Who are environmental protection taxpayers in Vietnam?

Who are environmental protection taxpayers in Vietnam?

According to Article 5 of the Environmental Protection Tax Law 2010, taxpayers include:

- Environmental protection taxpayer is organizations, households and individuals producing, importing goods under taxable subject provided for in Article 3 of the Environmental Protection Tax Law 2010.

- Environmental protection taxpayer in some specific cases shall be provided for as follows:

+ in case of goods importing commission, the person who entrusted importing goods shall be taxpayer;

+ In cases where organizations, households and individuals act procurement hub of coal to develop small, retail but they can not produce the documents proving that goods have been paying environmental protection tax, the organizations, households individuals act as procurement hub shall be taxpayer.

What are the regulations on the calculation of environmental protection tax in Vietnam?

Under the Environmental Protection Tax Law 2010, the tax base and formula for tax calculation are as follows:

*Tax base (Article 6 of the Environmental Protection Tax Law 2010)

- Tax base of environmental protection is the number of taxable goods and absolute rate.

- The number of taxable goods shall be provided for as follows:

+ For goods produced in the country, the number of taxable goods is the quantity of goods produced and sold, exchanged, internally consumed, donated;

+ For imported goods, the number of taxable goods is the quantity of imported goods.

- Absolute rate for tax calculation specified in Article 8 of this Law.

*Tax Calculation Method (Article 7 of the Environmental Protection Tax Law 2010)

The payable environmental protection tax is calculated by multiplying the taxable quantity of goods by the fixed tax rate per unit of goods.

The tax calculation formula is guided by Article 4 of Circular 152/2011/TT-BTC as follows:

Payable environmental protection tax is computed by the formula:

Payable Environmental Protection Tax = Taxable Quantity of Goods x Fixed Tax Rate per Unit of Goods

What is the environmental protection tax in Vietnam?

According to Clause 1, Article 2 of the Environmental Protection Tax Law 2010, environmental protection tax means indirect-collected tax, collected on products and goods (hereafter referred to as goods) when used to cause negative environmental impacts.

Who are environmental protection taxpayers in Vietnam? (Image from the Internet)

What are the regulations on declaration, calculation and payment of environmental protection tax in Vietnam?

According to Article 10 of the Environmental Protection Tax Law 2010, tax declaration, payment, and calculation are regulated as follows:

- The tax declaration, tax calculation, tax payment for environmental protection on goods produced and sold, exchanged, internally consumed, donated shall be made by the month and the provisions of the law on tax administration.

- The tax declaration, tax calculation, tax payment for environmental protection on imported goods shall be made at the same to time of import tax declaration and tax payment.

- Environmental protection tax is only paid once for goods produced or imported.

Additionally, Article 10 of the Environmental Protection Tax Law 2010 provides tax payment guidelines regulated in Article 5 of Decree 67/2011/ND-CP as follows:

Tax declaration, calculation, and payment comply with Article 10 of the Environmental Protection Tax Law 2010 and tax management law.

- For goods produced for sale, exchange, internal consumption, or gifting, the declaration, calculation, and payment of environmental protection tax are done monthly. For imported or entrusted imported goods, the declaration, calculation, and payment are done per occurrence.

- Declaration, calculation, and payment of environmental protection tax on gasoline, oil, and lubricants: Leading petroleum trading companies declare and pay environmental protection tax and submit it to the state budget based on the quantity of gasoline sold (including sales for internal consumption, exchanging for other goods, return of entrusted imports, sales to other organizations or individuals; excluding sales to other leading petroleum trading companies) at the location where VAT is declared and paid.

The Ministry of Finance mandates that leading companies declare and pay environmental protection tax on gasoline.

- Declaration, calculation, and payment of environmental protection tax on coal follow the principle: Domestically consumed coal is subject to tax declaration and payment; exported coal is not subject to environmental protection tax. The Ministry of Finance, in coordination with the Ministry of Industry and Trade, will provide specific guidance on this matter.

- Environmental protection tax is only paid once on domestically produced or imported goods. If goods exported after paying the environmental protection tax are re-imported into Vietnam, no environmental protection tax is payable upon re-importation.