Decree No. 82/2017/NĐ-CP stipulates the method of calculation, and the amount of fees for granting the right to exploit water resources.

PROVISIONS ON THE METHOD OF CALCULATION AND AMOUNT OF PAYMENT FOR THE RIGHT TO EXPLOIT WATER RESOURCES

Pursuant to the Law on Government Organization dated June 19, 2015;

Pursuant to the Law on Water Resources dated June 21, 2012;

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

The Government issues a Decree to provide for the method of calculation and amount of payment for the right to exploit water resources.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Decree provides for the method of calculation and amount of payment for the right to exploit water resources.

Article 2. Applicability

This Decree applies to:

1. State agencies related to the determination, collection, and submission of payments for the right to exploit water resources.

2. Organizations and individuals related to the implementation of the calculation, collection, and submission of payments for the right to exploit water resources.

Article 3. Cases where Payment for the Right to Exploit Water Resources Must Be Made

Organizations and individuals who are granted permits for the exploitation and use of surface water and groundwater (hereinafter referred to as permit holders) must make payments for the right to exploit water resources if they fall under any of the following cases:

1. For the exploitation of surface water:

a) Exploiting surface water for power generation;

b) Exploiting surface water for business, service, and non-agricultural production activities, including water for cooling machines and equipment and steam generation.

2. For the exploitation of groundwater:

a) Exploiting groundwater for business, service, and non-agricultural production activities, including water for cooling machines and equipment and steam generation;

b) Exploiting groundwater (excluding brackish and saline water) for aquaculture, livestock breeding, coffee irrigation, rubber plantations, cashew trees, tea gardens, pepper cultivation, and other long-term industrial crops with a scale of 20 m³/day-night or more.

Article 4. Basis for Calculating Payments for the Right to Exploit Water Resources

1. Purpose of water use, including:

a) Exploiting water for hydropower production;

b) Exploiting water for commercial and service activities;

c) Exploiting water for non-agricultural production activities, including water for cooling machines and equipment and steam generation;

d) Exploiting groundwater for irrigation of coffee, rubber, cashew, tea, black pepper, and other long-term industrial crops;

đ) Exploiting groundwater for aquaculture and livestock breeding.

2. Water quality is determined based on water quality zones or functional zones in the water resource planning; in cases where there is no water resource planning or such zones have not been delineated in the planning, it is based on the actual water quality according to current national technical standards on surface water and groundwater quality.

3. Type of water source exploited includes: Surface water, groundwater.

4. Conditions for exploitation:

a) For surface water, determined according to the area of the surface water source being exploited;

b) For groundwater, it is determined based on the depth of the aquifer being exploited.

5. Scale of exploitation:

a) For hydropower exploitation, determined according to the design documents;

b) In cases where the exploitation and use of water for purposes other than those specified in point a of this clause are determined based on the exploitation and use permit for water resources.

6. The period of exploitation is determined based on the term stipulated in the permit for the exploitation and use of water resources.

Chapter II

AMOUNT OF PAYMENT AND METHOD OF CALCULATION FOR THE RIGHT TO EXPLOIT WATER RESOURCES

Article 5. Amount of Payment for the Right to Exploit Water Resources (M)

The amount of payment for the right to exploit water resources (M) is prescribed according to the purpose of water exploitation, with a value ranging from 0.1% to 2.0%, detailed in Appendix I attached to this Decree.

Article 6. Formula for Calculating Payment for the Right to Exploit Water Resources

1. Payment for the right to exploit water resources for hydropower exploitation is calculated using the following formula:

T = W x G x M

Where:

T - Payment for the right to exploit water resources, unit of measurement is Vietnamese dong;

W - Electricity output as stipulated in Article 7 of this Decree, unit of measurement is kWh;

G - Price for calculating payment for the right to exploit water resources as stipulated in Article 8 of this Decree, unit of measurement is Vietnamese dong/kWh;

M - Rate of payment for the right to exploit water resources as stipulated in Article 5 of this Decree, unit of measurement is percentage (%).

2. Payment for the right to exploit water resources for cases other than those stipulated in Clause 1 of this Article is calculated using the following formula:

T = W x G x K x M

Where:

T - Payment for the right to exploit water resources, unit of measurement is Vietnamese dong;

W - Volume of water extracted for calculating payment for the right to exploit water resources as stipulated in Article 7 of this Decree, unit of measurement is cubic meter (m³);³;

G - Price for calculating payment for the right to exploit water resources as stipulated in Article 8 of this Decree, unit of measurement is Vietnamese dong/cubic meter (m³);³;

K - Adjustment factor as stipulated in Article 9 of this Decree;

M - Rate of payment for the right to exploit water resources as stipulated in Article 5 of this Decree, unit of measurement is percentage (%).

Article 7. Quantity for Payment of Exploitation Rights

1. For hydropower production, the quantity for payment of exploitation rights for water resources shall be calculated by dividing the average annual electricity output determined in the project design documents (E, unit: kWh) by 365 days and multiplying by the payment calculation period (days).₀(unit of measurement being kWh) divided (/) by 365 days and multiplied (x) by the billing period (in days).

2. In other cases not provided for in Clause 1 of this Article, the exploitation quantity shall be calculated by multiplying the maximum exploitation flow rate specified in the permit (unit: m³/day-night) by the annual exploitation regime and by the payment calculation period (days).³per day and night) specified in the permit multiplied (x) by the annual exploitation regime and multiplied (x) by the billing period (in days).

3. The annual exploitation regime shall be calculated by dividing the number of exploitation days in a year by 365 days. If the permit does not specify, the exploitation regime shall be considered as 365/365 days.

4. The billing period is calculated in days and is determined as follows:

4. The payment calculation period shall be calculated in days and shall be determined as follows:

a) In cases where the works have been operational before the effective date of this Decree but have not yet obtained a permit, it shall be calculated from the effective date of the permit to the expiration date of the permit;

b) In cases where the works have not yet been operational, it shall be calculated from the expected start date of operation to the expiration date of the permit.

The start date of operation is the completion date of investment construction and the official operation of the water extraction work, determined according to the project design documents, the investor's forecast, or based on actual conditions.

a) The permit holder must self-determine and declare the volume of water extracted for each purpose of use and explain the basis for determining the volume of water extracted for those purposes. For the undetermined portion of the volume of water, it shall be applied to the highest rate purpose listed in the permit.

5. In cases where water resources are exploited and used for multiple purposes, the quantity for calculating the payment of exploitation rights shall be calculated separately for each purpose of use as prescribed in this Decree and shall be determined as follows:

a) The permit holder must self-determine and declare the quantity of water extracted for each purpose of use and explain the basis for determining the quantity of water extracted for those purposes. The portion of the quantity that cannot be clearly identified for a specific purpose of use shall be applied to the purpose with the highest charge rate specified in the permit;

b) In cases where multiple water extraction works supply a centralized water supply system, the quantity for calculating the payment of exploitation rights for each purpose of each work shall be determined according to the proportion of water supplied for each purpose of the centralized water supply system;

c) In cases where a production, business, or service facility uses water for living within the facility, the entire quantity of water used shall be counted towards the production, business, or service purpose of the facility. In cases where water is supplied for living outside the facility, it shall be counted as living water supply and shall not be subject to payment of exploitation rights for the quantity of water used for this purpose.

1. The price for calculating the right to exploit water resources for hydropower production is 70% of the electricity price used to calculate the resource tax on water resources for hydropower production.

6. Permits issued after the effective date of this Decree must clearly state the flow rate of water extracted for each purpose of use to serve as the basis for determining the quantity for calculating the payment of exploitation rights for water resources.

Article 8. Price for Payment of Exploitation Rights for Water Resources (G)

Article 9. Adjustment Factor (K)

1. The adjustment factor prescribed in Article 6 of this Decree shall be determined as follows:

K = 1 + (K₁+ K₂ + K₃)

Where:

K₁ - Water quality exploitation coefficient;

K₂ - Type of water source exploitation coefficient;

K₃ - Exploitation condition coefficient.

2. The water quality exploitation coefficient (K₁) shall be determined based on the quality of the water source exploited by organizations and individuals.

3. The type of water source exploitation coefficient (K₂) shall be determined based on the type of water source including surface water and groundwater exploited by organizations and individuals.

4. The exploitation condition coefficient (K₃) shall be determined based on the specific exploitation conditions of the water source exploited by organizations and individuals.

5. The value of the coefficients is specified in Appendix II issued together with this Decree.

Article 10. Competent Authority to Approve the Payment for Granting Water Resources Exploitation Rights

1. The Ministry of Natural Resources and Environment, People's Committees of provinces shall approve the payment for granting water resources exploitation rights in cases within their authority to issue permits for water resources exploitation and utilization.

2. The National Water Resources Management Agency under the Ministry of Natural Resources and Environment shall be responsible for receiving, organizing the review of payment calculation files, and adjusting the payment for granting water resources exploitation rights in cases within the Ministry’s permit issuance authority.

3. Departments of Natural Resources and Environment shall be responsible for receiving, organizing the review of payment calculation files, and adjusting the payment for granting water resources exploitation rights in cases within the provincial People's Committee’s permit issuance authority.

Article 11. Procedures and Formalities for Calculating the Payment for Granting Water Resources Exploitation Rights

1. The file for calculating the payment for granting water resources exploitation rights includes the Declaration Form for Calculating the Payment for Granting Water Resources Exploitation Rights as stipulated in Appendix III issued together with this Decree, containing the following main contents: water quality; type of water source, exploitation conditions, scale of exploitation, time of exploitation, period for calculating payment, production volume for each purpose of use, price for calculating payment, rate of collection for each purpose of use; payment for each purpose of use, total payment for granting exploitation rights, payment submission plan, and accompanying documents to prove.

2. Procedures for receiving, reviewing, and approving the payment for granting water resources exploitation rights:

a) The receipt and review of the payment for granting water resources exploitation rights shall be carried out simultaneously with the receipt and review of the application file for issuing, extending, amending, and reissuing water resources exploitation permits;

b) When submitting the application file for issuing a water resources exploitation and utilization permit, the agency receiving and reviewing the permit application file shall submit a draft decision to approve the payment for granting water resources exploitation rights according to the provisions in Appendix V issued together with this Decree;

c) Within five working days from the date of receipt of the decision approving the payment for granting water resources exploitation rights, the agency receiving and reviewing the file shall notify the permit holder and the local tax office where the exploitation works are located, along with the decision approving the payment for granting water resources exploitation rights.

Article 12. Adjustment, Recovery, and Refund of the Payment for Granting Water Resources Exploitation Rights

1. The payment for the right to exploit water resources may be reviewed and adjusted under one of the following circumstances:

a) There is an amendment to the content of the water resources exploitation and utilization permit leading to changes in the basis for calculating the payment for granting exploitation rights as prescribed in this Decree or leading to changes in the approved payment for granting exploitation rights;

b) There is a change in the actual operation commencement date of the exploitation works compared to the planned operation commencement date when approving the payment for granting water resources exploitation rights;

c) There is an adjustment in the average annual electricity consumption (E₀) compared to the design documents of the hydropower project and confirmed in writing by the competent state agency;

d) Additional reservoir tasks are added along with adjustments and supplements to downstream flood control capacity compared to the hydropower plant's mission, except in cases already adjusted according to point c of this clause. The reduction adjustment amount is calculated based on the ratio of the adjusted downstream flood control capacity to the useful capacity of the reservoir;

đ) The works are damaged and cannot continue to operate. The reduction adjustment amount is calculated based on the downtime due to damage;

e) Adjustments can only be made for the remaining term of the permit. The increase adjustment amount does not exceed 20% of the remaining amount to be paid that was previously approved, except in the case stipulated in point b of this clause.

2. Procedures and formalities for adjusting the payment for the right to exploit water resources:

a) For the case stipulated in point a of Clause 1 of this Article, organizations and individuals shall submit the Declaration Form for Calculating the Payment for Granting Water Resources Exploitation Rights as stipulated in Appendix III issued together with this Decree. The receipt and review of the file shall be carried out simultaneously with the receipt and review of the application file for amending or reissuing water resources exploitation permits;

b) For the cases stipulated in points b, c, d, and đ of Clause 1 of this Article, the permit holder shall send a request for adjustment accompanied by supporting documents to the agency receiving the file as stipulated in Article 10 of this Decree.

Within twenty working days, the agency receiving the file shall be responsible for checking and submitting to the competent authority as stipulated in Article 10 of this Decree for consideration and decision on the adjustment;

c) When adjusting the payment for granting water resources exploitation rights, it must be based on the current price for calculating the payment for granting water resources exploitation rights.

3. The payment for the right to exploit water resources shall be recovered in one of the following circumstances:

a) The actual operation commencement date of the works is earlier than the planned date when issuing the permit and approving the payment for granting water resources exploitation rights;

b) A new purpose for exploiting and using water resources requiring payment arises but has not yet been adjusted in the content of the permit by the competent state agency;

c) The scale and production volume of exploitation are higher than those stated in the issued permit;

d) Fraud in declaring or inaccurately declaring the payment for granting water resources exploitation rights leading to reduced amounts payable.

4. The refund of the payment for granting water resources exploitation rights shall be implemented in cases where the competent state authority decides to revoke the permit due to national defense, security reasons, national interest, public interest, or the permit holder returns the issued permit.

5. The competent authority to approve the payment for water resource exploitation rights decides on the adjustment of the payment for water resource exploitation rights, notifies the amount to be collected or refunded to the license holder and the local tax office where the water resource exploitation works are located, and specifies the reasons for collection or refund.

Article 13. Time limit for issuing notices and paying the payment for water resource exploitation rights

1. Within the latest ten working days from the date of receipt of the approval, adjustment, or notification of the payment for water resource exploitation rights, the local tax office where the water resource exploitation works are located shall issue a notice to pay the payment for water resource exploitation rights according to Appendix IV issued together with this Decree, and send it to the organizations or individuals required to pay the payment for water resource exploitation rights.

2. Organizations and individuals required to pay the payment for water resource exploitation rights must pay according to the Notice of the local tax office. The collection and payment of the payment for water resource exploitation rights shall be carried out in accordance with the regulations on revenue collection and management of state budget revenues.

3. After receiving the certificate confirming the payment into the state budget, organizations and individuals required to pay the payment for water resource exploitation rights shall send one certified copy to the National Water Resources Management Agency in cases where the exploitation and use of water resources fall within the licensing authority of the Ministry of Natural Resources and Environment, or to the Provincial Department of Natural Resources and Environment in cases where the exploitation and use of water resources fall within the licensing authority of the provincial People's Committee for monitoring purposes.

Article 14. Methods of collecting, paying, managing, and using the payment for water resource exploitation rights

1. The payment for water resource exploitation rights shall be paid annually according to the amount recorded in the decision approving the payment for water resource exploitation rights. Based on their own capacity, the license holders may choose to pay monthly, quarterly, or annually at the local State Treasury where the water resource exploitation works are located.

2. The collection, payment, and refund of the payment for water resource exploitation rights shall be carried out in accordance with the laws on tax administration.

3. The management, use, and refund of the payment for water resource exploitation rights shall be carried out in accordance with the laws on state budget management, prioritizing its use to ensure activities for protecting water resources, marking boundaries of water source protection zones, supervising water extraction activities, and preventive and response measures for water pollution incidents, but not exceeding fifteen percent.

4. The payment for water resource exploitation rights is a cost determined in the production cost of the license holder.

Article 15. Responsibilities of Ministries, Agencies Equivalent to Ministries, and Provincial People's Committees

1. Responsibilities of the Ministry of Natural Resources and Environment:

a) Guide and direct localities on methods of calculating and levels of collecting the payment for water resource exploitation rights;

b) Approve, adjust, and notify the collection or refund of the payment for water resource exploitation rights in cases where the exploitation and use of water resources fall within their licensing authority;

c) Inspect, audit, and handle violations of laws related to the calculation, collection, and payment of the payment for water resource exploitation rights.

2. Responsibilities of the Ministry of Finance:

Guide, inspect, and audit the implementation of tasks related to the collection, payment, management, and use of the payment for water resource exploitation rights.

3. Ministries and agencies equivalent to ministries within the scope of their duties and powers shall have the responsibility to coordinate with the Ministry of Natural Resources and Environment and the provincial People's Committees in the calculation, collection, and payment of the payment for water resource exploitation rights.

4. Responsibilities of the provincial People's Committees:

a) Approve, adjust, and notify the collection or refund of the payment for water resource exploitation rights in cases where the exploitation and use of water resources fall within their licensing authority;

b) Issue natural water resource tax rates on their territory according to the framework price set by the Ministry of Finance; issue prices as a basis for calculating the payment for water resource exploitation rights in cases where there are no natural water resource tax rates prescribed in Clause 3, Article 8 of this Decree;

c) Inspect, audit, and handle violations of laws related to the calculation, collection, and payment of the payment for water resource exploitation rights within their jurisdiction.

Article 16. Responsibilities of agencies in the work of calculating and collecting fees for granting water resource exploitation rights

1. The Water Resources Management Department shall be responsible for:

a) Organizing the review of documents for calculating fees for granting water resource exploitation rights to be submitted to the Ministry of Natural Resources and Environment for approval and adjustment in cases of exploitation and use of water under the licensing authority of the Ministry of Natural Resources and Environment;

b) Sending notifications along with decisions on approving and adjusting fees for granting water resource exploitation rights to the license holders and local tax bureaus where water resource exploitation works are located;

c) Urging and inspecting the work of calculating fees for granting water resource exploitation rights in localities;

d) Annually compiling results of approved fees for granting water resource exploitation rights and payment of such fees nationwide, reporting to the Ministry of Natural Resources and Environment.

2. Provincial Departments of Natural Resources and Environment shall be responsible for:

a) Organizing the review of documents for calculating fees for granting water resource exploitation rights to be submitted to the People's Committee of the province for approval and adjustment in cases of exploitation and use of water under the licensing authority of the People's Committee of the province;

b) Sending notifications along with decisions on approving and adjusting fees for granting water resource exploitation rights within the licensing authority of the People's Committee of the province to the license holders and local tax bureaus;

c) Annually compiling results of approved fees for granting water resource exploitation rights within their jurisdiction, reporting to the People's Committee of the province and the Ministry of Natural Resources and Environment (through the Water Resources Management Department) before December 15.

3. The General Tax Department shall be responsible for:

Annually (before December 15), compiling results of collection of fees for granting water resource exploitation rights nationwide, sending to the Ministry of Finance and the Ministry of Natural Resources and Environment (through the Water Resources Management Department) for consolidation.

4. Local tax bureaus where water resource exploitation works are located shall be responsible for:

a) Issuing notices on payment of fees for granting water resource exploitation rights, late payment penalties, and fines according to the laws on tax management due to exceeding the deadline stated in the notice (if applicable) and sending them to the license holders;

b) Summarizing, accounting, and reporting revenues from fees for granting water resource exploitation rights according to current regulations.

Article 17. Responsibilities of organizations and individuals paying fees for granting water resource exploitation rights

1. Paying fees for granting water resource exploitation rights within the deadlines specified in the tax authority's notices.

2. In cases where there is a need to adjust the number of payments or the amount to be paid per payment, they must submit a written request to the local tax bureau that issued the notice.

3. In cases where fees for granting water resource exploitation rights are paid into the state budget after the prescribed deadline, in addition to the amount specified in the notice, they must also pay penalties and late payment charges according to the laws on tax management.

4. In cases of transferring water resource exploitation rights, the license holder must fulfill the obligation to pay fees for granting water resource exploitation rights up to the transfer date.

Chapter III

IMPLEMENTATION

Article 18. Transitional Provisions

1. For applications for water resource licenses received by competent authorities before this Decree takes effect, they shall continue to be processed as follows:

a) If organizations or individuals applying for a license require additional documentation for calculating fees for granting water resource exploitation rights, the agency receiving the application shall be responsible for accepting and reviewing it concurrently with the licensing process;

b) If organizations or individuals applying for a license do not provide additional documentation for calculating fees for granting water resource exploitation rights, the process of accepting and reviewing the application shall be carried out as if the license had been granted before this Decree took effect.

2. The period for calculating fees for granting water resource exploitation rights for cases where licenses were granted before this Decree takes effect shall be calculated in days and determined as follows:

a) For projects already in operation, the calculation period starts from the date this Decree takes effect until the expiration date of the license;

b) For projects not yet in operation, the determination shall be made according to point b, Clause 4, Article 7 of this Decree.

3. The deadline for submitting documents for calculating fees for granting water resource exploitation rights for cases where licenses were granted before this Decree takes effect:

a) Within a maximum of 12 months from the date this Decree takes effect, organizations and individuals required to pay fees for granting water resource exploitation rights must complete the calculation and submission of documents for calculating fees for granting water resource exploitation rights according to regulations;

b) The Water Resources Management Department shall notify license holders licensed by the Ministry of Natural Resources and Environment, and Provincial Departments of Natural Resources and Environment shall notify license holders licensed by the People's Committee of the province to submit documents for calculating fees for granting water resource exploitation rights.

4. Procedures and formalities for calculating fees for granting water resource exploitation rights for cases where licenses were granted before this Decree takes effect:

a) Documents for calculating fees for granting water resource exploitation rights include: A declaration form for calculating fees for granting water resource exploitation rights as per Appendix III attached to this Decree; a copy of the water resource exploitation and use license;

b) License holders shall submit two sets of documents to the agency receiving the application via postal service, online submission, or direct submission; the agency receiving the documents shall be responsible for examining and checking the documents. If the documents are not valid, the agency shall return the documents within two working days along with a written explanation of the reasons;

c) Within a maximum of thirty working days from the date of receipt of valid documents as stipulated in point a of this clause, the agency receiving the documents shall organize the review of the documents for calculating fees for granting water resource exploitation rights and submit to the competent authority for approval of fees for granting water resource exploitation rights;

d) Within five working days from the date of receipt of the decision on approving fees for granting water resource exploitation rights as per Appendix V attached to this Decree, the agency receiving and reviewing the documents shall send a notification to the license holder and the local tax bureau where the project is located along with the decision on approving fees for granting water resource exploitation rights.

5. Where a permit was issued before this Decree takes effect without specifying the purpose of water use or with a specification that does not comply with the provisions of this Decree, the permit holder shall base on the actual exploitation and use of water from the declared facility to calculate the fee for the right to exploit water resources in accordance with the provisions of this Decree.

Article 19. Effective Date

1. This Decree takes effect from September 1, 2017.

2. The provisions at Article 40, Clause 3 of Article 47 of Decree No. 201/2013/NĐ-CP dated November 27, 2013 of the Government detailing certain articles of the Law on Water Resources are hereby abolished.

Article 20. Responsibility for Implementation

1. The Ministry of Natural Resources and Environment shall be responsible for guiding and implementing this Decree.

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