decree 126/2020/ND-CP or contains other errors, the tax authority must notify the taxpayer in writing within 3 working days from the date of receiving the application, using Form No. 03/GHKS in Appendix III issued together with Decree 126/2020/ND-CP for application supplementation or to request an explanation.
If the taxpayer fails to complete the application as required by the tax authority, the extension will not be processed.
(2) If the extension application is complete and in the correct format as specified in Clause 1 of this Article, the tax authority must notify the taxpayer in writing within 10 working days from the date of receiving the complete application:
+ A document disapproving the extension if the taxpayer does not qualify for an extension, using Form No. 04/GHKS in Appendix III issued together with Decree 126/2020/ND-CP.
+ A decision on the extension if the taxpayer qualifies for an extension, using Form No. 02/GHKS in Appendix III issued together with Decree 126/2020/ND-CP.
The extension decision must be published on the tax authority's website no later than 3 working days from the date of issuance.
Download Form No. 03/GHKS
Download Form No. 04/GHKS
Download Form No. 02/GHKS
Is late payment interest charged on the amount extended for the mineral extraction rights fee in Vietnam?
According to Clause 4, Article 11 of Decree 67/2019/ND-CP, it is stipulated as follows:
Extension of the payment deadline for mineral extraction rights fee
- Mineral extraction rights fees are considered for an extension when encountering land lease clearance issues and other cases as stipulated in Clause 1, Article 49 of the Tax Management Law.
- Organizations or individuals extracting minerals subject to Clause 1 of this Article may receive an extension for the payment of part or all of the mineral extraction rights fees due.
- For cases stipulated in Clause 1 of this Article, the outstanding mineral extraction rights fees, late payment interest, and fines of the organization or individual extracting minerals are calculated up to the point of:
a) Natural disasters, fires, or unforeseen accidents occur, but not exceeding the material value lost minus the portion compensated by individuals or organizations liable for payment according to the law;
b) Organizations or individuals begin ceasing production and business activities, not exceeding the cost of relocation and losses due to the relocation of production and business facilities, including related costs incurred during the temporary suspension of extraction.
4. During the extension period for the payment of the mineral extraction rights fee, late payment interest on the amount extended is not calculated. After the extension period ends, organizations or individuals must pay the mineral extraction rights fees to the state budget as regulated. If organizations or individuals extracting minerals do not fully pay the mineral extraction rights fees after the extension period, they will incur late payment interest and be subject to enforcement of administrative decisions according to tax management laws.
- Extension period; authority for extension; extension application; processing of extension applications for mineral extraction rights fees, late payment interest, and fines are implemented according to tax management laws.
Based on the above regulation, during the extension period for payment of the mineral extraction rights fee, late payment interest on the extended amount is not calculated.
