What are the applicable environmental protection tax rates in Vietnam?
What objects are subject to the environmental protection tax in Vietnam?
According to Article 3 of the Law on Environmental Protection Tax 2010 and Article 1 of Circular 152/2011/TT-BTC, as amended by Article 1 of Circular 159/2012/TT-BTC):
Objects subject to the environmental protection tax include:
- Petrol, oil and grease, including:
+ Petrol, except ethanol;
+ Jet fuel;
+ Diesel fuel;
+ Kerosene;
+ Fuel oil;
+ Lubricants;
+ Grease.
Petrol, oil and grease specified in this Clause include all kinds of petrol, oil and grease (below collectively referred to as petrol and oil) of fossil origin which are sold in Vietnam, excluding bio-preparations (such as ethanol, vegetable oil, animal fat, etc.).
For mixed fuel containing bio-fuel and petrol and oil of fossil origin, environmental protection tax shall be calculated and collected only for the volume of petrol and oil of fossil origin.
- Coals, including:
+ Lignite (brown coal);
+ Anthracite coal;
+ Fat coal;
+ Other coals.
- Hydrochlorofluorocarbon (HCFC) solution, meaning a group of the ozone layer-depleting substances used as refrigerant in cooling equipment and semi-conductor industry, which are domestically produced, imported separately or in imported refrigeration electric equipment.
- Taxable plastic bags (soft plastic bags)
Taxable nylon bags (plastic bags) re thin plastic bags and packages, that open at the top and may store products therein, made of HPDE (high density polyethylene resin), LDPE (low density polyethylene) or LLDPE (linear low density polyethylene resin), except for packages of pre-packed goods that satisfy the eco-friendly standards as from being issue with the Certificate of Eco-friendly nylon bag as prescribed by the Ministry of Natural Resources and Environment.
- Herbicides restricted from use.
- Termiticides restricted from use.
- Forest product preservatives restricted from use.
- Storehouse disinfectants restricted from use.
- When it is necessary to supplement other taxable objects as per period, the National Assembly Standing Committee shall consider and regulate.
What are the applicable environmental protection tax rates in Vietnam? (Image from the Internet)
What are the applicable environmental protection tax rates in Vietnam?
* Environmental protection tax rates for petrol, oil and grease:
- The environmental protection tax rates for petrol, oil and grease from January 1, 2024, to December 31, 2024, are reduced according to the provisions of Resolution 42/2023/UBTVQH15 as follows:
| No. | Goods | Unit of measure | Tax rate (VND/unit) |
|---|---|---|---|
| 1 | petrol, except ethanol | liter | 2,000 |
| 2 | Jet fuel | liter | 1,000 |
| 3 | Diesel oil | liter | 1,000 |
| 4 | Kerosene | liter | 600 |
| 5 | Fuel oil (mazut) | liter | 1,000 |
| 6 | Lubricants | liter | 1,000 |
| 7 | grease | kg | 1,000 |
- The environmental protection tax rates for Petrol, oil and grease from January 1, 2025, are prescribed by Resolution 579/2018/UBTVQH14 as follows:
| No. | Goods | Unit of measure | Tax rate (VND/unit) |
|---|---|---|---|
| 1 | petrol, except ethanol | liter | 4,000 |
| 2 | Jet fuel | liter | 3,000 |
| 3 | Diesel oil | liter | 2,000 |
| 4 | Kerosene | liter | 1,000 |
| 5 | Fuel oil (mazut) | liter | 2,000 |
| 6 | Lubricants | liter | 2,000 |
| 7 | grease | kg | 2,000 |
* Environmental protection tax rates for other taxable objects:
The environmental protection tax rates for other taxable objects are prescribed by Resolution 579/2018/UBTVQH14 as follows:
| No. | Goods | Unit of measure | Tax rate (VND/unit) |
|---|---|---|---|
| I | Coal | ||
| 1 | Lignite | ton | 15,000 |
| 2 | Anthracite coal | ton | 30,000 |
| 3 | Fat coal | ton | 15,000 |
| 4 | Other coals | ton | 15,000 |
| II | Hydro-chloro-fluoro-carbon (HCFC) solution, including HCFC solution in mixtures containing HCFC | kg | 5,000 |
| III | Taxable plastic bags | kg | 50,000 |
| IV | Herbicides restricted for use | kg | 500 |
| V | Termiticides restricted for use | kg | 1,000 |
| VI | Forest product preservatives restricted from use | kg | 1,000 |
| VII | Storehouse disinfectants restricted from use | kg | 1,000 |
When is the environmental protection taxable time in Vietnam?
Under Article 9 of the Environmental Protection Tax Law 2010, the provisions are as follows:
- For goods manufactured, sold, exchanged, donated, taxable time is the time transferring the ownership or right to use goods.
- For manufactured goods brought into internal consumption, taxable time is the time when taxable goods brought into use.
- For imported goods, taxable time is the time of registration of customs declarations.
- For petrol, petroleum produced or imported for sale, taxable time is the time when the business hub of petrol and oil sold.
What are the cases of refund of environmental protection tax in Vietnam?
Under Article 11 of the Environmental Protection Tax Law 2010, environmental protection tax is refunded in the following cases:
- Imported goods are still stored in warehouse, storage at the border gate and are subject to be supervised by the customs authority for re-export to foreign countries;
- Imported goods to transport, sell abroad through agents in Vietnam; petrol, petrol sold for vehicles of foreign firms on the route through Vietnam's ports or means of Vietnam's transportation on international transport road under the provisions of law;
- Goods temporarily imported for re-export by business mode of temporary import for re-export.
- Goods imported by the importer re-exporting to foreign countries;
- Goods temporarily imported for participation in fairs, exhibitions and introduction of products in accordance with the law when re-exported to foreign countries.
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