Circular No. 155.2010/TT-BTC guiding rates, collection, remittance, management and use of the fee for issuance of mining licences and the fees for exclusive mineral exploration

64 OFFICIAL GAZETTE Issue nos08·09/0clober 201 0 (Gong BaD nos 605-60B/Octaber 26,2010) Pursuant to the Government's Decree No. 160/2005/ND-CP of December 27. 2005, detailing and guiding the Law on Minerals and the Law Amending and Supplementing a Number of Articles of the Law on Minerals; and Decree No. 07/2009/ND-CP of January 22, 2009, amending and supplementing a number of articles of Decree No. 160/2005/ND-CP of December 27, 2005, detailing and guiding the Law on Minerals and the Law Amending and Supplementing a Number ofArticles :if'the Law on Minerals; Pursuant to the Government's Decree No. 11812008/ND-CPofNovember 27, 2008, defining the functions, tasks, powers and organizational structure of the Ministry of Finance; Infurtherance ofthe Government's Resolution No. 25/NQ-CP ofJune 2,2010, on simplification of 258 administrative procedures under management of ministries and sectors, the Ministry of Finance guides rates, collection, remittance, management and use of the fee for THE MINISTRY OF FINANCE grant ofmining licenses and the fee for exclusive mineral exploration as follows: Article 1. Fee payers Circular No. 155/2010/TT·BTC of 1. When being issued by competent state October 11, 2010, guiding rates, agencies mining licenses under the Law on collection, remittance, management and Minerals and the Law Amending and use of the fee for issuance of mining Supplementing a Number of Articles of the Law licenses and the fee for exclusive mineral on Minerals. Vietnamese and foreign exploration organizations and individuals shall pay the fee for mining licenses under this Circular. Pursuant to the Government's Decree No. 57/ 2002/ND-CP of June 3, 2002, detailing the 2. When being issued by competent state Ordinance on Charges and Fees; and Decree No. agencies licenses for mineral exploration. 2412006/ND-CP ofMarch 6, 2006, amending and Vietnamese and foreign organizations and supplementing a number of articles of Decree individuals shall pay the fee for exclusive mineral No. 57/2002/ND-CP of June 3, 2002; exploration under this Circular. © VIETNAM LAW & LEGAL FORUM Issue nos08·09/0ctober 2010 OFFICIAL GAZETTE 65 (Gong Biio nos 605-60BlOctaber 26, 2010) 3. The fee for exclusive mineral exploration the above corresponding fee rates, shall not be collected in the following cases: 2. Fee rates for exclusive mineral exploration al The validity duration. including the under Decree No. 0712009/ND-CP amending and extended duration, of an exploration license is supplementing a number of articles of Decree under 12 months: No. 160/2oo5/ND-CP of December 27,2005, are bl Mineral exploration is conducted within specified as follows: areas in which organizations and individuals are a/ Fee rates: licensed to conduct mineral exploitation; cl A fee payer that returns the exploration Fee rate No. Year license or returns part of the area under exclusive (VND/ha/year) mineral exploration under the license issued by I First year 50,000 a competent state agency is not required to pay

2 Second year 80,000 the fee for exclusive mineral exploration for the remaining period. counting from the date the 3 Third and fourth years 100,000 exploration license is returned. or the fee for bl The payable fee amount for exclusive exclusive exploration for the returned area under mineral exploration per license shall be exclusive exploration. calculated based on the area and duration Article 2. Fee rates indicated in the license (including the extended duration). For simpler collection, the fee rate for I. The fee rate for a mining license is specified a license is calculated as follows: as follows: b.1I For a license with the validity duration a/ For exploration activities: of 12 months (including the extended duration), - VND 4.000,OOO/license. for an explored area the fee rate shall be calculated based on the fee of under 100 ha: rate applicable in the first year. - VND 1O,000.000/license, for an explored Upon the issuance of an extended license, the area of between 100 ha and 50,000 ha; fee rate is equal to: - VND 15,000.000/license, for an explored - 50% (fifty per cent) of the fee raie.applicable area of over 50.000 ha. in the second year. for an extended duration of bl For mining activities, fee rates arc specified up to 6 months; in the Table attached to this Circular; - The fee rate applicable in the second year. cl VND 5.000,000/license. for salvage for an extended duration of up to 12 months. exploitation activities. b.21 For a license with the validity duration In case of extension of licenses or re-issuance of between over 12 months and 24 months, the of licenses upon transfer or inheritance. persons fee rate shall be calculated as follows: having their licenses extended or transferees or - For a license valid for up to 18 months, it is heirs shall pay the fee at rates equal to 50% of the fee rate applicable in the first year J'lu~ 50% © VIETNAM LAW & LEGAL FORUM

66 OFFICIAL GAZETTE Issue nas08·09/0ctaber 2010 (Gong Bao nos 605-60B/October 26,2010) (fifty percent) of the fee rate applicable in the of May 25. 2006. amending and supplementing second year; Circular No, 63/2002ffT-BTC of July 24, 2002; - For a license valid for up to 24 months, it is and Circular No. 6O/2007ffT-BTC of June 14, the fee rate applicable in the first year plus the 2007, guiding a number of articles of the Tax fee rate applicable in the second year, Administration Law and guiding the Government's Decree No. 85/2007/ND-CP of Upon the issuance of an extended license May 25, 2007, which details a number of articles (with the validity duration of24 months). the fee of the Tax Administration Law. rate is equal to: + The fee rate applicable in the third year, for 3. The fee for mining licenses and the fee for an extended duration of up to 12 months; exclusive mineral exploration constitute a state + One lind a half the fee rate applicable in the budget revenue. Fee-collecting agencies shall third year for an extended duration of between remit the whole collected fee amount into the over 12 months and 18 months; state budget according to the corresponding chapter. category, clause, item and sub-item of + The fee rate applicable in the third year plus the current State Budget Index, In case of that applicable in the fourth year, for an extended authorized collection, organizations authorized duration of between over 18 months and 24 to collect fees may retain 5% of the collected fee months. amount to cover fee collection expenses and shall 3. The fee for mining licenses and the fee for remit 95 % of the collected fee amount into the exclusive mineral exploration shall be paid in state budget Vietnam dong, Foreign organizations or individuals that wish to pay fees in foreign Article 4. Effect currencie.. shall pay them at the average inter- bank foreign exchange rate announced by the I. This Circulartakes effect on November 25. State Bank of Vietnam at the time of fee payment. 2010, This Circular replaces the Finance Ministry's Circular No. 184/2009ffT-BTC of Arttcte 3. Fee collection, remittance, September 15. 2009, stipulating the collection, management and use remittance, management and use of the fee for 1. State agencies competent to issue mining issuance of mining licenses and the fee for licenses or licenses for mineral exploration shall exclusive mineral exploration. collect the fee for mining licenses and the fee 2. Any problems arising in the course of for exclusive mineral exploration. implementation should be promptly reported to 2. Fee-collecting agencies shall register, the Ministry of Finance for study and guidance, declare and remit fees into the state budget under the Finance Ministry's Circular No. 63/2002ffT- For the Minister of Finance BTC of July 24. 2002, guiding regulations on Deputy Minister charges and fees: Circular No. 45/2006ffT-BTC DO HOANG ANH TUAN © VIETNAM LAW & LEGAL FORUM Issue nosOB-09/0ctober 2010 OFFICIAL GAZETTE 67 (Gong Bao nos 605·B08/0c!ober 26.2010) Table of fee rates for issuance of mining licenses (Attached 10 the Finance Ministry's Circular No. 155/20lO!7T-BTC of October 11, 2010) Fee rate (VND No. Groups of mining licenses million/license)

1 License for exploitation of sand and gravel on the stream bed: 1.1 Of an output of under 5,000 m3/year; 1 ! 1.2 Of an output of between 5,000 nr' and 10,000 m3/year; 10 1.3 Of an output of over 10,000 m3/vear; 15 .

2 License for exploitation of minerals for use as ordinary construction materials, without using industrial explosive materials: 2.1 License for exploitation of minerals for use as ordinary construction 15 materials on an area of under 10 ha and of an output of under 100,000 m 3/year; 2.2 License for exploitation of minerals for use as ordinary construction 20 materials on an area of 10 ha or more and an output of under , 100.000 rrr/year, or minerals for use as ordinary construction materials on an area of under 10 ha and an output of 100,000 m 3/year or more, and peat, except exploitation of sand and gravel on the stream bed specified in Section 1 of this Table; 2.3 License for exploitation of minerals for use as cement materials or 30 ordinary construction materials on an area of 10 ha or more and an I output of lOO,OOO m 3/year or more, except exploitation of sand and gravel on the stream bed specified in Section 1 of this Table;

3 License for exploitation of minerals for use as cement materials or 40 ordinary construction materials, using industrial explosive materials; ashlar floor- and wall-covering stones and mineral water

4 License for open-cast exploitation of minerals, except minerals listed at Points 1,2,3,6 and 7 of this Table: 4.1 Without using industrial explosive materials 40 4.2 Using industrial explosive materials 50

5 License for underground exploitation of minerals, except minerals 60 mentioned at Points 2, 3 and 6 of this Table

6 License for exploitation of precious and rare minerals 80 I

8 License for exploitation of special and hazardous minerals 100 © VIETNAM LAW & LEGAL FORUM