What are the cases of distribution of obligations to environmental protection tax in Vietnam?

What are the cases of distribution of obligations to environmental protection tax in Vietnam?

Under Clause 1 Article 16 Circular 80/2021/TT-BTC, cases of distribution of obligations to environmental protection tax in Vietnam shall refer to the following provisions:

- Wholesalers or their subsidiary companies that have dependent units in other provinces and these dependent units do not declare environment protection tax themselves, the wholesalers or the subsidiary companies shall declare environment protection tax with their supervisory tax authorities; calculate and distribute tax payable in each province in accordance with regulations of the Minister of Finance (Point a.2 Clause 4 Article 11 Decree 126/2020/ND-CP).

- For coal extracted and sold domestically: If an enterprise authorizes its subsidiary companies or dependent units to extract and sell coal domestically, the units assigned to sell coal shall declare the environment protection tax on the coal that is extracted and subject to tax, and submit tax declaration dossiers to their supervisory tax authorities together with the document specifying tax paid in each province where the extracting companies are located in accordance with regulations of the Minister of Finance. (Point b Clause 4 Article 11 Decree 126/2020/ND-CP as amended by Clause 6 Article 1 Decree 91/2022/ND-CP).

Thus, the distribution of obligations to environmental protection tax in Vietnam applies in cases of petrol and oil trading and enterprises involved in coal mining and domestic coal consumption.

What are the cases of distribution of obligations to environmental protection tax in Vietnam?? (Image from the Internet)

How to calculate the distributed environmental protection tax amount in Vietnam?

Under Clause 2 Article 16 Circular 80/2021/TT-BTC, the method of calculating the distributed environmental protection tax amount in Vietnam is stipulated as follows:

- Distribution of environment protection tax on oil and gas;

Environment protection tax payable in each province where a dependent unit is located equals (=) environment protection tax payable in each province on each petroleum product. Environmental protection tax payable in each province on each petroleum product equals (=) environment protection tax payable on each petroleum product multiplied by (x) the ratio (%) of quantity of each petroleum product which is subject to environment protection tax sold by the dependent unit to total quantity of petroleum product which is subject to environment protection tax sold by the taxpayer.

- Distribution of environment protection tax on coal extracted and sold domestically:

Environmental protection tax payable in each province where the coal extraction company is located shall be determined as follows:

What are the regulations on declaring and paying environmental protection tax in Vietnam?

Under Clause 3 Article 16 Circular 80/2021/TT-BTC, after distribution, taxpayers shall declare and pay environmental protection tax as follows:

(1) Oil and gas:

In case dependent units or subsidiary companies of the wholesaler do business in provinces other than the provinces in which the wholesaler and subsidiary company of the wholesaler are headquartered and do not do accounting separately, the wholesaler and the subsidiary companies of the wholesaler shall declare environment protection tax and submit the tax declaration dossier according to Form No. 01/TBVMT, the environment protection tax distribution sheet according to Form No. 01-2/TBVMT in Appendix II hereof to the supervisory tax authorities; pay tax in the provinces where the dependent units are located in accordance with Clause 4 Article 12 of Circular 80/2021/TT-BTC.

- Pay environmental protection tax: Environmental protection tax payers shall pay the allocated tax amount to the province where the dependent unit is headquartered based on the payable tax amount for each province entitled to allocated revenue to prepare the payment voucher and remit the money to the state budget as stipulated.

The State Treasury receiving the state budget payment voucher from the taxpayer shall record the revenue for each area receiving allocated revenue.

(2) Distribution of environment protection tax on coal extracted and sold domestically:

- In case an enterprise that extracts and sells coal domestically by assigning the extraction, processing and sale to its subsidiary companies or dependent units, the units assigned to sell coal shall declare environment protection tax on the entire amount of coal extracted and submit the tax declaration dossier according to Form No. 01/TBVMT (download), the environment protection tax distribution sheet according to Form No. 01-2/TBVMT in Appendix II of Circular 80/2021/TT-BTC (download) to the supervisory tax authority; pay tax in the province where the coal extraction company is located in accordance with Clause 4 Article 12 of Circular 80/2021/TT-BTC.

- Pay environmental protection tax: Environmental protection tax payers shall pay the allocated tax amount to the province where the dependent unit is headquartered based on the payable tax amount for each province entitled to allocated revenue to prepare the payment voucher and remit the money to the state budget as stipulated.

The State Treasury receiving the state budget payment voucher from the taxpayer shall record the revenue for each area receiving allocated revenue.