Decree No. 50/2010/ND-CP detailing and guiding the implementation of certain provisions of the Law on Mineral Resources Tax

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Decree provides detailed regulations and guidance on implementing Article 2, Article 5, Article 6, Article 7, and Article 9 of the Law on Mineral Resources Tax.

Article 2. Taxable Objects

The taxable mineral resources shall be implemented according to the provisions of Article 2 of the Law on Mineral Resources Tax, including:

1. Metallic minerals.

2. Non-metallic minerals.

3. Crude oil as stipulated in Clause 2, Article 3 of the Petroleum Law 1993.

4. Natural gas as stipulated in Clause 3, Article 3 of the Petroleum Law 1993.

5. Coal gas as stipulated in Clause 3, Article 1 of the Law Amending and Supplementing Certain Provisions of the Petroleum Law 2008.

6. Natural forest products, including various types of plants and other natural forest products, except animals and cinnamon, cardamom, galangal, and pepper planted by taxpayers in areas designated for conservation and protection.

7. Natural seafood, including marine animals and plants.

8. Natural water, including surface and underground water.

9. Natural bird's nest.

10. Other natural resources which shall be reported by the Ministry of Finance in coordination with relevant ministries and sectors to the Government for submission to the Standing Committee of the National Assembly for consideration and decision.

Chapter II

BASIS FOR TAXATION

Article 3. Quantity of natural resources subject to tax

The quantity of natural resources subject to tax shall be implemented according to the provisions of Article 5 of the Law on Mineral Resources Tax.

For natural mineral water, natural hot water, and natural water used for industrial purposes, the quantity of natural resources subject to tax shall be determined in cubic meters (m3) or liters (l) based on a measurement system meeting national standards for quality measurement. In cases where it is not possible to directly determine the taxable quantity through a measurement system meeting national standards for quality measurement, the quantity of natural resources extracted shall be allocated for tax calculation during the tax period. The tax authority shall cooperate with relevant agencies at the local level to determine the allocated quantity of natural resources extracted for tax calculation based on actual extraction conditions, technical standard quotas, or the quantity of natural resources extracted and used by other organizations and individuals that are equivalent.

The Ministry of Finance shall specify the method for determining the taxable quantity as provided in this Article.

Article 4. Taxable Price

The tax base for mineral resources tax shall be implemented according to the provisions of Article 6 of the Law on Mineral Resources Tax, specifically:

1. The tax base for mineral resources tax is the selling price per unit of mineral resource product of the organization or individual extracting the resource, excluding value-added tax.

2. In cases where the selling price of the mineral resource cannot be determined, the tax base for mineral resources tax shall be determined based on one of the following criteria:

a) The actual selling price on the market within the provincial administrative area for the same type of mineral resource product, but not lower than the tax base set by the Provincial People's Committee;

b) In cases where the extracted mineral resource contains multiple substances, the tax base shall be determined based on the selling price per unit of each substance and its proportion in the extracted mineral resource, but not lower than the tax base set by the Provincial People's Committee.

3. The tax base for mineral 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 timber, it is the selling price at the delivery site (warehouse or storage area at the extraction location); if the selling price at the delivery site cannot be determined, the tax base shall be determined based on the tax base set by the Provincial People's Committee;

c) For mineral resources extracted for export and not consumed domestically, it is the export price per unit of mineral resource product (FOB); for mineral resources extracted for both domestic consumption and export, the domestic consumption portion is the selling price per unit of mineral resource product excluding value-added tax, and the export portion is the export price;

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

4. The Provincial People's Committee shall specify the tax base for mineral resources as provided in Clause 2 and Point b, Clause 3 of this Article.

5. The Ministry of Finance shall specify the determination of the tax base for mineral resources as provided in Point a and d, Clause 3 of this Article and other specific cases.

Article 5. Tax Rate

1. The specific tax rate for each type of natural resource shall be implemented according to the Table of Mineral Resources Tax Rates issued by the Standing Committee of the National Assembly.

2. Based on the principles stipulated in Clause 3, Article 7 of the Law on Mineral Resources Tax, the Ministry of Finance shall take the lead and coordinate with relevant ministries and sectors to report to the Government for submission to the Standing Committee of the National Assembly for consideration and decision on adjusting the tax rates for each type of natural resource in the Table of Mineral Resources Tax Rates.

Chapter III

EXEMPTIONS AND REDUCTIONS OF TAX

Article 6. Exemption and reduction of tax

The exemption and reduction of resource tax shall be implemented in accordance with the provisions of Article 9 of the Law on Resource Tax. In other cases where exemption or reduction of resource tax is granted, the Ministry of Finance shall take the lead and coordinate with relevant ministries and sectors to report to the Government for submission to the Standing Committee of the National Assembly for consideration and decision.

Chapter IV

IMPLEMENTING PROVISIONS

Article 7. This Decree takes effect from July 1, 2010. The Decree No. 05/2009/NĐ-CP dated January 19, 2009 of the Government detailing the implementation of the Ordinance on Resource Tax and the Ordinance amending and supplementing Article 6 of the Ordinance on Resource Tax is hereby repealed.

Article 8. The Ministry of Finance shall provide guidance on the implementation of this Decree.

The Ministers, Heads of ministerial-level agencies, Heads of agencies under the Government, Chairpersons of provincial People's Committees under the central government, and related organizations and individuals are responsible for implementing this Decree./.