What are the environmental protection tax distribution methods in Vietnam?

What are the environmental protection tax distribution methods in Vietnam?

Under  Clause 2, Article 16 of Circular 80/2021/TT-BTC, the environmental protection tax distribution methods in Vietnam are as follows:

- Distribution of environmental protection tax on Gasoline and oil;

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

- Distribution of environmental 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 environmental protection tax distribution methods in Vietnam? (Image from the Internet)

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

Under Clause 1, Article 16 of Circular 80/2021/TT-BTC:

Declaring, calculating, distributing and paying environment protection tax

1. Distribution cases:

a) Gasoline and oil in the cases specified in Point a.2 Clause 4 Article 11 of Decree No. 126/2020/ND-CP;

b) Coal extracted and sold domestically in the cases specified in Point b Clause 4 Article 11 of Decree No. 126/2020/ND-CP.

Thus, the cases of environmental protection tax distribution in Vietnam include:

- Gasoline and oil for cases: Wholesalers or their subsidiary companies as specified in the Enterprise Law 2020 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.

- Coal extracted and sold domestically for cases: If an enterprise authorizes its subsidiary companies or dependent units to extract and sell coal domestically, these subsidiary companies or dependent units shall declare the environment protection tax on the coal purchased 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.

What are the responsibilities of tax authorities managing provinces receiving distributed environmental protection tax in Vietnam?

Under Clause 2, Article 5 of Circular 80/2021/TT-BTC, the responsibilities of tax authorities managing provinces receiving distributed environmental protection tax are as follows:

- Supervise taxpayers declaring distribution of tax obligations and paying tax in the receiving province; request taxpayers to provide information and documents relevant to the distributed tax obligations; inform the supervisory tax authority in case a taxpayer fails to comply or fully comply with regulations on tax obligation distribution.

- Implement certain measures for collection of tax debts, enforcement of tax debt payment in the receiving province and inform supervisory tax authorities (except tax authorities of the receiving provinces specified in Point a Clause 6 Article 3 of Circular 80/2021/TT-BTC).

- Cooperate in processing applications for tax deferral, tax payment in instalments, chargeoff, tax cancellation in the province at the request of supervisory tax authorities (except tax authorities of the receiving provinces specified in Point a Clause 6 Article 3 of Circular 80/2021/TT-BTC).

- Preside over or cooperate with supervisory tax authorities in offsetting overpaid tax in accordance with Article 25 and Article 26 of Circular 80/2021/TT-BTC (except tax authorities of the receiving provinces specified in Point a Clause 6 Article 3 of Circular 80/2021/TT-BTC).

- Cooperate in refunding overpaid tax to taxpayers at the request of supervisory tax authorities in accordance with Section 2 Chapter V of Circular 80/2021/TT-BTC (except tax authorities of the receiving provinces specified in Point a Clause 6 Article 3 of Circular 80/2021/TT-BTC).

- Cooperate in inspection of taxpayers at the request of supervisory tax authorities