What are the legislative documents on the elaboration of the Law on Environmental Protection Tax in Vietnam?

What is the newest Law on Environmental Protection Tax in Vietnam?

The newest Law on Environmental Protection Tax is the Law on Environmental Protection Tax 2010.

The Law on Environmental Protection Tax 2010 provides for taxable subject, un-taxable subject, taxpayers, tax base, tax declaration, tax calculation, tax payment and environmental protection tax refund.

What are the legislative documents on the elaboration of the Law on Environmental Protection Tax in Vietnam?

The What are the legislative documents on the elaboration of the Law on Environmental Protection Tax in Vietnam? 2010 includes:

- Decree 67/2011/ND-CP providing guidelines for the Law on Environmental Protection Tax.

- Circular 152/2011/TT-BTC on the elaboration of Decree 67/2011/ND-CP on the elaboration of the Law on Environmental Protection Tax.

- Decree 69/2012/ND-CP amending Clause 3, Article 2 of Decree 67/2011/ND-CP on the elaboration of the Law on Environmental Protection Tax.

- Resolution 579/2018/UBTVQH14 on the Environmental Protection Tax Schedule.

- Resolution 42/2023/UBTVQH15 on the environmental protection tax rate for petrol, oil and grease.

What are the legislative documents on the elaboration of the Law on Environmental Protection Tax in Vietnam? (Image from the Internet)

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)

- 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.

Which objects are not subject to the environmental protection tax in Vietnam?

According to Article 4 of the Law on Environmental Protection Tax 2010, the objects not subject to the environmental protection tax include:

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

- Goods provided for in Article 3 of the Law on Environmental Protection Tax 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.

Which entities are required to pay the environmental protection tax in Vietnam?

According to Article 5 of the Law on Environmental Protection Tax 2010 and Article 3 of Circular 152/2011/TT-BTC), the entities required to pay the environmental protection tax include:

- Environmental protection taxpayer is organizations, households and individuals producing, importing goods under taxable subject provided for in Article 3 of Law on Environmental Protection Tax 201.

- Environmental protection tax payers are defined in some cases as follows:

+ Entrusted importers shall pay environmental protection tax, regardless of the form of entrustment and of whether goods are exported and delivered to entrusting parties or entrusted parties.

+ Producing and processing organizations, households and individuals that are concurrently entrusted to sell goods into the Vietnamese market shall pay environmental protection tax. In case processing organizations, households and individuals are not entrusted to sell goods, processing-ordering organizations, households and individuals shall pay environmental protection tax when selling goods in Vietnam.

+ Organizations, households and individuals that act as principal procurers of coal exploited on a small and scattered scale but fail to produce documents evidencing that environmental protection tax has been paid for the goods shall pay tax.