Can reducing of mineral reserve specified in the mining design be refunded charges for granting mining right in Vietnam?
Can reducing of mineral reserve specified in the mining design be refunded charges for granting mining right in Vietnam? How to recalculate payment of charge for granting mining right when changing the price of natural resources tax in Vietnam?
Hello, my company was granted a mining design but we returned part of the mining area, so the mining reserves decreased. Can I ask for a refund of charges for granting mining right? Please advise.
Can reducing of mineral reserve specified in the mining design be refunded charges for granting mining right in Vietnam?
Pursuant to Point a, Clause 1, Article 10 of Decree 67/2019/ND-CP stipulating adjustment and refund of charges for granting mining right as follows:
1. Charge for granting mining right may be considered and adjusted in the following cases:
a) The mineral reserve specified in the mining design is changed. To be specific:
- There is a decrease in the mineral reserve because of the mining license or a part of licensed mining area is returned;
- There is a decrease in the mineral reserve to be included in the mining design because an additional reserve has been approved after exploration but is not yet specified in the mining design;
- The mineral reserve increases because the mineral reserve actually mined within the licensed mining area is greater than the mineral reserve for which charge for granting mining right has been determined. The entity granted the mining right shall assume responsibility for the quantity of minerals actually mined and submit report thereof to the competent authority issuing the mining license in accordance with Article 82 of the Law on minerals.
Thus, if your business returns a part of licensed mining area, which reduces the mining reserves, it can apply for adjustment and refund of charges for granting mining right in Vietnam.
How to recalculate payment of charge for granting mining right when changing the price of natural resources tax in Vietnam?
According to Point b, Clause 1, Article 10 of Decree 67/2019/ND-CP has the following provisions:
b) If there is a change in price for calculating resource royalty (Gn), the n payment of charge for granting mining right must be multiplied with the ratio of difference between prices for calculating charge for granting mining right. Amount payable in the n payment is calculated by adopting the following formula:
Tn = Thn x Gn: G
Where:
Tn – The amount payable in the n payment; unit: VND.
Thn - The annual charge payable as specified in the Decision on approval for charge for granting mining right; unit: VND.
Gn – Price for calculating charge for granting mining right at the issue date of notice of the n payment; unit: VND/unit of mineral reserves.
G - The price for calculating charge for granting mining right initially approved; unit: VND/unit of mineral reserves.
c) If the rate of charge for granting mining right (Rn) is changed, the minerals authority shall adjust the charge payable from the notification period in the following year by adopting the following formula:
Tn = Thn x Rn : R.
Where:
Tn - The amount payable in the n payment; unit: VND.
Thn - The annual charge payable as specified in the Decision on approval for charge for granting mining right; unit: VND.
Rn – Rate of charge for granting mining right at the issue date of notice of the n payment; unit: %.
R - Rate of charge for granting mining right initially approved; unit: %.
Best Regards!
