Which authority will direct the implementation of the local severance taxable price schedule in Vietnam?

What are the regulations on the mechanism for cooperation between tax authorities, resources and environment authorities in the management of local resource extraction in Vietnam?

Under Clause 6, Article 5 of Circular 152/2015/TT-BTC, the mechanism for cooperation between tax authorities, resources and environment authorities in the management of local resource extraction is specified as follows:

According to taxpayers’ declarations of actual extraction quantity in the year at each mine in the statement submitted together with the annual declaration of severance tax at the end of the fiscal year, within 05 working days, the tax authority shall send information about actual extraction quantity in the year at each mine to the resources and environment authority.

The resources and environment authority shall compare the extraction quantity at each mine declared by taxpayers with its data.

If they are not consistent or violations are suspected, the resources and environment authority shall take actions to determine the actual extraction quantity.

Within 07 working days from the receipt of information sent by the tax authority, the resources and environment authority shall send information to the tax authority for processing as prescribed by the Law on Tax administration.

How does the Provincial People's Committee in Vietnam issue the severance taxable price schedule to be implemented for the following year?

According to Clause 5, Article 6 of Circular 152/2015/TT-BTC (amended and supplemented by Clauses 1 and 2, Article 2 of Circular 41/2024/TT-BTC), annually, the Provincial People's Committee issues the severance taxable price schedule to be implemented for the following year as follows:

- The People’s Committees of provinces shall issue a new taxable price schedule annually as follows:

+ The taxable price schedule shall contain information as the basis for determination of severance tax on extraction of natural resources in the province in accordance with policies and law, including: norms for use of natural resources as the basis for conversion from natural resource-derived products or industrial products into quantity of extracted natural resources in the natural resource-derived products and industrial products; corresponding taxable prices of extracted natural resources and natural resource-derived products, where:

++ Norms for use of natural resources as the basis for conversion from natural resource-derived products or industrial products into quantity of extracted natural resources in the natural resource-derived products and industrial products of enterprises in the province are determined according to the enterprises’ declaration and must be consistent with the reports made by other agencies and organizations in terms of content, quality, extraction quantity, extraction methods, and ratio of obtainment in the province where natural resources are extracted;

++ Taxable prices on the price list are prices for extracted natural resources and natural resource-derived products corresponding to properties of natural resources and natural resource-derived products extracted, processed by enterprises in the province, determined according to documents, sale contracts of enterprises/organizations in the province in terms of quality and quantity of each type of natural resources, prices of natural resource-derived products on the local market and adjacent markets, except for the case mentioned in Point c Clause 5 of this Article.

++ Taxable prices of extracted natural resources used for further production and processing instead of being sold are calculated as follows:

+++ For resources used for further production or processing into natural resource-derived products, taxable prices are selling prices of natural resource-derived products exclusive of VAT (if sold domestically) or customs value exclusive of export duty (if exported);

+++ For resources used for further production or processing into industrial products for domestic sale or export, taxable prices are selling prices (if sold domestically) or customs value (if exported) of industrial products minus (-) export duty (if any) and processing cost.

Processing cost mentioned in c.2 shall comply with instructions of relevant Ministries, the Ministry of Finance, and determined by the Department of Finance of the province in cooperation with tax authorities, resources and environment authorities, relevant specialized agencies, then submitted to the People’s Committee of the province for approval according to the processing technologies under approved projects and business outcomes of the enterprises extracting, processing natural resources in the province, but do not include the costs of extraction, screening, enrichment.

The Department of Finance shall cooperate with relevant authorities in developing and requesting the Provincial People’s Committee to promulgate a taxable price schedule by December 31 every year for disclosure and application from January 1 of the following year.

Within 30 days from the date the Provincial People’s Committee promulgates the taxable price schedule or the document on adjustments or additions to the taxable price schedule, the Department of Finance shall provide information and a document for the Ministry of Finance of Vietnam (through the General Department of Taxation of Vietnam) for updating the database on taxable prices.

- Tax authorities assigned to collect severance tax shall post the taxable price schedule at their offices and send it to General Department of Taxation for developing a database about taxable prices.

Which authority will direct the implementation of the local severance taxable price schedule in Vietnam? (Image from the Internet)

Which authority will direct the implementation of the local severance taxable price schedule in Vietnam?

According to Article 13 of Circular 152/2015/TT-BTC (amended by Clause 3, Article 2 of Circular 41/2024/TT-BTC):

Implementation

1. The Provincial People’s Committee shall:

a) Direct the Department of Finance to take charge and cooperate with relevant authorities in developing a taxable price schedule for local application and regularly making reviews and adjustments in conformity with the local developments.

b) Direct tax, finance, resources and environment authorities, State Treasuries, and relevant agencies to cooperate in severance tax administration as instructed by this Circular.

2. This Circular comes into force from November 20, 2015 and replaces Circular No. 105/2010/TT-BTC dated July 23, 2010 of the Ministry of Finance.

Difficulties that arise during the implementation of this Circular should be reported to the Ministry of Finance for consideration./.

Thus, the Provincial People's Committee shall direct the Department of Finance to take charge and cooperate with relevant authorities in developing a taxable price schedule for local application.