Vietnam’s frame severance tax tariff

Vietnam’s frame severance tax tariff
Nguyen Trinh

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 (%)

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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