What is the severance tax rate applicable to clay used in brick production in Vietnam?

What is the severance tax rate applicable to clay used in brick production in Vietnam?

Under the severance tax tariff issued together with Resolution 1084/2015/UBTVQH13, the current severance tax tariff for natural resources, excluding crude oil and natural gas, coal gas, is specified as follows:

Thus, the severance tax rate applicable to clay used in brick production in Vietnam is 15%.

What is the severance tax rate applicable to clay used in brick production in Vietnam? (Image from the Internet)

What is the basis for calculating severance tax on clay used in brick production in Vietnam?

According to Article 4 of Circular 152/2015/TT-BTC, the basis for calculating severance tax on clay used in brick production in Vietnam is specified as follows:

- The basis for calculation of severance tax is the taxable extraction quantity of natural resources, unit price, and tax rate.

- Severance tax payable in the period

In case an authority imposes a certain amount of severance tax on a unit of natural resources extracted, severance tax is calculated as follows:

Imposition of severance tax must be based on the tax authorities' database and conform to tax imposition regulations.

What types of land are subject to severance tax exemption in Vietnam?

According to Article 10 of Circular 152/2015/TT-BTC, the tax exemption cases include:

Severance tax exemption

The cases of exemption from severance tax are specified in Article 9 of the Law on severance tax and Article 6 of Decree No. 50/2010/ND-CP, including:

1. Entities extracting natural marine organisms.

2. Entities extracting branches, firewood, bamboo, rattan, etc. serving everyday life.

3. Entities extracting natural water for hydroelectricity generation serving everyday life of households and individuals.

4. Natural water extracted by households and individuals serving their everyday life.

5. Land areas given/leased out to organizations and individuals and used on the spot; earth used for leveling, construction of security, military works, dykes.

Earth extracted and used on the spot eligible for tax exemption include sand, rock, gravel in the earth without specific substances and is used as is for leveling or construction. If earth is transport elsewhere for use or for sale, severance tax must be paid as prescribed.

6. The Ministry of Finance shall cooperate with relevant Ministries and agencies in proposing other cases of exemption from severance tax to the government, which will be considered and decided by Standing Committee of the National Assembly.

The types of land subject to severance tax exemption include land areas given/leased out to organizations and individuals and used on the spot; earth used for leveling, construction of security, military works, dykes.