How much is the environmental protection fee rate for mineral extraction in Vietnam? What are the responsibilities of the local tax authority for the fees?
- Which cases are exempted from environmental protection fee on mineral extraction in Vietnam?
- How much is the environmental protection fee rate for mineral extraction in Vietnam?
- What are the responsibilities of the local tax authority for the collection of environmental protection fees on mineral extraction in Vietnam?
Which cases are exempted from environmental protection fee on mineral extraction in Vietnam?
Pursuant to Decree No. 27/2023/ND-CP stipulating environmental protection fees on mineral extraction issued by the Government of Vietnam on May 31, 2023.
Payers are determined according to Article 4 of Decree No. 27/2023/ND-CP, including:
- Entities extracting minerals according to regulations of law on minerals.
- Vietnamese or foreign entities licensed to extract crude oil, natural gas and coal gas according to petroleum contracts or provide petroleum services in accordance with the petroleum law.
- If an entity licensed to extract small and scattered minerals for sale to an entity that acts as the focal point for purchase and the entity that acts as the focal point for purchase make a written commitment to approval for the declaration and payment of fees on behalf of the mineral-extracting entity, the entity that acts as the focal point for purchase shall pay environmental protection fees.
Based on the provisions of Article 5 of Decree No. 27/2023/ND-CP, cases exempt from environmental protection fees on mineral extraction include:
- Extracting minerals as common building materials in the land area under the land use right of households and individuals for construction of works of households and individuals in that area.
- Extracting soil and stone with a view to leveling and constructing security and military works, preventing and controlling natural disasters, and making recovery from natural disasters.
- Using excavated soil and stone from the process of extraction for environmental remediation and improvement in the extraction area according to the environmental remediation and improvement plan approved by the competent authority.
How much is the environmental protection fee rate for mineral extraction in Vietnam? What are the responsibilities of the local tax authority for the fees?
How much is the environmental protection fee rate for mineral extraction in Vietnam?
Pursuant to Article 2 of Decree No. 27/2023/ND-CP, entities subject to environmental protection fees include:
- Crude oil;
- Natural gas;
- Coal gas;
- Metallic minerals;
- Non-metallic minerals.
Based on Article 6 of Decree No. 27/2023/ND-CP, the environmental protection fee rate for mineral extraction is determined as follows:
- Environmental protection fee on the extraction of crude oil: 100.000 VND/ton. That on the extraction of natural gas or coal gas: 50 VND/ m3. In particular, the environmental protection fee on natural gas obtained in the process of extraction of crude oil (associated gas): 35 VND/ m3.
- Environmental protection fees on mineral extraction (including case where entities conduct production and business other than mineral extraction but acquire minerals) are regulated in the Fee Schedule enclosed to Decree No. 27/2023/ND-CP.
- The environmental protection fee on the full extraction of a type of mineral according to regulations of law on minerals is equal to 60% of that on the extraction of such type of mineral laid down in the Fee Schedule enclosed to Decree No. 27/2023/ND-CP.
What are the responsibilities of the local tax authority for the collection of environmental protection fees on mineral extraction in Vietnam?
Responsibilities of local tax authorities for the collection of environmental protection fees for mineral extraction are determined according to Clause 2, Article 9 of Decree No. 27/2023/ND-CP as follows:
Implementation
…
2. The local tax authority shall:
a) Manage the collection and payment of environmental protection fees in accordance with the law on tax administration.
b) Retain and use figures and documents provided by entities participating in mineral extraction and other entities in accordance with regulations.
c) Cooperate with the provincial Department of Environment and Natural Resources to collect environment protection fees on mineral extraction in accordance with regulations hereof and regulations of the Law on tax management.
d) By April 30 of each year, according to the annual fee finalization dossier (calendar) according to regulations of the law on tax administration, the tax authority where the payer submits the fee declaration dossier shall be responsible for transfer detailed information on the volume of excavated soil and stone and the volume of extracted crude minerals whose environmental protection fees on mineral extraction have been declared and paid according to each license to extract minerals in the province to the provincial Department of Environment and Natural Resources.
In case of fee finalization in non-calendar year, termination of mineral extraction contract, termination of mineral collection and purchase, change in ownership, transformation of type of enterprises, merger, consolidation or division, dissolution, bankruptcy, termination of production and business, the tax authority shall transfer information to the provincial Department of Environment and Natural Resources within 45 days from the deadline for submission of the fee finalization dossier according to regulations of law on tax administration.
dd) By April 30 of each year, the Department of Taxation shall be responsible for summarizing and publishing environmental protection fees on mineral extraction that payers have paid in the previous year on the website of the Department of Taxation and of the People's Committee of the province.
Thus, in collecting environmental protection fees on mineral extration, the Government of Vietnam has identified the above five responsibilities for local tax authorities.
Decree No. 27/2023/ND-CP takes effect from July 15, 2023.
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