What are the environmental protection taxable objects in Vietnam?

What are the environmental protection taxable objects in Vietnam?

According to Article 3 of the Law on Environmental Protection Tax 2010, environmental protection taxable objects include:

(1). Gasoline, oil, and grease, including:

- Gasoline, except ethanol;

- aircraft fuel;

- diesel oil;

- Petroleum;

- Fuel oil;

- grease;

- Grease.

(2) Coal, including:

- Lignite;

- Anthracite Coal (anthracite);

- Fat coal;

- Other coal.

(3) Hydrogen-chlorofluorocarbon liquid (HCFC).

(4) Taxable plastic bag.

(5) Herbicide which is restricted from use.

(6) Pesticide which is restricted from use.

(7) Forest product preservative which is restricted from use.

(8) Warehouse disinfectant which is restricted from use.

(9) When it is necessary to supplement other taxable objects as per period, the National Assembly Standing Committee shall consider and regulate.

The Government shall specify this Article.

Additionally, the taxable goods are also stipulated in Article 2 of Decree 67/2011/ND-CP, amended by Article 1 of Decree 69/2012/ND-CP, which adds some taxable goods as follows:

The taxable goods follow the stipulations in Article 3 of the Law on Environmental Protection Tax 2010.

- For gasoline, oil, and grease specified in Clause 1, Article 3 of the Law on Environmental Protection Tax 2010, these are fossil fuel types. For mixed fuels containing biofuel and fossil fuel gasoline, oil, and grease, the environmental protection tax is only calculated for the fossil fuel part.

- Hydro-chloro-fluoro-carbon (HCFC) solution specified in Clause 3, Article 3 of the Law on Environmental Protection Tax 2010 is a type of gas used as a refrigerant in cooling equipment and in the semiconductor industry.

- Plastic bags subject to the tax (plastic bags) specified in Clause 4, Article 3 of the Law on Environmental Protection Tax 2010 are thin plastic packaging bags in the form of a bag (with an opening, bottom, sides and capable of containing products) made from single-layer plastic films HDPE (high-density polyethylene resin), LDPE (low-density polyethylene), or LLDPE (linear low-density polyethylene resin), excluding pre-packaged goods and plastic bags meeting environmental friendliness criteria as stipulated by the Ministry of Natural Resources and Environment.

- Pre-packaged goods specified in this clause (including both bag-shaped and non-bag-shaped packaging), include:

+ Pre-packaged imported goods;

+ Packaging that organizations, households, or individuals produce or import to pack products they produce or process or purchase products to pack or provide packaging services;

+ Packaging that organizations, households, or individuals purchase directly from the producer or importer to pack products they produce or process or purchase products to pack or provide packaging services.

- For herbicides restricted from use, termiticides restricted from use, wood preservatives restricted from use, and warehouse disinfectants restricted from use, specified in Clauses 5, 6, 7, and 8, Article 3 of the Law on Environmental Protection Tax 2010, details are implemented according to Resolution 1269/2011/UBTVQH12 (Document has expired and was replaced by Resolution 579/2018/UBTVQH14).

What are the environmental protection taxable objects in Vietnam? (Image from the Internet)

Which goods are exempt from the environmental protection tax in Vietnam?

Under Article 4 of the Environmental Protection Tax Law 2010, the following goods are exempt from the environmental protection tax in Vietnam:

- Goods is not specified in Article 3 of Environmental Protection Tax Law 2010 shall not be subject to environmental tax.

- Goods provided for in Article 3 of Environmental Protection Tax Law 2010 shall not be subject to environmental tax in the following cases:

+ Goods transported in transit or transshipped through the border gate, Vietnam border in accordance with the law, including the transportation of goods from exporting countries to importing countries through the border gate of Vietnam but it is not made import & export procedures into and out of Vietnam; transit goods through the border gate, the border of Vietnam on the basis of agreements signed between the Government of Vietnam and a foreign government or an agreement between agencies, representative authorized under the provisions of law by government of Vietnam and foreign governments;

+ Goods temporarily imported for re-export within the time limit prescribed by law;

+ Goods directly exported by production facilities or entrusted for the export business to export, except for organizations, households and individuals to purchase goods which environmental protection taxable subject to export.

What are the regulations on environmental protection tax payers in Vietnam?

Article 5 of the Environmental Protection Tax Law 2010 prescribes the environmental protection tax payers as follows:

- Environmental protection taxpayer is organizations, households and individuals producing, importing goods under taxable subject provided for in Article 3 of this Law.

- Environmental protection taxpayer in some specific cases shall be provided for as follows:

+ in case of goods importing commission, the person who entrusted importing goods shall be taxpayer;

+ In cases where organizations, households and individuals act procurement hub of coal to develop small, retail but they can not produce the documents proving that goods have been paying environmental protection tax, the organizations, households individuals act as procurement hub shall be taxpayer.