Who is subject to environmental protection tax in Vietnam?

Who is subject to environmental protection tax in Vietnam? (Internet image)

1. Who is subject to environmental protection tax in Vietnam?

Environmental protection taxpayers are specified in Article 5 of the Law on Environmental Protection Tax 2010 and Article 3 of Circular 152/2011/TT-BTC as follows:

- Environmental protection tax payers include organizations, households and individuals producing and importing taxable goods specified in item (2).

- Environmental protection tax payers are defined in some cases as follows:

+ Entrusted importers shall pay environmental protection tax, regardless of the form of entrustment and of whether goods are exported and delivered to entrusting parties or entrusted parties.

+ Producing and processing organizations, households and individuals that are concurrently entrusted to sell goods into the Vietnamese market shall pay environmental protection tax. In case processing organizations, households and individuals are not entrusted to sell goods, processing-ordering organizations, households and individuals shall pay environmental protection tax when selling goods in Vietnam.

+ Organizations, households and individuals that act as principal procurers of coal exploited on a small and scattered scale but fail to produce documents evidencing that environmental protection tax has been paid for the goods shall pay tax.

2. Objects subject to environmental protection tax in Vietnam

Taxable subject

- Gasoline, oil, grease, including:

+ Gasoline, except ethanol;

+ aircraft fuel;

+ diesel oil;

+ Petroleum;

+ Fuel oil;

+ lubricants;

+ Grease.

- Coal, including:

+ Lignite;

+ Anthracite Coal (anthracite;

+ Fat coal;

+ Other coal.

- Hydrogen-chlorofluorocarbon liquid (HCFC.

- Taxable-plastic bag.

- Herbicide which is restricted from use.

- Pesticide which is restricted from use.

- Forest product preservative which is restricted from use.

- Warehouse disinfectant which is restricted from use.

- When it is necessary to supplement other taxable objects as per period, the National Assembly Standing Committee shall consider and regulate.

(Article 3 of the Law on Environmental Protection Tax 2010)

3. Objects not subject to environmental protection tax in Vietnam

Un-taxable objects include:

- Goods is not specified in Article 3 of this Law shall not be subject to environmental tax.

- Goods provided for in Article 3 of this Law shall not be subject to environmental tax in the following cases:

+ Goods transported in transit  or transshipped through the border gate, Vietnam border in accordance with the law, including the transportation of goods from exporting countries to importing countries through the border gate of Vietnam but it is not made import & export procedures into and out of Vietnam; transit goods through the border gate, the border of Vietnam on the basis of agreements signed between the Government of Vietnam and a foreign government or an agreement between agencies, representative authorized under the provisions of law by government of Vietnam and foreign governments;

+ Goods temporarily imported for re-export within the time limit prescribed by law;

+ Goods directly exported by production facilities or entrusted for the export business to export, except for organizations, households and individuals to purchase goods which environmental protection taxable subject to export.

(Article 4 of the Law on Environmental Protection Tax 2010)

Diem My

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