In 2024: What are taxable subjects of environmental protection tax in Vietnam? What are un-taxable object of environmental protection tax in Vietnam?

In 2024: What are taxable subjects of environmental protection tax in Vietnam?

Pursuant to Article 3 of the Law on Environmental Protection Tax in 2010 stipulating taxable subject:

Taxable subject

1. Gasoline, oil, grease, including:

a) Gasoline, except ethanol;

b) aircraft fuel;

c) diesel oil;

d) Petroleum;

e) Fuel oil;

f) lubricants;

g) Grease.

...

As regulated above, environmental protection tax means indirect-collected tax, collected on products and goods when used to cause negative environmental impacts. Taxable subjects of environmental protection tax in Vietnam include:

[1] Gasoline, oil, grease, including:

- Gasoline, except ethanol;

- aircraft fuel;

- diesel oil;

- Petroleum;

- Fuel oil;

- Lubricants;

- Grease.

[2] Coal, including:

- Lignite;

- Anthracite Coal (anthracite);

- Fat coal;

- Other coal.

[3] Hydrogen-chlorofluorocarbon liquid (HCFC).

[4] Taxable-plastic bag.

[5] Herbicide which is restricted from use.

[6] Pesticide which is restricted from use.

[7] Forest product preservative which is restricted from use.

[8] Warehouse disinfectant which is restricted from use.

When it is necessary to supplement other taxable objects as per period, the National Assembly Standing Committee shall consider and regulate.

In 2024: What are taxable subjects of environmental protection tax in Vietnam? What are un-taxable object of environmental protection tax in Vietnam? - image from internet

What are un-taxable object of environmental protection tax in Vietnam?

Pursuant to Article 4 of the Law on Environmental Protection Tax in 2010 stipulating un-taxable object:

Un-taxable object

1. Goods is not specified in Article 3 of this Law shall not be subject to environmental tax.

2. Goods provided for in Article 3 of this Law shall not be subject to environmental tax in the following cases:

a) Goods transported in transit or transshipped through the border gate, Vietnam border in accordance with the law, including the transportation of goods from exporting countries to importing countries through the border gate of Vietnam but it is not made import & export procedures into and out of Vietnam; transit goods through the border gate, the border of Vietnam on the basis of agreements signed between the Government of Vietnam and a foreign government or an agreement between agencies, representative authorized under the provisions of law by government of Vietnam and foreign governments;

b) Goods temporarily imported for re-export within the time limit prescribed by law;

c) Goods directly exported by production facilities or entrusted for the export business to export, except for organizations, households and individuals to purchase goods which environmental protection taxable subject to export.

As regulated above, goods shall not be subject to environmental tax in the following cases:

- Goods transported in transit or transshipped through the border gate, Vietnam border in accordance with the law, including the transportation of goods from exporting countries to importing countries through the border gate of Vietnam but it is not made import & export procedures into and out of Vietnam;

- Transit goods through the border gate, the border of Vietnam on the basis of agreements signed between the Government of Vietnam and a foreign government or an agreement between agencies, representative authorized under the provisions of law by government of Vietnam and foreign governments;

- Goods temporarily imported for re-export within the time limit prescribed by law;

- Goods directly exported by production facilities or entrusted for the export business to export, except for organizations, households and individuals to purchase goods which environmental protection taxable subject to export.

What are policies on environmental protection taxes and fees in Vietnam?

Pursuant to Clause 1 Article 136 of the Law on Environmental Protection in 2020 stipulating policies on environmental protection taxes and fees:

Policies on environmental protection taxes and fees

1. Regarding environmental protection taxes:

a) Environmental protection taxes shall be imposed on products and goods of which the use adversely impacts the environment or substances that cause environmental pollution;

b) Environmental protection tax rates shall be determined according to the levels of adverse impacts on the environment;

c) The promulgation and implementation of regulations on environmental protection taxes shall comply with regulations of law on taxation.

...

3. The Ministry of Natural Resources and Environment shall preside over assessing the level of environmental pollution and greenhouse effect caused by waste or products or goods of which the use adversely impacts the environment to propose a list of objects subject to environmental protection taxes and fees, bracket and rates of taxes and fees on each object subject to environmental protection taxes and fees and methods for calculating environmental taxes and shall send them to the Ministry of Finance, which will request a competent authority for consideration and decision.

As regulated above, policies on environmental protection taxes and fees in Vietnam are as follows:

- Environmental protection taxes shall be imposed on products and goods of which the use adversely impacts the environment or substances that cause environmental pollution;

- Environmental protection tax rates shall be determined according to the levels of adverse impacts on the environment. The promulgation and implementation of regulations on environmental protection taxes shall comply with regulations of law on taxation.

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