What is the current severance tax code in Vietnam?
What is the current severance tax code in Vietnam?
According to point b, clause 1, Article 4 of Circular 324/2016/TT-BTC, the sub-entry (also known as economic content code - ECC) is a detailed classification of the Entry, used to classify the detailed revenue and expenditure of the state budget according to the management objects in each Entry.
Based on Appendix 3 of the List, sub-entry issued together with Circular 324/2016/TT-BTC, the severance tax entry for 2024 is regulated as follows:
| Entry Code | Sub-entry Code | Name | |
| Entry | 1550 | Severance tax | |
| Sub-entry | 1551 | Oil, condensate (excluding severance tax collected under agreements, contracts) | |
| 1552 | Hydropower water | ||
| 1553 | Metal minerals | ||
| 1555 | Non-metal minerals | ||
| 1556 | Aquatic, marine products | ||
| 1557 | Products from natural forests | ||
| 1558 | Other natural water sources | ||
| 1561 | Natural bird's nest | ||
| 1562 | Natural gas (excluding severance tax collected under agreements, contracts) | ||
| 1563 | Coal gas (excluding severance tax collected under agreements, contracts) | ||
| 1599 | Other mineral resources |
The severance tax code is 1550.
What is the current severance tax code in Vietnam? (Image from the Internet)
What is the basis for calculating severance tax in Vietnam?
Based on Article 4 of Circular 152/2015/TT-BTC, the regulation is as follows:
Basis for tax calculation
1. The basis for calculating severance tax is the taxable resource output, taxable resource price, and severance tax rate.
2. Determining the severance tax payable in the period
severance tax payable in the period = Taxable resource output x Taxable unit price of resources x severance tax rate
In cases where the state agency determines the severance tax payable per unit of resources exploited, the severance tax payable is determined as follows:
severance tax payable in the period = Taxable resource output x Determined severance tax per unit of resources extracted
The determination of severance tax is based on the tax authority's database, in accordance with the tax determination regulations under the tax management laws.
Therefore, the basis for calculating severance tax includes the taxable resource output, taxable resource price, and severance tax rate.
What is the current severance tax rate in Vietnam?
According to Article 7 of the Severance tax Law 2009, the severance tax rates are regulated as follows:
- severance tax rate framework is prescribed as follows:
| No. | Group, type of resources | Tax rate (%) |
|---|---|---|
| I | Metal minerals | |
| 1 | Iron, manganese | 7 - 20 |
| 2 | Titanium | 7 - 20 |
| 3 | Gold | 9 - 25 |
| 4 | Rare earths | 12 - 25 |
| 5 | Platinum, silver, tin | 7 - 25 |
| 6 | Tungsten, antimony | 7 - 25 |
| 7 | Lead, zinc, aluminum, bauxite, copper, nickel | 7 - 25 |
| 8 | Cobalt, molybdenum, mercury, magnesium, vanadium | 7 - 25 |
| 9 | Other metal minerals | 5 - 25 |
| II | Non-metal minerals | |
| 1 | Soil for leveling, construction | 3 - 10 |
| 2 | Stone (excluding stone for lime and cement production); gravel; sand (excluding sand for glass) | 5 - 15 |
| 3 | Soil for bricks | 5 - 15 |
| 4 | Granite, fire clay | 7 - 20 |
| 5 | Dolomite, quartzite | 7 - 20 |
| 6 | Kaolin, mica, technical quartz, sand for glass | 7 - 15 |
| 7 | Pyrite, phosphorite, stone for lime and cement production | 5 - 15 |
| 8 | Apatite, serpentine | 3 - 10 |
| 9 | Anthracite coal (underground mining) | 4 - 20 |
| 10 | Anthracite coal (surface mining) | 6 - 20 |
| 11 | Brown coal, fat coal | 6 - 20 |
| 12 | Other coal types | 4 - 20 |
| 13 | Diamond, ruby, sapphire | 16 - 30 |
| 14 | Emerald, alexandrite, black opal | 16 - 30 |
| 15 | Adite, rhodolite, pyrope, beryl, spinel, topaz | 12 - 25 |
| 16 | Amethyst, green, yellow, orange quartz; cryolite; white, red fire opal; feldspar; turquoise; nephrite | 12 - 25 |
| 17 | Other non-metal minerals | 4 - 25 |
| III | Crude oil | 6 - 40 |
| IV | Natural gas, coal gas | 1 - 30 |
| V | Products from natural forests | |
| 1 | Group I wood | 25 - 35 |
| 2 | Group II wood | 20 - 30 |
| 3 | Group III, IV wood | 15 - 20 |
| 4 | Group V, VI, VII, VIII and other types of wood | 10 - 15 |
| 5 | Branches, tops, roots | 10 - 20 |
| 6 | Firewood | 1 - 5 |
| 7 | Bamboo, rattan, nứa, mai, giang, vầu, lồ ô | 10 - 15 |
| 8 | Agarwood, ky nam | 25 - 30 |
| 9 | Star anise, cinnamon, cardamom | 10 - 15 |
| 10 | Other products from natural forests | 5 - 15 |
| VI | Natural marine products | |
| 1 | Pearls, abalone, sea cucumber | 6 - 10 |
| 2 | Other natural marine products | 1 - 5 |
| VII | Natural water | |
| 1 | Natural mineral water, natural hot water, filtered natural water in bottles, cans | 8 - 10 |
| 2 | Natural water for hydroelectric production | 2 - 5 |
| 3 | Natural water for production and business, excluding those mentioned in points 1 and 2 of this Group | |
| 3.1 | Surface water | 1 - 3 |
| 3.2 | Ground water | 3 - 8 |
| VIII | Natural bird's nest | 10 - 20 |
| IX | Other resources | 1 - 20 |
- The specific tax rate for crude oil, natural gas, coal gas is determined progressively based on the average daily output of crude oil, natural gas, or coal gas exploitation.
- Based on the provisions of clauses 1 and 2, Article 7 of the Severance tax Law 2009, the Standing Committee of the National Assembly regulates specific tax rates for each type of resource in each period ensuring the following principles:
+ Matching the group, type of resources list and within the tax rate framework prescribed by the National Assembly;
+ Contributing to the state management of resources; protecting, exploiting, using resources rationally, economically, and efficiently;
+ Ensuring the state budget revenue and stabilizing the market.
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