Where production and business establishments purchase sand materials, land for leveling works (with sale and purchase contracts and legal value-added invoices) to perform construction bidding packages, they are not liable to pay tax. original.

The CRSD Project Management Board of Phu Yen Province awarded the contract to the winning contractor, the volume of the package with the level of work ground leveling. According to the construction drawing design documents and bidding documents, the investor only allows the soil and sand mine to be exploited by the construction contractor to serve the leveling and installation of the bidding package (the approved estimate is calculated for the unit price only for excavation, installation, transportation; no cost of leveling materials), the contractor must have responsibility and obligation to pay mineral tax and environmental protection fee according to regulations.

But in fact, during the construction process, the investor is not only allowed to build the mine for the contractor to construct and to complete the contract, so the contractor has to pay the cost of buying sand and land on leveling and completing the project. .

Through the receiving and responding system to the recommendations of businesses, CRSD Project Management Board of Phu Yen Province would like to ask, the contractor spent money to buy sand materials, land to level the works (with sale contracts and invoices full value added) is the contractor responsible for demonstrating obligations to pay mineral taxes and environmental protection fees?

When finalizing the completion of works, the Department of Finance requires the contractor to prove that they have fulfilled the obligation to pay mineral resources tax and environmental protection fee before the final settlement of the work is done properly (the contractor exam. The company does not exploit the mining industry because the investor does not assign the mine to the contractor.The unit price offered for the ground leveling work is only for excavation, embankment and transportation and is the general unit price, without unit price quotation. detail)?

Regarding this issue, The General Department of Taxation - The Ministry of Finance gives the following opinions:

In Clause 1, Article 3 of the Law on natural resources tax: stipulates "The natural resource taxpayer is an organization or individual exploiting natural resources subject to natural resource tax".

In Article 2 of the Government's Decree No. 164/2016 / ND-CP dated December 24, 2016 on environmental protection fees for mineral extraction, stipulates:

“Article 2. Subjects of application

This Decree applies to organizations and individuals engaged in mineral extraction, State agencies and related organizations and individuals in the management and collection of environmental protection charges for mineral exploitation. ".

In Clause 1, Article 6 of the Decree No. 164/2016 / ND-CP above stipulates:

"First. Organizations and individuals exploiting minerals must submit environmental protection charge declaration dossiers to the supervisory tax office of the same place where natural resource tax declaration and payment is made. In case there is no environmental protection fee for mineral extraction in a month, the charge payer still has to declare and submit the fee payment declaration with the tax agency. In case the organization collecting and purchasing minerals must register for payment on behalf of the miner, such organization shall submit an environmental protection charge declaration dossier to the tax agency managing the mineral purchasing establishment. The deadline for declaring the environmental protection fee to the tax authority is the 20th of the following month ”.

Based on the above provisions, in case the production and business establishment buys sand and land materials for leveling works (with sale and purchase contracts and legal value-added invoices) to execute the construction bidding package, not subject to royalty payment.

In case the production and business establishment does not organize the collection of sand and land and must register for payment on behalf of the miner as prescribed in Clause 1, Article 6 of Decree No. 164/2016 / ND-CP above, then no declaration is required. pay the environmental protection fee to the tax agency that manages the facility that purchases sand and land materials for execution of the bidding package.

The General Department of Taxation notifies the unit for information, contact the Tax Department of Phu Yen Province for instructions on implementation.