Vietnam feasibility study - EITI

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II.1.2 Tax responsibilities
Tax is the main revenue of the state in mining activities. The following are some main taxes that the
mining company is obliged to pay to the state.
1. land, surface water taxes
Land is regulated as the common property of the people to for which the state is the representative
of the owner. Therefore, in mining activities, the company is liable for paying the taxes on the use of
land and surface water. Land and surface water tax in any particular location is provided for by the
Provincial People’s Committee based on the provisions of the Law on Land and land tax schedule
issued by MOF.
2. natural resources tax
The natural resources tax is the biggest tax revenue that the state receives from mining activities.
According to the Law on Natural Resource Taxes issued in 2009, the mining company is subjected to
tax rates ranging from 1- 40%. Table 5 below lists tax rates applicable to some minerals.
The Extractive Industries Transparency Initiative and the Implementation Perspective of Vietnam
table 6. schedule of tax rates applicable to some minerals
No Group, type of natural resources Tax rate (%)
I Metallic minerals
1 Iron, manganese 7-20
2 Titanium 7-20
3 Gold 9-25
4 Rare earth 12-25
II Non-metallic minerals
1 Land exploited for grading, work construction 3-10
2 Stone, excluding stone for calcinations and production of cement; pebble; sand, excluding sand
for producing glass
5-15
3 Granite, fire resistant clay 7-20
4 Anthracite coal covered in mines 4-20
5 Open anthracite coal 6-20
6 Lignite, fat coal 6-20
7 Other coals 4-20
III Crude oil 6-40
As the range of tax rates is rather wide, the MOF and Provincial People’s Committee shall provide
specific tax rates as well as tax prices of particular minerals applicable to specific mines based on the
exploitation conditions and investment policies of each location.
3. export and import tax
In exporting minerals, the extraction company is responsible for paying export taxes in accordance
with provisions of the Law on Exports and Imports issued in 2005. The Standing Committee of the
National Assembly issues resolutions on the group of taxable items and range of tax rates applicable
to each group. According to Resolution No. 295/2007/NQ-UBTVQH12, the range of tax rates applicable
to items of natural resources is from 0-40%. Depending on specific circumstances, MOF shall issue
guiding documents to tax rates applicable to products in line with domestic legal documents and
international commitments, especially to WTO, ASEAN, ASEAN - Japan, ASEAN - South Korea, ASEAN -
China and other bilateral and multilateral commitments. The specific tax rate shall be implemented in
accordance with provisions of Circular No. 216/2009/TT-BTC of MOF, dated 12 November 2009.