Article 4
In the case product sharing by
the parties to a joint venture enterprise comprised of a foreign party and a
Vietnamese party, or a contractual business co-operation, the joint venture
enterprise or foreign party shall pay royalties as specified in the joint
venture contract or business co-operation contract approved by the State
Committee for Co-operation and Investment in proportion to the amount of
products shared by the Vietnamese party. Where the exploited products are
shared, the Vietnamese party shall be liable to pay all amounts of royalties in
respect of its share to the State Revenue in accordance with the provisions
determined by the Ministry of Finance.
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Article 5
The basis upon which the amount
of royalties is to be paid shall be calculated shall be the quantity of
resources exploited, the taxable value of a unit of production and the
particular royalty rate to be levied on the taxable value of the resources
exploited.
Article 6
The quantity of resources
exploited to be used in the calculation of royalties shall be the output
(weight, volume) of each type of resource periodically exploited (month, term,
year), regardless of whether it has been sold.
Article 7
The taxable value of a unit of
production to be used in the calculation of royalties shall be the actual sale
price of unprocessed resources as exploited by the organization or individuals
concerned.
1. Where the resources are
distributed within the Vietnam
market including sales for the purposes of domestic consumption or to an
organization for export, the price for tax calculation shall be the actual
price charged for the crude resources at the time of calculation of royalties.
2. Where the resources are
directly exported by the exploiting organization, the price for tax calculation
shall be the average sale price in foreign currency under the terms of
contracts of sale of like goods at the frontier port of Vietnam
(FOB) at the time of calculation of royalties.
3. Where no sale price as
referred to in sub-clauses 1 and 2 of this article is available in respect of
unprocessed resources exploited, (due to lack of processing or the presence of
various substances) the Ministry of Finance shall, in conjunction with the
ministries in charge, decide the taxable value to be applied to each type of
resource.
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The royalty rate to be levied in
respect of each type of resource depends upon the quality of the resources
concerned, the conditions of their exploitation and transportation and all
other considerations of international practice and policy in the international
market.
The royalty rates to be applied
in respect of each group of resources shall be those specified in the following
tariff:
Groups
of resources
Tax
rate (%)
I.
Metals/minerals
2
- 10
1.
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2
- 8
2.
Non-ferrous minerals
3
- 10
3.
Rare metal minerals (wolfram,
tin, antimony)
5
- 10
In particular: gold
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II.
Coal
1
- 5
In particular: brown coal, fat
(cannel) coal
1
- 10
III.
Oil, gas
6
- 20
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Oil
10
- 20
2.
Gas
6
- 10
IV.
Non-metal minerals
1
- 12
1.
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3
- 12
2.
High grade building materials
2
- 8
3.
Standard grade building
materials
1
- 3
4.
Gemstones
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5.
Other non-metal minerals
1
- 5
V.
Products of natural forests
10
- 40
In particular: group 1 timber
5
- 40
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Special products:
pharmaceutical materials
20
- 40
(such as sandalwood,
aquilegia, ammonium, cinnamon)
Forest
animals and birds
15
– 40
VI.
Natural marine products
In particular:
Salangane's nests,
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5
- 10
VII.
Other resources
1
- 10
Additional royalties shall be
imposed in respect of rare and precious metals which have a high value and in
respect of which there are favorable conditions for mining.
Article 9
The Ministry of Finance shall be
responsible for collaborating with the relevant ministries and giving all
assistance necessary to enforce the rates in the tariff contained in article 8.
III. DECLARATION AND PAYMENT
OF ROYALTIES
Article 10
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The Ministry of Finance shall be
responsible for making detailed provisions for declaration, registration and
payment of royalties.
Article 11
All organizations which, and
individuals who, engage in the exploitation of natural resources shall strictly
comply with the standards of the books of account required in accordance with
the provisions of the Ordinance on Accounting and Statistics dated 10 May 1988
in relation to accounting procedures, and with the regulations for making
orders for and invoices of goods and receipts according to the provisions in
force at the time.
Article 12
All royalties collected shall be
transferred to the State Treasury which shall allocate them to the local budget
in accordance with the stipulations of the resolution of the Council of
Ministers on the delegation of management of the budget to the localities.
Article 13
State tax offices shall perform
the duties provided for in articles 10 and 11 of the Ordinance on Royalties.
IV. REDUCTION OF ROYALTIES
Article 14
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1. Where a domestic organization
or individual has shortly, after commencing exploitation of resources, suffered
losses caused by natural disasters or war.
The applicable period for, and
amount of, all reductions of royalties shall depend upon the period of time
during which exploitation has taken place, the degree of difficulty which has
been encountered and its effect on the results of the business of the
organization or individual concerned. The maximum period for which royalties
may be reduced shall not exceed three years from the date of commencement of
the exploitation. The amount of reduction shall not exceed 50% of the total
amount of royalties otherwise payable in the first year, 40% in the second year
and 30% thereafter.
2. Where a domestic organization
or individual exploits resources which remain in areas where mining has ceased,
it or he may be granted a reduction not exceeding 50% of the total amount of
royalties otherwise payable, in respect of those resources.
Article 15
The Ministry of Finance shall be
responsible for determining the matters to be considered in applications for a
reduction of royalties and the degree of reduction to be permitted in
accordance with the provisions contained in article 12 of the Ordinance on
Royalties.
V. IMPLEMENTATION
Article 16
This Decree shall be of full
force and effect as of the date of its signing. All the provisions previously
enacted which are inconsistent with this Ordinance are hereby repealed.
Article 17
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Article 18
Ministers, chairmen of State
Committees, heads of other bodies of the Council of Ministers, chairmen of the
people's committees of the provinces, cities, and special zones under central
authority shall, within their functions, powers and duties organize the
implementation and control of compliance with the provisions of the Ordinance
on Royalties.
FOR
THE COUNCIL OF MINISTERS
VICE CHAIRMAN
Vo Van Kiet