Declaration and payment of fees

1. Each entity performing mineral extraction activities must submit the fee declaration form to the tax agency where the declaration form of severance tax is submitted. The payer must also submit the fee declaration form to the tax agency, even though there is no environmental protection fee on mineral extraction arising in month. If a mineral purchasing agent pays environmental protection fees on behalf of a mineral extraction entity, that purchasing agent is responsible for submitting the fee declaration form to its supervisory tax agency. The fee declaration form must be submitted to the tax agency by the 20th day of the following month.

2. Environmental protection fees on mineral extraction shall be monthly declared and finalized on an annual basis. The statement of environmental protection fees on mineral extraction includes the annual statement and the statement at the time of termination of mineral extraction or mineral purchasing activities, or shutdown of business, or termination of the enterprise ownership transfer agreement, or enterprise restructuring.

3. Payers whose payable amount of fee is decided by competent agencies shall comply with regulations of the Law on tax management and its instructional documents.

4. Environmental protection fees on the extraction of crude oil, natural gas and coal gas shall be paid at Department of Taxation of province where the payer’s head office is located.

5. The environmental protection fees on mineral extraction shall be paid in Vietnamese dong (VND).

6. In addition to the foregoing provisions, the declaration, payment and statement of environmental protection fees on mineral extraction must be carried out in accordance with regulations of the law on tax management and its instructional documents.

Article 7. Application of environmental protection fees on full exploitation of minerals

1. The environmental protection fees on full exploitation of minerals shall be applied in the following cases:

a) Exploiting remaining minerals at waste dumps of mines of which decisions on closure of doors are available;

b) Entities that obtain business registration certificate and operate in lines of business other than mineral extraction acquiring minerals during their operation.

c) Environmental protection fees on full exploitation of minerals shall not apply in other cases beyond points a, b of this clause.

2. The environmental protection fees on full exploitation of minerals shall be calculated in compliance with regulations in Article 5 hereof.

Article 8. Management and use of environmental protection fees on mineral extraction

1. The entire environmental protection fees on mineral extraction, exclusive of the extraction of crude oil, natural gas and coal gas, shall be revenues of provincial government budget to support environmental protection and investment activities in that province where minerals have been extracted in compliance with regulations of the Law on environmental protection and the Law on state budget with the following particulars:

a) Preventing and mitigating negative impact on the environment at mineral extraction sites;

b) Dealing with environmental degradation or environmental pollution caused by mineral extraction activities;

c) Keeping hygiene, protecting and re-creating landscapes at mineral extraction sites;

d) Mineral extraction site mentioned in this clause includes the place where mineral extraction activities are taken place and areas influenced by such mineral extraction activities according to communal-level and district-level administrative divisions.

2. The entire environmental protection fees on the extraction of crude oil, natural gas and coal gas, shall be revenues of central government budget to support environmental protection and investment activities in compliance with regulations of the Law on environmental protection and the Law on state budget.

3. Each provincial-level People’s Committee shall request the People’s Council of same level to allocate funding from collected environmental protection fees for environmental protection activities at mineral extraction sites.

4. By the 31st day of March annually, each collector must announce the following information: the volume of extracted minerals, the volume of excavated soil/stone, and the sum of environmental protection fees paid by enterprises in the previous year on means of mass media such as local newspapers, local radio station, local television station, the collector’s website and in other suitable forms.