Joint Circular No. 63/2013/TTLT-BTC-BTNMT guiding the implementation of Government Decree No. 25/2013/NĐ-CP dated March 29, 2013 on environmental protection fees for wastewater.

JOINT CIRCULAR

GUIDELINES FOR IMPLEMENTING DECREE NO. 25/2013/ND-CP OF THE GOVERNMENT ON ENVIRONMENTAL PROTECTION FEES FOR WASTEWATER

ENVIRONMENTAL PROTECTION FEES FOR WASTEWATER

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Pursuant to Ordinance on Fees and Registration Fees No. 38/2001/PL-UBTVQH10 dated August 28, 2001;

WHEREAS, Decree No. 57/2002/ND-CP dated June 3, 2002 of the Government detailing the implementation of the Ordinance on Fees and Charges;

WHEREAS, Decree No. 24/2006/ND-CP dated March 6, 2006 of the Government amending and supplementing Decree No. 57/2002/ND-CP dated June 3, 2002 of the Government detailing the implementation of the Ordinance on Fees and Charges;

WHEREAS, Decree No. 25/2013/ND-CP dated March 29, 2013 of the Government on environmental protection fees for wastewater;

Pursuant to Decree No. 118/2008/NĐ-CP dated November 27, 2008 of the Government on the functions, tasks, powers, and organizational structure of the Ministry of Finance;

WHEREAS, Decree No. 21/2013/ND-CP dated March 4, 2013 of the Government on the functions, tasks, powers, and organizational structure of the Ministry of Natural Resources and Environment;

CONSIDERING the proposal of the Director of the Tax Policy Department and the General Director of the Environmental Protection Agency,

THE MINISTER OF FINANCE AND THE MINISTER OF NATURAL RESOURCES AND ENVIRONMENT hereby issue this Joint Circular guiding environmental protection fees for wastewater as follows:

Article 1. Objects Subject to Fee

The objects subject to environmental protection fees for wastewater include wastewater discharged into the environment, comprising industrial wastewater and domestic wastewater.

1. Industrial wastewater is wastewater discharged into the environment from:

a) Production facilities, processing facilities: agricultural products, forestry products, aquatic products;

b) Production facilities, processing facilities: food;, alcohol, beer, soft drinks, tobacco;

c) Livestock and poultry breeding facilities, centralized slaughterhouses;

d) Aquaculture facilities;

g) Facilities: Mineral extraction and processing;

e) Leather processing and waste leather recycling facilities;

g) Mineral extraction and processing facilities;

h) Textile dyeing, printing, and garment manufacturing facilities;

i) Paper, pulp, plastic, and rubber production facilities;

k) Fertilizer, chemical, pharmaceutical, plant protection product, construction material, office supply, household appliance production facilities;

l) Mechanical engineering, metallurgy, metalworking, machinery and spare parts manufacturing facilities;

m) Electrical component and electronic equipment production facilities;

n) Waste processing, old ship dismantling, vessel cleaning and washing facilities;

q) Other production facilities.

p) Centralized wastewater treatment systems in industrial zones and urban areas (excluding cases exempted from environmental protection fees under the provisions of the law);

q) Other industrial production facilities.

2. Domestic wastewater is wastewater discharged into the environment from:

c) Administrative offices, branches, offices of organizations and individuals not directly linked to production or processing sites;

b) State agencies;

c) People's armed forces units (excluding production and processing facilities within people's armed forces units);

d) Head offices, branches, and offices of organizations and individuals not directly linked to production and processing sites;

đ) Car washing, motorcycle washing, car repair, motorcycle repair facilities;

e) Hospitals; clinics; restaurants, hotels; training and research facilities; other business and service facilities;

g) Individuals and organizations and other entities not specified in Clause 1 of Article 1 of this Circular.

Article 2. Objects Exempted from Fee

The objects exempted from environmental protection fees for wastewater include:

1. Water discharged from hydroelectric power plants, circulating water in production and processing facilities that do not discharge into the environment;

2. Seawater used for salt production discharged;

3. Domestic wastewater from households in areas where the State implements price subsidies to ensure appropriate water prices for economic and social life;

4. Domestic wastewater from households without clean water supply systems;

5. Domestic wastewater from households in rural communes, including:

a) Communes along borders, mountainous regions, highlands, remote areas, and islands (as defined by the Government's regulations on border communes, mountainous regions, remote areas, and islands);

b) Communes not classified as special cities, first-class, second-class, third-class, fourth-class, and fifth-class cities according to Decree No. 42/2009/ND-CP dated May 7, 2009 of the Government on city classification;

6. Cooling water for equipment and machines that do not come into direct contact with pollutants and have separate drainage paths from other sources of wastewater;

7. Natural rainwater runoff.

Article 3. Persons Paying Fees

1. The payers of environmental protection fees for wastewater are households, units, organizations, and individuals with wastewater as specified in Article 1 of this Circular.

2. In cases where organizations and individuals discharge wastewater into the drainage system and have paid drainage fees, the management and operation unit of the drainage system shall be the payer of environmental protection fees for the received and discharged wastewater.

3. Production and processing facilities specified in Clause 1 of Article 1 of this Circular, which use water supplied by water companies, must pay environmental protection fees for industrial wastewater but not for domestic wastewater.

Article 4. Fee Rates

1. Environmental protection fees for domestic wastewater

The rate of environmental protection fees for domestic wastewater is calculated as a percentage (%) of the selling price of 1 cubic meter (m³ ) of clean water, but not exceeding 10% (ten percent) of the selling price of clean water excluding value-added tax.

For domestic wastewater discharged from organizations and households self-extracting water for use (excluding households specified in Clauses 3, 4, and 5 of Article 2 of this Circular), the fee rate is determined based on each water user, taking into account the average amount of water used per person in the commune, ward, or town where the water is extracted and the average selling price of 1 cubic meter (m³ ) of clean water in the commune, ward, or town.

Based on the provisions regarding the rate of environmental protection fees for domestic wastewater in Clause 1 of Article 5 of Decree No. 25/2013/ND-CP dated March 29, 2013 of the Government on environmental protection fees for wastewater and the socio-economic conditions, living standards, and income levels of the local population, the provincial People's Committees and municipal People's Committees directly under the central government shall establish rates of environmental protection fees for domestic wastewater applicable to specific areas and types of objects in their respective localities to submit to the People's Councils at the same level for decision.

2. Environmental Protection Fee for Industrial Wastewater

a) Environmental protection fees for wastewater from production and processing facilities not included in the List of sectors and industries with wastewater containing heavy metals issued by the Ministry of Natural Resources and Environment (hereinafter referred to as the List) are calculated using the following formula:

F = f + C, where:

- F is the amount of fee to be paid;

- f is the fixed fee: 1,500,000 VND/year;

- C is the variable fee, calculated based on: total volume of wastewater discharged; concentration of two pollutants, namely Chemical Oxygen Demand (COD) and Suspended Solids (TSS). The collection rate for each pollutant is set out in the detailed table below:

b) Environmental protection fee for wastewater from production facilities and processing facilities listed in the Catalogue shall be calculated according to the following formula:

F = (f x K) + C, where:

- F, f and C are as defined in Point a of this Clause;

- K is the fee rate based on the volume of wastewater from production facilities and processing facilities listed in the Catalogue and is determined as follows:

c) For production facilities and processing facilities listed in the Catalogue, if they have treated heavy metals in wastewater to meet national technical standards for surface water quality suitable for the purpose of receiving water sources, they shall apply a K factor of 1.

d) The variable fee shall not be applied to production facilities and processing facilities with an average daily-night wastewater discharge below 30 m³/day-night (C = 0).

Article 5. Determination of Fees to be Paid

1. For domestic wastewater

a) The amount of environmental protection fee payable for domestic wastewater shall be determined as follows:

- In cases where the fee rate is prescribed as a percentage of the price of clean water sold:

In cases where the price of clean water includes VAT, the price of clean water excluding VAT shall be determined as follows:

The current VAT rate applicable to clean water is 5% (five percent).

- In cases where the fee rate is prescribed as a fixed amount:

b) The quantity of clean water consumed shall be determined based on the meter reading of the clean water consumption of the payer. In cases where the payer has not installed a meter to measure clean water consumption, it shall be determined based on the quota of clean water consumption for each type of user as specified by the provincial or centrally governed city People's Committee in accordance with the type of user.

In cases where water is self-extracted, the quantity of clean water consumed shall be determined based on the number of people in the household registration book (for households) or attendance records, payrolls, labor contracts (for non-production organizations), and the average clean water consumption per person in the commune, ward, or town.

For business and service establishments that self-extract water for use, the quantity of clean water consumed shall be determined based on the scale of business and service operations declared by the establishment and verified by the People's Committee of the commune, ward, or town.

2. For industrial wastewater

a) Production facilities and processing facilities not listed in the Catalogue:

- In cases where the average annual wastewater discharge is less than 30m³/day-night, only a fixed fee of VND 1,500,000/year must be paid;

- In cases where the average annual wastewater discharge is 30m³/day-night or more, in addition to paying a fixed fee of VND 1,500,000/year, a variable fee (C_q) must be paid quarterly, calculated according to the following formula:

Where:

+ Total volume of wastewater discharged is the actual volume of wastewater discharged by the facility during the quarter;

+ COD and TSS concentrations in wastewater are determined based on actual analysis results;

+ Fee rates for COD and TSS are stipulated in Point a of Clause 2, Article 4 of this Circular.

b) Production facilities and processing facilities listed in the Catalogue:

- In cases where the average annual wastewater discharge is less than 30m³/day-night, the amount of fee payable is the fixed fee multiplied by a K factor of 2, which is VND 3,000,000/year;

- In cases where the average annual wastewater discharge is 30m³/day-night or more, the quarterly fee payable is calculated according to the following formula:

F_q = (f x K)/4 + C_q Where:

 is the quarterly fee payable (VND);_q is the fee payable for the quarter (VND);

 is the quarterly variable fee payable.

+ K is defined in Point b of Clause 2, Article 4 of this Circular and is determined based on the average daily-night wastewater discharge during the fee-paying quarter;

ĐMT_q is calculated according to the formula prescribed in Point a of this Clause.

- For facilities equipped with wastewater meters, the volume of wastewater discharged is determined based on the meter readings;

- For facilities without wastewater meters, the volume of wastewater is determined based on actual measurement results by environmental management agencies or calculated as 80% of the water used or information in periodic environmental impact assessment reports.

- For facilities without a meter to measure wastewater volume, the wastewater volume shall be determined based on actual measurement results by the competent state management agency for the environment or calculated as 80% of the water usage.

Article 6. Declaration, Verification, and Payment of Fees

1. Environmental protection fees for domestic wastewater

a) Monthly, water supply units organize the collection of environmental protection fees for wastewater from organizations, individuals who are payers of environmental protection fees for domestic wastewater simultaneously with the collection of water usage fees. Organizations and individuals who are payers of environmental protection fees for domestic wastewater have the obligation to pay the full amount of environmental protection fees for wastewater to the water supply unit simultaneously with the payment of water usage fees according to the monthly sales invoice.

b) People's Committees of communes, wards, towns determine and collect fees from organizations, individuals, households, business establishments, service providers who self-exploit water for use as payers of environmental protection fees for domestic wastewater within their jurisdiction.

c) Water supply units, People's Committees of communes, wards, towns open accounts titled "Temporary Collection Account for Environmental Protection Fees for Domestic Wastewater" at State Treasury Offices within their jurisdiction. Depending on the amount of collected environmental protection fees for wastewater, they periodically deposit the collected fees into the temporary collection account daily or weekly. By the 20th day of the following month at the latest, water supply units, People's Committees of communes, wards, towns are responsible for transferring the collected environmental protection fees for domestic wastewater from the temporary collection account to the state budget, after deducting the retained fees for the units as prescribed.

Monthly, water supply units, People's Committees of communes, wards, towns are responsible for calculating the collected environmental protection fees for domestic wastewater, preparing the Fee Declaration Form according to Model No. 01 issued together with this Circular, and submitting it to the tax management agency within their jurisdiction.

Water supply units, People's Committees of communes, wards, towns must maintain separate accounting records for the collected environmental protection fees for domestic wastewater. The collected environmental protection fees for domestic wastewater shall not be recorded as revenue of the water supply units.

d) State Treasuries shall record the collected environmental protection fees submitted by water supply units, People's Committees of communes, wards, towns into the corresponding chapters, types, and clauses according to the current regulations of the State Budget Classification.

đ) Annually, within 60 days from January 1 of the following year, water supply units, People's Committees of communes, wards, towns must settle accounts with the local tax authority regarding the collection and payment of environmental protection fees for domestic wastewater collected within their jurisdiction in accordance with the prescribed regulations.

2. Environmental Protection Fee for Industrial Wastewater

a) Payers of environmental protection fees for industrial wastewater have the obligation:

- To declare the amount of fees payable to the Department of Natural Resources and Environment where the wastewater is discharged according to Model No. 02 issued together with this Circular, ensuring the accuracy of the declaration and facilitating the Department of Natural Resources and Environment in verifying the fees of the facility, conducting periodic or spot checks on discharge sources:

+ For production facilities, processing facilities listed in the Catalogue with an average annual wastewater volume subject to fee calculation of 30m³/day-night or more, declare the quarterly fee payable within five (five) days of the first month of the next quarter as stipulated in Point b Clause 2 Article 5 of this Circular;

+ For production facilities, processing facilities not listed in the Catalogue with an average annual wastewater volume subject to fee calculation of 30m ³/day-night or more, declare the variable fee payable within five (five) days of the first month of the next quarter and the fixed fee payable once for the entire year at the same time as declaring and paying the variable fee of the first quarter.

- To pay the full amount of the payable fees into the account titled "Temporary Collection Account for Environmental Protection Fees for Industrial Wastewater" at the State Treasury according to the notification of the Department of Natural Resources and Environment, but no later than ten (ten) days from the date of the notification about the payable fees from the Department of Natural Resources and Environment.

For production facilities, processing facilities with an average annual wastewater volume subject to fee calculation below 30m³/day-night, the payment of fees as stipulated in Points a and b Clause 2 Article 5 of this Circular shall be made once for the entire year according to the notification of the Department of Natural Resources and Environment, with the deadline for payment not later than March 31.

- To settle accounts annually with the Department of Natural Resources and Environment within forty-five (forty-five) days from January 1 of the following year regarding the payable fees.

b) The Department of Natural Resources and Environment and the District Office of Natural Resources and Environment (when delegated) have the responsibility:

- To coordinate with relevant agencies to review and adjust the classification of fixed fee payers and variable fee payers, payers within the Catalogue and those outside the Catalogue as stipulated in Clause 2 Article 4 of this Circular, and notify the payers of environmental protection fees for industrial wastewater no later than March 10 each year.

- To verify the Declaration Forms for Environmental Protection Fees for Industrial Wastewater. The basis for verification is the declared data of the payer; the measurement results of the competent state environmental management agency or the most recent inspection and audit results but not exceeding twelve months from the declaration and payment date.

No later than the last day of the first month of the next quarter, issue a notice of the environmental protection fees for industrial wastewater payable to the state budget to the payers according to Model No. 03 issued together with this Circular.

- To maintain separate accounting records to track the environmental protection fees for industrial wastewater paid by payers within their jurisdiction, monitor and manage the use of the fees as stipulated in Clause 2 Article 7 of this Circular.

- Quarterly, no later than the last day of the second month of the next quarter, the Department of Natural Resources and Environment compiles the collected environmental protection fees for industrial wastewater and sends them to the Tax Department, regularly reconciling with the State Treasury where transactions take place.

- Annually, within sixty (sixty) days from January 1 of the following year, settle accounts with the same-level tax authority regarding the collection and payment of environmental protection fees for industrial wastewater of the previous year within their jurisdiction in accordance with the prescribed regulations.

- Open an account titled "Temporary Collection Account for Environmental Protection Fees on Industrial Wastewater" at the State Treasury within the relevant jurisdiction.

- Periodically (no later than the 15th day of the second month of each quarter), the environmental resource management agency shall cooperate with the State Treasury (where the temporary collection account is opened) to transfer and deposit eighty percent of the total collected environmental protection fees into the State Budget, and transfer the remaining twenty percent of the fees into the bank account of the Department of Natural Resources and Environment (or the District Environmental Resource Management Office when delegated) for management and use in accordance with regulations.

c) For production and service establishments directly managed by the Ministry of Public Security and the Ministry of National Defense, if national security and state secrecy reasons apply, the assessment of the Environmental Protection Fee Declaration shall be conducted by the Ministry of Public Security and the Ministry of National Defense, and reported to the Department of Natural Resources and Environment where the establishment operates using Model No. 04 issued together with this Circular.

Article 7. Management and Use of Fees

The environmental protection fee for wastewater is a revenue item under the state budget, which shall be managed and utilized as follows:

1. For domestic wastewater

a) Up to a maximum of ten percent (10%) of the total environmental protection fees collected from domestic wastewater may be retained by the water supply entity; up to a maximum of fifteen percent (15%) of the total fees collected may be retained by the People's Committee of communes, wards, and towns to cover the costs of fee collection. Specific rates are determined by the Provincial People's Councils and the People's Councils of centrally governed cities.

All amounts of environmental protection fees for domestic wastewater extracted according to the provisions above must be used for their intended purposes by the water supply entity and the People's Committee of communes, wards, and towns, with legitimate documentation in accordance with prescribed procedures. Any unspent funds at year-end may be carried over to the following year for expenditure.

b) The remainder (after deducting the fees retained for the water supply entity and the People's Committee of communes, wards, and towns) shall be deposited into the local budget and used in accordance with the guidance provided in Clause 3 of this Article.

2. For industrial wastewater

a) Twenty percent (20%) of the total environmental protection fees collected from industrial wastewater may be retained by the Department of Natural Resources and Environment and the District Environmental Resource Management Office (when delegated) to cover the costs of fee collection (investigation, statistics, review, classification, updating, and managing fee-payers), measurement, evaluation, sampling, and analysis of wastewater samples for declaration verification, fee management, and regular or spot checks on industrial wastewater.

All amounts of environmental protection fees for industrial wastewater extracted according to the provisions above must be used for their intended purposes by the Department of Natural Resources and Environment and the District Environmental Resource Management Office (when delegated), with legitimate documentation in accordance with prescribed procedures. Any unspent funds at year-end may be carried over to the following year for expenditure.

b) The remaining portion (eighty percent (80%) of the total environmental protection fees collected from industrial wastewater) shall be deposited into the local budget and used in accordance with the guidance provided in Clause 3 of this Article.

3. Management and Utilization of Environmental Protection Fees Deposited into the State Budget

Part of the fees remaining after deducting the portions specified in Clause 1 and Clause 2 of this Article, the fee collection unit shall be responsible for submitting the entire amount to the local budget for use in environmental protection work; supplementing the operating capital of the local Environmental Protection Fund for use in preventing, limiting, and controlling water pollution; organizing the implementation of solutions, technological and technical measures for wastewater treatment.

4. The collection, submission, management, use, receipt vouchers, and public disclosure of the environmental protection fee for wastewater not mentioned in this Circular shall be implemented in accordance with the guidance provided in Circular No. 63/2002/TT-BTC dated July 24, 2002 of the Ministry of Finance guiding the implementation of laws on fees and charges, Circular No. 45/2006/TT-BTC dated May 25, 2006 amending and supplementing Circular No. 63/2002/TT-BTC dated July 24, 2002, Circular No. 28/2011/TT-BTC dated February 28, 2011 of the Ministry of Finance guiding the implementation of certain provisions of the Law on Tax Administration, guiding Decree No. 85/2007/NĐ-CP dated May 25, 2007 and Decree No. 106/2010/NĐ-CP dated October 18, 2010 of the Government, Circular No. 153/2010/TT-BTC dated September 28, 2010 of the Ministry of Finance guiding the printing, issuance, and use of sales invoices and service provision invoices, and any subsequent amendments and supplements (if any).

Article 8. Responsibilities and Obligations of Local Authorities

1. The tax authority shall be responsible for

Inspecting, urging, settling accounts for the collection, submission, management, and use of the environmental protection fee for wastewater by clean water supply units, People's Committees of communes, wards, towns, and local natural resources and environment authorities.

2. The Department of Natural Resources and Environment shall be responsible for

a) Organizing guidance for industrial wastewater payers to declare and submit fees in accordance with Point a, Clause 2, Article 6 of this Circular;

b) Based on the fee collection requirements of each locality and the management capacity of the district-level natural resources and environment authorities, the Department of Natural Resources and Environment may report to the provincial People's Committee to delegate the district-level natural resources and environment offices to collect the environmental protection fee for industrial wastewater within their jurisdiction;

c) Regularly or randomly inspect the declaration and submission of the environmental protection fee for industrial wastewater;

d) Annually compile data on the environmental protection fee for wastewater at the local level according to Form No. 05 issued together with this Circular and send it to the Ministry of Natural Resources and Environment before May 31 of the following year.

3. The Department of Finance shall be responsible for

Taking the lead and coordinating with the Department of Natural Resources and Environment and the Tax Service to advise the provincial People's Committee to propose regulations on the environmental protection fee for wastewater to the provincial People's Council for approval within its authority.

4. Clean water supply units shall be responsible for

a) Cooperating with the Department of Natural Resources and Environment and related units during the process of collecting fees;

b) Annually compiling data on the environmental protection fee for domestic wastewater at the local level and notifying the Department of Natural Resources and Environment according to Form No. 06 issued together with this Circular before March 31 of the following year.

5. District-level natural resources and environment offices when delegated shall be responsible for

a) Cooperating with the Department of Natural Resources and Environment and related units during the process of collecting fees;

b) Annually compiling data on the environmental protection fee for industrial wastewater according to Form No. 07 issued together with this Circular and sending it to the Department of Natural Resources and Environment before March 31 of the following year..

6. Commune, Ward, Town People's Committees shall be responsible for

Guiding the declaration and submission of the environmental protection fee for domestic wastewater by self-extracted water users in accordance with Point b, Clause 1, Article 6 of this Circular.

Article 9. Implementation Organization

1. This Circular takes effect from July 1, 2013, replacing Joint Circular No. 125/2003/TTLT-BTC-BTNMT dated December 18, 2003 of the Ministry of Finance and the Ministry of Natural Resources and Environment guiding the implementation of Decree No. 67/2003/NĐ-CP of the Government on the environmental protection fee for wastewater, Joint Circular No. 106/2007/TTLT-BTC-BTNMT dated September 6, 2007 amending and supplementing Joint Circular No. 125/2003/TTLT-BTC-BTNMT, and Joint Circular No. 107/2010/TTLT-BTC-BTNMT dated July 26, 2010 amending and supplementing Joint Circular No. 125/2003/TTLT-BTC-BTNMT and Joint Circular No. 106/2007/TTLT-BTC-BTNMT.

2. From the date this Circular takes effect

- For domestic wastewater: if the Provincial People's Council has not yet issued the collection rate based on the percentage of clean water prices or the average per capita collection rate for households and organizations self-extracting water in accordance with Clause 1, Article 4 of this Circular and the retention ratio allowed for collection agencies as stipulated in Clause 1, Article 7 of this Circular, then the previously established rates and ratios shall continue to apply.

- For industrial wastewater: the Department of Natural Resources and Environment shall take the lead and coordinate with relevant agencies to classify fixed fee payers and variable fee payers, those included in the list and those not included in the list; issue notifications to inform the payers, serving as the basis for production facilities and processing establishments to declare and submit fees (the latest notification date is September 30, 2013).

3. In 2013, fixed fee payers as stipulated in Clause 2, Article 4 of this Circular only need to pay half of the fixed fee (except for payers specified in Point b, Clause 2, Article 5 of this Circular).

4. Newly established enterprises, those dissolved, ceased operations, or declared bankrupt in the year shall declare and submit fixed and variable fees quarterly based on the actual number of quarters they operate in that year. If a unit has already paid the annual fixed fee but ceases operations due to dissolution, cessation, or bankruptcy without completing the year, there will be no adjustment.

During the implementation process, if any issues arise, organizations and individuals are advised to promptly reflect them to the Ministry of Finance and the Ministry of Natural Resources and Environment for review, resolution, or appropriate amendment and supplementation./.