Vietnam’s Natural Resources Tax was adopted by the National Assembly on November 25, 2009, and came into effect on July 1, 2010. It adds to a growing list of taxes in Vietnam.
This law is further detailed through various implementing decrees and circulars issued by the government and the Ministry of Finance, such as Decree No. 50/2010/ND-CP and Circular No. 105/2010/TT-BTC.
These documents provide guidelines on tax rates, calculation methods, declaration procedures, and exemptions, ensuring comprehensive regulation of natural resource exploitation in Vietnam. This article summarises these key components of the law.
What is Vietnam’s Natural Resources Tax?
Vietnam’s Natural Resources Tax is a form of tax levied on organisations and individuals that exploit natural resources within the country’s territory. This tax applies to resources such as minerals, oil, gas, forest products, aquatic resources, and natural water, among others. The tax rate is based on the type and volume of the resource extracted and varies significantly depending on the resource’s economic value and environmental impact.
The tax is calculated using a formula that includes the volume of resources extracted, their taxable price, and the applicable tax rate. Companies and individuals engaged in the extraction process must file their tax declarations monthly and are responsible for accurate reporting and timely payments. This tax is aimed at encouraging sustainable use and conservation of natural resources while generating revenue for the state. Adjustments to tax rates and policies are periodically made to align with economic and environmental priorities.
See also: Mining in Vietnam: Industry Overview
Who does Vietnam’s Natural Resources Tax apply to?
Vietnam’s Natural Resources Tax applies to organisations and individuals engaged in the exploitation and use of natural resources within the country’s territory, including land, islands, internal waters, territorial waters, and the exclusive economic zone. This includes both domestic and foreign entities, such as state-owned enterprises, private companies, joint ventures, and individuals, who are involved in extracting resources like minerals, oil, gas, forest products, aquatic resources, and natural water.
Exemptions and reductions may apply to certain cases, such as resources used for scientific research, resource exploitation on a small scale for individual consumption, or those used in disaster relief and emergency situations. The scope of the tax is broad, aiming to ensure that those who benefit from the exploitation of natural resources contribute to the state’s revenue and support sustainable resource management.
What are Vietnam’s Natural Resources Tax rates?
The tax rates for Vietnam’s Natural Resources Tax vary depending on the type of resource being exploited. Below is a simplified table showing the general tax rates applicable to various natural resources:
| Resource Type | Tax Rate (%) |
| Crude Oil | 6 – 40 |
| Natural Gas and Coal Gas | 1 – 10 |
| Metallic Minerals | 5 – 35 |
| Non-Metallic Minerals | 1 – 30 |
| Forest Products | 1 – 35 |
| Aquatic Resources | 1 – 10 |
| Natural Water (excluding mineral water) | 1 – 5 |
| Natural Water for Hydropower Generation | 1 – 5 |
| Other Resources | 1 – 20 |
These rates can vary within the given range depending on the specific resource, its quality, and the environmental and economic considerations set by the government. The detailed rates for each resource type are provided in Resolution 084/2015/UBTVQH13. These are periodically adjusted to reflect changing conditions and policy priorities.
How is Vietnam’s Natural Resources Tax enforced?
Vietnam’s Natural Resources Tax is enforced through a structured regulatory framework overseen by the General Department of Taxation under the Ministry of Finance. The enforcement process involves several key steps:
Registration and Declaration: Entities involved in resource extraction must register with the tax authorities and declare the type and quantity of resources they plan to exploit. Monthly tax declarations must be filed, detailing the volume of resources extracted and the corresponding tax amount.
Tax Calculation and Payment: The tax is calculated based on the volume of resources extracted, their taxable price, and the applicable tax rate. Entities are required to make monthly payments based on their declarations. Late payments are subject to penalties.
Inspections and Audits: Tax authorities conduct regular inspections and audits to ensure compliance. This includes verifying the accuracy of tax declarations, monitoring extraction activities, and assessing whether entities are adhering to the rules.
Penalties for Non-Compliance: Entities that underreport, fail to declare, or do not pay their taxes are subject to penalties, which can include fines, additional taxes, or, in severe cases, suspension of their licences to operate.
Adjustments and Appeals: Taxpayers can request adjustments or file appeals if they believe there has been an error in their tax assessment. The authorities have established procedures to handle such cases.
This enforcement framework ensures that those exploiting natural resources are held accountable for their tax obligations, promoting both revenue generation and sustainable resource management.
FAQ
What is Vietnam’s Natural Resources Tax?
It’s a tax levied on organizations and individuals that exploit natural resources within Vietnam’s territory, including minerals, oil, gas, forest products, aquatic resources, and natural water. The tax rate varies based on the resource type and volume.
Who is required to pay Vietnam’s Natural Resources Tax?
The tax applies to both domestic and foreign entities involved in the exploitation and use of natural resources within Vietnam’s territory, including land, waters, and the exclusive economic zone. Exemptions may apply in specific cases like scientific research or small-scale individual use.
What are the general tax rate ranges for different natural resources in Vietnam?
Tax rates vary: Crude Oil (6-40%), Natural Gas and Coal Gas (1-10%), Metallic Minerals (5-35%), Non-Metallic Minerals (1-30%), Forest Products (1-35%), Aquatic Resources (1-10%), Natural Water (1-5%), Natural Water for Hydropower (1-5%), and Other Resources (1-20%). Specific rates are detailed in Resolution 084/2015/UBTVQH13.
How is Vietnam’s Natural Resources Tax calculated and enforced?
The tax is calculated based on the volume extracted, the taxable price, and the applicable rate. Entities must register, file monthly declarations, and make payments. Enforcement involves inspections, audits, and penalties for non-compliance, overseen by the General Department of Taxation.
Where can one find detailed information on specific Natural Resources Tax rates in Vietnam?
Detailed tax rates for each specific type of natural resource are provided in Resolution 084/2015/UBTVQH13.
Summary
Vietnam’s Natural Resources Tax is enforced through a regulatory system managed by the General Department of Taxation. Entities exploiting natural resources must register, declare their extraction volumes, and make monthly tax payments. The tax is calculated based on the type and volume of resources extracted and the applicable tax rate. Regular inspections and audits are conducted to ensure compliance, and penalties are imposed for non-compliance, such as fines or operational suspensions.
That said, Vietnam’s business environment is evolving rapidly and tax rates can change with little notice. With this in mind, for foreign mining industry professionals looking to enter the Vietnam market, the easiest way to keep track of these changes is by subscribing to the-shiv.
First published September 21, 2024. Last updated March 29, 2025.