What is the environmental protection fee for natural gas obtained in the process of extraction of crude oil in Vietnam?

What is the environmental protection fee for natural gas obtained in the process of extraction of crude oil in Vietnam?

Pursuant to Clause 1, Article 6 of Decree 27/2023/ND-CP, it is stipulated as follows:

Fee collection rate

1. The environmental protection fee rate for crude oil: 100,000 VND/ton; for natural gas and coal gas: 50 VND/m3. Specifically, natural gas obtained in the process of extraction of crude oil (associated gas): 35 VND/m3.

2. The environmental protection fee rate for mineral exploitation (including cases where the production and business activities of organizations or individuals are not aimed at mineral exploitation but minerals are obtained) is according to the fee rate schedule issued with this Decree.

3. The environmental protection fee rate for mineral recovery activities according to the Mineral Law is 60% of the fee rate for the corresponding mineral type as specified in the fee rate schedule issued with this Decree.

4. Based on the principles for determining fee rates stipulated in the Law on Fees and Charges, the fee rate schedule issued with this Decree, and the fee rate of similar localities subject to the fee, the People's Council of provinces and centrally governed cities (hereinafter collectively referred to as the provincial People's Council) shall decide the specific fee rates and units of calculation for environmental protection fees applicable to each type of mineral in the locality, suitable to the actual situation in each period.

Thus, according to the above provisions, for natural gas obtained in the process of extraction of crude oil (associated gas), the environmental protection fee is: 35 VND/m3 (cubic meter).

What is the environmental protection fee for natural gas obtained in the process of extraction of crude oil in Vietnam? (Image from Internet)

What is the formula for calculating the environmental protection fee on mineral extraction payable within a period in Vietnam?

Pursuant to Clause 2, Article 7 of Decree 27/2023/ND-CP, it is stipulated as follows:

- The environmental protection fee on mineral extraction payable within a period is calculated according to the following formula:

F = [(Q1 x f1) + (Q2 x f2)] x K.

*Where:

F is the environmental protection fee payable in the period (month).

Q1 is the volume of overburden, waste rock during the fee payment period (m3).

The volume of overburden, waste rock during the fee payment period (Q1) is determined according to the provisions of Clause 2, Article 41 and Clause 4, Article 42 of Decree 158/2016/ND-CP.

f1 is the fee rate for overburden, waste rock volume: 200 VND/m3.

Q2 is the total volume of actual raw mineral extracted during the fee payment period (tons or m3).

The total volume of actual raw mineral extracted during the fee payment period (Q2) is determined according to the provisions of Article 42 of Decree 158/2016/ND-CP.

f2 is the corresponding fee rate for each type of mineral extracted (VND/ton or VND/m3).

K is the fee calculation coefficient based on the extraction method, which includes:

Surface mining (including mining using water power such as mining titanium, sand, pebbles in riverbeds, streams, hydroelectric and irrigation reservoirs, estuaries): K = 1.1.

Underground mining and other mining forms (crude oil extraction, natural gas, natural mineral water and other cases): K = 1.

What are the responsibilities of the Provincial People's Committee, local Tax Department, and Department of Natural Resources and Environment in managing environmental protection fee collection in Vietnam?

According to Article 9 of Decree 27/2023/ND-CP, the responsibilities of the Provincial People's Committee, the local Tax Department, and the Department of Natural Resources and Environment in managing environmental protection fee collection activities are as follows:

[1] The Provincial People's Committee has the responsibility to:

- Submit to the Provincial People's Council at the nearest meeting to issue a Resolution on fee rates, units of calculation for the environmental protection fee for mineral exploitation applicable to the locality as prescribed in Clause 4, Article 6 of this Decree.

- Instruct the Department of Natural Resources and Environment to coordinate in providing information, documents on organizations and individuals licensed for mineral exploitation in the locality to the tax department and cooperate with the tax department to strictly manage fee payers as stipulated in this Decree.

[2] The local Tax Department has the responsibility to:

- Manage the collection and payment of environmental protection fees according to the legal provisions on tax management.

- Store and use data, documents provided by organizations, individuals exploiting minerals and other cases according to regulations.

- Coordinate with the local department of natural resources and environment in organizing the management of environmental protection fee collection for mineral exploitation as stipulated in this Decree and the legal provisions on tax management.

- No later than April 30 each year, based on the annual fee settlement documents (calendar year) according to the legal provisions on tax management, the tax department where fee payers submit fee declaration dossiers is responsible for transferring detailed information to the department of natural resources and environment about the volume of overburden, waste rock and the volume of actual raw mineral extracted, declared, and paid environmental protection fees for mineral exploitation in the year according to each Mining License within the area.

In cases of fee settlement not in accordance with the calendar year, termination of the mining contract, cessation of mineral collection activities, change of ownership, type of enterprise, merger, consolidation, split, dissolution, bankruptcy, cessation of production, and business activities: The tax department transfers information to the department of natural resources and environment within 45 days from the end date for filing the fee settlement dossier according to the legal provisions on tax management.

- No later than April 30 each year, the Tax Department is responsible for compiling and publicly informing: the environmental protection fee for mineral exploitation that fee payers have paid in the previous year on the website of the Tax Department and the Provincial People's Committee for public awareness.

[3] The Department of Natural Resources and Environment has the responsibility to: reconcile the volume of overburden, waste rock, and the volume of actual raw mineral extracted according to each license reported by fee payers with the existing data at the Department of Natural Resources and Environment; in cases where the volume reported by fee payers is not consistent with actual conditions or shows signs of legal violations, the Department of Natural Resources and Environment implements professional measures to determine the actual volume of overburden, waste rock, and the volume of actual raw mineral extracted.

Within 30 working days from receiving information transferred by the tax department, if the fee payer has inaccurately declared the volume of overburden, waste rock, and volume of actual raw mineral extracted, the Department of Natural Resources and Environment is responsible for transferring the information to the tax department for handling according to the provisions of the Tax Management Law.