Law on Environmental Protection Tax No. 57/2010/QH12

LAW

Environmental protection tax

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BASED ON THE CONSTITUTION OF THE SOCIALIST REPUBLIC OF VIETNAM IN 1992 AS AMENDED AND COMPLEMENTED BY RESOLUTION NO. 51/2001/QH10;

The National Assembly enacts the Law on Environmental Protection Tax.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Law stipulates the taxable objects, non-taxable objects, taxpayers, tax base, declaration, calculation, payment, and refund of environmental protection tax.

Article 2. Interpretation of Terms

In this Law, the following terms shall be understood as follows:

1. Environmental protection tax It is an indirect tax levied on products and goods (hereinafter referred to collectively as goods) when they are used and cause adverse effects on the environment.

2. Absolute rate is the tax rate specified as an amount of money per unit of taxable goods.

3. Plastic bags subject to taxation refers to bags and packaging made from single-layer polyethylene film, technically known as plastic bubble bags.

4. Hydro-chloro-fluoro-carbon (HCFC) solution is a group of ozone-depleting substances used as refrigerants.

Article 3. Taxable Objects

1. Gasoline, oil, lubricating oil, including:

a) Gasoline, except ethanol;

b) Jet fuel;

c) Diesel oil;

d) Kerosene;

đ) Mazut oil;

e) Lubricating oil;

g) Grease.

2. Coal, including:

a) Brown coal;

b) Anthracite;

c) Bituminous coal;

d) Other types of coal.

3. Hydro-chloro-fluoro-carbon (HCFC) solution.

4. Plastic bags subject to taxation.

5. Herbicides restricted for use.

6. Pesticides restricted for use.

7. Timber preservatives restricted for use.

8. Warehouse disinfectants restricted for use.

9. In cases where it is deemed necessary to supplement other taxable objects suitable for each period, the Standing Committee of the National Assembly shall examine and specify. The Government shall provide detailed regulations for this Article.

Article 4. Tax-exempt objects

1. Goods not specified in Article 3 of this Law are not subject to environmental protection tax.

2. Goods specified in Article 3 of this Law are exempt from environmental protection tax in the following cases:

a) Goods transported in transit or transshipped through Vietnamese ports or borders according to the provisions of the law, including goods transported from the exporting country to the importing country through Vietnamese ports but without undergoing import procedures in Vietnam and without undergoing export procedures out of Vietnam; goods in transit through Vietnamese ports or borders based on agreements signed between the Government of Vietnam and foreign governments or agreements between agencies or persons authorized by the Governments of Vietnam and foreign countries according to the provisions of the law;

b) Goods temporarily imported for re-export within the time limit prescribed by law;

c) Goods produced directly for export or entrusted to trading enterprises for export by production units, except in cases where organizations, households, or individuals purchase goods subject to environmental protection tax for export.

Article 5. Taxpayers

1. The taxpayer of environmental protection tax is an organization, household, or individual producing or importing goods subject to tax as specified in Article 3 of this Law.

2. The taxpayer of environmental protection tax in certain specific cases is defined as follows:

a) In the case of consigned importation of goods, the consignee of importation is the taxpayer;

b) In the case where organizations, households, or individuals act as intermediaries in purchasing small-scale mined coal without presenting proof that the goods have been taxed for environmental protection, the intermediary organizations, households, or individuals are the taxpayers.

Chapter II

BASIS FOR TAXATION

Article 6. Basis for calculating tax

1. The tax base for environmental protection tax consists of the quantity of taxable goods and the absolute rate.

2. The quantity of taxable goods is defined as follows:

a) For domestically produced goods, the quantity of taxable goods is the quantity of goods sold, exchanged, consumed internally, or given away;

b) For imported goods, the quantity of taxable goods is the quantity of imported goods.

3. The absolute rate for calculating tax is specified in Article 8 of this Law.

Article 7. Method of Calculating Tax

The amount of environmental protection tax payable shall be the quantity of taxable goods multiplied by the absolute tax rate specified per unit of goods.

Article 8. Tax Framework Table

1. The absolute tax rate is set according to the following Tax Framework Table:

2. Based on the Tax Framework Table stipulated in Clause 1 of this Article, the Standing Committee of the National Assembly shall specify the specific tax rates for each type of taxable goods ensuring the following principles:

a) The tax rate for taxable goods must align with the State's economic and social development policies during each period.

b) The tax rate for taxable goods shall be determined based on the degree of negative impact on the environment caused by such goods.

Chapter III

DECLARATION, CALCULATION, PAYMENT AND REFUND OF TAX

Article 9. Time of Tax Calculation

1. For goods produced and sold, exchanged, or given as gifts, the time of tax calculation is the moment when ownership or usage rights over the goods are transferred.

2. For goods produced for internal consumption, the time of tax calculation is the moment when the goods are put into use.

3. For imported goods, the time of tax calculation is the moment when the customs declaration form is registered.

4. For gasoline and diesel produced or imported for sale, the time of tax calculation is the moment when the business entity sells them.

Article 10. Declaration, Calculation, and Payment of Tax

1. The declaration, calculation, and payment of environmental protection tax for goods produced and sold, exchanged, consumed internally, or given as gifts shall be carried out monthly and in accordance with the laws on tax administration.

2. The declaration, calculation, and payment of environmental protection tax for imported goods shall be conducted simultaneously with the declaration and payment of import duties.

3. Environmental protection tax shall only be paid once for goods produced or imported.

Article 11. Refund of Tax

The taxpayer of environmental protection tax shall be entitled to a refund of taxes paid in the following cases:

1. Imported goods stored at the port under the supervision of the Customs authority and intended for re-exportation abroad.

2. Imported goods intended for delivery or sale to foreign entities through agents in Vietnam; gasoline and diesel sold to foreign transportation vehicles operating on routes passing through Vietnamese ports or Vietnamese transportation vehicles operating on international routes as prescribed by law.

3. Goods temporarily imported for re-exportation under the temporary importation and re-exportation trading method.

4. Imported goods that the importer re-exports abroad.

5. Goods temporarily imported for participation in exhibitions, trade fairs, or product presentations as prescribed by law when re-exported abroad.

Chapter IV

IMPLEMENTING PROVISIONS

Article 12. Effective Date

This Law shall take effect from January 1, 2012.

The provisions regarding gasoline and diesel fees in the Ordinance on Fees and Charges No. 38/2001/PL-UBTVQH10 shall cease to be effective from the date this Law takes effect.

Article 13. Detailed Provisions and Guidance for Implementation

The Government shall provide detailed provisions and guidance on the implementation of the Articles and Clauses assigned in this Law; provide necessary guidance on other contents of this Law to meet management requirements.

This Law was adopted by the National Assembly of the Socialist Republic of Vietnam, the 12th term, the 8th session, on November 15, 2010./.