Basis for Environmental Protection Tax Calculation According to Current Legislation

Method of Tax Calculation

The payable environmental protection tax shall be calculated using the following formula:

Tax Basis

The basis for calculating environmental protection tax is the quantity of taxable goods and the absolute tax rate.

The quantity of taxable goods is regulated as follows:

+ For goods produced domestically, the quantity of taxable goods is the quantity of goods produced and sold, exchanged, internally consumed, given as gifts, used for promotions, or for advertising.

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

In the case where the taxable quantity of goods subject to environmental protection tax, when exported, sold, or imported, is measured in units different from those specified in the environmental protection tax rate schedule issued by the Standing Committee of the National Assembly, such quantity must be converted into the prescribed measurement units in the environmental protection tax rate schedule for tax calculation.

+ For mixed fuels containing fossil-based gasoline, oil, and lubricants, and biofuels, the taxable quantity of goods in the period is the quantity of fossil-based gasoline, oil, and lubricants contained in the quantity of imported or domestically produced, sold, exchanged, donated, or internally consumed mixture fuel, converted to the measurement units defined for tax calculation of the respective goods. The determination is as follows:

Based on the technical standards for processing mixed fuel approved by the competent authority (including cases where there is a change in the percentage (%) of fossil-based gasoline, oil, lubricants in the mixed fuel), the taxpayer shall self-calculate, declare, and pay the environmental protection tax for the quantity of fossil-based gasoline, oil, lubricants; and concurrently notify the tax authority about the percentage (%) of fossil-based gasoline, oil, lubricants contained in the mixed fuel and submit it together with the tax declaration form of the following month when sales of mixed fuel begin (or when the ratio changes).

+ For multi-layer plastic bags produced or processed from HDPE, LDPE, LLDPE single-layer films and other types of plastic films (PP, PA, ...) or other materials such as aluminum, paper... the environmental protection tax is determined based on the percentage (%) weight of HDPE, LDPE, LLDPE single-layer films contained in the multi-layer plastic bags. Based on the norm of HDPE, LDPE, LLDPE single-layer film quantity used for producing or processing multi-layer plastic bags, the producer or importer of multi-layer plastic bags shall self-declare and be responsible for their declarations.

Legal Grounds: Article 6, Article 7 of the Environmental Protection Tax Law 2010; Article 5 of Circular 152/2011/TT-BTC and Article 3 of Circular 159/2012/TT-BTC.

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