What is the method of determining the severance taxable extraction weight of gold in Vietnam?

What is the method of determining the severance taxable extraction weight of gold in Vietnam?

Under Article 5 of the Severance Tax Law 2009, the regulations are as follows:

Natural resource output used for severance tax calculation

1. For an exploited natural resource the quantity, weight or volume of which can be determined, the natural resource output used for royally calculation is the quantity, weight or volume of natural resource actually exploited in a severance tax period.

2. For an exploited natural resource the quantity, weight or volume of which cannot be determined because this natural resource contains different substances and impurities, the natural resource output used for severance tax calculation shall be determined based on the quantity, weight or volume of each substance obtained from sorting and classification.

3. For natural resources which are not sold but used for turning out other products, if their actually exploited quantity, weight or volume cannot be directly determined, the natural resource output used for severance tax calculation shall be determined based on the output of products turned out in a severance tax period and the use norm of natural resource per unit of product.

4. For natural water used for hydropower generation, the natural resource output used for severance tax calculation is the output of electricity sold by a hydropower generation establishment to an electricity buyer under an electricity purchase and sale contract or the output of delivered electricity, in case such contract is unavailable, which is determined according to the metering system up to Vietnam's measurement and quality standards, certified by the purchaser and seller or the deliverer and recipient.

5. For natural mineral water, natural thermal water and natural water used for industrial purposes, the natural resource output used for severance tax calculation shall be determined in cubic meter On1) or liter (I) according to the metering system up to Vietnam's measurement and quality standards.

6. For natural resources exploited on a manual, scattered or mobile, irregular basis, if the planned output of exploited natural resources in a year is valued at under VNI) 200 million, a fixed output of exploited natural resources may be determined on a regular or seasonal basis for severance tax calculation. Tax offices shall coordinate with local concerned agencies in determining the fixed output of exploited natural resources for severance tax calculation.

The Government shall detail this Article.

Therefore, according to the regulations above, the severance taxable extraction weight of gold shall follow the weight of gold extracted.

What is the method of determining the severance taxable extraction weight of gold in Vietnam? (Image from the Internet)

What does the application for reduction of severance tax due to an expected accident while gold extraction in Vietnam include?

Under Clause 2, Article 56 of Circular 80/2021/TT-BTC, the application for reduction of severance tax due to an expected accident while gold extraction in Vietnam includes:

- The application form No. 01/MGTH in Appendix I hereof;

- A document confirming the accident issued by a police authority, or a document confirming the taxpayer's injuries issued a health authority;

- Documents about provision of indemnity by the insurer or compensation agreement with the person that caused the conflagration (if any);

- Documents on payments for the costs of the accident.

What is the severance tax rate applicable to gold in Vietnam?

According to Article 2 of the Law on severance tax 2009 (amended by Clause 1, Article 4 of the Law on Amendments to Various Tax Laws 2014), the severance tax-liable objects include:

- Metallic minerals.

- Non-metallic minerals.

- Crude oil.

- Natural gas, coal gas.

- Natural forest products, other than animals.

- Natural aquatic products, including marine animals and plants.

- Natural water, including surface water and underground water, except for natural water used for agriculture, forestry, aquaculture, and salt production.

-Natural swallow's nests.

- Other resources prescribed by the National Assembly Standing Committee.

Gold falls under the category of metallic minerals, thus gold is subject to resource tax.

According to Article 7 of the severance tax Law 2009, the severance tax rates are stipulated as follows:

-  The frame severance tax tariff is specified below:

- Specific severance tax rates for crude oil. natural gas and coal gas shall be determined as partially progressive based on their daily exploited average output.

- Under Clauses 1 and 2 of Article 7 of the severance tax Law 2009, the National Assembly Standing Committee shall stipulate specific severance tax rates for each category of natural resource in each period on the following principles:

+ Ensuring conformity with the list of groups and categories of natural resource and within the severance tax rate bracket prescribed by the National Assembly:

+ Contributing to the state management of natural resources; protection, exploitation and rational, economical and effective use of natural resources:

+ Contributing to assuring state budget revenues and market stabilization.

Thus, the severance tax rate applicable to gold in Vietnam is 9-25%