Decree 27/2023/ND-CP on environmental protection charge on mineral exploitation

DECREE

On the environmental protection charge on mineral exploitation^[1]

Pursuant to the June 19, 2015 Law on Organization of the Government; and the  November 22, 2019 Law Amending and Supplementing a Number of Articles of the Law on Organization of the Government and the Law on Organization of Local Administration;

Pursuant to the July 6, 1993 Petroleum Law; and the 2000, 2008 and 2018 Laws Amending and Supplementing a Number of Articles of the Petroleum Law;

Pursuant to the November 17, 2010 Mineral Law;

Pursuant to the June 25, 2015 Law on the State Budget;

Pursuant to the November 25, 2015 Law on Charges and Fees;

Pursuant to the June 13, 2019 Law on Tax Administration;

Pursuant to the November 17, 2020 Law on Environmental Protection;

At the proposal of the Minister of Finance;

The Government promulgates the Decree on the environmental protection charge on mineral exploitation.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation and subjects of application

1. This Decree provides for objects liable to the environmental protection charge on mineral exploitation; charge payers; charge-collecting organizations; cases eligible for charge exemption; and charge rates, charge calculation method, and charge declaration, payment, management and use.

2. This Decree applies to mineral exploiters in accordance with the mineral law; exploiters of crude oil, natural gas, and coal seam gas in accordance with the law on oil and gas; and state agencies and organizations and individuals involved in the management and collection of the environmental protection charge on mineral exploitation.

Article 2. Charge-liable objects

Liable to the environmental protection charge on mineral exploitation are activities of exploiting crude oil, natural gas and coal seam gas; metal and non-metal minerals specified in the Tariff of environmental protection charge rates on mineral exploitation (Charge Rate Tariff) promulgated together with this Decree.

Article 3. Charge-collecting organizations

Organizations in charge of collecting the environmental protection charge on mineral exploitation are tax offices in accordance with the law on tax administration.

Article 4. Charge payers

Payers of the environmental protection charge on mineral exploitation under this Decree include:

1. Mineral exploiters in accordance with the mineral law.

2. Vietnamese or foreign organizations and individuals licensed to exploit crude oil, natural gas and coal seam gas on the basis of performing oil and gas contracts or providing oil and gas services in accordance with the law on oil and gas.

3. Organizations and individuals that are licensed to exploit minerals on a small scale and sell minerals to organizations and individuals that are commercial traders; in case the latter commit in writing to declaring and paying the charge on behalf of the former, they shall be the charge payers.

Article 5. Cases eligible for charge exemption

1. Exploiting minerals for use as ordinary building materials within the land areas for which households and individuals have the use right for construction of works of these households and individuals in such land areas.

2. Exploiting soil and rock for ground leveling and construction of works serving security and military purposes or for disaster prevention and control, or remediation of disaster consequences. In case the exploited soil and rock are used for both ground leveling and construction of works serving security and military purposes or for disaster prevention and control or remediation of disaster consequences and other purposes, organizations and individuals shall determine the volume of soil and rock eligible for charge exemption; and pay the environment protection charge on mineral exploitation for the volume of soil and rock used for other purposes.

3. Using soil and rock stripped or removed during the exploitation process for the purpose of environmental rehabilitation and restoration in exploitation areas under environmental rehabilitation and restoration plans approved by competent agencies.

The determination of the volume of soil and rock stripped and removed eligible for exemption from the environmental protection charge shall be based on:

a/ Minutes on acceptance of the volume of soil and rock after each stage of the exploitation process, including: soil and rock preparation, loading, transport and rock removal as specified at Point b, Clause 2, Article 41 of the Government’s Decree No. 158/2016/ND-CP of November 29, 2016, detailing a number of articles of the Mineral Law (below referred to as Decree No. 158/2016/ND-CP).

b/ Environmental rehabilitation and restoration plans approved by the competent state agencies specified in Clause 3, Article 67 of the Law on Environmental Protection.

c/ Mine closure dossiers approved by competent state agencies in accordance with the mineral law.

Chapter II

RATES, METHOD OF CALCULATION, AND DECLARATION, PAYMENT, MANAGEMENT AND USE OF THE ENVIRONMENTAL PROTECTION CHARGE ON MINERAL EXPLOITATION

Article 6. Charge rates

1. The rates of the environmental protection charge on mineral exploitation are VND 100,000/ton for crude oil, VND 50/m³ for natural gas and coal seam gas, and VND 35/m³ for natural gas obtained from crude oil exploitation (associated gas).

2. The rates of the environmental protection charge on mineral exploitation (including also production and business activities of organizations and individuals which are not for the purpose of mineral exploitation but during which minerals are obtained) are provided in the Charge Rate Tariff promulgated together with this Decree.

3. The environmental protection charge rate for salvage exploitation of a mineral in accordance with the mineral law shall equal 60% of that for the exploitation of such mineral specified in the Charge Rate Tariff promulgated together with this Decree.

4. Provincial-level People’s Councils shall base themselves on the principles on determination of charge rates specified in the Law on Charges and Fees, the Charge Rate Tariff promulgated together with this Decree and refer to the charge rates applicable to charge-liable similar minerals in other localities to decide on the specific charge rate and charge calculation unit for each type of minerals in conformity with local realities in each period.

Article 7. Charge calculation method

1. The payable amount of the environmental protection charge on mineral exploitation in a charge payment period shall be calculated according to the following formula:

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

In which:

F is the payable amount of environmental protection charge in the period (month).

Q1 is the volume of stripped and removed soil and rock in the period (m³).

The volume of stripped and removed soil and rock in the period (Q1) shall be determined according to Clause 2, Article 41 and Clause 4, Article 42 of Decree No. 158/2016/ND-CP.

f1 is the charge rate applicable to the volume of stripped and removed soil and rock, which is VND 200/m³;

Q2 is the total volume of crude minerals actually exploited in the period (ton or m³).

The total volume of crude minerals actually exploited in the period (Q2) shall be determined according to Article 42 of Decree No. 158/2016/ND-CP.

f2 is the charge rate applicable to each type of the exploited minerals (VND/ton or VND/m³);

K is the charge calculation coefficient based on the method of exploitation, specifically as follows:

For open-cast mining (including also hydraulic mining such as exploitation of titanium, sand or gravel from riverbeds, hydroelectric reservoirs, hydraulic work, and estuaries): K = 1.1.

For underground mining and other methods of exploitation (exploitation of crude oil, natural gas, natural mineral water and other cases): K = 1.

2.  Regarding minerals containing many useful minerals and mineral substances, the formula specified in Clause 1 of this Article shall be applied.

In which, the charge payable of each type of minerals in the total volume of crude minerals containing many useful  minerals and mineral substances = The ratio of each type of crude minerals to the total volume of crude minerals containing many useful minerals and mineral substances x The total volume of the crude minerals containing many useful  minerals and mineral substances exploited in the period (Q2) x The environmental protection charge rate applicable to each type of the exploited minerals (f2).

Provincial-level Departments of Natural Resources and Environment shall, based on the average content of each type of minerals in the exploited crude mineral ore and the total average content of minerals in the ore stated in dossiers on mineral reserves or periodical reports on results of mineral exploitation of organizations and individuals in accordance with the mineral law, assume the prime responsibility for, and coordinate with provincial-level Tax Departments and related agencies in, proposing provincial-level People’s Committees to  decide on the ratio of each type of crude minerals to the total volume of crude minerals containing many useful minerals and mineral substances (below referred to as ratio) for calculation of the environmental protection charge in conformity with local realities, specifically as follows:

a/ For minerals licensed for exploitation for the first time: To specify the ratios based on dossiers on mineral reserves before organizations/individuals commence mineral exploitation to serve as a basis for declaration and payment of the environmental protection charge by charge payers.

In the subsequent year, to specify the ratios based on figures of periodical reports on results of mineral exploitation activities in conformity with the actual situation to serve as a basis for declaration and payment of the environmental protection charge by charge payers in the subsequent period.

b/ For minerals which are being exploited: To specify the ratios based on figures of periodical reports on results of mineral exploitation activities of the preceding year in conformity with the actual situation to serve as a basis for declaration and payment of the environmental protection charge by charge payers in the subsequent period.

3. In case of recovery of coal mixed up with stripped and removed soil and rock, the payable amount of environmental protection charge shall be calculated according to the formula specified in Clause 1 of this Article.

In case coal mixed up with soil and rock is subject to screening, selection, classification and enrichment before sale, provincial-level Departments of Natural Resources and Environment shall, based on the actual situation of exploitation and processing technologies in their localities, assume the prime responsibility for, and coordinate with provincial-level of Tax Departments and relevant agencies in, proposing provincial-level People’s Committees to decide on the rate of conversion of the volume of finished minerals into the volume of crude minerals to serve as a basis for calculation of the environmental protection charge in conformity with local realities.

4. For minerals subject to salvage exploitation under Clause 3, Article 6 of this Decree:

a/ The determination of the payable charge amount must comply with Clauses 1 and 2 of this Article.

b/ In case the exploited mineral is subject to screening, selection, classification and enrichment before sale, provincial-level Departments of Natural Resources and Environment shall, based on the actual situation of exploitation and processing technologies in their localities, assume the prime responsibility for, and coordinate with provincial-level of Tax Departments and relevant agencies in, proposing provincial-level People’s Committees to decide on the rate of conversion of the volume of finished minerals into the volume of crude minerals to serve as a basis for calculation of the environmental protection charge in conformity with local realities.

5. For the case specified in Clause 3, Article 4 of this Decree, the payable charge amount = The purchased mineral volume x The charge rate applicable to each type of minerals.

Article 8. Charge declaration, payment, management and use

1. The declaration and payment of the environmental protection charge on mineral exploitation must comply with the law on tax administration.

2. The environmental protection charge on mineral exploitation (excluding crude oil, natural gas and coal seam gas) shall be wholly remitted to local budgets, and managed and used in accordance with the Law on the State Budget.

3. The environmental protection charge for crude oil, natural gas and coal seam gas shall be wholly remitted to the central budget, and managed and used in accordance with the Law on the State Budget.

Chapter III

IMPLEMENTATION PROVISIONS

Article 9. Organization of implementation

1. Provincial-level People’s Committees shall:

a/ Propose provincial-level People’s Councils, at the latest session, to promulgate resolutions on the rates and units of calculation of the environmental protection charge on mineral exploitation for application in their localities in accordance with Clause 4, Article 6 of this Decree.

b/ Direct provincial-level Departments of Natural Resources and Environment to provide information and documents about organizations and individuals licensed to exploit minerals in their localities to tax offices, and coordinating with the latter in strictly managing charge payers in accordance with this Decree.

2. Local tax offices shall:

a/ Manage the collection and payment of the environmental protection charge in accordance with the law on tax administration.

b/  Store and use figures and documents provided by mineral exploiters and other subjects under regulations.

c/ Coordinate with local natural resources and environment agencies in managing the collection of the environmental protection charge on mineral exploitation in accordance with this Decree and the law on tax administration.

d/ By April 30 every year at the latest, based on the calendar-year charge account-finalization dossier specified in the law on tax administration, tax offices where charge payers submit charge declaration dossiers shall forward to natural resources and environment agencies detailed information on the volume of  stripped and removed soil and rock and the volume of actually exploited crude minerals declared for payment of the environmental protection charge on mineral exploitation in a year with regard to each license for exploitation of minerals in their localities.

In case the account-finalization of the environmental protection charge on mineral exploitation is not made based on the calendar year, or in case of termination of  mineral exploitation contracts, termination of mineral procurement activities, change of enterprise ownership or transformation of enterprises, merger, consolidation, division, dissolution, bankruptcy, or termination of production and business: Tax offices shall forward the information thereon to natural resources and environment agencies within 45 days from the deadline for submission of charge account-finalization dossiers in accordance with the law on tax administration.

dd/ By April 30 every year at the latest, provincial-level Tax Departments shall summarize and publicize the amount of environmental protection charge on mineral exploitation that payers have paid in the preceding year on their portals and the portals of provincial-level People’s Committees.

3. Provincial-level Departments of Natural Resources and Environment shall  collate the volume of stripped and removed soil and rock and the volume of crude minerals actually exploited declared by charge payers against data available at the Departments with regard to each license; in case the volume declared by a charge payer is not conformable with reality or shows signs of violations, the concerned provincial-level Department of Natural Resources and Environment shall take professional measures to determine the volume of stripped and removed soil and rock and the volume of actually exploited crude minerals.

Within 30 working days after receiving the information from a tax office, in case the charge payer declares incorrectly the volume of stripped and removed soil and rock and the volume of actually exploited crude minerals, the concerned provincial-level Department of Natural Resources and Environment shall transfer the information to the tax office for handling in accordance with the Law on Tax Administration.

Article 10. Effect

1. This Decree takes effect on July 15, 2023, and replaces the Government’s Decree No. 164/2016/ND-CP of December 24, 2016, on the environmental protection charge on mineral exploitation.

2. From the effective date of this Decree, in case provincial-level People’s Councils have yet to promulgate new charge rates, the charge rates currently specified by provincial-level People’s Councils shall be applied; in case provincial-level People’s Committees have yet to promulgate the ratio of each type of crude minerals in the total volume of crude minerals containing many useful minerals and mineral substances, the ratios currently specified by provincial-level People’s Committees shall be applied. Provincial-level People’s Committees shall specify the ratio of each type of crude minerals in the total volume of crude minerals containing many useful minerals and mineral substances for application in their localities no later than the date on which provincial-level People’s Councils issue a resolution on the ratios and units of calculation of the environmental protection charge on mineral exploitation.

3. In the course of implementation of this Decree, in case the documents referred to in this Decree are amended, supplemented or replaced, the amending, supplementing or replacing documents shall prevail.

Article 11. Implementation responsibility

Ministers, heads of ministerial-level agencies, heads of government-attached agencies, chairpersons of provincial-level People’s Committees, and related organizations and individuals shall implement this Decree.-

On behalf of the Government
For the Prime Minister
Deputy Prime Minister
LE MINH KHAI

* The Appendix to this Decree is not translated.