Level of Setting Up the Environmental Risk Prevention and Damage Compensation Fund

15:13, 11/07/2024

The Ministry of Finance issues Circular 86/2016/TT-BTC guiding certain contents on the Risk Prevention Fund and Environmental Damage Compensation as stipulated in Decree 19/2015/ND-CP.

Organizations and individuals engaged in production, business, and service activities must establish a Fund, including:

- Oil and gas activities;- Production, business of chemicals, and petroleum;- Use of specialized ships for transporting crude oil, petroleum products, or other hazardous goods when operating;- Storage, transportation, and treatment of hazardous waste, transportation of dangerous goods.

The rate for establishing the contingency fund is as follows:

- Enterprises are required to set aside 0.5% of the annual net revenue from sales and the provision of services related to oil and gas, chemicals, petroleum, crude oil, and hazardous waste activities;- The amount set aside should not exceed 5% of the annual pre-tax profit;- Annual net revenue from sales and provision of services does not include internal sales revenue between the parent company and its subsidiaries and vice versa.

Circular 86/2016/TT-BTC takes effect from August 5, 2016, and is applicable from the 2016 financial year.

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