MINISTRY OF FINANCE
Circular No. 25/2018/TT-BTC dated March 16, 2018 of the Ministry of Finance on guidelines for the Governments Decree No. 146/2017/ND-CP dated December 15, 2017 and amendments to some articles of the Circular No. 78/2014/TT-BTC dated June 18, 2004 of the Ministry of Finance and Circular No. 111/2013/TT-BTC dated August 15, 2013 of the Ministry of Finance
Pursuant to the Law on Securities No. 70/2006/QH11 dated June 29, 2006 and Law No. 62/2010/QH12 on amendments to some articles of the Law on Securities dated November 24, 2010;
Pursuant to the Law on Personal Income Tax No. 04/2007/QH12 dated November 21, 2007 and Law on amendments to some articles of the Law on Personal Income Tax No. 26/2012/QH13 dated November 22, 2012;
Pursuant to the Law on Enterprises No. 68/2014/QH13 dated November 26, 2014;
Pursuant to the Law on amending and supplementing a Number of Articles of the Laws on Taxes No. 71/2014/QH13 dated November 26, 2014;
Pursuant to the Law No. 106/2016/QH13 dated April 06, 2016 on amending and supplementing number of articles of the Law on Value Added Tax, Law on Special Excise Tax and Law on Tax Administration;
Pursuant to the Government’s Decree No. 65/2013/ND-CP dated June 27, 2013 detailing a number of articles of the Law on Personal Income Tax and the Law Amending and Supplementing a Number of Articles of the Law on Personal Income Tax;
Pursuant to the Government’s Decree No. 12/2015/ND-CP dated February 12, 2015 detailing the implementation of the Law Amending and Supplementing a Number of Articles of the Tax Laws and amending and supplementing a number of articles of the decrees on taxes;
Pursuant to the Government’s Decree No. 100/2016/ND-CP dated July 01, 2016 on elaboration and guidelines for some articles of the law on amendment of the law on value-added tax, the law on special excise duty and the law on tax administration;
Pursuant to the Government’s Decree No. 146/2017/ND-CP dated December 15, 2017 on amending and supplementing a number of articles of the Government’s Decree No. 100/2016/ND-CP of July 1, 2016, and Decree No. 12/2015/ND-CP of February 12, 2015;
Pursuant to the Government’s Decree No. 87/2017/ND-CP dated July 26, 2017 defining functions, tasks, entitlements and organizational structure of the Ministry of Finance;
At the request of the Director General of General Department of Taxation,
The Minister of Finance hereby promulgates a Circular on guidelines for the Government’s Decree No. 146/2017/ND-CP dated December 12, 2017 on amendments to some articles of the Circular No.78/2014/TT-BTC dated June 18, 2014 of the Ministry of Finance and Circular No.111/2013/TT-BTC dated August 15, 2013 of the Ministry of Finance. To be specific:
Article 1. Amendments to Clause 23 Article 4 of the Circular No. 219/2013/TT-BTC dated December 31, 2013 of the Ministry of Finance (amended by the Circular No. 130/2016/TT-BTC dated August 12, 2016 of the Ministry of Finance):
“23. Extracted natural resources and minerals exported without or after further processing into other products.
Exports that are products mainly derived from natural resources and/or minerals whose total value plus energy cost makes up at least 51% of the prime cost, except for some cases specified in Clause 1 Article 1 of the Decree No. 146/2017/ND-CP.
a) Natural resources and minerals are domestically obtained resources and minerals including metallic minerals, non-metallic minerals, crude oil, natural gas and coal gas.
b) Value rate of a natural resource or mineral and energy cost calculated on the prime cost shall be determined according to the following formula:
Value rate of a natural resource or mineral and energy cost calculated on the prime cost | = | Value rate of a natural resource or mineral + energy cost | x 100% |
Total prime cost of the processed product |
Where:
Value of a processed natural resource or mineral means is determined as follows: Value of a natural resource and mineral directly extracted is direct or indirect costs of extraction of such natural resource or mineral excluding costs of transport of such natural resource or mineral from place of extraction to place of processing. Value of a natural resource or mineral purchased for processing is the actual purchase price excluding costs of transport of such natural resource or mineral from place of purchase to place of processing.
Energy costs include fuel, electrical energy and heat energy.
The value of a natural resource and mineral and energy cost shall be determined according to the accounting book value in line with the prime cost sheet.
The prime cost of a product includes direct material cost, direct labor cost and general manufacturing cost. Indirect costs of sale, administration, finance and other affairs are not included in the prime cost.
The value rate of a natural resource or mineral and energy cost calculated on the prime cost shall be determined according to the previous year’s statement and be applied stably in the exporting year. In the first exporting year, the value rate of a natural resource or mineral and energy cost calculated on the prime cost shall be determined according to the investment plan and be applied stably in the exporting year. If there is no investment plan, the aforementioned rate will be determined according to reality.
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