Thông tư 66/2016/TT-BTC

CIRCULAR

GUIDANCE ON APPLICATION OF THE GOVENRMENT’S DECREE NO. 12/2016/ND-CP ON ENVIRONMENTAL PROTECTION FEES FOR MINERAL EXTRACTION DATED FEBRUARY 19, 2016

Pursuant to the Ordinance No.38/2001/PL-UBTVQH10 on Fees and Charges dated August 28, 2001 by the Standing committee of the National Assembly of the Socialist Republic of Vietnam;

Pursuant to the Government's Decree No.57/2002/ND-CP dated June 03, 2002 and the Government’s Decree No.24/2006/ND-CP dated March 06, 2006 amending and supplementing a number of articles of the Government’s Decree No.57/2002/ND-CP dated June 03, 2002 detailing the application of the Ordinance of Fees and Charges;

Pursuant to the Government’s Decree No. 12/2016/ND-CP on environmental protection fees for mineral extraction dated February 19, 2016;

Pursuant to the Government's Decree No. 215/2013/ND-CP dated December 23, 2013 defining the functions, rights and obligations and organizational structure of the Ministry of Finance;

At request of the Director of the Department of Tax Policy, the Ministry of Finance hereby provides guidance on collection, submission and management of environmental protection fees for mineral extraction prescribe in the Government's Decree No.12/2016/ND-CP  dated February 19, 2016.

Article 1. Scope and regulated entities

1. This Circular provides guidelines for collection, payment and management of environmental protection fees for mineral extraction under the Decree No.12/2016/ND-CP.

2. This Circular applies to organizations and individuals operating in mining; State regulatory authorities and relevant entities participating in collection and management of environmental protection fee for mineral extraction.

Article 2. Fee calculation methods

1. The environmental protection fee imposed upon mineral extraction shall be periodically paid and shall be determined as follows:

F = [(Q1 x f1) + (Q2 x f2)] x K

Where:

- F: The amount of environmental protection fee for a certain period;

- Q1: The volume of excavated soil/rock during the period (m³);

- Q2: the quantity of raw minerals  extracted within the period (tonnage or m³);

- f1 : the amount of charge for  excavated soil/rock; f1= 200 dong/m³ ;

- f2 the amount of charges for respective extracted  mineral ( dong/tonnage or dong/m³);

- K: coefficient by mining technique,  where:

+ K= 1.05 by open mining (including extraction of titanium, sand, gravel by hydraulic pressure); +K = 1 by underground mining and other techniques

2. The excavated soil by coal mining shall not be charged until 2017 inclusive.

3. Q1 is determined according to the project documents or environmental impact assessment reports (EIA) and relevant document approved by the State competent authority.

f1 is determined according to Q1 (tonnage or m³) calculated on the weight of raw mineral extracted within the period.

E.g.: An Iron ore project in Bac Kan province with the average stripping ratio of 0.7 m³/tonnage; if 10,000 tonnage of iron ore is extracted in  6/2016, the amount of charge for excavated soil /rock shall be: f1 = 10,000 x 0.7 x 200 (dong/m³)= 1,400,000 dong

In case of absence of expected volume of excavated soil/rock in project documents, EIA report and relevant documents, f1 shall be determined according to the actual volume of excavated soil/rock.

4. Q2 is the actual quantity of extracted mineral in a certain period regardless of purposes (trading, consumption, reserve or production or others) and mining techniques (manual or mechanic techniques), or regions or mining conditions ( mountainous, midland or lowland regions, complicated mining conditions).  In case the preparation, classification or enrichment of ore is required, Q2 is determined by converting the quantity of finished mineral ore by percentage decided by the people’s Committee of provinces.

5. In case minerals other than those licensed for extraction are found, Q2 is determined according to the mineral licensed for extraction by the State competent authority.

6. In case of extraction of granite for tiling or fine arts, the amount of charge in point 1, Section II –Schedule of charges issued together with the Decree No.12/2016/ND-CP shall apply. In case of extraction of granite for purposes other than the above-mentioned, the amount of charge in point 15, Section II –Schedule of fees issued together with the Decree No.12/2016/ND-CP shall apply.

Enterprises operating in granite extraction shall submit the environmental protection fee in accordance with foregoing provisions. Tax authorities of provinces shall cooperate with Department of Environment and Natural Resources of provinces to inspect the environmental protection fee declaration and payment under regulations of laws.

7. In case of extraction of block of stone for fine arts, the amount of charge in point 2, Section II –Schedule of charges issued together with the Decree No.12/2016/ND-CP shall apply.

8. Where entities extracts minerals for normal building materials and construction within the area under their ownership; or where minerals are extracted for leveling, construction of security and military works or mitigation of Acts of God shall be relieved from environmental protection fees upon such minerals.

Article 3. Declaration and payment

1. Every entity participating mineral extraction shall submit a fee declaration form to the supervisory tax authority where the natural resources tax is declared. In case of no environmental protection fee in the period, the payer shall also submit the fee declaration to the tax authority. Where the mineral bulk buyer pays environmental protection fees on behalf of the mineral extraction entities, the bulk buyer shall submit the environmental protection fee declaration to its supervisory tax authority. The declaration shall be submitted to the tax authority by the twenty of the following month. The payer shall be responsible for their declaration and the compliance with declaration forms.

2. Environmental protection fees for mineral extraction shall be collected by month and finalized by year The statement of environmental protection fee for mineral extraction includes the annual statement and the statement at the time of termination of mineral extraction or bulk purchasing; or shutdown of business; or termination of the enterprise ownership transfer agreement ;or organizational restructuring.

3. Payers whose amount of fee is decided by competent authorities shall comply with regulations of the Law on Tax Administration and guidance documents.

4. Environmental protection fees for crude oil, natural gas and coal gas shall be paid at the Department of Taxation of the province where the payer’s headquarters is located.

5. The environmental protection fee for mineral extraction shall be paid in Vietnam dong.

6. In addition to the foregoing provisions, the declaration, payment and finalization of environmental protection fee for mineral extraction shall conform to the Law on Tax Administration and its guidance documents.

Article 4. Application of environmental protection fees for mineral scraps

1. Under clause 3, Article 3 of the Decree No.12/2016/ND-CP the environmental protection fee for mineral scraps shall be imposed upon:

a) The extraction of mineral scraps in waste dumps of mines that are closed;

b) Entities that obtain the Business Registration Certificate and operate in lines of business other than mineral extraction  acquiring minerals during their operation ( e.g.: sand acquired by river bed or ocean dredging; or soil/rock acquired by construction of hydropower plants, transport infrastructures or riffle ranges)

Other cases beyond point a and b of this clause shall not be charged for environmental production fees for mineral scrap extraction.

2. The environmental production fees for mineral scrap extraction shall be determined under Article 2 of this Circular.

Article 5.Environmental protection fee allocation

1. The local government shall keep wholly environmental protection fees for mineral extraction, excluding those for crude oil, natural gas and coal gas, and use such collected fees for environmental protection activities mineral extracted areas under the Law on Environment and the Law on the State Budget. To be specific:

a) Preventing and mitigating negative impact on the environment mineral extracted areas;

b) Recovering degraded environment due to mineral extraction;

c) Raise people’s awareness of environmental landscape protection in mineral extracted areas.

2. The local government shall keep wholly environmental protection fees for extraction of crude oil, natural gas and coal gas and use it for environmental protection activities under the Law on Environment and the Law on the State Budget.

3. The mineral extraction area hereof refers to the area where minerals are actually extracted and surrounding areas affected by mineral extraction within the administration of communes or districts.

Article 6. Announcement of the amount of environmental protection fees

Fee-collecting agencies shall publish the quantity of extracted minerals, volume of excavated soil/rock and the amount of environmental protection fees for mineral extraction submitted by enterprises in the previous year on means of mass media, local radio and television channels, website of the fee-collecting agency and other means of mass media by March 31 of every year.

Article 7. Responsibilities of local governments

1. Every People’s Committee of provinces shall:

a) Request the People’s Council to allocate the collected environmental protection fee for environmental activities mineral extracted areas.

b) Direct the Department of Environmental and Natural Resources and cooperate with tax authorities to request the People’s Committee of the province to determine the conversion ratio of the finished minerals into raw extracted minerals according to the reality.

c) Direct the Service of Information and Communications to cooperate with the tax authority to publish the progress of collection and payment of environmental protection fees for mineral extraction within the province.

2. Every tax authority of provinces shall:

a) Instruct and expedite organizations and individuals participating in mineral extraction to go through procedures for fee registration, declaration and payment under regulations of laws.

b) Inspect the declaration, payment and finalization of environmental protection fees for mineral extraction. Decide the amount of fee payable under regulations of laws if the payer delays or fails to complete their invoices, documents and accounting books.

c) Impose administrative penalties within the jurisdiction and under regulations of laws.

d) Record and use figures and documents provided by entities participating in mineral extraction under regulations of laws.

dd) Cooperate with Department of Environment and Natural Resources of province to collect environment protection fees under the Decree No.12/2016/ND-CP and the Law on tax administration.

Article 8. Implementation organizations

1. This Circular enters into forces from June 13, 2016 and shall be applied from May of 2016. This Circular replaces the Circular No.158/2011/TT-BTC dated November 16, 2011 guiding the application of the Government’s Decree No.74/2011/ND-CP on environmental protection fees for mineral extraction dated May 28, 2011.

2. Any issues arising in connection with the application of this Circular should be reported to the Ministry of Finance. /.