Circular No. 153/1998/TT-BTC guides the implementation of Decree No. 68/1998/NĐ-CP dated September 3, 1998, of the Government detailing the implementation of the Mineral Resources Tax Ordinance (amended).

MINISTRY OF FINANCE ********	SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness ********
Number: 153/1998/TT-BTC	Hanoi, November 26, 1998

 

CIRCULAR

CIRCULAR NO. 153/1998/TT-BTC OF NOVEMBER 26, 1998 ISSUED BY THE MINISTRY OF FINANCE GUIDING THE IMPLEMENTATION OF THE GOVERNMENT DECREE NO. 68/1998/NĐ-CP OF SEPTEMBER 3, 1998 PROVIDING DETAILED REGULATIONS ON THE IMPLEMENTATION OF THE AMENDED NATURAL RESOURCES TAX LAW

To implement the Amended Natural Resources Tax Law issued by the Standing Committee of the National Assembly on April 16, 1998, and the Government Decree No. 68/1998/NĐ-CP of September 3, 1998 providing detailed regulations on the implementation of the Amended Natural Resources Tax Law, the Ministry of Finance guides the implementation as follows:

I - TAXPAYERS AND TAX SUBJECTS:

1- All organizations and individuals belonging to various economic sectors, including State-owned enterprises, Joint Stock Companies, Limited Liability Companies, Cooperatives, Private Enterprises, Foreign-invested Enterprises or Foreign Parties participating in business cooperation contracts under the Law on Foreign Investment in Vietnam, households engaged in production and business activities, other organizations and individuals, regardless of industry, scale, form of operation, who exploit natural resources in accordance with Vietnamese laws must register, declare, and pay natural resources tax as stipulated in Article 1 of the Amended Natural Resources Tax Law, except for the cases specified in Point 5, Section 1 of this Circular.

2- Natural resources subject to taxation include natural resources within the territory, islands, inland waters, territorial seas, exclusive economic zones, and continental shelf under the sovereignty of the Socialist Republic of Vietnam, including:

a- Metallic minerals: Including black metallic minerals (iron, manganese, titanium...) and colored metallic minerals (gold, rare earth, platinum, tin, wolfram, copper, lead, zinc, aluminum...).

b- Non-metallic minerals, including: clay for bricks, soil for land leveling and construction projects, soil for other uses; stone, sand, gravel; coal; precious stones, mineral water, natural hot water as defined in the Minerals Law.

c- Crude oil: As defined in Clause 2, Article 3 of the Petroleum Law.

d- Natural gas: As defined in Clause 3, Article 3 of the Petroleum Law.

đ- Natural forest products, including: wood (including branches, twigs, firewood, roots, stumps...), bamboo, rattan, pine, and other medicinal plants... and other types of plants and animals permitted to be exploited as natural forest products.

e- Natural aquatic products: Various species of marine, river, stream, lake, pond, and estuary animals and plants.

g- Natural water resources, including: surface water and underground water, excluding natural mineral water and hot water as mentioned above in group b.

h- Other natural resources: Including natural resources not included in the aforementioned groups.

Any intentional exploitation of prohibited natural resources will be handled according to current laws. When violations are discovered during inspections, the tax authority must notify and cooperate with relevant agencies to handle them according to their jurisdiction.

In cases where prohibited natural resources are seized and confiscated and subsequently allowed to be sold, the organization responsible for selling must include full natural resources tax in the sale price and remit it to the State Budget.

4- Foreign-invested enterprises and foreign parties conducting business cooperation based on contracts paying resource fees or natural resources taxes at specific rates stipulated in investment licenses issued before June 1, 1998 shall continue to pay resource fees or natural resources taxes according to those provisions until the expiration of the issued license. If the investment license is extended, they must follow the guidance provided in this Circular.

5- According to Article 3 of the Amended Natural Resources Tax Law and Article 3 of the Government Decree No. 68/1998/NĐ-CP of September 3, 1998, if a joint venture enterprise operating under the Law on Foreign Investment in Vietnam has the Vietnamese Party contributing capital legally through resources listed in the investment license, the joint venture enterprise does not have to pay natural resources tax on the resources contributed by the Vietnamese Party as legal capital. The Vietnamese Party must declare the quantity of resources generated and contributed quarterly or semi-annually, report to the Ministry of Finance to record in the State Budget and manage according to current regulations.

6- For enterprises exploiting natural resources established based on joint ventures, business cooperation contracts, and product-sharing agreements, the natural resources tax payable by the joint venture enterprise or the foreign party must be determined in the joint venture contract and included in the share of the product allocated to the Vietnamese Party. When sharing products, the Vietnamese Party is responsible for remitting the natural resources tax to the State Budget according to the State Budget Law.

II - BASIS FOR CALCULATING TAX AND NATURAL RESOURCES TAX RATES:

The amount of natural resources tax payable in each tax period is calculated as follows:

Resource tax payable within the period

=

Actual volume of commercial natural resources extracted

x

Unit price for tax calculation

x

Machine tools for machining complete units (one operation position) and machine tools for multi-position machining to process metals.

-

Amount of natural resources tax exempted or reduced (if applicable)

1- Actual volume of commercial natural resources extracted: Is the quantity, weight, or volume of natural resources actually extracted during the tax period, irrespective of the state and purpose of extraction (for immediate sale, exchange, internal consumption, storage for future production...).

- For types of natural resources that cannot be accurately determined in terms of quantity, weight, or volume due to containing multiple substances and high impurity levels, the natural resources tax is calculated based on the quantity, weight, or volume of each substance obtained after screening and sorting.

Example: A company, during a tax period, screens thousands of cubic meters of soil, rock, and water (which cannot be precisely quantified) to obtain 2 kg of gold concentrate and 100 tons of iron ore... The natural resources tax is calculated based on these quantities of gold concentrate and iron ore.

- In cases of manual, scattered, or mobile extraction, which are infrequent and difficult to manage, the actual volume of natural resources extracted can be allocated seasonally or periodically. The tax authority cooperates with local authorities and specialized management agencies to determine the actual volume of natural resources allocated.

In such cases, if the extracted resources are concentrated at the purchasing point and the purchasing entity commits to accepting them, the Provincial Tax Department may decide (in writing) that the organization or individual purchasing the resources shall pay the resource tax on behalf of the extractor.

2- Taxable value: Pursuant to Article 7 of Decree No. 68/1998/NĐ-CP dated September 3, 1998 of the Government; the taxable value for resource tax is the unit selling price of the resource at the extraction site and is determined specifically in each case as follows:

a) For types of resources whose quantity can be determined at the extraction stage and which can be sold immediately after extraction (such as soil, rock, sand, gravel, aquatic products, etc.), the taxable value for resource tax is the actual selling price at the extraction site minus turnover tax or not including VAT (if applicable). If transportation, loading/unloading, storage costs from the extraction site to the consumption site occur, these costs will be deducted when determining the taxable value for resource tax; in this case, if it is not sold (such as being put into subsequent production processes), the taxable value will be applied according to the regulations stipulated in Article 7 of Decree No. 68/1998/NĐ-CP dated September 3, 1998 of the Government, as specified by the provincial People's Committee.

b) For types of resources whose quantity can be determined at the extraction stage but cannot be sold directly and must go through screening, sorting, etc., before being sold, the taxable value for resource tax is the selling price of the product after screening and sorting, minus the costs incurred from the extraction site to the consumption site and converted according to the content or proportion to determine the taxable value as the actual selling price of the extracted resource, minus turnover tax or not including VAT.

Example: The selling price of one ton of clean coal is 65,000 VND/ton, the cost of screening, transporting from the extraction site to the sales site is 10,000 VND/ton; the proportion of clean coal in the actually extracted coal is 80%, then:

The taxable value of one ton of coal at the extraction site

=

65,000 VND - 10,000 VND)

x

80 100

-

Turnover tax or VAT

c) For types of resources whose quantity cannot be determined at the extraction stage due to large impurities and various substances, the taxable value is the actual selling price of each substance at the extraction site minus turnover tax or not including VAT.

Example: Gold dust, iron ore, etc.

d) For types of resources extracted and used as raw materials for production, such as natural water used for producing purified water, mineral water, beer, and other beverages; soil used as raw material for industrial and handicraft production, the taxable value for resource tax is the final product selling price minus the costs of producing that product (including turnover tax or VAT payable but excluding extraction costs), but the minimum level should not be lower than the taxable value specified by the provincial People's Committee according to the principles stipulated in Article 7 of Decree No. 68/1998/NĐ-CP dated September 3, 1998 of the Government.

Organizations and individuals extracting resources who comply fully with accounting bookkeeping and accounting vouchers as prescribed, can calculate and determine the taxable value for resource tax according to the directions in points a, b, c, or d. All other cases and cases where resources are extracted for purposes other than those guided in points a, b, c, and d shall apply the taxable value for resource tax as specified by the provincial People's Committee according to the principles stipulated in Article 7 of Decree No. 68/1998/NĐ-CP dated September 3, 1998 of the Government.

The Provincial Tax Department shall consult the opinions of the Department of Finance - Price and the management agency in the locality to determine the taxable value for resource tax, report to the provincial People's Committee for decision, and report to the General Tax Department.

đ - The taxable value for resource tax for natural water used for hydropower production is the selling price of commercial electricity, and for wood, it is the selling price at the storage area.

Specifically, for oil and natural gas, the taxable value for resource tax shall be implemented according to the provisions of the Petroleum Law and Article 47 of Decree No. 84/CP dated February 17, 1996 of the Government detailing the implementation of the Petroleum Law.

3 - Resource Tax Schedule: Implemented according to the Tax Schedule issued together with Decree No. 68/1998/NĐ-CP dated September 3, 1998 of the Government (attached to this Circular).

Based on the value of each type of resource, the conditions for extraction, and the management requirements for each type of resource during different periods, the Ministry or the main managing sector shall collect relevant data and documents related to the extracted resources and report to the Ministry of Finance to consider adjusting the tax rate for resource tax in accordance with the tax rate framework stipulated in Article 6 of the Resource Tax Ordinance. Adjustments to the tax rate for resource tax shall only be made when necessary and specific to certain types of resources, not for individual cases.

III - DECLARATION, REGISTRATION, PAYMENT OF RESOURCE TAX

1 - According to Article 9 of Decree No. 68/1998/NĐ-CP dated September 3, 1998 of the Government, organizations and individuals engaged in resource extraction shall be responsible for:

- Registering their resource extraction activities with the tax authority no later than 10 days from the date they are permitted to extract resources or no later than 5 days before any merger, consolidation, division, dissolution, bankruptcy, or changes in resource extraction activities. The registration form shall be prepared in two copies, one copy sent to the direct tax collection management authority, and one copy retained at the resource extraction facility (Form No. 1 attached).

- Adhering strictly to the current regulations on issuing purchase and sale invoices, collecting payments, and maintaining accounting records.

- Monthly, within the latest deadline of 10 days of the following month, organizations and individuals extracting resources must declare the resource tax payable for the previous month (Form No. 2 attached), including cases where no resource tax has been generated, and submit it to the tax authority. The declaration form shall be prepared in two copies, one copy signed off by the tax collection management officer and one copy retained at the facility. In cases where mineral resources are extracted without the condition to declare monthly, the declaration period may be extended appropriately, in line with the special characteristics of the extraction activity, as directed in writing by the Provincial Tax Department.

- Pay the resource tax by the deadline stated in the tax authority's notification, but no later than the 25th day of the month following the month in which the resource tax was generated.

- Within thirty days after the end of the year of operation or exploitation contract, the organization or individual exploiting natural resources must settle the payment of natural resource tax with the tax authority. Within ten days after the tax authority inspects and issues a notice, the organization or individual exploiting natural resources must pay any outstanding tax amount (if any) into the state budget; any overpaid tax will be refunded within the prescribed time period or credited against the natural resource tax due for the next period.

In cases where organizations or individuals exploit resources manually, scatteredly, or irregularly and are accepted by the tax authority to pay taxes through a quota method as stipulated in Point 1, Part II of this Circular, the tax authority shall base on the declaration form of the resource exploitation entity combined with actual investigation materials on resource sources, capital, labor, exploitation means, and resource prices to accurately determine the actual volume of resources exploited and the amount of natural resource tax due. The quota determination must ensure transparency, democracy, and accuracy according to the capacity of resource exploitation activities.

The quota tax on natural resources may be calculated to be linked to the quota collection of other types of taxes.

2 - The direct management agency responsible for collecting natural resource tax has the following duties, powers, and responsibilities:

- Guide and urge resource exploitation entities to register, declare, and pay natural resource tax.

- Inspect the registration, declaration, and payment of natural resource tax, and settlement of natural resource tax by resource exploitation entities.

- Calculate tax or organize investigative work, inspection, and determination of tax quotas; establish and approve tax ledgers; promptly notify the amount of natural resource tax due and the deadline for payment in accordance with regulations; provide legitimate tax receipt documents to taxpayers.

- Inspect and supervise resource exploitation activities; regularly and periodically inspect accounting records and documents, promptly identify and correct or handle violations.

Require taxpayers to provide accounting records, documents, and other relevant files related to tax calculation and payment; require financial institutions, banks, and other related organizations and individuals to provide relevant documents related to tax calculation and payment.

- Administer administrative penalties for tax violations and resolve tax complaints.

- Retain and use data and documents provided by resource exploitation entities and other parties in accordance with prescribed regulations.

3 - The tax authority has the right to determine the amount of natural resource tax payable by taxpayers in accordance with Article 9 of the Natural Resource Tax Ordinance (amended).

4 - All organizations and individuals transporting natural resources must have a sales invoice or proof that they have implemented the natural resource tax policy.

5 - Natural resource tax is a revenue of the State Budget collected at the local Treasury where the natural resources are extracted. In cases where small, scattered extraction entities with small amounts of natural resource tax and far from the local Treasury, the tax authority may directly collect the tax and transfer it to the Treasury. Based on the actual situation, the tax authority must clearly specify the payment schedule according to the number of days and the amount of tax collected.

IV. EXEMPTIONS AND REDUCTIONS OF NATURAL RESOURCE TAX

According to Article 10 of the Natural Resource Tax Ordinance (amended) and Article 12 of Decree No. 68/1998/NĐ-CP dated September 3, 1998 of the Government detailing the implementation of the Natural Resource Tax Ordinance (amended), exemptions and reductions of natural resource tax are carried out as follows:

1 - Projects falling under investment incentives as specified in the Law on Encouraging Domestic Investment and detailed implementing regulations issued by the Government, if they extract mineral resources (excluding oil and gas), are entitled to a maximum reduction of 50% of natural resource tax for the first three years from the start of exploitation; for projects already underway that fall under these categories, the remaining tax period will be considered for reduction from the date the amended Natural Resource Tax Ordinance takes effect.

The direct managing tax authority bases its decision to reduce tax on the establishment permit, investment incentive certificate, and guidelines of the Law on Encouraging Domestic Investment to determine the tax reduction in such cases.

2 - Organizations or individuals exploiting natural resources who suffer losses due to natural disasters, enemy attacks, or unexpected accidents causing damage to declared and taxed resources are exempted from natural resource tax on the damaged resources. If tax has already been paid, it will be refunded or offset against the natural resource tax due for the subsequent period if the taxpayer agrees. The extent of damage is determined as follows:

- For specific types of resources damaged in terms of quantity, the damage is determined based on the specific quantity.

- For types of resources damaged in terms of quality or proportion, the taxable price and tax rate are reassessed and determined again. The exempted natural resource tax amount equals the difference between the previously calculated and declared tax and the tax due after the damage occurred.

Example: The clean coal ratio in raw coal is 80%, but during the flood season, the clean coal ratio drops to 50%, requiring a recalculation of the taxable price and determination of the tax exemption difference.

The application for tax reduction must include:

- A written request specifying the reasons, loss amount, and requested tax reduction.

- An inspection and determination report by the direct managing tax authority attached to the application for tax reduction consideration. The Director of the Tax Department decides on the reduction of natural resource tax for organizations or individuals suffering losses.

3 - Organizations or individuals operating marine fishing in distant waters using large-capacity vessels are exempt from natural resource tax for the first five years from the issuance of their exploitation license and are granted a 50% reduction in natural resource tax for the next five years.

Large-capacity vessels refer to fishing boats equipped with main engines having a power of 90 horsepower (HP) or more.

Based on the application and the distant water fishing operation license presented by the exploiting organization or individual, the head of the direct managing tax authority decides on the tax exemption or reduction for each year.

In cases where entities had been operating marine fishing activities in offshore waters before June 1, 1998, the examination for tax exemption and reduction shall begin on June 1, 1998, with the duration as prescribed.

Example: Entity A was granted a permit to conduct marine fishing activities in offshore waters in December 1997, then Entity A will be exempt from resource tax for five years and have a 50% tax reduction for the next five years. The calculation period starts from June 1, 1998.

During the operation period, if organizations or individuals conducting marine fishing activities in offshore waters experience changes in conditions for tax exemption and reduction that decrease the level of tax benefits, they must promptly report to the nearest tax authority and obtain confirmation. Failure to report to continue enjoying tax exemptions and reductions will be considered as tax evasion and will be handled according to Article 11 of the Resource Tax Ordinance (amended).

After the aforementioned tax exemption and reduction period (ten years), if organizations or individuals conducting marine fishing activities in offshore waters still incur losses, they will be eligible for a corresponding reduction in resource taxes for up to five consecutive years based on the annual losses incurred.

4 - Exemption from resource tax for natural forest products harvested by residents in communes with forests, such as wood, branches, firewood, bamboo, rattan, leaves, reeds, rush, water caltrop, lotus root, for daily living purposes; including any surplus sold. Sales must be within the jurisdiction of the district where harvesting occurs.

Based on the proposal of the People's Committee of the commune and the forestry management agency directly managing the forest, the head of the tax agency directly managing shall decide on the exemption from resource tax for this subject. The decision must clearly specify the type of resources permitted to be harvested, location, method of harvesting, and place of consumption. Each decision's validity period shall not exceed three months, after which the tax agency must conduct a review and inspection before issuing another exemption decision.

Cases where it is discovered that entities are exploiting tax exemptions to engage in indiscriminate harvesting of natural forests shall result in the tax agency revoking the exemption decision (if issued) and transferring the case to the competent authority for handling under current laws.

5 - Exemption from resource tax for natural water used in hydroelectric power production that does not connect to the national power grid.

Based on the application of organizations and individuals engaged in extraction, with comments from the Provincial Industry Department, the head of the tax agency directly managing shall decide on the exemption from resource tax for this case.

6 - Exemption from resource tax for land extracted for the following purposes:

a - Filling and constructing facilities serving security and defense;

b - Filling and constructing dike, irrigation, and agricultural, forestry, and fishery facilities directly serving agriculture, forestry, and fisheries, as well as road construction.

c - Filling and constructing charitable and humanitarian facilities or providing preferential treatment to those who have contributed to the revolution.

d - Filling and constructing infrastructure facilities in mountainous areas (within the jurisdiction of a county designated as a mountainous county according to the list published by the Ethnic Minorities Commission) to serve economic and social development in these regions.

đ - Extraction within the scope of land allocated or leased for filling, raising, and construction within that area.

e - Filling and constructing key national projects as decided by the Government for each specific case.

For cases mentioned in points a, b, c, d, đ, organizations and individuals extracting resources must submit an application detailing the reasons, accompanied by certification and recommendations from the People's Committee of the province or county (if the project falls within the jurisdiction of the county) where the facility is being constructed, to present to the tax agency directly managing the extraction area for consideration and issuance of the tax exemption decision.

V. VIOLATION HANDLING AND REWARD - COMPLAINTS AND STATUTE OF LIMITATIONS

Violation handling and rewards for organizations and individuals shall be carried out according to Articles 11, 13, and 14 of the Resource Tax Ordinance.

The right to file complaints and the procedures for resolving tax complaints shall be implemented according to Articles 15 and 16 of the Resource Tax Ordinance.

If fraud, tax evasion, or errors in tax reporting are detected and concluded, the tax agency has the responsibility to recover taxes and penalties or refund overpaid taxes within five years prior to the date of discovery, from the day of the inspection. For organizations and individuals extracting resources who fail to declare and pay taxes, the recovery period for taxes and penalties begins from the start of business operations.

VI. IMPLEMENTATION

Tax agencies at all levels are responsible for disseminating and guiding resource extraction entities to fully understand and comply with the Resource Tax Ordinance, Decree No. 68/1998/NĐ-CP dated September 3, 1998, issued by the Government, and the contents outlined in this Circular.

This Circular takes effect from September 18, 1998, and replaces previous guidance documents on resource tax issued by the Ministry of Finance. Any difficulties encountered during implementation should be reported promptly to the Ministry of Finance for research and resolution.

Pham Van Trong (Signed)

 

FORM NO. 1

SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness.

..., day...month...year

REGISTRATION WITH THE TAX AUTHORITY

regarding resource extraction activities

Name of business entity (or household name):...Tax number:...

- Business registration certificate number:...date...month...year...

- Resource extraction permit number:...date...month...year...

- Industry of extraction: (Example: Gold mining; soil extraction for brick and tile production; marine fishing...)

- Location of extraction:

- Bank account opened: Account number:

- Declaration of resource extraction activities by the entity as follows:

1. Total production and business capital (fixed capital + working capital):

2. Total number of workers:

3. Industry name: (Example: Non-ferrous metallurgy: gold, titanium, tin... resources extraction).

4. Date when resource extraction activities began: date...month...year...

5. Projected duration of resource extraction activities...years...

6. Projected annual extraction volume:

7. Projected average selling price in year 19...:

8. Projected annual resource tax payable:

Our entity hereby registers to pay resource tax from date...month...year and agrees to comply with all accounting record-keeping regulations, declaration and payment of resource tax, and assumes responsibility for the accuracy of the submitted documents and data to the tax authority.

If the tax authority inspects and discovers discrepancies with the actual situation, the entity will be subject to penalties as stipulated in Article 11 of the Mineral Resources Tax Ordinance (amended).

Chief Accountant Director (business household owner)

(signature, stamp)

----------------------------------------------------------------------------

The tax authority hereby acknowledges receipt of the Registration Form for Resource Exploitation Activities of: above. The registration form is made in duplicate, one copy retained by the tax authority and one copy kept at the exploitation site.

... day... month... year...
Head of the tax authority
(signature, stamp)

MODEL NO. 2

SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness.

... day... month... year

MINERAL RESOURCES TAX RETURN

month... (or year)... year...

- Business Name (or Household Owner's Name):...Tax Code:

- Subject to Mineral Resources Tax:

- Location of extraction:

- Main office address:

- Bank Account Opening Location: Account Number:

Serial Number	Mineral Resources Tax Calculation Basis	Declaration by Business Entity	Inspection by Tax Authority
1	Quantity of each type of resource extracted (tons, m3...) 1. Supplementing Point 6a following Article 6 of Circular No. 02/2019/TT-BVHTTDL dated July 5, 2019 of the Minister of Culture, Sports and Tourism on the procedures for legal expertise regarding copyright and related rights as follows: b.	Granite, gabbro, decorative stone...3...
2	Taxable Value of Each Type of Extracted Resource: 1. Supplementing Point 6a following Article 6 of Circular No. 02/2019/TT-BVHTTDL dated July 5, 2019 of the Minister of Culture, Sports and Tourism on the procedures for legal expertise regarding copyright and related rights as follows: b.
3	Mineral Resources Tax Due on the Quantity Extracted During the Period: Where: a. Resource a b. Resource b c. Resource c
4	Overpaid Mineral Resources Tax or Tax from Previous Period: - Overpaid - Underpaid
5	Reduced Mineral Resources Tax (if determined by the tax authority)
6	Total Mineral Resources Tax Due for the Period
7	Amount of Mineral Resources Tax Paid Up To...
8	Mineral Resources Tax Still Due

The figures and data provided herein are accurate and truthful.

If the tax authority inspects and discovers discrepancies with the actual situation, the entity will be subject to penalties as stipulated in Article 11 of the Mineral Resources Tax Ordinance (amended).

Tax Official who has inspected Date... Month... Year Signature

…on…day…month…year… (Signature)

Director (business household owner) (Signature, stamp)