Law on Resource Tax No. 45/2009/QH12

LAW

Natural Resources Tax

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Pursuant to the Constitution of the Socialist Republic of Vietnam in 1992 as amended and supplemented by Resolution number 51/2001/QH10;

The National Assembly enacts the Law on Natural Resources Tax.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Law stipulates the taxable objects, taxpayers, tax base, tax declaration, tax payment, exemption, and reduction of natural resources tax.

Article 2. Taxable Objects

1. Metallic minerals.

2. Non-metallic minerals.

3. Crude oil.

4. Natural gas, coal gas.

5. Products from natural forests, excluding animals.

6. Natural seafood, including marine animals and plants.

7. Natural water, including surface water and underground water.

8. Natural bird's nest.

9. Other natural resources as specified by the Standing Committee of the National Assembly.

Article 3. Taxpayers

2. In certain cases, the taxpayer of the natural resources tax is specifically defined as follows:

a) For a joint venture enterprise established based on a joint venture, the joint venture enterprise is the taxpayer;

b) For a Vietnamese party and a foreign party participating in a cooperation contract for the exploitation of natural resources, the tax liability of each party must be clearly defined in the cooperation contract;

c) For an organization or individual exploiting small and scattered natural resources and selling them to an organization or individual responsible for purchasing, and if the purchasing organization or individual agrees in writing to declare and pay taxes on behalf of the exploiting organization or individual, then the purchasing organization or individual is the taxpayer.

Chapter II

BASIS FOR TAXATION

Article 4. Basis for calculating the tax

The tax base for the natural resources tax is the quantity of taxable natural resources, the taxable value, and the tax rate.

Article 5. Taxable quantity of resources

1. For natural resources whose quantity, weight, or volume can be determined, the quantity of taxable natural resources is the actual quantity, weight, or volume of natural resources exploited during the tax period.

2. For natural resources whose actual quantity, weight, or volume cannot be determined due to containing various impurities, the quantity of taxable natural resources is determined based on the quantity, weight, or volume of each component obtained after screening and sorting.

3. For natural resources not sold but used for producing other products where the actual quantity, weight, or volume cannot be directly determined, the quantity of taxable natural resources is determined based on the production volume of the product produced during the tax period and the standard usage of natural resources per unit of product.

4. For natural water used for hydropower production, the quantity of taxable natural resources is the electricity production volume of the hydropower production facility sold to the buyer according to the power purchase and sale contract, or the electricity exchange volume when there is no such contract, which is measured by a system meeting Vietnamese quality measurement standards, confirmed by both the buyer and seller or the giver and receiver.

5. For natural mineral water, natural hot water, and natural water used for industrial purposes, the quantity of taxable natural resources is determined in cubic meters (m3) or liters (l) according to a system meeting Vietnamese quality measurement standards.

6. For natural resources extracted manually, dispersedly, or intermittently, where the estimated annual exploitation value is less than 200,000,000 VND, the exploitation quantity is allocated seasonally or periodically for tax calculation. The tax authority shall coordinate with relevant agencies at the local level to determine the allocated exploitation quantity for tax calculation. The Government shall provide detailed regulations on this matter.

Article 6. Taxable Value

1. The taxable value for natural resource tax is the selling price per unit of natural resource product of organizations and individuals exploiting such resources, excluding value-added tax.

2. In cases where the selling price of natural resources cannot be determined, the taxable value for natural resource tax shall be determined based on one of the following grounds:

a) The actual market price in the region for similar natural resource products, but not lower than the taxable value prescribed by the People's Committee of the province/city directly under the Central Government (hereinafter referred to collectively as the Provincial People's Committee);

b) In cases where natural resources contain different substances, the taxable value shall be determined based on the selling price per unit of each substance and the proportion of each substance in the natural resource, but not lower than the taxable value prescribed by the Provincial People's Committee.

3. The taxable value for natural resources in certain cases is specified as follows:

a) For natural water used for hydropower production, it is the average selling price of commercial electricity;

b) For wood, it is the selling price at the delivery site; in cases where the selling price at the delivery site cannot be determined, the taxable value shall be determined based on the taxable value prescribed by the Provincial People's Committee;

c) For natural resources that are not consumed domestically but exported, it is the export price;

d) For crude oil, natural gas, and coalbed methane, it is the selling price at the point of delivery. The point of delivery is the point agreed upon in the oil contract where crude oil, natural gas, and coalbed methane are transferred to the ownership of the parties involved in the oil and gas contract.

4. The Provincial People's Committee shall specify the taxable value for natural resources whose selling price per unit of product cannot be determined, except for crude oil, natural gas, coalbed methane, and natural water used for hydropower production. The Government shall provide detailed regulations on this matter.

Article 7. Tax Rate

1. The framework tax rate for natural resource tax is stipulated as follows:

2. The specific tax rates for crude oil, natural gas, and coalbed methane are determined progressively according to the average daily production volume of crude oil, natural gas, and coalbed methane.

3. Based on the provisions of Clause 1 and Clause 2 of this Article, the Standing Committee of the National Assembly shall prescribe specific tax rates for each type of natural resource during each period, ensuring the following principles:

a) Consistent with the list of groups and types of natural resources within the tax rate framework prescribed by the National Assembly;

b) Contributing to state management of natural resources; protecting, exploiting, using reasonably, conserving, and utilizing natural resources efficiently;

c) Contributing to ensuring state budget revenue and stabilizing the market.

Chapter III

DECLARATION, PAYMENT OF TAX, EXEMPTIONS AND REDUCTIONS

Article 8. Declaration and Payment of Tax

The taxpayer of natural resources shall register, declare, calculate, and pay taxes in accordance with the provisions of the law on tax administration.

Article 9. Exemption and Reduction of Tax

1. In cases where taxpayers of natural resources suffer losses to declared and taxed natural resources due to natural disasters, fires, or unexpected accidents, they may be exempted or granted reductions in taxes payable for the lost natural resources; if taxes have already been paid, such amounts will be refunded or deducted from the taxes payable for the next period.

2. Exemption of tax on natural seafood.

3. Exemption of tax on branches, twigs, firewood, bamboo, rattan, reeds, canes, rush, water caltrop, and lotus stems collected by individuals with permission for personal use.

4. Exemption of tax on natural water used for household hydroelectric power production by households and individuals for their own consumption.

5. Exemption of tax on natural water used for agriculture, forestry, fisheries, salt industry; natural water extracted by households and individuals for personal use.

6. Exemption of tax on land extracted and used on-site within the allocated or leased area; land extracted for leveling, construction of security, military, and dyke projects.

7. Other cases of exemption or reduction of tax shall be prescribed by the Standing Committee of the National Assembly.

Chapter IV

IMPLEMENTING PROVISIONS

Article 10. Effective Date

This Law takes effect from July 1, 2010.

The following legal normative documents shall cease to be effective from the date this Law takes effect:

a) Natural Resources Tax Ordinance No. 05/1998/PL-UBTVQH10;

b) Ordinance amending and supplementing Clause 6 of the Natural Resources Tax Ordinance No. 07/2008/PL-UBTVQH12.

For investment projects or oil and gas contracts signed before July 1, 2010, which specify natural resource taxes in the Investment License, Investment Certificate, or oil and gas contract, such provisions shall be implemented according to the signed Investment License, Investment Certificate, or oil and gas contract. If the tax incentives specified in the Investment License, Investment Certificate, or oil and gas contract are lower than those provided under this Law, the tax incentives under this Law shall apply for the remaining time.

Article 11. Detailed Provisions and Guidance for Implementation

The Government shall provide detailed regulations and guidance for implementing the provisions assigned in this Law; guide other necessary contents of this Law to meet state management requirements.

This Law was passed by the Sixth Session of the Twelfth National Assembly of the Socialist Republic of Vietnam on November 25, 2009./.