Circular No. 152 2015 TT-BTC of the Ministry of Finance guiding the severance tax

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THE MINISTRY OF FINANCE

Circular No. 152/2015/TT-BTC dated October 02, 2015 of
the Ministry of Finance guiding the severance tax
Pursuant to the Law on Severance tax No. 45/2009/QH12 dated November 25,
2009;
Pursuant to the Law on Mineral No. 60/2010/QH12 dated November 17, 2010;
Pursuant to the Law on Tax administration No. 78/2006/QH11 dated November
29, 2006; the law No. 21/2012/QH13 dated November 20, 2012 on the
amendments to the law on tax administration
Pursuant to Resolution No. 712/2013/UBTVQH13 dated December 16, 2013 of
Standing Committee of the National Assembly on promulgation of severance
tax schedule;
Pursuant to the Law No. 71/2014/QH13 dated November 26, 2014 on
amendment to tax laws;
Pursuant to the Government's Decree No. 83/2013/ND-CP dated July 22, 2013
on guidelines for some Article of the Law on Tax administration and the law on
the amendments to the law on tax administration;
Pursuant to the Government's Decree No. dated May 14, 2013 on guidelines for
some Article of the Law on Severance tax;
Pursuant to the Government's Decree No. 12/2015/ND-CP dated February 12,
2015 on guidelines for the Law on amendments to tax laws and tax decrees;
Pursuant to the Government's Decree No. 215/2013/ND-CP dated December
23, 2013 defining the functions, tasks, entitlements and organizational structure
of the Ministry of Finance;
In consideration of opinions of the Ministry of Natural Resources and
Environment in Dispatch No. 2626/BTNMT-TC dated June 29, 2015;

At the request of the Director of the General Department of Taxation;
The Minister of Finance promulgates a Circular to provide guidance on
severance tax:
Chapter I
GENERAL PROVISIONS
Article 1. Scope of adjustment

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This Circular provides guidance on taxable items; taxpayers, basis for tax
calculation, exemption and reduction of severance tax, implementation of the
Government's Decree No. 50/2010/ND-CP dated May 14, 2010 (hereinafter
referred to as Decree No. 50/2010/ND-CP.
Other regulations of the Ministry of Finance shall apply to crude oil, natural
gas, and coal gas.
Article 2. Taxable items
The items subject to severance tax prescribed in this Circular are natural
resources within the land, islands, internal waters, territorial sea, contiguous
zones, exclusive economic zone, and continental shelves under the sovereignty
and jurisdiction of Socialist Republic of Vietnam, including:
1. Metallic minerals.
2. Non-metallic minerals.
3. Products of natural forests, including plants and other products of natural
forests other than animals, anise, cinnamon, cardamom planted by taxpayers
within the area of natural forests they are given to cultivate and protect.

4. Natural aquatic organisms, including marine animals and plants.
5. Natural water, including: surface water and groundwater other than natural
water used for agriculture, forestry, aquaculture, salt production, and seawater
used for cooling machines.
Seawater used for cooling machines mentioned in this Clause must comply with
regulations on environment, effectiveness of water recirculation, and technical
requirements certified by competent authorities. The act of causing pollution
when using seawater or using seawater without satisfying environmental
standards shall be dealt with in accordance with the Government's Decree No.
179/2013/ND-CP dated November 14, 2013, its instructional documents and/or
amendments and/or replacements (if any).
6. Natural bird’s nests other than those collected from construction of houses to
attract and raise natural swifts to collect their nest.
Bird’s nests collected from construction of houses to attract and raise natural
swifts to collect their nest must comply with Circular No. 35/2013/TTBNNPTNT dated July 22, 2013 of the Ministry of Agriculture and Rural
Development, its instructional documents and/or amendments and/or
replacements (if any).

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7. The Ministry of Finance shall cooperate with relevant Ministries and
agencies in reporting other natural resources to the Government.
Article 3. Taxpayers
Payers of severance tax (hereinafter referred to as taxpayers) are organizations
and individuals (hereinafter referred to as entities) that extract natural resources

subject to severance tax mentioned in Article 2 of this Circular. Taxpayers in
some particular cases:
1. For mineral extraction, taxpayers are the organizations and business
households granted the License for mineral extraction by competent authorities.
In case an organization is granted the license for mineral extraction and
permitted to cooperate with other organizations and individuals extracting
natural resources, and there are separate regulations on taxpayers, the taxpayers
shall be identified according to such regulations.
In case an organization is granted the license for mineral extraction and then
delegates its affiliates to carry out mineral extraction, each affiliate is a
taxpayer.
2. If a joint venture is established among resource-extracting enterprises, the
joint venture is the taxpayer;
In case a Vietnamese party and a foreign party participate in the same contract
for cooperation in resource extraction, the obligation to pay tax of each party
must be specified in the contract. Otherwise, all parties must declare and pay
severance tax or appoint a representative to pay severance tax.
3. In case an entity is awarded a construction contract and extracts a certain
amount of natural resources that is permitted by the authorities, or the
extraction/use of such natural resources is not contrary to regulations of law on
resource extraction, such entity must declare and pay severance tax to the local
tax authority in the area where natural resources are extracted.
4. Every entity using water from irrigation works for power generation is
taxpayer, regardless of sources of capital for the irrigation works.
In case the organization managing the irrigation work supplies water for other
entities to produce clean water or water for other purposes (other than power
generation), the organization managing the irrigation work supplies water is the
taxpayer.
5. In case natural resources that are banned from extraction or illegally
extracted are confiscated, subject to severance tax, and permitted to be sold, the

organization assigned to sell such natural resources shall pay severance tax

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whenever it is incurred to its supervisory tax authority before retaining the cost
of arrest, auction, reward.
Chapter II
BASIS FOR CALCULATION OF SEVERANCE TAX
Article 4. Basis for tax calculation
1. The basis for calculation of severance tax is the taxable extraction quantity of
natural resources, unit price, and tax rate.
2. Severance tax payable in the period
Severance tax payable in the period
In case an authority imposes a certain amount of severance tax on a unit of
natural resources extracted, severance tax is calculated as follows:
Severance tax
payable in the
period

=

Taxable extraction
quantity

x

Severance tax on
a unit of natural
resources
extracted

Imposition of severance tax must be based on the database of tax authorities and
conform to regulations on tax imposition.
Article 5. Taxable extraction quantity
1. If the quantity or weight of natural resources extracted is determinable,
taxable extraction quantity is the actual quantity or weight of natural resources
extracted in the tax period.
If the natural resource-derived products obtained are of different classes,
quality, and commercial value, taxable extraction quantity is determined
according to the extraction quantity of each resource having the same class,
quality, and commercial value, or their quantities will be converted to the
resource having the highest sales in order to determine the taxable extraction
quantity of all natural resources in the period.
Example 1: Enterprise A extract stones after blasting. The stones extracted are
of various sizes. They will be sorted by class and quality to determine taxable
extraction quantity of each type. In case enterprise A sells part of the stones and
grind the remainders into smaller stones of different sizes, taxable extraction
quantity is calculated by converting the quantities of stones of different sizes to
the one having the highest sales. Enterprise A shall declare and pay tax on the
quantity of stones extracted according to the selling price.

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2. If the quantity or weight of natural resources is not determinable because
they contain various substances or impurities, and natural resources are sold
after screening and classification, taxable extraction quantity is calculated as
follows:
a) If the substances can be separated, the taxable extraction quantity is
determined according to the quantity, weight of the natural resources or each
substance obtained after screening and classification.
In case earth, stones, wastes, dregs collected after screening are sold, severance
tax on the quantity of natural resources in the wastes, dregs sold shall be paid at
corresponding severance tax rates.
Example 2: in case coal extracted from the mine contains impurities, earth,
stones, and has to be screened and classified before being sold, the taxable
extraction quantity is the quantity of coal that has been screened and classified.
In case the wastes sold contains coal and other natural resources, severance
tax shall be charged upon taxable natural resources in the wastes at actual
selling price and corresponding tax rates.
Example 3: After extracted iron ore is screened, they collected 2 kg of gold
nuggets and 100 tons of iron ore. Severance tax shall be charged on the
quantity of gold nuggets and iron ore obtained. Quantities of other natural
resources serving the process of mineral extraction, such as water for
screening, will also be determined to calculate tax.
b) If the ore extracted contain various substances (polymetallic ore) and the
quantity of each substance cannot be determined after screening and
classification, the taxable extraction quantity of each substance depends on the
actual quantity of extracted ore and ratio of each substance in the ore. The ratio
of each substance in the ore is determined according to the ore sample inspected
and approved by competent authorities. In case the ratio of each substance in

the ore is different than the ore sample, the taxable extraction quantity will
depend on the analysis result given by a competent authority.
Example 4: Enterprise B extracts 1000 tons of ore in the month which contains
various substances. According to the mining license and substance ratio in the
ore sample approved by National Reserve Evaluation Council: copper ore:
60%; silver ore: 0.2%; tin ore: 0.5%.
Taxable quantity of each substance:
- Copper ore: 1,000 tones x 60% = 600 tons.
- Silver ore: 1,000 tones x 0.2% = 2 tons.

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- Tin ore: 1,000 tones x 0.5% = 5 tons.
Severance tax shall be calculated according to the unit price and quantity of
each substance in the ore.
3. If extracted natural resources are used for further manufacturing and
processing instead of being sold, taxable extraction quantity is calculated as
follows:
If extracted natural resources are used for further manufacturing and processing
instead of being sold, taxable extraction quantity is determined according to
quantity of products manufactured in the period and amount of natural
resources in a unit of products. Amount of natural resources in a unit shall be
declared by the taxpayer according to the project approved by a competent
authority and applied technologies. To be specific:
- If the products sold are natural resource-derived products, the amount of

natural resources in a unit of natural resource-derived products product shall
apply.
- If the products sold are industrial, the amount of natural resources in a unit of
industrial products shall apply.
Whether products sold after processing are industrial products or not shall be
decided by relevant Ministries.
Example 5: Enterprise A grinds part of the stones for manufacturing of cement
for sale. If the quantity of stones used for manufacturing of cement cannot be
determined, it will be converted from the production of cement from extracted
stones. In this case, enterprise A shall determine its own norms and technical
process.
Example 6: Enterprise C extracts 10 tons of apatite which consists of 2 tons of
apatite 1, 3 tons of apatite 2, and 5 tons of apatite 3. Apatite 1 and apatite 2 are
sold, and apatite 3 are used for processing into apatite 1 for sale. Taxable
extraction quantity:
- 5 tons of apatite 1 and apatite 2;
- Extraction quantity of apatite 1 obtained from the processing of apatite 3.
Example 7: Part of the polymetallic ore extracted by enterprise D is sold as is
in Vietnam. The remainder is refined for export. Taxable extraction quantity is
calculated as follows:
- Taxable extraction quantity of each substance in the ore being sold in Vietnam
is calculated according to on the ratio of each substance in the polymetallic ore

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approved by National Reserve Evaluation Council and the analyzed ore
sample.
- Export quantity: If refined natural resources for export are identified as
industrial products by a competent authority, taxable extraction quantity of
natural resources is determined according to the ratio of each substance in the
polymetallic ore approved by National Reserve Evaluation Council, the
analyzed ore sample, and amount of natural resources in a unit of products
declared by enterprise D according to its technology process.
4. With regard to natural water used for hydropower generation, taxable
extraction quantity of natural resources is the amount of electricity sold by the
generating facility to the buyer under a electricity sale contract (or transmitted
electricity if there is not electricity sale contract) according to a measurement
system that meet Vietnam’s measurement standards. This amount must be
confirmed by the buyer and the seller.
5. For natural mineral water, natural hot water, bottled/boxed purified natural
water, natural water used for production/business, taxable extraction quantity of
natural resources shall be expressed as cubic meter (m3) or liter (l) according to
the measurement system that meet Vietnam’s quality measurement standards.
The taxpayer must install meters for monitoring extraction quantity of natural
mineral water, natural hot water, and natural water extracted as the basis for tax
calculation. The installed meters must have certificates of inspection by
Vietnam’s quality measurement standard authorities. A notification of installed
meters must be enclosed with the next declaration of severance tax.
If the meters cannot be installed because of objective reasons and thus taxable
manufacture cannot be determined, a flat extraction quantity shall be imposed.
The tax authority shall cooperate with relevant agencies in determining flat
extraction quantity to calculate severance tax in accordance with this Circular.
6. Mechanism for cooperation between tax authorities, resources and
environment authorities in management of local resource extraction: According
to taxpayers’ declarations of actual extraction quantity in the year at each mine

in the statement submitted together with the annual declaration of severance tax
at the end of the fiscal year, within 05 working days, the tax authority shall send
information about actual extraction quantity in the year at each mine to the
resources and environment authority. The resources and environment authority
shall compare the extraction quantity at each mine declared by taxpayers with
its data. If they are not consistent or violations are suspected, the resources and
environment authority shall take actions to determine the actual extraction
quantity.

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Within 07 working days from the receipt of information sent by the tax
authority, the resources and environment authority shall send information to the
tax authority for processing as prescribed by the Law on Tax administration.
7. If there are local enterprises that extract, export natural resource-derived
products, the tax authority shall determine the actual quantity of exported
natural resource-derived products under the mechanism for information
exchange in Decision No. QD/BTC dated March 30, 2015 of the Ministry of
Finance to calculate the quantity of natural resource-derived products and
compare with the extraction quantity on the annual declarations of severance
tax submitted by the enterprises. If the taxable extraction quantity declared by
the enterprise is inconsistent, the tax authority shall carry out inspection as
prescribed by the Law on Tax administration to collect severance tax arrears
and impose penalties as prescribed.
Undeclared extraction quantity shall incur severance tax at the rate and taxable

price applicable at the time of extraction; If the time of extraction cannot be
determined, the tax rate and taxable price prescribed by law at the end of the
year in which natural resources are extracted shall apply.
Article 6. Taxable prices of natural resources
Taxable price of a natural resource is the selling price of a unit of natural
resource-derived products imposed by the extracting entity exclusive of VAT.
This price must not fall below the taxable price imposed by the People’s
Committee of the province. Otherwise, the taxable price imposed by the
People’s Committee of the province shall apply.
If the cost of transport of natural resource-derived products and selling price are
written on separate invoices, the taxable price is the selling price exclusive of
transport cost.
1. With regard to natural resources of which unit prices of natural resourcederived products can be determined
Taxable price is the selling price of a unit of natural resource-derived products
of the same class and quality exclusive of VAT and extracted within the month;
Selling price of a unit of natural resource equals (=) total revenue (exclusive of
VAT) from the sale of the resource divided by (:) total quantity of the same
resource sold in the month.
If no revenue is earned though the natural resource still extracted in the month,
taxable price is the weighted mean of taxable unit price of the latest month in
which revenue is earned. If the weighted mean of taxable unit price of the latest
month in which revenue is earned is lower than the taxable price imposed by

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the People’s Committee of the province, the taxable price imposed by the
People’s Committee of the province shall apply.
In case organizations being legal entities extract natural resources for a
corporation/conglomerate under contracts, or sell natural resources at prices
decided by such corporation/conglomerate, the taxable prices shall be decided
by the corporation/conglomerate but not lower than the prices imposed by the
People’s Committee of the province where natural resources are extracted.
2. With regard to any natural resource of which unit price is not determined
because it contains various substances
Taxable price is the selling price of each substance according to the total
revenue from selling the resource in the month (exclusive of VAT), ratio of each
substance approved by a competent authority, and sale of resources on the sale
invoices corresponding to each substance.
Example 8: Enterprise E extracts 1,000 tons of ore, the ratio of each substance
in the analyzed ore sample is: copper: 60%; silver: 0.2%; tin: 0.5%.
Taxable extraction quantity of each substance:
- Copper: 1,000 tons x 60% = 600 tons.
- Silver: 1,000 tones x 0.2% = 2 tons.
- Tin: 1,000 tones x 0.5% = 5 tons.
In the month, enterprise E sells 600 tons of ore for VND 900 million. Taxable
price of each substance in the ore is determined as follows:
- Revenue from the sale of copper in the month: VND 900 million x 60% =
VND 540 million
- Taxable price of copper: VND 540 million/360 tons
- When declaring and paying severance tax, the taxpayer shall pay tax on 600
tons of copper ore at the aforesaid taxable price and corresponding tax rate.
The taxable prices of silver and tin in 1,000 tons of ore extracted in the month
are calculated similarly.
3. With regard to resources that have to be processed before being sold (whether
domestically or exported)

a) When selling natural resource-derived products, taxable price is the unit price
of natural resource-derived products (when sold domestically) according to the
sale of natural resources on the sale invoices or customs value of exported
natural resource-derived products (when exported) exclusive of export tax on

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the quantity of export natural resources according to export documents but not
lower than the taxable price imposed by the People’s Committee of the
province.
Customs values of exported natural resource-derived products shall comply
with regulations on customs values of exported goods of the Law on Customs,
its instructional documents, and amendments (if any).
b) When selling industrial products, taxable price equals (=) selling price of the
industrial products minus (-) processing cost but not lower than the taxable
price imposed by the People’s Committee of the province.
Processing cost depends on the processing technologies of the enterprise
according to an approved project exclusive of the costs of extraction, screening,
enrichment.
c) If the taxable price determined by the taxpayer is lower than that imposed by
the People’s Committee of the province, the latte shall apply. If the product is
not on the price list of the People’s Committee of the province, the tax authority
shall cooperate with relevant agencies in inspecting and imposing tax according
to regulations of law on tax administration.
d) When extracted natural resources are processed into natural resource-derived

products, taxable prices shall be applied on a case-by-case basis as prescribed
by this Article.
Example 9: During the refinement of ore, they obtain 0.05 tons of copper ore
from 01 tons of cast iron. The selling price of copper ore is VND
8,500,000/tons, thus taxable price of 0.05 tons of copper ore is VND 8,500,000.
If copper ore is processed into industrial products, taxable price equals (=) the
selling price of industrial products minus (-) processing cost at the rate
imposed by the People’s Committee of the province to calculate severance tax
on the quantity of copper ore processed.
4. Taxable prices in some cases:
a) Taxable price of natural water used for hydroelectricity generation is the
average selling price of electricity.
Average selling price of electricity for hydroelectricity producers to calculate
severance tax shall be announced by the Ministry of Finance.
b) Taxable price of timber is the selling price at the depot (where timber is
stored or extracted). If this price cannot be determined, taxable price depends
on the taxable prices imposed by the People’s Committee of the province as
instructed in Clause 6 of this Article.

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c) For natural mineral water, natural hot water, bottled/boxed purified natural
water, natural water used for production/business that are not for sale, taxable
prices shall be imposed by the People’s Committee of the province under the
rules prescribed in Clause 5 of this Article.

dd) Tax authority shall inspect and impose taxes upon entities extracting natural
resources that do not fully comply with regulations on bookkeeping. In this
case, taxable extraction quantity shall depend on the inspection result; taxable
prices are those imposed by the People’s Committee of the province in that
period.
5. The People’s Committees of provinces shall issue a new taxable price
schedule annually as follows:
5.1. The taxable price schedule shall contain information as the basis for
determination of severance tax on extraction of natural resources in the
province in accordance with policies and law, including: norms for use of
natural resources as the basis for conversion from natural resource-derived
products or industrial products into quantity of extracted natural resources in the
natural resource-derived products and industrial products; corresponding
taxable prices of extracted natural resources and natural resource-derived
products, where:
a) Norms for use of natural resources as the basis for conversion from natural
resource-derived products or industrial products into quantity of extracted
natural resources in the natural resource-derived products and industrial
products of enterprises in the province are determined according to the
enterprises’ declaration and must be consistent with the reports made by other
agencies and organizations in terms of content, quality, extraction quantity,
extraction methods, and ratio of obtainment in the province where natural
resources are extracted;
b) Taxable prices on the price list are prices for extracted natural resources and
natural resource-derived products corresponding to properties of natural
resources and natural resource-derived products extracted, processed by
enterprises in the province, determined according to documents, sale contracts
of enterprises/organizations in the province in terms of quality and quantity of
each type of natural resources, prices of natural resource-derived products on
the local market and adjacent markets, except for the case mentioned in Point c

Clause 5 of this Article.
c) Taxable prices of extracted natural resources used for further production and
processing instead of being sold are calculated as follows:

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c1) For resources used for further production or processing into natural
resource-derived products, taxable prices are selling prices of natural resourcederived products exclusive of VAT (if sold domestically) or customs value
exclusive of export duty (if exported);
c2) For resources used for further production or processing into industrial
products for domestic sale or export, taxable prices are selling prices (if sold
domestically) or customs value (if exported) of industrial products minus (-)
export duty (if any) and processing cost.
Processing cost mentioned in c.2 shall comply with instructions of relevant
Ministries, the Ministry of Finance, and determined by the Department of
Finance of the province in cooperation with tax authorities, resources and
environment authorities, relevant specialized agencies, then submitted to the
People’s Committee of the province for approval according to the processing
technologies under approved projects and business outcomes of the enterprises
extracting, processing natural resources in the province, but do not include the
costs of extraction, screening, enrichment.
5.2. Taxable prices imposed by the People’s Committees of provinces must
conform to the bracket of taxable prices promulgated by the Ministry of
Finance.
5.3. The agencies appointed by the People’s Committee of the province shall

cooperate with relevant agencies in proposing the taxable price schedule to the
People’s Committee of the province by December 31 for announcement on
January 01 of the succeeding year. In the year, if the selling price of a type or
resource fluctuates beyond the bracket of the Ministry of Finance, the Ministry
of Finance must be notified to make prompt adjustments.
5.4. Tax authorities assigned to collect severance tax shall post the taxable price
schedule at their offices and send it to General Department of Taxation for
developing a database about taxable prices.
Article 7. Tax rate
1. The rates of severance tax on each type of resource extracted are specified on
the severance tax schedule promulgated together with Resolution No.
712/2013/UBTVQH13 dated December 16, 2013 of Standing Committee of the
National Assembly and its amendments (if any).
2. Tax rates on natural mineral water, natural hot water, bottled/boxed purified
natural water, extracted natural water in some cases:

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a) Natural mineral water, natural hot water, bottled purified natural water
(including natural water in big bottles or tanks that can be divided into smaller
bottles/boxes) apply the same rate of severance tax;
b) Natural water used for hydroelectricity generation, business/production that
contains natural mineral water or natural hot water that, according to documents
about design and technological process of production/service provision, have
been determined by competent authorities as not used for producing/selling

natural mineral water, natural hot water, bottled/boxed purified natural water,
corresponding rates of severance tax shall apply according to their uses.
Chapter III
REGISTRATION, DECLARATION, PAYMENT OF SEVERANCE TAX
Article 8. Registration, declaration, payment of severance tax
Registration, declaration, payment of severance tax shall comply with the Law
on Tax administration, its instructional documents and amendments (if any).
Apart from general regulations, declaration, payment of severance tax on
mineral extraction must also comply with Article 9 of this Circular.
Article 9. Declaration of severance tax on mineral extraction
1. Organizations and business households extracting natural resources shall
send a notification to tax authorities of their methods of determining taxable
prices of each type of resource extracted together with the declaration of
severance tax of the first month in which natural resources are extracted. If the
method is changed, the supervisory tax authority must be notified within the
month in which the change is made.
2. Taxpayers shall make monthly declaration of tax on the entire extraction
quantity in the month (regardless of quantity in stock and undergoing
processing).
3. When making the annual/terminal declaration, the taxpayer must enclose a
list of specific extraction quantities in the year at each mine with the
declaration. Severance tax depends on the tax rate, extraction quantity, and
taxable price. To be specific:
a) Taxable extraction quantity is the total quantity of natural resources extracted
in the year, regardless of quantity in stock and undergoing processing.
If the sale quantity includes both natural resource-derived products and
industrial products, the quantity of resources in natural resource-derived
products and industrial products must be converted into extraction quantity

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according to the norms for use of natural resources determined by taxpayers
themselves.
b) Taxable price is the average selling price of a unit of natural resource-derived
products, which equals (=) total revenue from the sale of resources divided by
(:) quantity of resources sold in the year.
Chapter IV
EXEMPTION AND REDUCTION OF SEVERANCE TAX
Article 10. Severance tax exemption
The cases of exemption from severance tax are specified in Article 9 of the Law
on severance tax and Article 6 of Decree No. 50/2010/ND-CP, including:
1. Entities extracting natural marine organisms.
2. Entities extracting branches, firewood, bamboo, rattan, etc. serving everyday
life.
3. Entities extracting natural water for hydroelectricity generation serving
everyday life of households and individuals.
4. Natural water extracted by households and individuals serving their everyday
life.
5. Land areas given/leased out to organizations and individuals and used on the
spot; earth used for leveling, construction of security, military works, dykes.
Earth extracted and used on the spot eligible for tax exemption include sand,
rock, gravel in the earth without specific substances and is used as is for
leveling or construction. If earth is transport elsewhere for use or for sale,
severance tax must be paid as prescribed.
6. The Ministry of Finance shall cooperate with relevant Ministries and

agencies in proposing other cases of exemption from severance tax to the
government, which will be considered and decided by Standing Committee of
the National Assembly.
Article 11. Reduction of severance tax
The cases of reduction of severance tax are specified in Article 9 of the Law on
severance tax and Article 6 of Decree No. 50/2010/ND-CP, including:
1. Taxpayers who suffer from a natural disaster, conflagration, or accident that
inflicts damage the declared resources may be given exemption or reduction of
severance tax on the amount of damaged resources. If tax has been paid,

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taxpayers shall receive a refund or have it offset against severance tax payable
in the next period.
2. The Ministry of Finance shall cooperate with relevant Ministries and
agencies in proposing other cases of severance tax reduction to the government,
which will be considered and decided by Standing Committee of the National
Assembly.
Article 12. Procedures for exemption, reduction of severance tax
Procedures for exemption, reduction of severance tax, the power to grant
exemption, reduction of severance tax shall comply with the Law on Tax
administration, the law on the amendments to the law on tax administration, and
their instructional documents.
Chapter V
IMPLEMENTATION ORGANIZATION

Article 13. Implementation organization
1. The People’s Committees of provinces shall:
a) Direct Departments of Finance to cooperate with Departments of Natural
Resources and Environment and Departments of Taxation in formulating their
taxable price schedules; regularly review and adjust the schedules to market
developments.
b) Direct tax, finance, resources and environment authorities, State Treasuries,
and relevant agencies to cooperate in severance tax administration as instructed
by this Circular.
2. This Circular takes effect on November 20, 2015 and replaces Circular No.
105/2010/TT-BTC dated July 23, 2010 of the Ministry of Finance.
Any difficulties arising in the course of implementation of this Circular shall be
reported to the Ministry of Finance for consideration./.
For the Minister
The Deputy Minister
Do Hoang Anh Tuan

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