What are regulations on water resource-related taxes and fees in Vietnam? What are the State budget revenues from water resource activities in Vietnam?
What are the State budget revenues from water resource activities in Vietnam?
According to Article 67 of the Law on Water Resources 2023, the sources of state budget revenue in water resource activities include:
- Resource taxes and other taxes as prescribed by tax law.
- Various fees as prescribed by the law on fees and charges.
- Payments for the allocation of water resource exploitation rights.
- Compensation for damage to the State, as well as income from administrative penalties in the field of water resources as prescribed by law.
What are regulations on water resource-related taxes and fees in Vietnam?
Based on Article 68 of the Law on Water Resources 2023, water resource-related taxes and fees are regulated as follows:
Taxes and Fees on Water Resources
- Resource taxes are applied to natural water as prescribed by the law on resource taxes.
- The taxable price of natural water is implemented according to the provisions of the law on resource taxes and other relevant laws.
- Environmental protection taxes applied to products and goods whose use adversely affects the environment or causes environmental pollution are implemented according to the law on environmental protection taxes.
- Fees concerning water resources include:
a) Fees for the exploitation and use of water resources as prescribed by the law on fees and charges. The fee levels specified in this point are determined based on the nature of public services and activities in the field of water resources;
b) Fees and charges for environmental protection concerning wastewater for activities that discharge wastewater into the environment per the law on fees and charges and the environmental protection law.
Thus, water resource-related taxes and fees are regulated as follows:
- Resource taxes are applied to natural water as prescribed by the law on resource taxes.
- The taxable price of natural water is implemented according to the provisions of the law on resource taxes and other relevant laws.
- Environmental protection taxes apply to products and goods whose use adversely affects the environment or causes environmental pollution, as implemented according to the environmental protection tax law.
- Fees concerning water resources:
+ Fees for exploiting and using water resources: Applied according to the law on fees and charges.
+ Environmental protection fees concerning wastewater: Applied to activities discharging wastewater into the environment, according to environmental protection law.
What are regulations on water resource-related taxes and fees in Vietnam? (Image from the Internet)
What are the regulations on payments for the allocation of water resource exploitation rights in Vietnam?
Based on Article 68 of the Law on Water Resources 2023, the regulations are as follows:
(1) Organizations and individuals exploiting water resources that require a license for the exploitation of surface water and groundwater must make payments for the allocation of water resource exploitation rights in the following cases:
- Exploiting surface water for commercial electricity generation;
- Exploiting surface water or groundwater for production, business, services, aquaculture, agricultural supply, or residential use.
(2) Organizations and individuals exploiting water resources are not required to make payments for the allocation of water resource exploitation rights in the following cases:
- Exploiting seawater;
- Exploiting and using water resources for living, agricultural production, aquaculture, industrial production, hydroelectricity, irrigation, sports, tourism, business, services, source creation, salinity prevention, flood prevention, and landscaping as specified in Clauses 3, 4, and 5 of Article 52 Law on Water Resources 2023;
c) Exploiting water resources for the purposes of source creation, salinity prevention, flood prevention, and landscaping as specified in Clause 1 of Article 52 Law on Water Resources 2023.
3. Organizations and individuals exploiting surface water or groundwater as per (1) are exempt from payments for the allocation of water resource exploitation rights in the following cases:
- Exploiting water for residential use in remote, border, island, economically disadvantaged, and specially disadvantaged areas;
- Projects with water exploitation work items guaranteed by the Government of Vietnam;
- During periods when water exploitation works are damaged due to force majeure circumstances, preventing continuous exploitation or requiring temporary suspension.
(4) Organizations and individuals exploiting surface water or groundwater as defined in (1) are entitled to reductions in payments for the allocation of water resource exploitation rights in the following cases:
- Water exploitation works that must cut or reduce the amount of water extracted as required by competent state authorities as specified at point g, Clause 1, Article 42 of this Law;
- Exploiting and reusing circulating water as specified in Clause 5, Article 59 Law on Water Resources 2023;
- Reservoirs that have operated and must adjust or add flood cushions for downstream compared to approved reservoir tasks;
- Extracting water for agricultural production during periods of drought, water scarcity, or saltwater intrusion.
(5) Payments for the allocation of water resource exploitation rights are determined based on the amount of water, the quality of the water source, the type of water source, extraction conditions, scale, duration, and purpose of use.
(6) the Government of Vietnam prescribes in detail the payment submission, exemption, and reduction of payments for the allocation of water resource exploitation rights; prescribes the method of calculation and levels of collection for the allocation of water resource exploitation rights.
