MoF propose increase natural resources tax

The Vietnam Ministry of Finance propose the Standing Committee of the National Assembly revise natural  resource tax. Expected tax rate will be increased to tighten the management and exploitation of natural resources and increase revenue for the state budget. The tax rate expected to apply from January 1, 2016.

The new natural resource tax rate as follows: Metallic minerals (excluding gold and rare earth) tax rate will increase from 1-5% to 10-30%; Non-metallic minerals increased tax rate from 1-5% to 5-10%. Gem resource group tax rate from 3-8will rise to 5-20%; Coal tax rate from 1-3% to 5-20%. Natural gas tax rate will rise from 0-10% to 6-25%.

Expected tax rates applicable from 1.1.2016 with some metallic minerals increased by 2% as copper rose from 13 to 15%; silver, tin increased from 10 to 12%; manganese up 3% from 11 to 14%; other minerals such as lead, zinc increased from 10 to 15% ...The non-metallic mineral products also increased: sand increase from 11 to 15%; granite, soil increase from 10-15%; white marble increase from 9-15%; coal increase from 7 to 10% with anthracite mines, mining and from 9-12% with opencast anthracite, brown coal, fat coal. Tax rate with natural water for electricity production increased from 4% to 5%; Natural mineral water, bottled water, boxes ... increased by 8-10%.

According to Mr. Pham Dinh Thi, Tax Policy Department, Ministry of Finance, the tax increase resources is "to strengthen the management of mineral resources, balancing the budget revenues due to mineral export tax is declining." Many mining companies have reacted to the increased tax rate near the ceiling with many minerals (average increase of 2-3%) and that it is the policy for artisanal budget. According to Mr. Vu Hong, deputy general manager Nui Phao Mining and Mineral processing Company, tax increases is only make difficult for legitimate mineral exploit businesses, encouraged illegal mineral exploit businesses and increased costs business. Mr. Evan Spenser, CEO of Ban Phuc Nickel Mines Ltd.  said enterprises invested 130 million USD in Vietnam since 2007. However, this time the resource tax, environmental protection fees increased. Total taxation of companies has increased 218% in the period 2007- 2014, taxes payable increased by $ 76 million.

Circular No 25/2015/TT-BTC, Vietnam–Japan Tax Incentives

MoF’s issued circular No 25/2015/TT-BTC, 3,234 tax lines, or 33.8 percent of the total, will be subject to the zero percent tariff, in implementing the Vietnam-Japan economic partnership agreement for the 2015-2019 period. Besides, 354 products outside the preferential tariff policy will be taxed under the current Most Favoured Nation (MFN) level. Products subject to the new tax rates include plastic materials, chemicals, machinery and equipment, tools, computers, electronic products and spare parts, fibres, textile and garment materials and accessories, footwear and pharmaceuticals.

Conditions for zero percent tariff VJEPA:

- Properties issued in this Circular.

- Imported from Japan to Vietnam.

- Are shipped directly from Japan to Vietnam.

- Have the Vietnam - Japan Certificate of origin (C / O - Form VJ)

The Japan – Vietnam Economic Partnership Agreement (JVEPA) was signed on December 25, 2008 in Japan and approved by the Vietnam Prime Minister in Decision 57/2009/ QD-TTg dated April 16, 2009. To comply with the agreement, the Ministry of Finance issued Circular 20/2012/ TT-BTC dated on February 15, 2012 on Special Preferential Import Tariff in accordance with the ASEAN-Japan Comprehensive Economic Partnership Agreement (EPA) in the period of 2012-2015; Circular 21/201 /TT-BTC dated February 15, 2012 on promulgating Vietnam's Special Preferential Import Tariff to implement the JVEPA in the period of 2012-2015 period; and Circular 63/2012/TT-BTC dated April 23, 2012 to amend Vietnam's Special Preferential Import Tariff. To realise the commitment in the next phase, the Ministry of Finance continues to promulgate Circular 24/2015/TT-BTC dated February 14, 2015 on Vietnam's Special Preferential Import Tariff in accordance with the EPA for the period of 2015 and 2019 and Circular 25/2015/TT-BTC dated February 14, 2015 on the import tariff special offers from Vietnam to implement the JVEPA in the period of 2015 and 2019.
As of April 1, 2015, in the list of tariff lines of ASEAN and Japan, as many as 2,874 tariff lines (equivalent to 30 percent of total tariff lines) are set at zero; and 413 tariff lines are applied at the MFN rate. In the list of tariff lines between Vietnam and Japan, there are 3,234 tariff lines (equivalent to 33.8 percent of the total tariff lines) that are set at 0 percent tax rate and 354 tariff lines are imposed at the MFN rate. The tax-exempted products include groups: plastic materials, chemicals, machinery, tools, spare parts, computer products, electronic components, fibre type, textile materials, leather, pharmaceutical products; the imported goods that are subject to the Special Preferential Import Tariff of ASEAN and Japan require origin certificates as regulated by the Ministry of Industry and Trade and on the list of countries that are the tax preference lists of the Circular.
The tax incentive programme of Vietnam and Japan is part of the tax commitment programme under the free trade agreement (FTA) since 2014. The Ministry of Finance has issued guidance on implementing the Special Preferential Import Tariff and tax reductions in accordance with the FTAs in effect from April 01, 2015.



Vietnam Legal and Tax Outlook 2015

 Vietnam Legal and Tax Outlook 2015

Date(s) - 31/03/2015
8:30 am - 10:30 am

New World Hotel Saigon


Event Description


What lies ahead for Vietnam?
Optimists project an upward trend of growth; an increasingly stable macro-economy and strength through integration with its ASEAN neighbors. Pessimists, on the other hand, dread another lackluster year in growth, a market lacking in confidence and increasingly predatory competition from its ASEAN neighbors. These are two discordant pictures of what lies ahead for Vietnam in 2015.
In this forum. DFDL calls attention to recent legal and tax policies introduced by the Vietnamese government aimed at stimulating growth and enhancing business environment in Vietnam. As a regional legal and tax firm, DFDL is also able to present the bigger picture including regional drivers of policy affecting Vietnam.
From both a legal and tax perspective, we also identify sobering realities, obstacles and limitations that may impede the country in achieving its goals.
As government pushes for more reforms, we examine opportunities that are opened up by new investment policies, the recent wave of further tax reforms. We also bear in mind the adjustments that are needed to be made by the business sector in their strategies to help them navigate through Vietnam’s legal and tax agenda for 2015.




8:30 am Registration and Refreshment
9:00 am Welcome remark
9:05 am Presentation
10:05 am Q&A
10:30 am Event Ends




Cost: 500,000 vnd Members | 650,000 vnd Non-Members


BERNARD COBARRUBIAS - Tax Director, Vietnam

Bernard has over 12 years of tax and legal experience in the Philippines, Vietnam, and Myanmar. He also handles Lao PDR and Cambodian tax engagements. Bernard specializes in international tax services with focus on cross-border transactions, corporate restructuring, mergers and acquisitions advisory and implementation. He also deals with local business tax advisory services, corporate structures and licensing, as well as regulatory and tax compliance. He holds a Bachelor of Laws degree and a Bachelor of Arts in Communications (Journalism) degree from the University of the Philippines. He speaks English and Filipino.

 TRAN THI VU HANH - Partner, Vietnam; Senior Legal Adviser

Hanh is a leading Vietnamese-qualified lawyer, with more than 14 years’ experience of advising leading multinational clients and financial institutions on complex corporate law matters in Vietnam and Cambodia. Before joining DFDL in 2006, Hanh worked at the European Commission in Vietnam where she was responsible for the legal aspects of the EC’s development projects in Vietnam, and prior to that she was the head of the corporate secretary division of KPMG Cambodia. Hanh advises clients predominantly on complex Project Finance, Real Estate and Corporate and Commercial matters. Some of the most significant transactions she has advised on include the largest real estate acquisition in 2011 in Cambodia, the Chinese state bank financing of USD 421 million as well as the refinancing to a telecom company in Cambodia, a major port project with project value worth approximately USD 300 million and, most recently, the acquisition of a stake in a Cambodian hydropower project by a major Chinese SOE. Hanh holds a Lawyer Certificate (Judicial Academy Institute of Vietnam), Master in International Business (University of Tours, France), Bachelor in Law (Hanoi National University) and a Bachelor in Foreign Languages ‒ French and English (Hanoi Foreign Language College). She speaks Vietnamese, French and English.