Where to declare environmental safety fee for buyers of minerals in bulks from independent miners in Vietnam?

Where to declare environmental safety fee for buyers of minerals in bulks from independent miners in Vietnam?

Based on Clause 1, Article 11 of Decree 126/2020/ND-CP which regulates the location for submitting tax declaration dossiers as follows:

Location for Submitting Tax Declaration Dossiers

Taxpayers shall comply with the provisions regarding the location to submit tax declaration dossiers as stipulated in Clauses 1, 2, and 3, Article 45 of the Tax Administration Law and the following regulations:

1. The location for submitting tax declaration dossiers for taxpayers with multiple activities and businesses across multiple provincial areas as prescribed at points a and b, Clause 4, Article 45 of the Tax Administration Law is the tax authority where the business operations are conducted in provinces or cities other than where the head office is located in the following cases:

a) Declaring value-added tax for investment projects as specified at point d, Clause 2, Article 7 of this Decree at the place where the investment project is situated.

b) Declaring value-added tax for real estate transfer activities of infrastructure investment projects or houses for transfer (including cases where there is advancement payment from customers as per progress) at the place where real estate transfer activities occur.

c) Declaring value-added tax at the place where the electricity production plant is located.

d) Declaring special consumption tax at the place where goods subject to special consumption tax are produced, processed, or where services subject to special consumption tax are provided (except for computer lottery activities).

In the case where taxpayers directly import goods subject to special consumption tax and then sell them domestically, the taxpayer must declare the special consumption tax with the direct tax management authority at their head office.

đ) Declaring environmental protection tax at the place where goods subject to environmental protection tax are produced, except for the environmental protection tax concerning petrol and oil business activities as specified at point a, Clause 4 of this Article.

e) Declaring environmental protection tax at the place where there is coal production and business establishment (including self-consumption), except for the environmental protection tax specified at point b, Clause 4 of this Article.

g) Declaring natural resource tax (excluding natural resource tax on hydropower generation activities in cases where the hydropower plant reservoir is situated across provincial areas; activities of exploiting and selling crude oil; activities of exploiting and selling natural gas and natural resource tax of organizations designated to sell captured or confiscated resources; sporadic resource extraction already licensed by competent state agencies or not subject to licensing per legal provisions).

h) Declaring corporate income tax at locations with dependent units or business locations enjoying corporate income tax incentives.

i) Declaring environmental safety fee at places of mineral extraction (except for crude oil, natural gas, and coal gas; buyers of minerals in bulks from independent miners).

k) Declaring license fees at locations with dependent units or business locations.

...

Thus, according to the above regulations, buyers of minerals in bulks from independent miners will declare environmental safety fee at the place of mineral extraction. However, note that this excludes crude oil, natural gas, and coal gas.

Where to declare environmental safety fee for buyers of minerals in bulks from independent miners in Vietnam? (Image from the Internet)

Does the environmental safety fee belong to the state budget? Is it declared separately in Vietnam?

Based on Clause 4, Article 8 of Decree 126/2020/ND-CP stipulating as follows:

Types of Taxes Declared Monthly, Quarterly, Annually, Per Each Tax Obligation Arising Instance, and Tax Settlement Declaration

...

4. Types of taxes and other amounts belonging to the state budget declared per each arising instance, including:

a) Value-added tax of taxpayers as stipulated in Clause 3, Article 7 of this Decree or taxpayers conducting value-added tax declaration based on direct value-added approach per legal taxation regulations concerning value-added tax but having incurred tax obligations for value-added tax pertaining to real estate transfer activities.

b) Special consumption tax of taxpayers engaging in export activities yet failing to pay special consumption tax at the production stage then selling domestically. Special consumption tax for businesses purchasing automobiles, airplanes, yachts produced domestically exempt from special consumption tax initially but later changed to purposes incurring special consumption tax.

c) Tax on export, import goods includes: export tax, import tax, safeguard tax, anti-dumping tax, countervailing tax, special consumption tax, environmental protection tax, and value-added tax. In cases where exported or imported goods are exempt from declarations per each arising instance, follow the guidance from the Ministry of Finance.

d) Natural resource tax of organizations authorized to sell captured, confiscated resources; sporadic resource extraction already licensed or not subject to licensing per applicable legal regulations.

dd) Value-added tax, corporate income tax not regularly incurred by taxpayers applying the direct method based on value-added per legal regulations concerning value-added tax and percentage on revenue per corporate income tax regulations; exempting cases where taxpayers incur taxes multiple times monthly can declare per month.

e) Corporate income tax concerning real estate transfer activities by taxpayers applying percentage-based on revenue method per corporate income tax regulations.

g) Personal income tax declared directly by individuals or organizations, individuals declaring tax on behalf of others concerning income from real estate transfers; capital transfers; investment income; royalties, franchise earnings, prizes from abroad; inheritance, and gift income.

h) Types of taxes, amounts from individuals renting assets, household businesses, and individuals with no fixed business location and sporadic business activities.

i) Registration fee (including cases exempt from registration fee per registration fee legislation).

k) environmental safety fee concerning sporadic mineral extraction licensed by competent state agencies or not subject to licensing under legal regulations.

...

Thus, environmental safety fee concerning sporadic mineral extraction will belong to the state budget and be declared per each arising instance.

What is the environmental safety fee rate for crude oil?

Based on Clause 1, Article 6 of Decree 27/2023/ND-CP states as follows:

Fee Rates

1. The environmental safety fee rate for crude oil is 100,000 VND/ton; for natural gas, coal gas: 50 VND/m3. For natural gas obtained during the extraction of crude oil (accompanying gas): 35 VND/m3.

2. The environmental safety fee rate for mineral extraction (including cases where production or business activities by organizations, individuals do not aim to exploit minerals but obtain minerals) follows the fee rate bracket in this Decree.

3. The environmental safety fee rate for salvage mineral extraction under mineral legislation is 60% of the corresponding mineral fee rate specified in the fee rate bracket in this Decree.

4. By principles of determining fee rates prescribed in the Law on Fees and Charges, the fee rate bracket issued with this Decree, and referencing fee rates of localities with similar mineral extraction subject to fees, Provincial People’s Councils (collectively referred to as Provincial People’s Councils) decide specific fee rates, units of the environmental safety fee for mineral types applied locally in accordance with actual conditions in each period.

Thus, under the above regulation, the environmental safety fee rate for crude oil is 100,000 VND/ton.