Circular No. 10/TC-CTN guiding the collection regime for gold mining from underground in collective economic areas and individuals.

CIRCULAR

NUMBER 10/TC-CTN OF APRIL 20, 1989

GUIDELINES ON THE COLLECTION REGIME FOR GOLD MINING FROM UNDERGROUND IN COLLECTIVE AND INDIVIDUAL ECONOMIC SECTORS

IMPLEMENTING Decision No. 76-HĐBT dated May 13, 1987 of the Council of Ministers on gold exploration, mining, processing, and trading, and Circular No. 202-CT dated July 2, 1988 of the Chairman of the Council of Ministers temporarily regulating the collection regime for gold mining, the Ministry of Finance provides guidelines for the collection from activities of gold mining in collective and individual economic sectors as follows:

I. OBJECTS SUBJECT TO PAYMENT

All individuals and collectives including private households, individuals, small business owners, private enterprises, cooperatives, cooperative groups, and organizations belonging to non-state-owned economic sectors (hereinafter referred to collectively as collectives and individuals) engaged in regular or seasonal gold mining activities not subject to state revenue submission must pay gold mining fees to the State budget.

II. AMOUNTS TO BE PAID

Gold mining fees include registration fees for gold mining and resource extraction fees for gold.

1. Registration fee for gold mining:

a) The purpose of collecting the registration fee for gold mining is to offset costs related to management, maintenance, protection of land and environment in areas with gold panning activities.

b) According to point 1, Section II of Circular No. 202-CT of the Chairman of the Council of Ministers, the registration fee for gold mining is determined based on the gold content in the alluvium in each area:

- Areas with gold production in alluvium up to 0.2 grams/cubic meter shall be charged 100 dong per person/day (equivalent to 0.2 kilograms of rice at the guaranteed price for foodstuffs).

- Areas with gold content above 0.2 to 0.6 grams/cubic meter shall be charged 200 dong per person/day (equivalent to 0.4 kilograms of rice).

- Areas with gold content above 0.6 to 1.0 grams/cubic meter shall be charged 300 dong per person/day (equivalent to 0.6 kilograms of rice).

In regions with gold content exceeding 1.0 grams/cubic meter, the People's Committee of the province may set the registration fee up to 400 dong per person/day (equivalent to 0.8 kilograms of rice).

2. Resource extraction fee for gold:

a) The purpose is to encourage a portion of the income from those who exploit natural resources of the country to be submitted to the budget.

b) Basis for determining the amount of payment:

Extraction Fee = Gold Content in Alluvium x Average Panning Yield x Price of Gold x Collection Rate

- The gold content is determined based on the gold content in each alluvium area identified by the scientific and technical sector and decided by the People's Committee of the province, with tax authorities coordinating with relevant agencies to grasp the gold content in each location as the basis for calculating the payment for each collective and individual entity.

- The average panning yield is the average alluvium production that can be extracted by one person/day under normal geological and economic-technical conditions. The Tax Office for Industry and Commerce will coordinate with the provincial scientific and technical sector to conduct surveys and investigations in some convenient or difficult-to-exploit areas to determine the average panning yield and report it to the People's Committee of the province for decision.

The price of gold for calculating the payment is based on the purchase price of gold (converted to gold 10) determined by the State Bank at each time period.

- The collection rate is implemented according to part a, point 2, Section II of Circular No. 202-CT of the Chairman of the Council of Ministers.

Based on the gold content, average panning yield, gold price, and collection rate as determined above, the Tax Office for Industry and Commerce calculates specific fees for registration and resource extraction for one person/day in each area and reports it to the People's Committee of the province for implementation. When the bases for calculating the fees increase or decrease by more than 20%, the collection agency must report to the People's Committee of the province, city, or special administrative region to adjust the fees accordingly.

III. PROCEDURES AND DEADLINES FOR PAYMENT

1. Payment procedures: To have a basis for managing payments, tax authorities must maintain records of actual gold miners in each area. The payment book (attached model) is divided into two volumes, one volume managed by the ward (commune), and one volume managed by the tax office. Fees are collected in cash immediately at the local place of mining using the 5TP "3-part" receipt. A receipt must be issued to each miner for presentation during inspection. Revenue from registration fees and resource extraction fees is recorded in Chapter 97 (or 98), Type 01, Clause 04, Category 0, Item 47 (National Budget Register). Revenue from any economic organization unit is recorded according to the chapter of that organization unit.

2. Deadlines for payment:

- Registration fees are collected once a year, immediately when issuing the work permit card to each person allowed to mine, before entering the mining site; those who start mining in the first six months of the year pay the full annual fee; those who start mining in the last six months of the year pay 50% (fifty percent) of the annual fee.

The work permit card (attached model) is uniformly issued by the province or city. It is issued annually to each miner and is only valid within the local jurisdiction (district, town). Collective and individual entities that have paid registration fees in one locality and move to another locality for mining must pay the registration fee again as if they were starting mining anew; without a mining permit, in addition to paying the registration fee, they will be dealt with according to the current business registration regulations.

- Resource extraction fees are collected monthly, and must be fully paid by the 5th day of the following month. If not paid in full and on time, in addition to paying the overdue amount, a penalty of 1% (one percent) per day late on the overdue amount will be imposed.

To manage the number of gold miners, it is necessary to closely monitor the terrain of each gold alluvium cluster and the characteristics of mining operations in each location. Tax authorities may delegate the collection of registration fees and resource extraction fees to the ward or commune authorities. The tax office coordinates with the People's Committee of the ward or commune to organize the delegation of collection. The Tax Bureau provides detailed guidance on the handover, settlement, and reconciliation of receipts for delegated collections. When collecting delegated fees, only receipts issued by the tax authority may be used, and no other receipts or handwritten receipts may be used.

The practice permit (in accordance with the attached model) shall be uniformly issued by the province or city. The permit shall be granted to each individual prospector once a year and shall only be valid within the local administrative area (district, town). Collective and individual practitioners who have paid fees in this locality must pay the fees anew if they move to another locality for exploitation; if they exploit beyond the permitted level without a permit, in addition to paying the fee, they will be subject to handling according to the current business registration regulations.

- Revenue from natural resources must be fully paid by the 5th day of the following month. If not paid in full and on time, in addition to paying the outstanding amount, a daily penalty of 1% (one percent) of the overdue payment shall be imposed for each day of delay.

IV- IMPLEMENTATION

To manage the number of gold prospectors, it is necessary to closely monitor the topography of each alluvial gold deposit and the exploitation conditions at each location. The tax authority may delegate the collection of fees and revenue from natural resources to the district or commune authorities. The Tax Department shall coordinate with the People's Committee of the district or commune to organize the delegation of collection. The Tax Inspection Office shall provide detailed guidance on the handover, settlement, and reconciliation of receipts for delegated collections. When collecting delegated payments, only tax authority-issued receipts shall be used, and no other collection vouchers or handwritten receipts shall be accepted.

Tax officials must regularly coordinate with the People's Committee of wards and communes from the establishment of ledgers, issuance of practice licenses to the collection of fees and mineral revenues deposited into the State budget; monitor and assist in the management of collections by each authorized collector; promptly prevent or detect and handle violations.

Authorized collectors shall be compensated according to the regulations of the Provincial People's Committee.

Revenue from gold panning activities is a financial mobilization policy for those who exploit resources contributing to the State. Currently, there are a large and diverse number of people engaged in gold panning, with difficult-to-manage conditions in mountainous areas. Therefore, there must be strict guidance from Party committees and authorities at all levels, and coordination between the tax sector and the public security, judiciary, banking, and geological sectors in managing gold exploitation and guiding the implementation of State revenue systems.

It is requested that the Provincial People's Committee direct the tax sector and related sectors to properly implement the guidance provided above, organize investigations to fully grasp all areas with placer gold deposits, accurately determine the gold content and average panning productivity as a basis for setting collection rates; regularly inspect compliance with State revenue systems for gold exploitation, and handle cases of violation of revenue systems according to the current Trade and Industry Tax Ordinance.

This Circular takes effect from the date of signature. Any provisions of sectors and localities contrary to Decision No. 76-HĐBT dated May 13, 1987 of the Council of Ministers, Circular No. 202-CT of the Chairman of the Council of Ministers, and this guidance circular shall be abolished.

REGISTER FOR COLLECTION OF FEES AND MINERAL REVENUES FROM GOLD EXPLOITATION

Month ... Year ... 19...

Day ... Month ... Year 19

Department of Trade and Industry Tax

(Front side of gold exploitation permit)

Socialist Republic of Vietnam

County Independence - Freedom - Happiness

Number:... GPKT --------------------------------------------

GOLD EXPLOITATION PERMIT

People's Committee of the County:

Permission granted:

Place of permanent residence:

³

ID card number:

Location of exploitation:

Method of exploitation:

Annual fee payable in 199...

Monthly mineral revenue payable:

Permit valid until December 31, 198...

Date ... Month ... Year 199...

Seal of the People's Committee of the County

(Signature and stamp)

(Back side of gold exploitation permit)

Record of gold sold to the State

SOME GENERAL PROVISIONS

1. All gold extracted must be sold to the State.

2. The exploitation permit must be carried at all times for presentation during inspections.

3. Any actions involving illegal gold trading or business operations will be handled according to the law, and individuals who report such illegal activities will be rewarded.

4. Full payment of fees and mineral revenues is required.