Decree No. 27/2023/NĐ-CP on environmental protection fees for mineral exploitation

DECREE
Regulations on Environmental Protection Fees for Mineral Extraction

Pursuant to the Law on Organization of the Government dated June 19, 2015; the Law Amending and Supplementing Certain Provisions of the Law on Organization of the Government and the Law on Organization of Local Administration dated November 22, 2019;

Pursuant to the Petroleum Law dated July 6, 1993; the Law Amending and Supplementing Certain Articles of the Petroleum Law in 2000, 2008, and 2018;

Pursuant to the Law on Minerals dated November 17, 2010;

Pursuant to the State Budget Law dated June 25, 2015;

Pursuant to the Law on Fees and Charges dated November 25, 2015;

Pursuant to the Law on Tax Administration dated June 13, 2019;

Pursuant to the Environmental Protection Law dated November 17, 2020;

At the proposal of the Minister of Finance;

The Government promulgates this Decree stipulating environmental protection fees for mineral extraction.

PART I
GENERAL PROVISIONS

Article 1. Scope of Regulation and Applicability

1. This Decree specifies the objects subject to fees; fee payers; organizations collecting fees; cases exempted from fees; rates of collection, methods of calculation, declaration, payment, management, and utilization of environmental protection fees for mineral extraction.

2. This Decree applies to: organizations and individuals extracting minerals as prescribed by the law on minerals; organizations and individuals extracting crude oil, natural gas, coalbed methane as prescribed by the law on petroleum; state agencies and other organizations and individuals related to the management and collection of environmental protection fees for mineral extraction.

Article 2. Objects Subject to Fees

The objects subject to environmental protection fees for mineral extraction include activities of extracting crude oil, natural gas, coalbed methane; metallic and non-metallic minerals specified in the Framework Table of Rates for Environmental Protection Fees for Mineral Extraction issued together with this Decree.

Article 3. Fee Collection Organizations

The organization collecting environmental protection fees for mineral extraction is the tax authority as prescribed by the law on tax administration.

Article 4. Fee Payers

Fee payers for environmental protection fees for mineral extraction under this Decree include:

1. Organizations and individuals extracting minerals as prescribed by the law on minerals.

2. Vietnamese or foreign organizations and individuals permitted to extract crude oil, natural gas, coalbed methane based on oil and gas contracts or performing oil and gas services as prescribed by the law on petroleum.

3. Organizations and individuals permitted to extract small-scale minerals sold to organizations and individuals acting as primary purchasers, who commit in writing to declare and pay the fees on behalf of the organizations and individuals extracting minerals, then such organizations and individuals acting as primary purchasers shall be the fee payers.

Article 5. Cases Exempted from Fees

1. Activities of extracting minerals for construction materials in areas of land under the use rights of households and individuals for building household and individual projects within those areas.

2. Activities of extracting soil and rock for leveling, constructing security, military, disaster prevention, and disaster recovery projects. In cases where soil and rock extracted are used both for leveling and constructing security, military, disaster prevention, and disaster recovery projects and for other purposes, the organizations and individuals responsible must determine the volume of soil and rock eligible for exemption; the quantity of soil and rock used for other purposes must pay environmental protection fees for mineral extraction.

3. Using overburden and waste rock from the mining process for environmental restoration and rehabilitation at the mining site according to approved environmental restoration and rehabilitation plans.

Determination of the quantity of overburden and waste rock eligible for exemption from environmental protection fees is based on:

a) Inspection records of each technological stage of mining including preparation, excavation, transportation, and waste disposal as stipulated in point b, Clause 2, Article 41 of the Government's Decree No. 158/2016/NĐ-CP dated November 29, 2016 detailing certain provisions of the Minerals Law.

b) Approved environmental restoration and rehabilitation plans as stipulated in Clause 3, Article 67 of the Environmental Protection Law.

c) Mine closure files approved by competent state authorities in accordance with the law on minerals.

Chapter II
RATES OF COLLECTION, METHODS OF CALCULATION, DECLARATION, PAYMENT,
MANAGEMENT AND UTILIZATION OF ENVIRONMENTAL PROTECTION FEES
FOR MINERAL EXTRACTION

Article 6. Fee Collection Levels

1. The environmental protection fee collection level for crude oil: VND 100,000 per ton; for natural gas and coal gas: VND 50 per cubic meter. For natural gas extracted during crude oil exploitation (associated gas): VND 35 per cubic meter.

2. The environmental protection fee collection level for mineral extraction (including cases where organizations and individuals engage in production and business activities not aimed at mineral extraction but obtain minerals) shall be based on the framework of fee collection levels issued together with this Decree.

3. The environmental protection fee collection level for the exploitation of residual minerals according to the provisions of the Mineral Law shall be sixty percent of the fee collection level for the corresponding type of mineral specified in the framework of fee collection levels issued together with this Decree.

4. Based on the principles for determining fee collection levels prescribed in the Law on Fees and Charges, the framework of fee collection levels issued together with this Decree, and taking into account the fee collection levels of localities with similar mineral extraction activities subject to fees, the People's Councils of provinces and centrally-administered cities (hereinafter referred to collectively as provincial-level People's Councils) shall decide specifically on the fee collection levels and units of measurement for environmental protection fees applicable to each type of mineral in their locality in accordance with actual conditions during each period.

Article 7. Method of Calculating Fees

1. The environmental protection fee payable for mineral extraction within a payment period shall be calculated using the following formula:

F=[(Q1xF1)+(Q2xF2)]xK.

Where:

F is the amount of environmental protection fee payable within the payment period (month).

Q1 is the volume of overburden and waste rock removed within the payment period (cubic meters).

The volume of overburden and waste rock removed within the payment period (Q1) shall be determined in accordance with Clause 2, Article 41 and Clause 4, Article 42 of Decree No. 158/2016/NĐ-CP.

F1 is the fee collection level for the volume of overburden and waste rock removed: VND 200 per cubic meter.

Q2 is the total volume of raw minerals actually extracted within the payment period (tons or cubic meters).

The total volume of raw minerals actually extracted within the payment period (Q2) shall be determined in accordance with Article 42 of Decree No. 158/2016/NĐ-CP.

f2 is the corresponding fee collection level for each type of extracted mineral (VND per ton or VND per cubic meter).

K is the fee calculation coefficient based on the method of extraction, including:

Open-pit mining (including water-powered mining such as titanium, river sand, gravel, hydropower reservoirs, irrigation reservoirs, and sea ports): K = 1.1.

Underground mining and other forms of mining (crude oil, natural gas, natural mineral water, and other cases): K = 1.

2. For minerals containing multiple valuable minerals, the formula prescribed in Clause 1 of this Article shall apply.

In which, the amount of fee payable for each type of mineral in the total volume of raw minerals containing multiple valuable minerals = The ratio of each type of raw mineral in the total volume of raw minerals containing multiple valuable minerals x Total volume of raw minerals containing multiple valuable minerals extracted within the payment period (Q2) x The corresponding fee collection level for each type of extracted mineral (f2).

Based on the average grade of each type of mineral in the raw ore extracted and the total average grade of all types of minerals in the raw ore extracted in the mineral reserve report or the periodic report on the results of mineral extraction activities of organizations and individuals as prescribed by the Mineral Law, the Department of Natural Resources and Environment shall take the lead and coordinate with the Taxation Service and relevant agencies to submit to the People's Committees of provinces and centrally-administered cities (hereinafter referred to collectively as provincial-level People's Committees) to decide on the ratio of each type of raw mineral in the total volume of raw minerals containing multiple valuable minerals (hereinafter referred to as the ratio) for calculating environmental protection fees in accordance with the actual situation of the locality, specifically:

a) For minerals granted permission for first-time extraction: based on the mineral reserve report, the ratio must be issued before the organization or individual commences mineral extraction, serving as the basis for the payer to declare and pay the environmental protection fee.

The following year, based on data from the periodic report on the results of mineral extraction activities, the issuance of the ratio in line with the actual situation will serve as the basis for the payer to declare and pay the environmental protection fee for the subsequent period.

b) For minerals currently being extracted: based on data from the periodic report on the results of mineral extraction activities of the previous year, the issuance of the ratio in line with the actual situation will serve as the basis for the payer to declare and pay the environmental protection fee for the subsequent period.

3. For the case of recovering coal mixed in overburden and waste rock,

If the coal mixed in the overburden and waste rock needs to be screened, beneficiated, classified, and enriched before sale, based on the actual mining conditions and processing technology in the area, the Department of Natural Resources and Environment shall take the lead and coordinate with the Taxation Service and relevant agencies to submit to the provincial-level People's Committee to decide on the conversion ratio from the volume of finished mineral products to the volume of raw minerals as the basis for calculating environmental protection fees in line with the actual situation of the locality.

4. For residual floor deposits as stipulated in Clause 3, Article 6 of this Decree,

a) The determination of the amount of fee payable shall be carried out in accordance with Clauses 1 and 2 of this Article.

b) In cases where minerals must be screened, beneficiated, classified, or enriched before being sold, the Department of Natural Resources and Environment shall take the lead, in coordination with the Taxation Department and relevant agencies, to submit to the Provincial People's Committee for decision on the conversion ratio from the volume of finished mineral products to the volume of raw minerals based on actual mining conditions and mineral processing technology in the locality, serving as the basis for calculating environmental protection fees in accordance with local circumstances.

5. For the case stipulated in Clause 3, Article 4 of this Decree, the amount of fee payable = Quantity of minerals purchased x Fee rate corresponding to each type of mineral.

Article 8. Declaration, payment, management, and utilization of fees

1. The declaration and payment of environmental protection fees for mineral extraction shall be carried out in accordance with the laws on tax administration.

2. Environmental protection fees for mineral extraction (excluding crude oil, natural gas, and coal gas) constitute a local government revenue share of 100%, which shall be managed and utilized in accordance with the State Budget Law.

3. Environmental protection fees for crude oil, natural gas, and coal gas constitute a central government revenue share of 100%, which shall be managed and utilized in accordance with the State Budget Law.

Chapter III

IMPLEMENTING PROVISIONS

Article 9. Implementation Organization

1. Provincial People's Committees shall be responsible for:

a) Submit to the Provincial People's Council at its nearest session to issue a Resolution on the fee collection rates and units of measurement for environmental protection fees for mineral extraction applicable in the locality as prescribed in Clause 4, Article 6 of this Decree.

b) Direct the Department of Natural Resources and Environment to cooperate in providing information and documents about organizations and individuals permitted to extract minerals in the locality to the tax authority and to coordinate closely with the tax authority in managing those who pay fees in accordance with this Decree.

2. The local tax authority shall be responsible for:

a) Managing the collection and payment of environmental protection fees in accordance with the laws on tax administration.

b) Retaining and using data and documents provided by organizations and individuals engaged in mineral extraction and other cases as prescribed.

c) Cooperating with the local natural resources and environment agency to organize the management of environmental protection fees for mineral extraction in accordance with this Decree and the laws on tax administration.

d) By no later than April 30 each year, based on the annual settlement report of environmental protection fees according to the laws on tax administration, the tax authority where the payer submits the declaration form shall be responsible for transferring detailed information about the actual volume of overburden, waste rock, and raw mineral extracted declared and paid for environmental protection fees for mineral extraction during the year to the natural resources and environment agency, categorized by each mineral extraction permit on the territory.

In cases of annual fee settlement not following the calendar year, termination of mineral extraction contracts, cessation of mineral purchasing activities, change of ownership, change of business form, merger, division, dissolution, bankruptcy, or cessation of production and business operations: The tax authority shall transfer information to the natural resources and environment agency within 45 days from the end date of the deadline for submitting the annual fee settlement report as prescribed by the laws on tax administration.

đ) By no later than April 30 each year, the General Department of Taxation shall be responsible for compiling and publicly disclosing: The amount of environmental protection fees for mineral extraction paid by payers in the previous year on the General Department of Taxation's website and the provincial people's committee's website so that the public can be informed.

3. The Department of Natural Resources and Environment shall be responsible for comparing the actual volume of overburden, waste rock, and raw mineral extracted declared by the payer with the existing data at the Department of Natural Resources and Environment; if the declared volume does not match the actual situation or there are signs of violation of the law, the Department of Natural Resources and Environment shall implement professional measures to determine the actual volume of overburden, waste rock, and raw mineral extracted.

Within thirty working days from the date of receipt of information transferred by the tax authority, if the payer declares incorrectly the actual volume of overburden, waste rock, and raw mineral extracted, the Department of Natural Resources and Environment shall be responsible for transferring the information to the tax authority for handling in accordance with the Law on Tax Administration.

Article 10. Effective Date

This Decree takes effect from July 15, 2023, and replaces Government Decree No. 164/2016/NĐ-CP dated December 24, 2016, on environmental protection fees for mineral extraction.

2. From the date this Decree takes effect, in cases where the Provincial People's Council has not issued new fee collection rates, the current fee collection rates prescribed by the Provincial People's Council shall continue to apply; in cases where the Provincial People's Committee has not issued the proportion of each type of raw mineral contained in the total volume of raw minerals containing multiple minerals and useful substances, the current proportions prescribed by the Provincial People's Committee shall continue to be applied. By no later than the date when the Provincial People's Council issues a Resolution on the fee collection rates and units of measurement for environmental protection fees for mineral extraction, the Provincial People's Committee must issue the proportion of each type of raw mineral contained in the total volume of raw minerals containing multiple minerals and useful substances for application in the locality.

3. During implementation, if related documents cited in this Decree are amended, supplemented, or replaced, they shall be implemented according to the newly amended, supplemented, or replaced documents.

Article 11. Responsibility for Implementation

Ministers, Heads of ministerial-level agencies, Heads of agencies under the Government, Chairmen of provincial and municipal people's committees directly under the central government, and related organizations and individuals are responsible for implementing this Decree.