What is the severance tax rate schedule for crude oil, natural gas, and coal gas in Vietnam?

What are the severance tax-liable objects 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.

What is the severance tax rate schedule for crude oil, natural gas, and coal gas in Vietnam?

The severance tax rates for crude oil, natural gas, and coal gas are prescribed in the severance tax rate schedule issued with Resolution 1084/2015/UBTVQH13 as follows:

The severance tax rate schedule for crude oil, natural gas, and coal gas is specified as follows:

Additionally, the severance tax rates for other types of resources, excluding crude oil, natural gas, and coal gas, are as follows:

What is the severance tax rate schedule for crude oil, natural gas, and coal gas in Vietnam? (Image from the Internet)

What are the regulations on natural resource output used for severance tax calculation in Vietnam?

Under Article 5 of the Law on severance tax 2009, the calculation of severance tax is stipulated as follows:

Natural resource output used for severance tax calculation

- 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.

- 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.

- 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.

- 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.

- 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.

- 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 authorities shall coordinate with local concerned agencies in determining the fixed output of exploited natural resources for severance tax calculation.