(Chinhphu.vn) - Through the receiving and answering system of businesses' recommendations, the An Khanh Mineral Joint Stock Company (in Thai Nguyen Province) would  like to request competent agencies to guide how to calculate natural resource tax for stone exploitation and construction materials production.

Currently, the process of quarrying of the An Khanh Mineral Joint Stock Company is applying as follows:

After the blasting process, it will be obtained from the pebble stone products (original stone that has not been processed, smashed, sifted, crushed into macadam of different glasses). The company has sold a part of the output of pebble stone to the outside, the remaining pebble stone is smashed, crushed, sifted into different sized cups for sale to customers on demand.

The company is implementing the declaration of payable natural resource tax as follows:

- Performing monthly natural resource tax declaration.

- Taxable output: Is the output of freestone (stone after blasting).

- Price for calculating natural resources tax: Applying taxable price according to the selling price of freestone products, but it is not lower than the selling price prescribed by the Thai Nguyen Provincial People's Committee.

The An Khanh Mineral Joint Stock Company would like to ask, does the Company do so in accordance with the State's regulations on calculating natural resources tax? When settling natural resources tax, how does the company determine the price for calculating natural resources

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

Article 5 of the Law on Natural Resource Tax stipulates:

"Article 5. Natural resource output for tax calculation

1. For exploited natural resources, which are quantified, weight or volume, the natural resource output for tax calculation is the quantity, weight or volume of natural resources actually exploited in the tax calculation period.

2. For exploited natural resources which have not yet been determined in terms of quantity, weight or actual exploited volume due to various substances and impurities, the taxable natural resource output shall be determined according to the quantity, weight or weight of each substance obtained after screening, classification.

3. For exploited natural resources which are not sold but put into production of other products, if the quantity, weight or actual volume cannot be directly determined, the natural resource output for tax calculation shall be determined on the basis of output of products produced in the tax calculation period and resource use norm calculated on a product unit ...

In Clause 1, Clause 3, Article 5 of the Circular No. 152/2015 / TT-BTC dated October 2, 2015 of the Ministry of Finance guiding the natural resource tax as follows:

"First. For types of exploited natural resources, which are quantified, weight or volume, the natural resource output for tax calculation is the quantity, weight or volume of natural resources actually exploited in the tax calculation period.

In case the exploited natural resources acquire natural resources of different levels, quality and commercial values, the taxable natural resource output shall be determined according to the output of each type of natural resource of the same level and quality. The trade value is the same or the output of the type of resource with the largest output is used as a basis for determining the taxable output for the entire output of exploited natural resources in the period.

Example 1: Enterprise A exploits stones after blasting, exploiting and exploiting reefs, macadam of different glasses shall be classified according to each grade and quality of each type of stone collected to determine the calculated stone outputtax of each type.

In case, enterprise A sells part of the remaining stone output, the number of remaining stones and macadam is put into the dam, crushed into macadam of different sizes (cups), the taxable output is determined. By regulation from the size of stone production (glass), the output of stone has the largest output to determine the actual output of stone to calculate natural resource tax.

Enterprise A shall declare and pay taxes on the exploited stone output at corresponding selling prices ...

3. For exploited natural resources which must not be sold but must be sold through new production or processing (domestic consumption or export), the taxable natural resource output shall be determined as follows:

For exploitation resources that are not sold but must be sold through new production or processing (domestic consumption or export), the taxable resource output is the exploited resource output determined by conversion from the output of products produced in the period to be sold according to the resource use norms calculated on a product unit. The resource use norm calculated on a unit of product shall be declared by the taxpayer based on the project approved by the competent authority, the technological standard designed to produce the applied product, in which:

- In case the product is sold as a resource product, it shall be based on the resource use norm calculated on a unit of product of production natural resources sold ... ".

In the Decree No. 50/2010 / ND-CP dated May 14, 2010 of the Government detailing and guiding the implementation of a number of articles of the Law on Royalties (amended and supplemented in Clause 4, Article 4, Decree No. 12/2015 / ND-CP dated February 12, 2015 of the Government), stipulating:

“4. Provincial-level People's Committees shall set specific royalty-liable prices of natural resources specified in Clause 2 and at Point b. Clause 3, of this Article.…

Based on the natural resource tax calculation price to apply the tax calculation output to the corresponding resource unit. The price for tax calculation for exploited resources is determined at which stage the output of natural resource tax is applied at that stage ”.

Based on the natural resource tax calculation price to apply the tax calculation output to the corresponding resource unit. The price for tax calculation for exploited resources is determined at that stage, the output for calculating royalties is applied at that stage. ”At Article 6 of the Circular No. 152/2015 / TT-BTC of the Ministry of Finance guiding:

“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.

1. With regard to natural resources of which unit prices of natural resource-derived products can be determined

2.  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.…”.

Based on the above provisions, in case of production and business establishments exploiting stones for common construction materials, after blasting is sold, a part is put into grinding, grinding into new stone products sold. determine the output and price for calculation of natural resource tax and tax declaration in the period as follows:

- In case of stone exploited after blasting and clasification according to the output of each type of stone such as: Rock, crushed stone and then being sold, the unit selling price of each type of stone shall be applied to determine the natural resources tax price calculation. for the entire output of the same type of stone obtained during the period (including: Stone output after mining is obtained through classification and stone output put into grinding and obtained during the period regardless of whether it has consumed or inventory), but must not be lower than the unit price of the natural resources tax for each type of stone prescribed by the provincial People's Committee.

- In case of stone exploited after blasting, it is put into grinding, sorting of new types of stone crushed stone (macadam), then applying unit selling price of each type of stone sold to determine price. Calculation of royalties for the output of each type of stone obtained through grinding,decorticatingand classification, but must not be lower than the unit price of the natural resources tax for each type of stone prescribed by the provincial People's Committee.

We recommend the An Khanh Minerals Joint Stock Company to contact local tax authorities for instructions on implementation.