What is the taxable price of natural resources of which unit prices of natural resource-derived products can be determined in Vietnam?

What is the determination of the taxable price of natural resources in Vietnam?

According to the provisions of Article 6 of the Law on Severance tax 2009 guided by Article 6 of Circular 152/2015/TT-BTC, the taxable price of natural resources is regulated as follows:

Taxable prices of natural resources

Taxable price of a natural resource is the selling price of a unit of natural resource-derived products imposed by the extracting entity exclusive of VAT.

...

The taxable price of a natural resource is the selling price of a unit of natural resource-derived products imposed by the extracting entity exclusive of VAT. This price must not fall below the taxable price imposed by the People’s Committee of the province. Otherwise, the taxable price imposed by the People’s Committee of the province shall apply.

If the cost of transport of natural resource-derived products and selling price are written on separate invoices, the taxable price is the selling price exclusive of transport cost.

What is the taxable price of natural resources of which unit prices of natural resource-derived products can be determined in Vietnam? (Image from the Internet)

What is the taxable price of natural resources of which unit prices of natural resource-derived products can be determined in Vietnam?

Under Clause 1, Article 6 of Circular 152/2015/TT-BTC, the taxable price of natural resources of which unit prices of natural resource-derived products can be determined in Vietnam is as follows:

Taxable price is the selling price of a unit of natural resource-derived products of the same class and quality exclusive of VAT and extracted within the month;

Selling price of a unit of natural resource equals (=) total revenue (exclusive of VAT) from the sale of the resource divided by (:) total quantity of the same resource sold in the month.

If no revenue is earned though the natural resource still extracted in the month, taxable price is the weighted mean of taxable unit price of the latest month in which revenue is earned.

If the weighted mean of taxable unit price of the latest month in which revenue is earned is lower than the taxable price imposed by the People’s Committee of the province, the taxable price imposed by the People’s Committee of the province shall apply.

In case organizations being legal entities extract natural resources for a corporation/conglomerate under contracts, or sell natural resources at prices decided by such corporation/conglomerate, the taxable prices shall be decided by the corporation/conglomerate but not lower than the prices imposed by the People’s Committee of the province where natural resources are extracted.

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

According to Article 5 of the Law on Severance tax 2009, the natural resource output used for severance tax calculation​ in Vietnam is regulated as follows:

- 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.