Circular 44/2017/TT-BTC royalty-liable price brackets for natural resources with the same physical and chemical properties

CIRCULAR

Defining the royalty-liable price brackets for groups, categories of natural resources with the same physical and chemical properties

Pursuant to the Law on Royalties No. 45/2009/QH12 dated November 25, 2009;

Pursuant to the Law on Price No. 11/2012/QH13 dated June 20, 2012 and guiding documents;

Pursuant to the National Assembly Standing Committee’s Resolution No. 1084/2015/UBTVQH13 dated December 10, 2015 on promulgating the frame royalty tariff;

Pursuant to the Government’s Decree No. 50/2010/ND-CP dated May 14, 2010 detailing and guiding a number of articles of the Law on Royalties;

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. 215/2013/ND-CP dated December 23, 2013 defining the functions, tasks, powers and organizational structure of the Ministry of Finance;

At the proposal of the Director General of Taxation;

The Minister of Finance promulgates the Circular defining the royalty-liable price brackets for groups, categories of natural resources with the same physical and chemical properties as follows:

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulations

1. This Circular regulates royalty-liable price brackets as prescribed at Point b, Clause 5, Article 4 of 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.

2. Groups, categories of natural resources which are not in the royalty-liable price brackets in this Circular including:

a) Natural water used for hydropower generation: Royalty-liable prices for natural water used for hydropower generation shall comply with the provisions of Point a, Clause 3, Article 4 of the Government's Decree No. 50/2010/ND-CP dated May 14, 2010 detailing and guiding a number of articles of the Law on Royalties.

b) Crude oil, natural gas, coal gas: Crude oil, natural gas and coal gas: Royalty-liable prices for crude oil, natural gas and coal gas shall comply with the provisions of Point d, Clause 3, Article 4 of the Government's Decree No. 50/2010/ND-CP dated May 14, 2010 detailing and guiding a number of articles of the Law on Royalties.

Article 2. Subjects of application

1. Department of Natural Resources and Environment, Department of Finance and tax agencies at all levels.

2. Relevant organizations and individuals.

Article 3. Interpretation of terms

1. Groups, categories of natural resources with the same physical and chemical properties mean natural resources with the same name, features, traits, physical properties, chemical composition.

2. Royalty-liable price bracket means the maximum and minimum royalty-liable price for groups/categories of natural resources with similar physical, chemical properties.

3. Royalty-liable price schedules mean the schedules of royalty-liable prices promulgated by the People’s Committee of provinces, centrally run cities (hereinafter referred to as “the provincial-level People’s Committee”) in accordance with the royalty-liable price brackets promulgated by the Ministry of Finance.

Chapter II

SPECIFIC REGULATIONS

Article 4. Royalty-liable price brackets

1. The Ministry of Finance promulgates together with this Circular the royalty-liable price brackets for groups, categories of natural resources with the same physical and chemical properties, including:

a) Royalty-liable price bracket for metallic minerals (Appendix I);

b) Royalty-liable price bracket for non-metallic minerals (Appendix II);

c) Royalty-liable price bracket for natural forest products (Appendix III);

d) Royalty-liable price bracket for natural aquatic products (Appendix IV);

dd) Royalty-liable price bracket for natural water (Appendix V);

e) Royalty-liable price brackets for natural swallow’s nests (Appendix VI).

2. Royalty-liable price brackets include the following elements:

a) Natural resource group, category codes: Are the order numbers of the list of natural resource groups, categories in the price brackets, including 6 levels, numbered and arranged synchronously with the subgroups and categories of natural resources specified in the Royalty-liable price schedules for all categories of natural resources (except crude oil and natural gas, coal gas) promulgated by the National Assembly Standing Committee in each period, concretes:

a.1) Level 1 includes the natural resource groups in Point 1 of Resolution No. 1084/2015/UBTVQH13 dated December 10, 2015 of the Standing Committee of the National Assembly (hereinafter referred to as Resolution No. 1084/2015/UBTVQH13) encoded in Roman numerals.

a.2) Level 2 includes groups, categories of natural resources detailed by level 1 at Point 1 of Resolution No. 1084/2015/UBTVQH13 encoded with two digits according to each corresponding level 1 group;

a.3) Level 3 includes detailed natural resource groups and categories of level 2; each group, the natural resource category is encoded with two digits according to each corresponding level 2 group;

a.4) Level 4 includes detailed natural resource groups and categories of level 3; each group, the natural resource category is encoded with two digits according to each corresponding level 3 group;

a.5) Level 5 includes detailed natural resource groups and categories of level 4; each group, the natural resource category is encoded with two digits according to each corresponding level 4 group;

a.6) Level 6 includes detailed natural resource groups and categories of level 5; each group, the natural resource category is encoded with two digits according to each corresponding level 4 group.

b) Natural resource group, category names: Natural resource group, category names of level 1, level 2 and some level 3 names are determined according to the group names of natural resources in the Royalty-liable price schedules promulgated together with Resolution 1084/2015/UBTVQH13; Group name, natural resource categories of some groups, natural resource categories of level 3, level 4, level 5 are determined based on the names of groups, categories of exploited natural resources and natural resource products nationwide.

c) The calculation unit is determined as the unit of measurement defined by law or the common unit of measurement of the natural resources.

d) Maximum price, minimum price.

Article 5. Application of the royalty-liable price brackets

Based on the royalty-liable price brackets promulgated in this Circular, the provincial-level People’s Committee shall promulgate the applicable Royalty-liable price schedules in their provinces ensuring the following principles:

1. Natural resource codes on the Royalty-liable price schedules must have their levels corresponding to the levels of the price brackets.

2. Natural resource category codes and names on the Royalty-liable price schedules must belong to one of the groups, categories of natural resources from level 3 to level 5 on the price brackets.

In case the Royalty-liable price schedules stipulates the royalty-liable price in more detail than the groups, categories of natural resources mentioned in the price brackets, it shall be detailed at the next level and numbered according to the principle of natural resource codification mentioned in Article 4 of this Circular. Detailed natural resources of level 5 are written to level 6.

3. Royalty-liable unit on the Royalty-liable price schedules is the calculation unit of corresponding groups, categories of natural resources specified in the Royalty-liable price brackets. In case in the local area, the calculation unit differs from the calculation unit on the Royalty-liable price schedules, it shall be converted to the royalty-liable calculation unit as stipulated in the Royalty-liable price schedules.

4. Royalty-liable prices on the Royalty-liable price schedules must conform with the royalty-liable price brackets and be greater or equal to the minimum price of the corresponding groups, categories of natural resources specified in the Royalty-liable price brackets.

For exploited natural resources that must undergo further processing into newly sold industrial instead of being sold, the exploited royalty-liable prices are the price exclusive of processing costs as prescribed in 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 and guidance in the Ministry of Finance’s Circular No. 152/2015/TT-BTC dated October 02, 2015 on royalties but must ensure that they are in the royalty-liable price brackets.

Article 6. Adjustment and supplementation of loyalty-liable price brackets

1. Cases of adjustment and supplementation of loyalty-liable price brackets:

a) Common natural resource prices in the market fluctuate greatly: increase by 20% or more compared to the maximum price or decrease by 20% or more compared to the minimum price of the Loyalty-liable price brackets promulgated by the Ministry of Finance;

b) New categories of natural resources have not been regulated in the Loyalty-liable price brackets.

2. In case of large fluctuations in natural resource prices that must be adjusted outside the Loyalty-liable price brackets, within 30 days, the Department of Finance shall assume the prime responsibility for, and coordinate with the Tax Department and the Department of Natural Resources and Environment in, reporting to the provincial-level People’s Committee in writing to the Ministry of Finance before deciding to issue a document adjusting the Loyalty-liable price schedules.

3. For new categories of natural resources not regulated in the Royalty-liable price bracket, the Department of Finance shall assume the prime responsibility for, and coordinate with the Tax Department and the Department of Natural Resources and Environment in submitting to the provincial-level People’s Committee for promulgation a document supplementing the Royalty-liable price schedules.

4. The Department of Finance shall provide information on cases where it is necessary to adjust and supplement the Royalty-liable price brackets specified in Clause 1 of this Article and send documents to the Ministry of Finance as a basis for adjusting the Royalty-liable price brackets accordingly, no later than 30 days from the date of arising cases of adjustment and supplementation of the Royalty-liable price schedules.

Article 7. Royalty-liable price database

1. Royalty-liable price database is information related to the royalty-liable prices collected, summarized and classified by tax agencies.

2. Royalty-liable price database is developed centrally, uniformly and regularly updated by the General Department of Taxation.

3. Sources of information build the royalty-liable price database:

a) Royalty-liable price brackets promulgated together with this Circular;

b) Royalty-liable price schedules issued by the provincial-level People's Committee;

c) The source of information from the available royalty tax return is shown on the Royalty tax declaration dossier declared by the taxpayer;

d) Export and import customs declarations for corresponding categories of natural resources and minerals are connected to the e-declaration database system of customs agencies.

dd) Accounting and financial statements of enterprises;

e) Trading prices of natural resources and minerals being listed, traded on domestic and international markets.

g) Sources of information of tax agencies on the status of law enforcement of taxpayers.

h) Information sources from other sources: are sources of information collected by tax agencies provided by other relevant agencies that have been verified for reliability.

4. Royalty-liable price database is used for:

a) Building the Royalty-liable price brackets, Royalty-liable price schedules;

b) Serving the risk management, investigation and inspection of Royalty-liable prices.

Chapter III

ORGANIZATION IMPLEMENTATION AND EFFECT

Article 8. Transitional provisions

1. For the category of natural resources in the Royalty-liable price schedules promulgated by the provincial-level People’s Committee and currently in effect, in accordance with the Loyalty-liable price brackets promulgated under this Circular, the price schedules promulgated by the provincial-level People’s Committee shall continue its effect.

2. With regard to the categories of natural resources in the Royalty-liable price schedules promulgated by the provincial-level People’s Committee that are no longer appropriate with the Royalty-liable price brackets promulgated together with this Circular, the provincial-level People’s Committee shall issue an amendment document accordingly, no later than 90 days from the effective date of this Circular.

Article 9. Implementation organization

1. Responsibilities of the General Department of Taxation:

a) Coordinating with related units in building a royalty-liable price database, managing and operating the royalty-liable price.

b) Regularly updating the royalty-liable price database on the basis of information sources building the royalty-liable price database specified in Clause 3, Article 7 of this Circular. The Director General of Taxation shall detail regulations on construction, management and use of royalty-liable price database.

c) Submitting to the Ministry of Finance for promulgation a document adjusting and supplementing the Royalty-liable price brackets for the cases specified in Article 6 of this Circular.

2. Responsibilities of the Department of Finance:

a) Based on Royalty-liable price brackets in this Circular, reviewing and determining the Royalty-liable price of each categories of natural resources.

b) For exploited natural resources that must undergo further processing or producing into newly industrial products for sale, the Department of Finance shall assume the prime responsibility for, and coordinate with tax agencies, natural resources and environment agencies and relevant specialized agencies of the provincial-level People’s Committee in, formulating royalty-liable prices as prescribed in Clause 4 Article 4 of the Government's Decree No. 50/2010/ND-CP dated May 14, 2010 and Clause 4 Article 4 of the Government's Decree No. 12/2015/ND-CP dated February 12, 2015.

Article 10. Effect

1. This Circular takes effect from July 1, 2017.

2. In case relevant documents quoted in this Circular are amended, supplemented or replaced, the newly amended, supplemented or replaced documents shall prevail.

3. In the course of implementation, if there are any problems, the provincial-level People's Committee, organizations and individuals are requested to report to the Ministry of Finance for study and settlement./.