When is the deadline for paying resource royalty on crude oil? What are regulations on resource royalty price for crude oil in Vietnam?

When is the deadline for paying resource royalty on crude oil in Vietnam?

Based on Clause 1, Article 55 of the Law on Tax Administration 2019, the timeline for tax payment is prescribed as follows:

Tax Payment Deadline

1. In cases where the taxpayer calculates the tax, the latest deadline for tax payment is the last day of the tax declaration submission period. In cases of supplementary tax declaration, the tax payment deadline is the tax declaration submission deadline for the tax period with inaccuracies.

For corporate income tax, payment is made quarterly, with the latest tax payment deadline being the 30th day of the first month of the following quarter.

For crude oil, the deadline for paying resource royalty and corporate income tax per oil sale is 35 days from the date of sale for domestically sold crude oil, or from the customs clearance date according to customs law for exported crude oil.

For natural gas, the deadline for resource royalty and corporate income tax is monthly.

2. In cases where the tax authority calculates the tax, the tax payment deadline is the deadline specified in the notification of the tax authority.

3. For other payments to the state budget from land, fees for the rights to exploit water resources, mineral resources, registration fees, and license fees, the deadline is as prescribed by the Government of Vietnam.

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Thus, the deadline for paying resource royalty on crude oil is 35 days from the sale date for domestically sold crude oil, or from the customs clearance date according to customs law for exported crude oil.

When is the deadline for paying resource royalty on crude oil? What are regulations on resource royalty price for crude oil in Vietnam? (Image from the Internet)

What are regulations on the resource royalty price for crude oil in Vietnam?

According to Point d, Clause 3, Article 6 of the resource royalty Law 2009, the pricing for resource royalty is regulated as follows:

Tax Pricing

1. resource royalty pricing is the selling price of a resource product unit by the organization, individual exploiting the resource, excluding value-added tax.

2. If the resource has not yet determined the selling price, the resource royalty pricing is determined based on one of the following:

a) The actual selling price in the regional market for the same type of resource product unit, not lower than the tax price set by the provincial People's Committee;

b) If the exploited resources contain different substances, the tax price is determined based on the selling price of each substance and the content of each substance in the exploited resources, not lower than the tax price set by the provincial People's Committee.

3. The resource royalty pricing in certain cases is specifically regulated as follows:

a) For natural water used for hydropower production, it is the average commercial electricity selling price;

b) For wood, it is the selling price at the delivery yard; if not yet determined at the delivery yard, the tax price is set by the provincial People's Committee;

c) For extracted resources not consumed domestically but exported, it is the export price;

d) For crude oil, natural gas, coal gas, it is the selling price at the delivery point. The delivery point is the point agreed in the petroleum contract where crude oil, natural gas, coal gas is transferred ownership to the parties participating in the petroleum contract.

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Thus, the resource royalty price for crude oil is the selling price at the delivery point. The delivery point is agreed in the petroleum contract where crude oil ownership is transferred to the parties participating in the petroleum contract.

What are cases of resource royalty exemption in Vietnam?

Based on Article 10 of Circular 152/2015/TT-BTC regarding cases of resource royalty exemption as follows:

- resource royalty exemption for organizations, individuals exploiting natural aquatic resources.

- resource royalty exemption for organizations, individuals exploiting branches, tops, firewood, bamboo, rattan, and other similar materials when individuals are allowed to exploit for subsistence.

- resource royalty exemption for organizations, individuals extracting natural water used for hydropower production to serve the living needs of households, individuals.

- resource royalty exemption for natural water exploited by households, individuals for household use.

- resource royalty exemption for land that organizations, individuals are allocated or leased to exploit and use on-site on the allocated or leased land area; land exploited for leveling, constructing security, military, and dyke projects.

Land extraction and on-site use tax exemption includes sand, stone, gravel mixed in the land but not identified by individual substances, and used in raw form for leveling, construction; if transported elsewhere for use or sale, resource royalty must be paid according to regulations.

- For other cases exempt from resource royalty, the Ministry of Finance coordinates with related Ministries, sectors to report to the Government of Vietnam for submission to the National Assembly Standing Committee for consideration and decision.