Circular No. 93/2008/TT-BTC guides the division of value-added tax and corporate income tax paid to the state budget by subcontractors arising from exploration, development, and exploitation activities of oil and gas fields between different levels of budgets.

CIRCULAR

Guidelines for the implementation of the division of value-added tax and corporate income tax paid to the State budget by contractors arising from exploration, development, and exploitation of oil and gas fields

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Pursuant to the State Budget Law No. 01/2002/QH11 dated December 16, 2002 and related guiding documents;

Pursuant to the Petroleum Law dated July 6, 1993 and the Law Amending and Supplementing Certain Provisions of the Petroleum Law dated June 9, 2000 and related guiding documents;

Pursuant to Government Decree No. 77/2003/NĐ-CP dated July 1, 2003 on the functions, tasks, powers, and organizational structure of the Ministry of Finance;

The Ministry of Finance provides guidelines for the division of value-added tax and corporate income tax paid to the State budget by subcontractors arising from exploration, development, and exploitation of oil and gas fields among different levels of the budget as follows:

I. GENERAL PROVISIONS

"Contractor" and "Subcontractor" are organizations or individuals within Vietnam or abroad as defined in Clause 8 and Clause 9, Article 3 of the Petroleum Law dated July 6, 1993.

II. SPECIFIC PROVISIONS

1. The division of value-added tax and corporate income tax paid to the State budget by subcontractors (including taxes paid by contractors on behalf of subcontractors) arising from exploration and exploitation of oil and gas resources shall be implemented as follows:

1.1. For value-added tax and corporate income tax paid to the State budget by subcontractors (including both subcontractors who directly declare and pay taxes in Vietnam and those whose taxes are paid by contractors on their behalf) arising from exploration and exploitation of oil and gas resources, such taxes shall be recorded under Chapter, Section, Item, and Sub-item 03-02 according to the current State budget classification and fully allocated to the Central Budget.

1.2. For value-added tax and corporate income tax paid to the State budget by subcontractors arising from service activities supporting exploration, development, and exploitation of oil and gas resources, such taxes shall be recorded under the corresponding Chapter, Section, Item, and Sub-item according to the current State budget classification (excluding the items mentioned in Point 1.1, Clause 1, Part II of this Circular) and divided among different levels of the budget according to the current regulations on the percentage distribution of revenues between the Central Budget and local budgets and among different levels of local budgets.

2. Contractors (in cases where they pay taxes on behalf of subcontractors) and subcontractors are responsible for declaring and paying value-added tax and corporate income tax according to the activities specified in this Circular.

3. Tax authorities are responsible for guiding contractors (in cases where they pay taxes on behalf of subcontractors) and subcontractors to declare and clearly record the State budget classification on tax payment vouchers according to the activities specified in Paragraphs 1.1 and 1.2, Point 1, Part II of this Circular.

4. National Treasury bases on tax payment vouchers of contractors (in cases where they pay taxes on behalf of subcontractors) and subcontractors to allocate funds to different levels of the budget according to the provisions of the State Budget Law, guiding documents implementing the State Budget Law, and the provisions of this Circular.

II. IMPLEMENTATION PROVISIONS

This Circular replaces Circular No. 68/2005/TT-BTC dated August 29, 2005 of the Ministry of Finance on guidelines for the implementation of the division of value-added tax and corporate income tax paid to the State budget by subcontractors arising from exploration, development, and exploitation of oil and gas resources among different levels of the budget. This Circular takes effect 15 days after its publication in the Official Gazette. Any issues encountered during implementation should be reported to the Ministry of Finance for consideration and appropriate amendments.

                                                                                                                                           VICE MINISTER
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