Decree No. 54/2015/ND-CP on incentives for water-saving and efficient water usage activities

DECREE

Article 24Article stipulates incentives for water-saving and efficient water usage activities.n l

__________________

Pursuant to the Law on Organization of the Government dated December 25, 2001;

On the basis of the Law on Water Resources dated June 21, 2012;

At the proposal of the Minister of Natural Resources and Environment,

At the proposal of The Government issues a Decree to stipulate incentives for water-saving and efficient water usage activities.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Decree stipulates incentives for loan financing, tax exemption, and reduction for water-saving and efficient water usage activities.

Article 2. Applicability

This Decree applies to state agencies, organizations, households, and individuals involved in water-saving and efficient water usage activities on the territory of the Socialist Republic of Vietnam.

Article 3. Explanation of Terms

1. Water-saving and efficient water usage means applying measures and technologies to recycle, reuse water, collect rainwater, treat brackish and saline water into fresh water for use or to limit the amount of water used for production, business, and daily life activities.

2. Water-saving products are products, equipment, and technologies that consume less water than the prescribed consumption standards set by competent state authorities, in accordance with national technical regulations established by competent state authorities.

3. Reusing water refers to the activity of using treated wastewater again, which meets the appropriate national technical standards for reuse purposes.

4. Recirculating water usage is the process of reusing water for its original purpose.

Article 4. Principles of Incentives

1. Organizations, households, and individuals implementing multiple water-saving and efficient water usage activities eligible for incentives shall enjoy corresponding incentives for each activity according to this Decree.

2. If a water-saving and efficient water usage activity qualifies for different forms and levels of incentives under the law, organizations, households, and individuals may choose the most beneficial form and level of incentive.

3. No incentives shall be provided for investments in outdated water-saving equipment and technology.

Article 5. Prohibited acts

1. Falsely declaring, forging documents, or cheating to obtain incentives; misusing incentives for unauthorized purposes.

2. Misusing positions or powers in implementing policies of incentives for water-saving and efficient water usage activities.

3. Creating difficulties or hindrances for organizations, households, and individuals in obtaining incentives.

Chapter II

INCENTIVES FOR LOAN FINANCING, TAX EXEMPTIONS, AND REDUCTIONS FOR WATER-SAVING AND EFFICIENT WATER USAGE ACTIVITIES

WATER-SAVING AND EFFICIENT WATER USAGE ACTIVITIES

Article 6. Water-saving and efficient water usage activities eligible for incentives

1. Reusing water, recirculating water usage:

a) Organizations investing in new construction or upgrading facilities to collect and treat wastewater with a capacity of 40 m³/day-night or more, meeting national technical standards for quality suitable for reuse purposes, and using such water for their own activities at a rate of 80% or higher;

b) Organizations investing in new construction or upgrading, deepening facilities to recirculate water for their own activities with a capacity of 500 m³/day-night or more, excluding cooling and other circulation methods according to production processes and technologies;

c) Organizations managing irrigation works investing in upgrading, repairing components of the irrigation system to use return flow water within the irrigation system at a ratio of 15% or more of the water supplied to the system.

2. Collecting rainwater for domestic use:

a) Organizations investing in building rainwater collection systems, storing in tanks with a capacity of 500 m³ or more for domestic use in border areas, islands, and regions with scarce fresh water;

b) Households and individuals constructing rainwater collection systems, storing in tanks with a capacity of 5 m³ or more for domestic use in mountainous regions, ethnic minority areas, border areas, islands, and regions with difficult economic and social conditions, extremely difficult economic and social conditions, and regions with scarce fresh water.

3. Desalinating brackish and saline water into fresh water for domestic use:

a) Organizations investing in building desalination facilities, installing equipment, and applying technologies to desalinate brackish and saline water into fresh water with a capacity of 2 m³/day-night or more for coastal and island areas, 10 m³/day-night or more for areas affected by saltwater intrusion for domestic use;

b) Households and individuals installing equipment and applying technologies to desalinate brackish and saline water into fresh water with a capacity of 0.2 m³/day-night or more for coastal and island areas, 1 m³/day-night or more for areas affected by saltwater intrusion for domestic use.

4. Producing, importing water-saving products, equipment, and technologies:

a) Organizations and individuals investing in producing water-saving products, equipment, and technologies that meet the water-saving criteria issued by competent state authorities;

b) Organizations and individuals importing advanced water-saving products, equipment, and technologies not yet produced domestically that meet the water-saving criteria issued by competent state authorities.

5. Applying water-saving irrigation technologies in agricultural production:

Organizations, households, and individuals applying water-saving irrigation technologies for agricultural production that meet the water-saving criteria issued by competent state authorities, with a scale of 0.5 hectares or more for paddy irrigation, 1 hectare or more for dry crop irrigation.

Article 7. Incentives for water reuse activities and circular water use

Water reuse activities and circular water use as specified in Clause 1, Article 6 of this Decree shall enjoy the following forms of incentives:

1. Eligibility to borrow preferential loans in accordance with the laws on state investment credit.

2. Exemption or reduction of corporate income tax in accordance with the laws on taxation.

Article 8. Incentives for investment production and import of products, equipment, and technology using water efficiently

1. Investment production activities of products, equipment, and technology using water efficiently as specified in Point a, Clause 4, Article 6 of this Decree shall enjoy the following incentives:

a) Eligibility to borrow preferential loans in accordance with the laws on state investment credit;

b) Exemption or reduction of corporate income tax on the portion of income derived from investment production activities of products, equipment, and technology using water efficiently in accordance with the laws on taxation.

2. Import activities of advanced products, equipment, and water-saving technology as specified in Point b, Clause 4, Article 6 of this Decree shall be exempted or reduced in import tax in accordance with the laws on taxation.

Article 9. Incentives for rainwater collection, desalination of brackish and saline water into fresh water for use in daily life, and application of water-saving irrigation technology and techniques in agricultural production

Rainwater collection activities, desalination of brackish and saline water into fresh water, and application of water-saving irrigation technology and techniques in agricultural production as specified in Clauses 2, 3, and 5, Article 6 of this Decree shall be eligible for preferential loans in accordance with the laws on state investment credit.

Chapter III

IMPLEMENTATION

Article 10. Responsibilities of Ministries, sectors, and related agencies

1. The Ministry of Natural Resources and Environment:

a) Identification and announcement of areas suffering from freshwater scarcity and saltwater intrusion;

b) Inspection and audit of compliance with regulations on incentives for efficient and effective water use as stipulated in this Decree.

2. The Ministry of Science and Technology shall take the lead and coordinate with the Ministry of Natural Resources and Environment and other relevant ministries and sectors to issue criteria for water-efficient products, equipment, and technology as specified in Clause 4, Article 6 of this Decree.

3. The Ministry of Agriculture and Rural Development:

a) Shall take the lead and coordinate with the Ministry of Natural Resources and Environment and other relevant ministries and sectors to issue criteria for water-saving irrigation technology and techniques for agricultural production as specified in Clause 5, Article 6 of this Decree;

b) Shall take the lead and coordinate with the Ministry of Natural Resources and Environment and other relevant ministries and sectors to guide methods for determining the return flow ratio as specified in Point c, Clause 1, Article 6 of this Decree.

4. The Ministry of Finance:

a) Shall take the lead and coordinate with the Ministry of Natural Resources and Environment to draft and submit to the Prime Minister for decision-making on incentives for borrowing for households and individuals using water efficiently and effectively as stipulated in this Decree;

b) Shall take the lead and coordinate with the Ministry of Science and Technology and the Ministry of Natural Resources and Environment to draft and submit to the Prime Minister for decision-making on exemption or reduction of import taxes for organizations and individuals importing advanced water-saving products, equipment, and technology as specified in Point b, Clause 4, Article 6 of this Decree;

c) Shall take the lead and coordinate with the Ministry of Natural Resources and Environment and other relevant ministries and sectors to guide procedures and formalities for loan incentives and tax exemptions or reductions; direct tax authorities to implement tax exemptions or reductions in accordance with this Decree.

Article 11. Responsibilities of People's Committees of Provinces and Central Cities

1. Direct, guide, inspect, and audit the implementation of policies on incentives for efficient and effective water use and the use of such incentives within their jurisdiction as stipulated in this Decree.

2. Annually assess the implementation of this Decree at the local level and report to the Ministry of Natural Resources and Environment for consolidation.

Article 12. Effective Date

1. Organizations, households, and individuals who have invested in implementing efficient and effective water use activities before the effective date of this Decree or have already benefited from supportive policies under other programs shall not be entitled to incentives under this Decree.

2. This Decree takes effect from August 1, 2015.

3. Ministers, heads of ministerial-level agencies, heads of government-affiliated agencies, Chairpersons of provincial People's Committees directly under the central government, and related organizations and individuals are responsible for enforcing this Decree./.