What is the Resolution 60 on environmental protection tax for oil and gas in Vietnam?

What is the Resolution 60 on environmental protection tax for oil and gas in Vietnam?

Recently, on December 24, 2024, the Standing Committee of the National Assembly officially promulgated Resolution 60/2024/UBTVQH15 regulating the environmental protection tax rate on gasoline, oil, and lubricants to be implemented from January 1, 2025, to December 31, 2025.

Download Resolution 60/2024/UBTVQH15 regulating the environmental protection tax rate for gasoline, oil, and lubricants.

Specifically, the environmental protection tax rates for gasoline, oil, and lubricants are regulated as follows:

(1) Gasoline, except ethanol: 2,000 VND/liter.

(2) Jet fuel: 1,000 VND/liter.

(3) Diesel oil: 1,000 VND/liter.

(4) Kerosene: 600 VND/liter.

(5) Mazut oil: 1,000 VND/liter.

(6) Lubricating oil: 1,000 VND/liter.

(7) Lubricating grease: 1,000 VND/kg.

Moreover, Resolution 60/2024/UBTVQH15 also provides that after December 31, 2025, the environmental protection tax on gasoline, oil, and lubricants will be implemented according to the provisions of Section 1, Clause 1, Article 1 of Resolution 579/2018/UBTVQH14.

Simultaneously, it terminates the effect of Resolution 42/2023/UBTVQH15 from when Resolution 60/2024/UBTVQH15 comes into effect from January 1, 2025.

What is the Resolution 60 on environmental protection tax for oil and gas in Vietnam? (Image from the Internet)

What are procedures for declaration and payment of environmental protection tax for oil and gas in Vietnam?

According to point 2.2 Clause 2 Article 7 of Circular 152/2011/TT-BTC, supplemented by Article 4 of Circular 159/2012/TT-BTC, it is stipulated regarding the declaration and payment of environmental protection taxes for oil and gas as follows:

Main petroleum trading companies register, declare, and pay environmental protection tax to the state budget at the local tax office where value-added tax (VAT) is declared and paid, specifically:

- Main petroleum trading companies directly importing, producing, processing gasoline (collectively referred to as main units) declare and pay taxes at the localities where the main units' headquarters are located for the volume of gasoline directly exported, sold by these units, including exports for internal consumption, exports for exchange of other product goods, exported to return entrusted imports, sold to organizations, individuals outside the system of the main unit (including enterprises where the main unit has shares of 50% or less); excluding the volume of gasoline exported for sale and entrusted imports for other main petroleum trading companies.

- Independent accounting member units under the main unit; branches under the main unit; joint-stock companies where the main unit holds controlling shares (over 50% shares) or branches under these member units, branches under these joint-stock companies (collectively referred to as member units) declare, pay taxes at the localities where the member units' headquarters are based for the volume of gasoline exported, sold by the member units to organizations, individuals outside the system.

- Other organizations directly importing, producing, processing gasoline declare and pay taxes at the local tax office where VAT is declared and paid when exporting, selling gasoline.

- For cases where gasoline is used as an ingredient for blending biofuels which have not declared and paid environmental protection tax, when selling biofuels, the unit selling biofuels must declare and pay the environmental protection tax as prescribed.

- In cases where gasoline, oil, and lubricants are imported for uses other than sale; lubricating oil and grease are separately packed when imported together with materials, spare parts for aircraft or with machinery, equipment, the taxpayer declares, pays the environmental protection tax with the customs office.

- oil and gas exported, sold per the quantity recorded on invoices, and sales documents require the taxpayer to declare and pay the environmental protection tax according to the quantity recorded on those invoices, sales documents.

When is the time for calculating environmental protection tax in Vietnam?

According to Article 6 of Circular 152/2011/TT-BTC, the time for calculating environmental protection tax is regulated as follows:

- For goods produced and sold, exchanged, given as gifts, promoted, and advertised, the time for calculating tax is the time of transferring ownership or right to use the goods.

- For goods produced for internal consumption, the time for calculating tax is the time of putting the goods into use.

- For imported goods, the time for calculating tax is the time of registering the customs declaration form, except for imported gasoline for sale regulated in Clause 4 Article 6 of Circular 152/2011/TT-BTC.

- For gasoline, oil produced or imported for sale, the time for calculating tax is the time the main petroleum trading enterprise sells out.

What are regulations on method of calculating environmental protection tax in Vietnam?

According to Article 4 of Circular 152/2011/TT-BTC, the method of calculating environmental protection tax is specified as follows:

The environmental protection tax payable is calculated by the following formula: