What is the deadline for submitting resource royalty declaration for natural water used in hydropower generation in Vietnam?

What is the deadline for submitting resource royalty declaration for natural water used in hydropower generation in Vietnam?

Based on Clause 1, Article 8 of Decree 126/2020/ND-CP, it is stipulated as follows:

Types of taxes declared monthly, quarterly, annually, separately, and finalization tax declaration

1. Types of taxes and other collections under the state budget managed and collected by tax authorities that are declared monthly include:

a) Value-added tax, personal income tax. In cases where taxpayers meet the criteria stipulated in Article 9 of this Decree, they may opt for quarterly declarations.

b) Special consumption tax.

c) Environmental protection tax.

d) resource royalty, excluding resource royalty stipulated at point e of this clause.

đ) Fees and charges under the state budget (excluding fees and charges collected by the representative agencies of the Socialist Republic of Vietnam abroad according to the provisions of Article 12 of this Decree; customs fees; fees for goods, luggage, and means of transport in transit).

e) For activities of extracting and selling natural gas: resource royalty; corporate income tax; special tax on the Vietnam-Russia joint venture “Vietsovpetro” at Block 09.1 under the Agreement between the Government of the Socialist Republic of Vietnam and the Government of the Russian Federation signed on December 27, 2010, regarding the continued cooperation in geological exploration and oil extraction on the continental shelf of the Socialist Republic of Vietnam within the framework of the Vietnam-Russia joint venture “Vietsovpetro” (hereinafter referred to as Vietsovpetro Joint Venture at Block 09.1); divided profits from natural gas lot owner.

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Additionally, Clause 1, Article 44 of the 2019 Tax Administration Law prescribes the deadline for submitting tax declaration as follows:

Deadline for Submitting Tax declaration

1. The deadline for submitting tax declaration for taxes declared monthly and quarterly is prescribed as follows:

a) No later than the 20th day of the month following the month in which the tax obligation arises for cases of monthly declarations and payments;

b) No later than the last day of the first month of the quarter following the quarter in which the tax obligation arises for cases of quarterly declarations and payments.

2. The deadline for submitting tax declaration for types of taxes calculated annually is stipulated as follows:

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Based on the above provisions, it can be observed that the resource royalty is a type of tax declared monthly. Therefore, the deadline for submitting the resource royalty declaration dossier for natural water used in hydropower generation is no later than the 20th day of the month following the month in which the tax obligation arises.

How is the resource royalty value for natural water used in hydropower generation calculated in Vietnam?

Pursuant to Clause 3, Article 6 of the 2009 resource royalty Law, which regulates the tax valuation as follows:

Tax Valuation

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3. Specific cases for resource royalty valuation are stipulated as follows:

a) For natural water used in hydropower generation, it is the average commercial electricity selling price;

b) For wood, it is the selling price at the delivery yard; if the selling price at the delivery yard has not been determined, the tax valuation is determined based on the tax valuation regulated by the provincial People's Committee;

c) For resources extracted not consumed domestically but exported, it is the export price;

d) For crude oil, natural gas, coal gas, it is the selling price at the delivery point. The delivery point is agreed upon in the petroleum contract where crude oil, natural gas, or coal gas is transferred to the ownership of participants in the petroleum contract.

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Thus, the resource royalty valuation for natural water used in hydropower generation is the average commercial electricity selling price.

What is the deadline for submitting resource royalty declaration for natural water used in hydropower generation in Vietnam? (Image from Internet)

Which entitiy is the resource royalty payer for natural water used in hydropower generation in Vietnam?

According to Article 3 of the 2009 resource royalty Law, as amended by Clause 2, Article 67 of the 2022 Petroleum Law, the responsibility for paying the resource royalty for natural water used in hydropower generation is defined as follows:

- The resource royalty payer is an organization or individual extracting resources subject to resource royalty, excluding resource extraction from mines, mine clusters, or oil and gas blocks under the provisions of petroleum law.

- resource royalty payers in certain specific cases are as follows:

+ For businesses extracting resources founded based on joint ventures, the joint venture enterprise is the resource royalty payer;

+ For Vietnamese and foreign parties participating in a business cooperation contract for resource extraction, the tax payment responsibility of the parties must be clearly stipulated in the cooperation contract;

+ Organizations or individuals extracting small-scale resources and selling them to organizations or individuals acting as purchasing agents, and if such agents agree in writing to declare and pay taxes on behalf of the extractors, then such agents are the resource royalty payers.