1. Prices to calculate charge for granting the mineral mining right for sand, gravel and stone.

In Clause 5, Article 69 of the Government's Decree No. 158/2016 / ND-CP of November 29, 2004 detailing the implementation of a number of articles of the amended the Law on Mineral and supplementing a number of articles of Decree No. 203/2013 / ND-CP of the Government has stipulated:

.5. To amend and supplement Article 7 as follows:: 

“Prices to calculate charge for granting the mineral mining right is defined under the prices to calculate the resource royalty in accordance with law on resource royalty according to the time of determining the charge for granting mineral extraction right.

The Ministry of Natural Resources and Environment shall provide guidelines for conversion method to determine charges for granting mineral extraction right”.

Based on the above provisions, Prices to calculate charge for granting the mineral mining right for sand, gravel and stone shall be converted from the royalty-liable price in accordance with the law on royalties at the time of amount calculation for granting the mineral mining right under the guidance of the Ministry of Natural Resources and Environment

In order to complete the method of determination of the prices to calculate charge for granting the mineral mining right, the Ministry of Natural Resources and Environment shall chair a guidance on the implementation thereof according to its competence defined in Clause 5, Article 69 of Decree No. 158/2016 / ND. - CP as above, the Ministry of Finance will coordinate with the Ministry of Natural Resources and Environment when being requested.

2. To apply the Circular No. 44/2017 / TT-BTC dated May 12, 2017 of the Ministry of Finance providing the taxable royalty price bracket for natural resources group and types that have the same physico-chemical nature.

In Article 5, Article 6, Article 8 of Circular No. 44/2017 / TT-BTC guides,

“Article. Application of taxable royalty price bracket:

Based on the taxable royalty price bracket prescribed in this Circular, the provincial People's Committees shall promulgate a price list for calculation of natural resources tax applicable in the locality to ensure the following principles:

 …

“Điều 6. Amendments of taxable royalty price bracket

Cases of adjustment and supplementation of the taxable royalty price bracket:

Price of popular natural resources of high market volatility: increase more than 20% compared to the maximum price or decrease more than 20% compared to the minimum price of the taxable price bracket promulgated by the Ministry of Finance;

1. There is a new type of natural resource that has yet been specified in the taxable price bracket.

 In case of major changes of natural resource price, the adjustment shall be made beyond the taxable price bracket, within 30 days, the Provincial Department of Finance shall take charge and cooperate with Department of Tax, Provincial Department of Natural Resources and Environment in requesting the Provincial People’s Committee to send a written request to the Ministry of Finance before deciding to promulgate the written adjustment of the taxable price schedule.…

4. Provincial Department of Finance shall provide information for the cases that need adjustments in the taxable price schedule specified in Clause 1 of this Article and send a written document to the Ministry of Finance for using as a basis for the adjustment of taxable price schedule within 30 days from the day on which the adjustment of taxable price schedule arise.. ”

“Article 8. Transitional clause

1.      1. If a natural resource is included in the effective taxable price schedule promulgated by provincial People’s Committee and compatible with the taxable price brackets enclosed herein, it shall be applied the price schedule promulgated by the provincial People’s Committee.

2.      2. If a natural resource included in the effective taxable price schedule promulgated by provincial People’s Committee is not compatible with the taxable price bracket enclosed herein, the provincial People’s Committee shall promulgate an adjusting written for conformity at least 90 days from the day on which this Circular takes effect.

Based on the above provision, the Finance Ministry's Circular No. 44/2017 / TT-BTC guides the regular collection, information update and adjustments to management requirements the royalty-liable price. Mineral resources are subject to royalty tax including marble, sawn stone, sand, soil for construction ground and other minerals to meet the requirements of state management of natural resources and minerals in line with market price fluctuations.

Based on that related provincial  agencies organize a study and submit to the provincial People's Committee for issuance of the tariff for local natural resources taxes. Where the price of common resources on the market fluctuates considerably, it is necessary to adjust and supplement the taxable royalty price bracket, then the guidance in the above-mentioned Circular No. 44/2017 / TT-BTC and the written notice to report to the Ministry of Finance as a basis for adjusting the taxable royalty price bracket to be suitable.

3.      Prices to calculate royalty tax on exportable natural resources.

In Clause 3, Article 4 of the Government's Decree No. 12/2015 / ND-CP of February 12, 2015, amending and supplementing a number of articles of Decree No. 50/2010 / ND-CP dated May 14, 2010 detailing and guiding the implementation of a number of articles of the Law on Royalties as follows:

 “3. Amending the provisions of Point c Paragraph 3 Article 4 as follows:

“c) For exploited resources that are not sold in the country,but are exported are the customs value of exploited natural resources, excluding export taxes.

In case of exploited natural resources for domestic consumption and export:

• The output of natural resources is the selling price of exploited natural resources unit excluding the value added tax.

• For the output of exported natural resources is the customs value of the extracted resources for export, excluding export taxes.

Customs valuation of exploited natural resources shall comply with the provisions on customs valuation of export goods under the Law on Customs and documents guiding the implementation thereof. ""

Based on the above provisions:

• For exploited resources are sold: production and business establishments of natural resources exploitation which are not sold in the country but are exported, the royalty-liable price is the customs value of the exploited natural resource that excluding Export taxes. In cases where a production and business establishment conducts the exploitation of natural resources for domestic consumption and export, the output of natural resources for domestic consumption is the selling price of the exploited natural resource unit that excluding value added tax ; The output of exported natural resources is the value of exploited natural resources for export, not including export taxes.

- For exploited natural resources are not sold,  but must go through production or processing, the taxable price is the customs value of the exported natural resources product, excluding the export tax corresponding to the output of the natural resources. It must be inscribed on the export voucher but not lower than the taxable price prescribed by the provincial People's Committee. The customs value of exported natural resources products shall comply with the provisions on customs valuation of export goods under the Law on Customs and documents guiding the implementation, amendment and supplementation thereof (if any).

• In the case of selling industrial products, the royalty liable price  shall be the selling price of industrial products minus the processing costs arisen from the processing of natural resources into industrial products, but not lower than the taxable price that is decided by the People's Committee.

Processing costs incurred from the processing of natural resources into industrial products shall be subtracted when determining the taxable price based on the processing technologies of the enterprises according to the approved projects but excluding costs for extraction, transportation, selection and enrichment.

4. Objectives and competence for promulgating royalty tax rates

The Law on Royalty Tax regulates the royalty tax rate bracket and assigns the National Assembly Standing Committee to set specific tax rates for each type of natural resource applied in each period on the following principles:

• In line with the list of groups and types of resources and in the tax rate bracket set by the National Assembly;
• To contribute to the state management of natural resources, the protection of the exploitation and rational use of natural resources;
• To contribute to ensurance of state budget revenues.

In recent years, the Standing Committee of the National Assembly has issued resolutions to adjust the royalty tax rate within the the tax rate bracket set by the National Assembly to meet the requirements of state management of natural resources in each period.