Circular No. 21/2002/TT-BTC guides the exemption of resource tax for materials extracted and used to construct the Ho Chi Minh Road (Phase I).

CIRCULAR

Guidelines on the exemption of resource tax for materials extracted and used to construct the Ho Chi Minh Road (Phase I)

 for constructing the Ho Chi Minh Road (Phase I)

Pursuant to the Resource Tax Ordinance (amended) dated August 16, 1998;

Pursuant to Decree No. 68/1998/NĐ-CP dated September 3, 1998 of the Government detailing the implementation of the amended Resource Tax Ordinance;

Pursuant to Decision No. 18/2000/QĐ-CP dated February 3, 2000 of the Prime Minister on investment in the construction project of the Ho Chi Minh Road (Phase I);

The Ministry of Finance guides the implementation of the exemption of resource tax for materials extracted and used to construct the Ho Chi Minh Road as follows:

I. SUBJECTS ELIGIBLE FOR EXEMPTION FROM RESOURCE TAX

1- Organizations and individuals who are taxpayers of resource tax, directly extracting taxable resources from mines such as stone quarries, soil, sand, gravel, underground water sources... for supplying and using in the construction of the Ho Chi Minh Road shall not be required to pay resource tax on these resources. When selling the extracted products, organizations and individuals shall not include the exempted resource tax in the selling price.

2- The exemption of resource tax applies only to the quantity of resources directly extracted and used for constructing the Ho Chi Minh Road by organizations and individuals, or provided directly to the units using it for constructing the Ho Chi Minh Road.

II. DECLARATION AND DETERMINATION OF EXEMPTED RESOURCE TAX

Subjects eligible for exemption from resource tax under these guidelines must comply with the following:

1- Registering and declaring payment of resource tax to the tax authority responsible for collecting resource tax according to Circular No. 153/1998/TT-BTC dated November 26, 1998 of the Ministry of Finance;

2- Keeping separate records of the quantity and value of resources subject to resource tax used for constructing the Ho Chi Minh Road as exempted under Decision No. 18/2000/QĐ-TTg dated February 3, 2000 of the Prime Minister.

3- The selling price of resources and the declaration of exempted resource tax are determined as follows:

a) For resources directly extracted and used for constructing projects by organizations and individuals:

To have a basis for determining resources extracted and used for constructing projects that are exempt from resource tax, the resource extractor must submit to the local tax authority directly managing the collection of resource tax the contract for receiving and tendering, budget estimate, design, and construction project plans for sections of the Ho Chi Minh Road that the unit has undertaken and been approved by the competent authority.

In cases where the resource extractor does not record the selling price of resources used for constructing projects, they are not required to declare and pay resource tax on the quantity of resources already extracted for use. If the unit has internal accounting separately between the resource extraction unit and the resource usage unit, the extraction unit must declare the quantity and value of resources sold that are exempt from resource tax, prepare a monthly declaration form of resource tax and submit it to the tax authority within ten days at the beginning of the following month. At year-end settlement, the unit must declare and settle all exempted resource tax and any payable resource tax (if applicable).

The tax authority will base its determination of the monthly exempted resource tax and any payable tax on the declaration submitted by the unit, notify the unit to pay any payable tax. Upon completion of the year or termination of the resource extraction contract, the unit must settle taxes with the tax management authority within thirty days, pay any outstanding tax, and be refunded any excess tax paid or offset against the tax payable in the next period according to regulations.

b) For resources extracted by units to supply directly to units constructing the Ho Chi Minh Road, to be exempt from resource tax, the resource extraction unit must:

- Submit to the tax authority where registration and declaration of resource tax are made a copy of the purchase and sale contract for resources signed with units constructing the Ho Chi Minh Road (with the stamp of the unit).

- Monthly, the resource extraction unit must declare resource tax to the tax authority, within ten days at the beginning of the following month, regarding the quantity and sales revenue of resources sold, including detailed information on the quantity of resources sold to units constructing the Ho Chi Minh Road that are exempt from resource tax (accompanied by a list of invoices issued to these entities).

Upon completion of the year or termination of the resource supply contract, the resource extraction unit must settle taxes with the tax management authority within thirty days, pay any outstanding tax, and be refunded any excess tax paid or offset against the tax payable in the next period according to regulations.

The tax authority responsible for collecting resource tax will base its determination of the exempted resource tax and any payable tax on the monthly declaration submitted by the unit, notify the unit to pay the tax according to regulations.

c) The selling price of resources exempt from resource tax in the above cases is the selling price without resource tax. The selling price without resource tax is determined correspondingly to the selling price with resource tax minus the resource tax. In cases where units selling resources that are eligible for exemption from resource tax sell them at a price inclusive of resource tax, they shall not be exempted from resource tax on these resources.

Subjects engaging in fraudulent activities to obtain exemptions from resource tax will be dealt with according to the provisions of the law.

III. IMPLEMENTATION

This circular takes effect from the date of issuance and applies the exemption of resource tax to subjects extracting resources, using, and supplying for the construction of the Ho Chi Minh Road from the date Decision No. 18/2000/QĐ-TTg dated February 3, 2000 of the Prime Minister comes into effect.

The tax authority is responsible for inspecting and determining the quantity of resources that units have sold and are exempt from resource tax. For resources sold to units using for construction before January 1, 2002, if they have been taxed, declared, and settled, there will be no re-assessment of resource tax./.