Joint Circular No. 63/2013/TTLT-BTC-BTNMT dated May 5, 2013 of the Ministry of Finance and the Ministry of Natural Resources and Environment guiding the Government’s Decree No. 25/2013/ND-CP of March 29, 2013, on environmental protection charge for wastewater

THE MINISTRY OF FINANCE - THE MINISTRY OF NATURAL RESOURCES AND ENVIRONMENT

Joint Circular No. 63/2013/TTLT-BTC-BTNMT of May 5, 2013, guiding the Government’s Decree No. 25/2013/ND-CP of March 29, 2013, on environmental protection charge for wastewater

Pursuant to August 28, 2001 Ordinance No. 38/2001/PL-UBTVQH10 on Charges and Fees;

Pursuant to the Government’s Decree No. 57/2002/ND-CP of June 3, 2002, detailing the Ordinance on Charges and Fees;

Pursuant to the Government’s Decree No. 24/2006/ND-CP of March 6, 2006, amending and supplementing the Government’s Decree No. 57/2002/ND-CP of June 3, 2002, detailing the Ordinance on Charges and Fees;

Pursuant to the Government’s Decree No. 25/2013/ND-CP of March 29, 2013, on the environmental protection charge for wastewater;

Pursuant to the Government’s Decree No. 118/2008/ND-CP of November 27, 2008, defining the functions, tasks, powers and organizational structure of the Ministry of Finance;

Pursuant to the Government’s Decree No. 21/2013/ND-CP of March 4, 2013, defining the functions, tasks, powers and organizational structure of the Ministry of Natural Resources and Environment;

At the proposal of the director of the Tax Policy Department and the general director of the Vietnam Environment Agency,

The Minister of Finance and the Minister of Natural Resources and Environment promulgate the Joint Circular providing guidance on environmental protection charge for wastewater as follows:

Article 1. Chargeable wastewater

Liable to environmental protection charge is wastewater discharged into the environment, including industrial wastewater and residential wastewater.

1. Industrial wastewater is wastewater discharged into the environment from:

a/ Agricultural, forestry and fisheries production and processing establishments;

b/ Food, beverage and tobacco manufacturing and processing establishments;

c/ Livestock and poultry rearing and slaughtering establishments;

d/ Aquaculture establishments;

dd/ Handicraft and cottage-industry establishments in craft villages;

e/ Leather tanning and re-cycling establishments;

g/ Mineral mining and processing establishments;

h/ Textile, dyeing and garment establishments;

i/ Paper, pulp, plastics and rubber factories;

k/ Fertilizer, chemical, pharmaceutical, plant protection drug, construction materials, stationery and household appliances factories;

l/ Mechanical, metallurgical, metal working and machinery and spare part factories;

m/ Electric and electronic components and equipment factories;

n/ Scrap preliminary processing, ship breaking and ship cleaning establishments;

o/ Water plants;

p/ Concentrated wastewater treatment systems in industrial parks and urban centers (except cases exempted from the environmental protection charge in accordance with law);

q/ Other industrial production establishments.

2. Residential wastewater is wastewater discharged into the environment from:

a/ Households;

b/ State agencies;

c/ People’s armed forces units (except production and processing establishments of armed forces units);

d/ Executive offices, branches and offices of organizations and individuals, which are separated from production and processing sites;

dd/ Car and motorbike washing and repairing establishments;

e/ Hospitals, clinics; restaurants, hotels; training and research institutions; other business and service establishments;

g/ Other wastewater-discharging organizations, individuals and entities that are not specified in Clause 1 of this Article.

Article 2. Unchangeable wastewater

Wastewater not liable to environmental protection charge includes:

1. Water discharged from hydropower plants, water circulated in production and processing establishments without being discharged into the environment.

2. Seawater discharged after being used for salt making.

3. Residential wastewater discharged by households in geographic areas currently enjoying water price subsidies provided by the State to keep water prices suitable to the socio-economic life.

4. Residential wastewater discharged by households in areas without clean water supply systems.

5. Residential wastewater discharged by households in rural communes, including:

a/ Communes in border, mountainous, highland, deep-lying and remote areas (according to the Government’s regulations on border, mountainous, deep-lying and remote communes) and islands;

b/ Communes not belonging to urban centers of special grade or grades I, II, III, IV and V prescribed by in the Government’s regulations on classification of urban centers.

6. Water used to cool equipment and machinery which is not directly disposed to pollutants and discharged separately from other wastewater sources.

7. Spilling-over natural rainwater.

Article 3. Charge payers

1. Households, units, organizations and individuals having wastewater specified in Article 1 of this Circular shall pay environmental protection charge for wastewater.

2. For organizations and individuals that discharge wastewater into water drainage systems and pay water drainage charge, water drainage system-managing and -operating units shall pay environmental protection charge for the volume of wastewater discharged by these organizations and individuals into the environment.

3. Production and processing establishments specified in Clause 1, Article 1 of this Circular which use water of clean water suppliers shall pay  environmental protection charge for industrial wastewater, but not environmental protection charge for residential wastewater.

Article 4. Charge rates

1. Environmental protection charge for residential wastewater

The rate of environmental protection charge for residential wastewater is calculated as a percentage (%) of the selling price of 1 m³ (one cubic meter) of clean water but must not exceed 10% (ten percent) of such selling price exclusive of value-added tax (VAT).

For residential wastewater discharged by organizations and households that exploit water by themselves (except households specified in Clauses 3, 4 and 5, Article 2 of this Circular), the environmental protection charge rate is determined based on the number of water users, the average water use per person in the commune, ward or township where water is exploited and the selling price of 1 m³ (one cubic meter) of clean water in such commune, ward or township.

Based on the rates of environmental protection charge for residential wastewater prescribed in Clause 1, Article 5 of the Government’s Decree No. 25/2013/ND-CP of March 29, 2013, on environmental protection charge for wastewater, as well as local socio-economic conditions and local residents’ living conditions and incomes, provincial-level People’s Committees shall draw up the rates of environmental protection charge for residential wastewater applicable to each specific area and group of charge payers in their localities, and submit them to provincial-level People’s Councils for decision.

2. Environmental protection charge for industrial wastewater

a/ For industrial wastewater discharged by production and processing establishments outside the Ministry of Natural Resources and Environment-promulgated list of production and processing sectors and industries discharging wastewater containing heavy metals (below referred to as the list), environmental protection charge is calculated according to the following formula:

F = f + C, in which:

- F is the payable charge;

- f is the fixed charge of VND 1,500,000 per year.

- C is the variable charge calculated based on the total volume of wastewater discharged and the concentration of 2 (two) chemical oxygen demand (COD) and total suspended solids (TSS) pollutants. The rates applicable to these pollutants are as follows:

b/ For production and processing establishments on the list, environmental protection charge for their wastewater is calculated according to the following formula:

F = (f x K) + C, in which:

- F, f and C are specified at Point a of this Clause;

- K is the charging coefficient determined based on the volume of wastewater discharge by the establishments as follows:

c/ For production and processing establishments on the list that have treated heavy metals in their wastewater up to the national technical regulation on the quality of surface water to suit the use purposes of water in wastewater-receiving areas, the coefficient K applied to them is 1.

d/ Production and processing establishments with an annual average chargeable wastewater of below 30 m³/day are not subject to the variable charge (C = 0).

Article 5. Determination of payable charges

1. For residential wastewater

a/ The payable environmental protection charge for residential wastewater is determined as follows:

- In case the charge rate is prescribed as a percentage of the selling price of clean water:

In case the selling price of clean water includes VAT, its VAT-exclusive selling price is determined as follows:

The current value-added tax rate of clean water is 5% (five percent).

- In case the charge rate is prescribed as a monetary amount:

b/ The used volume of clean water of a charge payer is determined according to the charge payer’s water meter. For charge payers that have no water meters, the presumptive consumed volume of clean water set by provincial-level People’s Committees for the relevant group of clean water users applies.

For those that exploit water by themselves, the used volume of clean water is determined based on the number of water users written in household registration books (for households) or timekeeping records, salary sheets or labor contracts (for non-production and -processing organizations) and the average water use per person in the commune, ward or township.

For business and service establishments that exploit water by themselves for use, the used volume of water is determined based on the scope of business and service activities declared by the establishments and appraised by commune-level People’s Committees.

2. For industrial wastewater

a/ For production and processing establishments outside the list:

- Establishments with an annual average chargeable wastewater volume of below 30 m³/day shall only pay the fixed charge f = VND 1,500,000/year;

- Establishments with an annual average chargeable wastewater volume of 30 m³/day or more shall, in addition to the fixed charge f of VND 1,500,000 per year, also quarterly pay the variable charge (C_q) calculated according to the following formula:

In which:

+ Total volume of wastewater discharged is the volume of wastewater actually discharged by the establishment in the quarter;

+ COD and TSS concentrations in wastewater are determined according to actual analysis results;

+ The charge rates applicable to COD and TSS are prescribed at Point a, Clause 2, Article 4 of this Circular.

b/ For production and processing establishments on the list:

- For establishments having an annual average chargeable wastewater volume of below 30 m³/day, the payable charge equals the fixed charge multiplied by  coefficient K of 2, which is VND 3,000,000/year;

- For establishments having an annual average chargeable wastewater volume of 30 m³/day or more, the quarterly payable charge is calculated according to the following formula:

F_q = (f x K)/4 + C_q, in which:

+ F_q is the quarterly payable charge (VND);

+ f = VND 1,500,000;

+ K is prescribed at Point b, Clause 2, Article 4 of this Circular and determined based on the daily average wastewater discharged in the quarter;

+ C_q is calculated according to the formula prescribed at Point a of this Clause.

c/ Determination of the volume of wastewater discharged :

- For establishments which have wastewater meters, the discharged volume of wastewater is determined based on meter readings;

- For establishments which have no wastewater meters, the discharged volume of wastewater is determined based on the actual measurement results of state management agencies of environment, or determined as being equal to 80% of the volume of water used by them.

Article 6. Charge declaration, appraisal and payment

1. Environmental protection charge for residential wastewater

a/ Every month, clean water suppliers shall collect environmental protection charge for residential wastewater together with clean water charge from charge payers. Organizations and individuals shall pay environmental protection charge for residential wastewater to clean water suppliers when paying monthly clean water bills.

b/ Commune-level People’s Committees shall determine and collect environmental protection charge for residential wastewater from organizations, individuals, households and business and service establishments that exploit water by themselves for use in their localities.

c/ Clean water suppliers and commune-level People’s Committees shall open an account for “temporarily collected environmental protection charge for residential wastewater” at the local state treasuries and remit the collected charge amount into such account on a daily or weekly basis, depending on whether such amount is small or large. Clean water suppliers and commune-level People’s Committees shall remit the charge amount on such account after subtracting the amount allowed to be retained at their units into the state budget by the 20^th of the subsequent month at the latest.

Every month, clean water suppliers and commune-level People’s Committees shall calculate the collected amount of environmental protection charge for residential wastewater and make charge declarations according to Form No. 01 promulgated together with this Circular and send them to the tax administration agency.

Clean water suppliers and commune-level People’s Committees shall open separate accounting books to monitor collected amounts of environmental protection charge for residential wastewater. Clean water suppliers may not account the collected amounts of environmental protection charge for residential wastewater as their turnover.

d/ State treasuries shall account amounts of environmental protection charge for residential wastewater remitted by clean water suppliers and commune-level People’s Committees in the corresponding chapter, category and clause according to current state budget index.

dd/ Annually, within 60 days from January 1 of the subsequent year, clean water suppliers and commune-level People’s Committees shall finalize the collected and remitted amounts of environmental protection charge for residential wastewater in their localities according to current regulations.

2. Environmental protection charge for industrial wastewater

a/ Payers of environmental protection charge for industrial wastewater have the following obligations:

- To declare the payable charges to the provincial-level Natural Resources and Environment Departments of the localities where wastewater is discharged according to Form No. 02 promulgated together with this Circular, assuring the accuracy of their declarations and creating conditions for the provincial-level Natural Resources and Environment Departments to appraise the declared charge amounts and conduct periodical or irregular inspections of wastewater sources:

+ Production and processing establishments on the list that have an average chargeable wastewater volume of 30 m³/day or more in the year shall declare the payable charges on a quarterly basis according to Point b, Clause 2, Article 5 of this Circular within the first five (5) days of the first month of the subsequent quarter;

+ Production and processing establishments outside the list that have an average chargeable wastewater volume of 30 m³/day in the year shall declare the payable charges on a quarterly basis within the first five (5) days of the first month of the subsequent quarter and pay the fixed charge once for the whole year when declaring and paying the variable charge for the first quarter of the year.

- To pay fully and timely the payable charges into the account for “temporarily collected environmental protection charge for industrial wastewater” according to the notices of payable charges issued by provincial-level Natural Resources and Environment Departments within 10 (ten) after receiving such notices.

Production and processing establishments that have an average chargeable wastewater volume of under 30 m³/day in the year shall pay the charge under Points a and b, Clause 2, Article 5 of this Circular once for the whole year  according to the notices issued by provincial-level Natural Resources and Environments. The charge payment deadline is March 31.

- To finalize the annually paid charges with provincial-level Natural Resources and Environment Departments within 45 (forty-five) days from January 1 of the subsequent year.

b/ Provincial-level Natural Resources and Environment Departments and district-level Natural Resources and Environment Divisions (when being decentralized) have the following responsibilities:

- To coordinate with related agencies in reviewing and adjusting the classification of entities liable to pay the fixed charge or variable charge, charge payers on the list and outside the list as prescribed in Clause 2, Article 4 of this Circular, and notify such to the charge payers no later than March 10 every year.

- To appraise declarations of environmental protection charge for industrial wastewater based on the figures declared by charge payers; measurement results of state management agencies in charge of environment or results of the latest examination or inspection which has been conducted within 12 months up to the time of charge declaration and payment.

No later than the last day of the first month of the subsequent quarter, to issue notices of the payable environmental protection charges for industrial wastewater to charge payers according to Form No. 03 promulgated together with this Circular .

- To open accounting books to separately monitor the environmental protection charges for industrial wastewater paid by local charge payers and monitor, manage and use the retained amounts prescribed in Clause 2, Article 7 of this Circular.

- Quarterly, no later than the last day of the second month of the subsequent quarter, provincial-level Natural Resources and Environment Departments shall sum up the collected environmental protection charges for industrial wastewater and report the figures to provincial-level Tax Departments for periodical comparison with local state treasuries to which the charges are paid.

- Annually, within 60 (sixty) days from January 1 of the subsequent year, to finalize with tax agencies of the same level the collected and remitted amounts of environmental protection charge for industrial wastewater in the last year in their localities in accordance with regulations.

- To open accounts for “temporarily collected environmental protection charges on industrial wastewater” at local state treasuries.

- Periodically (no later than the 15^th of the second quarter of the subsequent year), to coordinate with the state treasuries (where the accounts for temporarily collected charges are opened) in transferring 80% of the collected charge amounts into the state budget and the remaining 20% into the deposit accounts of provincial-level Natural Resources and Environment Departments (or district-level Natural Resources and Environment Divisions when being decentralized) for management and use according to regulations.

c/ For production and service establishments directly managed by the Ministry of Public Security or the Ministry of National Defense, the Ministry of Public Security or the Ministry of National Defense shall appraise their environmental protection charge declarations, if so required to serve the protection of security or national secrets, and notify the appraisal results to the provincial-level Natural Resources and Environment Departments of the localities where such establishments are operating according to Form No. 04 promulgated together with this Circular.

Article 7. Charge management and use

Environmental protection charge for wastewater is a state budget revenue which must be managed and used as follows:

1. For residential wastewater

a/ Clean water suppliers and commune-level People’s Committees may respectively deduct at most 10% (ten percent) and 15% (fifteen percent) of the total collected amount of environmental protection charge for residential wastewater to cover the expenses for charge collection. Provincial-level People’s Councils shall decide on the specific deduction rate.

Clean water suppliers and commune-level People’s Committees shall use the amount of environmental protection charge for residential wastewater deducted according to the above provisions for proper purposes and with lawful payment documents. If such amount is not yet used up at the year-end, the remainder may be carried forward to the subsequent year for continued spending in accordance with regulations.

b/ The remainder (after deducting the amount allowed to be deducted by clean water suppliers or commune-level People’s Committees) must be remitted into local budgets for spending under Clause 3 of this Article.

2. For industrial wastewater

a/ Provincial-level Natural Resources and Environment Departments or district-level Natural Resources and Environment Divisions (when being decentralized) may deduct 20% (twenty percent) of the total collected amount of environmental protection charge for industrial wastewater to cover expenses for charge collection  (investigation, making of statistics, review, classification, updating and management of charge payers) and expenses for measurement, assessment, sampling and analysis of wastewater to serve the appraisal of charge declarations, charge management and periodical or irregular examinations of industrial wastewater.

Provincial-level Natural Resources and Environment Departments or district-level Natural Resources and Environment Divisions (when being authorized) shall use the deducted amount of environmental protection charge for residential wastewater according to the above provisions for proper purposes and with lawful payment documents. If such amount is not yet used up at the year-end, the remainder may be carried forward to the subsequent year for continued spending in accordance with regulations.

b/ The remainder (80% of the total collected amount of environmental protection charge for industrial wastewater) must be remitted into local budgets for spending under Clause 3 of this Article.

3. Management and use of the environmental protection charge amount remitted into the state budget

After deducting the amount under Clause 1 or 2 of this Article, charge-collecting units shall remit the remainder into the local budgets for spending on environmental protection work; adding operating capital for local environmental protection funds to serve the prevention, mitigation and control of environmental pollution caused by wastewater; and organizing the application of technological and technical solutions and implementation of plans for wastewater treatment.

4. The collection, remittance, management and use of environmental protection charge for wastewater, charge receipts and publicization of charge collection regulations comply with the Ministry of Finance’s Circular No. 63/2002/TT-BTC of July 24, 2002, guiding the implementation of legal provisions on charges and fees, Circular No. 45/2006/TT-BTC of May 25, 2006, amending and supplementing Circular No. 63/2002/TT-BTC of July 24, 2002, Circular No. 28/2011/TT-BTC of February 28, 2011, guiding the implementation of a number of articles of the Law on Tax Administration, and guiding the Government’s Decree No. 85/2007/ND-CP of May 25, 2007, and Decree No. 106/2010/ND-CP of October 18, 2010, and Circular No. 153/2010/TT-BTC of September 28, 2010, guiding the printing, issuance and use of goods sale and service provision invoices, and amending and supplementing documents (if any).

Article 8. Responsibilities and obligations of local agencies

1. Tax agencies shall examine, urge and finalize the collection, remittance, management and use of environmental protection charge for wastewater by clean water suppliers, commune-level People’s Committees and local natural resources and environment agencies.

2. Provincial-level Natural Resources and Environment Departments shall:

a/ Guide payers of environmental protection charge for industrial wastewater to declare and pay the charge according to Point a, Clause 2, Article 6 of this Circular;

b/ Based on local charge collection requirements and managerial capability of district-level natural resources and environment agencies, provincial-level Natural Resources and Environment Departments may propose provincial-level People’s Committees to decentralize the collection of environmental protection charge for industrial wastewater in the localities to district-level Natural Resources and Environment Divisions;

c/ Conduct periodical or irregular examinations of the declaration and payment of environmental protection charge for industrial wastewater;

d/ Annually sum up the figures on environmental protection charge for industrial wastewater according to form No. 05 promulgated together with this Circular for sending to the Ministry of Natural Resources and Environment by May 31 of the subsequent year at the latest.

3. Provincial-level Finance Departments shall assume the prime responsibility for, and coordinate with provincial-level Natural Resources and Environment Departments and Tax Departments in, advising provincial-level People’s Committees in submitting regulations on environmental protection charge for wastewater to provincial-level People’s Councils for decision according to their competence.

4. Clean water suppliers shall:

a/ Coordinate with provincial-level Natural Resources and Environment Departments and related units in organizing the charge collection;

b/ Annually summarize figures on environmental protection charge for residential wastewater according to form No. 06 promulgated together with this Circular and notify such to provincial-level Natural Resources and Environment Departments by May 31 of the subsequent year at the latest.

5. District-level Natural Resources and Environment Divisions shall:

a/ Coordinate with provincial-level Natural Resources and Environment Departments and related units in organizing the charge collection;

b/ Annually sum up figures on environmental protection charge for industrial wastewater according to form No. 07 promulgated together with this Circular and notify them to provincial-level Natural Resources and Environment Departments by May 31 of the subsequent year at the latest.

6. Commune-level People’s Committees shall guide the declaration and payment of environmental protection charge for residential wastewater by charge payers that exploit water by themselves for use according to Point b, Clause 1, Article 6 of this Circular.

Article 9. Organization of implementation

1. This Circular takes effect on July 1, 2013, and replaces Joint Circular No. 125/2003/TTLT-BTC-BTNMT of December 18, 2003, of the Ministry of Finance and the Ministry of Natural Resources and Environment, guiding the implementation of the Government’s Decree No. 67/2003/ND-CP on environmental protection charge for wastewater, Joint Circular No. 106/2007/TTLT-BTC-BTNMT of September 6, 2007, amending and supplementing Joint Circular No. 125/2003/TTLT-BTC-BTNMT, and Joint Circular No. 107/2010/TTLT-BTC-BTNMT of July 26, 2010, amending and supplementing Joint Circular No. 125/2003/TTLT-BTC-BTNMT and Joint Circular No. 106/2007/TTLT-BTC-BTNMT.

2. From the effective date of this Circular:

- For residential wastewater: In case provincial-level People’s Councils have not yet issued the rate of environmental protection charge for residential wastewater, which is calculated as a percentage (%) of the selling price of clean water, or the average per-capita charge rate applicable to households and organizations that exploit water by themselves for use under Clause 1, Article 4 of this Circular and the percentage of the collected charge amount to be deducted and retained at charge-collecting agencies under Clause 1, Article 7 of this Circular, the previously issued rates and deduction percentage will continue to be applied.

- For industrial wastewater: Provincial-level Natural Resources and Environment Departments shall assume the prime responsibility for, and coordinate with related agencies in, classifying charge payers liable to pay the fixed charge and variable charge and charge payers on and outside the list; and issue notices which will serve as a ground for charge declaration and payment by charge payers (notices must be sent no later than September 30, 2013).

3. In 2013, establishments liable to pay the fixed charge under Clause 2, Article 4 of this Circular shall pay half of the fixed charge (except those prescribed at Point b, Clause 2, Article 5 of this Circular).

4. Enterprises which are newly established, dissolved, suspended from operation or go bankrupt shall declare and pay the fixed charge and variable charge on a quarterly basis based on the number of quarters of operation in the year; but no adjustment may be made for those which have paid the fixed charge for the whole year but due to dissolution, operation termination or bankruptcy, do not operate until the year end.

Any problems arising in the course of implementation should be promptly reported to the Ministry of Finance and the Ministry of Natural Resources and Environment for consideration, settlement or amendment and supplementation as appropriate.-

For the Minister of Finance
Deputy Minister
VU THI MAI

For the Minister of Natural Resources and Environment
Deputy Minister
BUI CACH TUYEN