Vietnam: Severance tax-liable objects and entities eligible for severance tax exemption

1. Legal basis for regulating severance tax

- Law on Severance tax No. 45/2009/QH12

- Decree No. 50/2010/ND-CP dated May 14, 2010 of Vietnam’s Government

- Circular No. 152/2015/TT-BTC of the Ministry of Finance of Vietnam

2. What is the severance tax?

The purpose of severance tax is to limit resource losses in the process of exploitation and utilization, while also creating a source of state budget revenue and regulating the interests of different population groups in resource utilization.

3. Severance tax-liable objects

Severance tax-liable objects are natural resources within the land, islands, internal waters, territorial sea, contiguous zones, exclusive economic zone, and continental shelves under the sovereignty and jurisdiction of Vietnam, including:

- Metallic minerals.

- Non-metallic minerals.

- Products of natural forests, including plants and other products of natural forests.

- Natural aquatic products, including marine animals and plants.

- Natural water, including surface water and groundwater other than natural water used for agriculture, forestry, aquaculture, salt production, and seawater used for cooling machines.

- Natural bird’s nests other than those collected from construction of houses to attract and raise natural swifts to collect their nest.

4. Cases of exemption from severance tax

- Entities extracting natural marine organisms.

- Entities extracting branches, firewood, bamboo, rattan, etc. serving everyday life.

- Entities extracting natural water for hydroelectricity generation serving everyday life of households and individuals.

- Natural water extracted by households and individuals serving their everyday life.

- Land areas given/leased out to organizations and individuals and used on the spot; earth used for leveling, construction of security, military works, dykes.

Source: dangkydoannghiep.org.vn

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE