Guidance on amendments to the price bracket for severance tax calculation in Vietnam from July 15, 2024

Guidance on amendments to the price bracket for severance tax calculation in Vietnam from July 15, 2024

To be specific, from July 15, 2024, there will be three cases for amendments to the price bracket for severance tax calculation, including:

- The common market price of resources decreases by more than 20% compared to the minimum price level of the severance tax Calculation price bracket;

- The common market price of resources increases by more than 20% compared to the maximum price level of the severance tax Calculation price bracket;

- The emergence of a new type of resource not yet specified in the severance tax Calculation price bracket.

The adjustment and supplementation of the price bracket for severance tax calculation in the aforementioned cases are regulated as follows:

- In the case where the common market price of resources decreases by more than 20% compared to the minimum price level of the severance tax Calculation price bracket, the provincial People's Committee is responsible for sending a document to the Ministry of Finance to provide information along with proposals, dossiers, and specific explanatory plans as a basis for considering the adjustment of the severance tax Calculation price bracket. The provincial People's Committee will only issue the severance tax Calculation Price Table or a document regulating the adjustment of the severance tax Calculation Price Table after the Ministry of Finance adjusts the severance tax Calculation price bracket.

- In the case where the common market price of resources increases by more than 20% compared to the maximum price level of the severance tax Calculation price bracket, the Department of Finance, in collaboration with related agencies, is responsible for determining and submitting the severance tax Calculation Price Table or a document regulating the adjustment of the severance tax Calculation Price Table to the provincial People's Committee for issuance.

After issuing the severance tax Calculation Price Table or a document regulating the adjustment of the severance tax Calculation Price Table, the provincial People's Committee is responsible for sending a document to the Ministry of Finance to provide information along with proposals, dossiers, and specific explanatory plans as a basis for considering the adjustment of the severance tax Calculation price bracket.

See more regulations guiding the adjustment and supplementation of the price bracket for severance tax calculation at Circular 41/2024/TT-BTC which takes effect from July 15, 2024.

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