Legal Counselling

Vietnam’s frame severance tax tariff

Nguyễn Trinh

10:48, 03/09/2018

The Law on Severance tax 2009 of Vietnam was promulgated on November 25, 2009, which provides for severance tax-liable objects, severance tax payers, severance tax bases, and severance tax declaration, payment, exemption and reduction. Notably, the law includes provisions on the frame severance tax tariff.

Specifically, according to Article 7 of the Law on Severance tax 2009 of Vietnam and Resolution No. 1084/2015/UBTVQH2013, the frame severance tax tariff for various types of resources, excluding crude oil and natural gas, and coal gas is as follows:

No.	Group or category of natural resource	Severance tax rate (%)
I	Metallic minerals
1	Iron	14
2	Manganese	14
3	Titan	18
4	Gold	17
5	Rare earths	18
6	Platinum, silver and tin	12
7	Wolfram and antimony	20
8	Lead, zinc	15
9	Aluminum, bauxite	12
10	Copper	15
11	Nickel	10
12	Cobalt, molybdenum, mercury, magnesium and vanadium	15
13	Other metallic minerals	15
II	Non-metallic minerals
1	Soil exploited for ground leveling and work construction	7
2	Rock, gravel	10
3	Rock used for lime baking and cement production	10
4	White marble	15
5	Sand	15
6	Sand used for glass-making	15
7	Soil used for brick-making	15
8	Granite	15
9	Refractory clay	13
10	Dolomite and quartzite	15
11	Kaolin	13
12	Mica, technical quartz	13
13	Pyrite, phosphorite	10
14	Apatite	8
15	Serpentine	6
16	Pit anthracite coal	10
17	Open-cast anthracite coal	12
18	Lignite and fat coal	12
19	Other coals	10
20	Diamond, ruby and sapphire	27
21	Emerald, alexandrite and black precious opal	25
22	Adrite, rodolite, pyrope, berine. Spinel and topaz	18
23	Bluish-purple, greenish-yellow or orange crystalline quartz; chrysolite; white or scarlet precious opal; feldspar; birusa; and nephrite	18
24	Other non-metallic minerals	10
III	Natural forest products
1	Timber of group I	35
2	Timber of group II	30
3	Timber of group III	20
4	Timber of group IV	18
5	Timber of groups V, VI, VII and VIII and of other categories	12
6	Tree branches, tops, stumps and roots	10
7	Firewood	5
8	Bamboo of all kinds	10
9	Sandalwood and calambac	25
10	Anise, cinnamon, cardamom and liquorice	10
11	Other natural forest products	5
IV	Natural aquatic resources
1	Pearl, abalone and sea-cucumber	10
2	Other natural aquatic resources	2
V	Natural water
1	Natural mineral water, natural thermal water and refined natural water, bottled or tinned	10
2	Natural water used for hydropower generation	5
3	Natural water used for production and business activities, except water mentioned at Points 1 and 2 of this group
3.1	Use of surface water
a	For clean water production	1
b	For other purposes	3
3.2	Use of groundwater
a	For clean water production	5
b	For other purposes	8
VI	Natural swallow's nests	20
VII	Other resources	10

Furthermore, the Law also stipulates the frame severance tax tariff for crude oil and natural gas, and coal gas, specifically as follows:

No.	Production output	Tax rate (%)
No.	Production output	Encouraged investment projects	Other projects
I	Crude oil
1	Up to 20,000 barrels/day	7	10
2	Over 20,000 barrels to 50,000 barrels/day	9	12
3	Over 50,000 barrels to 75,000 barrels/day	11	14
4	Over 75,000 barrels to 100,000 barrels/day	13	19
5	Over 100,000 barrels to 150,000 barrels/day	18	24
6	Over 150,000 barrels/day	23	29
II	Natural gas and coal gas
1	Up to 5 million m3/day	1	2
2	Over 5 million m3 to 10 million m3/day	3	5
3	Over 10 million m3/day	6	10

Pursuant to these frame severance tax tariffs, the National Assembly Standing Committee shall stipulate specific severance tax rates for each category of natural resource in each period on the following principles:

- Ensuring conformity with the list of groups and categories of natural resource and within the severance tax rate bracket prescribed by the National Assembly;

- Contributing to the state management of natural resources; protection, exploitation and rational, economical and effective use of natural resources;

- Contributing to assuring state budget revenues and market stabilization.

View more details: The Law on Severance tax 2009 of Vietnam officially takes effect from July 01, 2010 and Resolution No. 1084/2015/UBTVQH2013 takes effect from July 01, 2016.

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