Regulations on taxable price bracket in Vietnam

Regulations on taxable price bracket in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. What is the taxable price bracket?

According to Clause 2, Article 3 of Circular 44/2017/TT-BTC, taxable price bracket refers to the maximum and minimum taxable prices for groups/types of natural resources with similar physical, chemical properties (hereinafter referred to as taxable price bracket).

2. Regulations on taxable price bracket in Vietnam

Specifically, in Clause 2, Article 4 of Circular 44/2017/TT-BTC, taxable price bracket shall contain:

- Code of a group/type of natural resource: the number of group/type in the price bracket, composed of 6 levels, numbered and arranged in accordance with group/type specified in the Standing Committee of National Assembly’s resource royalties schedule (except crude oil, natural gas and coal gas) at specific periods as follow:

+ Level 1 includes groups of natural resources specified in Point 1 of the Standing Committee of National Assembly’s Resolution 1084/2015/UBTVQH13 represented by the roman numerals;

+ Level 2 includes more specific groups/types of natural resources of level 1 specified in Point 1 of the Resolution 1084/2015/UBTVQH13 represented by 2-digit numbers after those of the corresponding level 1 group;

+ Level 3 includes more specific groups/types of natural resources of level 2; each group/type is represented by 2-digit numbers after those of the corresponding level 2 group.

+ Level 4 includes more specific groups/types of natural resources of level 3; each group/type represented by 2-digit numbers after those of the corresponding level 3 groups.

+ Level 5 includes more specific groups/types of natural resources of level 4; each group/type represented by 2-digit numbers after those of the corresponding level 4 groups.

+ Level 6 includes more specific groups/types of natural resources of level 5; each group/type represented by 2-digit numbers after those of the corresponding level 4 groups.

- Name of group/type of natural resources: the names of group/type of level 1, 2 and a number of level 3 natural resources are determined according to the name of group/type of natural resources in the resource royalties schedule enclosed together with the Resolution No. 1084/2015/UBTVQH13; the names of groups/types of level 3, 4, 5 natural resources are determined in consideration of the names of groups/types of natural resources and products derived from natural resources nationwide.

- The unit of measurement is determined as the unit of measurement defined by law or the common unit of measurement of the resource.

- Maximum price, minimum price.

3. Principles of application of taxable price brackets in Vietnam

Pursuant to the taxable price bracket enclosed herein this Circular, the Provincial People’s Committees shall promulgate a taxable price schedule applicable in their provinces ensuring the following principles:

- The codes of natural resources on taxable price schedule must have their levels corresponding to levels specified in the price bracket.

- The codes and names of natural resources on the taxable price schedule must belong to one of the groups/types of natural resources from level 3 to level 5 specified in the price bracket.

In case the taxable price schedule is more specific than the price bracket, the Provincial People’s Committee shall detail and number it at the next level according to the principle of resource coding specified in Article 4 of Circular 44/2017/TT-BTC. More specific resource of level 5 shall be detailed in level 6.

- The unit of measurement in the taxable price schedule is the unit of measurement of the corresponding group/type of resource specified in the taxable price bracket. In case the unit of measurement of the province is different from the unit of measurement in the taxable price schedule, the Provincial People’s Committee shall convert it into the unit of measurement specified in the taxable price schedule.

- Price for calculation of natural resource tax under Schedules for natural resource tax must conform to taxable price brackets (larger than or equal the minimum price and lower than or equal the maximum price) of corresponding resource groups and types under taxable price brackets, except for cases specified in Article 6 of Circular 44/2017/TT-BTC.

(Article 5 of Circular 44/2017/TT-BTC (amended in Circular 05/2020/TT-BTC))

Tran Thanh Rin

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