Instructions on declaring, calculating, distributing and paying resource royalty in Vietnam

Distributing resource royalty in Vietnam

Pursuant to Clause 1, Article 15 of Circular 80/2021/TT-BTC, the hydropower generation with a reservoir that is located in multiple provinces.

Pursuant to Clause 2, Article 15 of Circular 80/2021/TT-BTC, the allocation of natural resources tax in this case shall be made according to the following method:

(1) Basis for distribution of resource royalty payable in each province:

- The total area of the reservoir is t; the area of the reservoir in Province G is t.1; the area of the reservoir in Province H is t.2.

The ratio (%) of reservoir area in Province G is T.1 = t.1/t x 100.

The ratio (%) of reservoir area in Province H is T.2 = t.2/t x 100.

- The cost of land clearance and relocation is k; the cost of land clearance and relocation in Province G is k.1; the cost of land clearance and relocation in Province H is k.2.

The ratio (%) of cost of land clearance and relocation in Province G is K.1 = k.1/k x 100.

The ratio (%) of cost of land clearance and relocation in Province H is K.2 = k.2/k x 100.

- The quantity of relocated households is s; the quantity of relocated households in Province G is s.1; the quantity of relocated households in Province H is s.2.

The ratio (%) of quantity of relocated households is s; the quantity of relocated households in Province G is S.1 = s.1/s x 100.

The ratio (%) of quantity of relocated households is s; the quantity of relocated households in Province H is S.2 = s.2/s x 100.

- The total compensation is v; the compensation in Province G is v.1; the compensation in Province H is v.2.

The ratio (%) of compensation in Province G is V.1 = v.1/v x 100.

The ratio (%) of compensation in Province H is V.2 = v.2/v x 100.

(2) Formula:

Resource royalty payable in Province G = [(T.1 + K.1 + S.1 + V.1) / 4] x Resource royalty payable

Resource royalty payable in Province H = [(T.2 + K.2 + S.2 + V.2) / 4] x Resource royalty payable

Instructions on declaring, calculating, distributing and paying resource royalty in Vietnam (Internet image)

Instructions on declaring and paying resource royalty in Vietnam

Pursuant to Clause 3, Article 15 of Circular 80/2021/TT-BTC, the taxpayer that has a hydroelectric plant shall declare resource royalty and submit tax declaration dossiers according to Form No. 01/TAIN and tax finalization dossiers according to Form No. 02/TAIN to the state budget revenue-managing tax authority of the area where water extraction takes place.

In case the reservoir of the hydroelectric plant is located in multiple province, submit the resource royalty declaration dossier according to Form No. 01/TAIN, the resource royalty finalization dossier according to Form No. 02/TAIN and the resource royalty distribution sheet according to Form No. 01-1/TAIN in Appendix II of Circular 80/2021/TT-BTC to the tax authority where the hydroelectric plant's operating office is located; pay resource royalty in the provinces where the hydroelectric reservoir is located in accordance with Clause 4 Article 12 of Circular 80/2021/TT-BTC.

Mai Thanh Loi

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