NEWS

Regulations on taxable resource output

EXPERTIS
03/03/2016

Regulations in Article 5 of Circular 152/2015/TT-BTC regarding the taxable resource output:

“1. For types of resources whose quantity, weight, or volume can be determined, the taxable resource output is the quantity, weight, or volume of the resource actually extracted during the tax period.

2. For resources whose actual quantity, weight, or volume cannot be determined due to the presence of various substances and impurities, and which are sold after screening and sorting, the taxable resource output is determined as follows:

a) For resources that, after screening and sorting, yield individual substances, the taxable resource output is determined according to the quantity, weight, or volume of each type of resource or each substance contained in the resources obtained after screening and sorting.

b) For extracted resources containing various substances (polymetallic ores) where screening, sorting, and classification fail to determine the quantity of each substance in the extracted resource (or), the taxable resource quantity for each substance shall be determined based on the actual extracted resource quantity (or) and the proportion of each substance in the resource. The proportion of each substance in the resource shall be determined according to a sample of the extracted resource that has been inspected and approved by a competent state agency.

3. For extracted resources that are not sold directly but must undergo processing before being sold (for domestic consumption or export), the taxable resource output is determined as follows:

For extracted resources that are not sold directly but must undergo processing before being sold (domestic consumption or export), the taxable resource output is the extracted resource output determined by converting it from the output of products manufactured during the period for sale according to the resource usage rate per unit of product. The resource usage rate per unit of product is declared by the taxpayer based on the project approved by the competent authority and the technological standards and design used to produce the product.

4. For natural water used for hydropower production, the taxable resource output is the electricity output of the power plant sold to the electricity buyer under a power purchase agreement, or the electricity output delivered and received in the absence of a power purchase agreement, determined according to a metering system that meets Vietnamese quality measurement standards, and confirmed by the buyer, seller, or the party delivering or receiving the electricity.

5. For natural mineral water, natural hot water, bottled or canned purified natural water, and natural water used for production and business purposes, the taxable resource output is determined in cubic meters (m³).³) or liters (l) according to the Vietnamese standard measurement system.

6. The coordination mechanism between the Tax Authority and the Department of Natural Resources and Environment for managing resource exploitation activities at the local level is as follows:

Based on the taxpayer's declaration of the actual resource output extracted during the year for each mine in the Statement submitted with the Resource Tax Final Settlement Declaration at the end of the fiscal year, within 05 working days, the tax authority is responsible for transferring to the Department of Natural Resources and Environment detailed information on the resource output extracted during the year for each mine of the units in the area.

7. In cases where there are enterprises exploiting and exporting natural resource products in the area, the tax authority shall determine the actual volume of natural resource products exported on the Customs Declaration form according to the information exchange mechanism in Decision No. 574 QD/BTC dated March 30, 2015 of the Ministry of Finance to convert it into the volume of natural resource products produced and compare it with the volume of natural resource products on the enterprise's Natural Resource Tax Settlement Declaration form.”