THE MINISTRY OF FINANCE
 
SOCIALIST REPUBLIC OF VIETNAM
Independence – Freedom - Happiness
No. 38/2010/TT-BTC
Hanoi, March 19, 2010
 
 
CIRCULAR
GUIDING TAX PROVISIONS APPLICABLE TO ORGANIZATIONS AND INDIVIDUALS THAT TRANSFER THE RIGHTS TO EXPLORE, EXPLOIT AND PROCESS MINERALS
THE MINISTRY OF FINANCE
 
Pursuant to the Law on Minerals and the Government's decrees detailing the implementation of the Law on Minerals;
Pursuant to current laws and ordinances on taxes, charges and fees, and the Government's decrees detailing the implementation of these laws and ordinances;
Pursuant to November 29, 2006 Law No. 78/ 2006/QHI1 on Tax Administration, and the Government's documents guiding the implementation of the Law on Tax Administration;
Pursuant to the Government's Decree No. 118/ 2008/ND-CP of November 27, 2008, defining the functions, tasks, powers and organizational structure of the Ministry of Finance;
In furtherance of the Prime Minister's directing opinions notified in the Government Office's Official Letter No. 50/VPCP-KTTH of January 5, 2010,
The Ministry of Finance guides the implementation of tax regulations applicable to organizations and individuals that transfer the rights to explore, exploit and process minerals under Clause 6, Article 53 of the Government's Decree No. 160/2005/ND-CP of December 27, 2005, detailing and guiding the implementation of the Law on Minerals, and the Law Amending and Supplementing a Number of Articles of the Law on Minerals as follows:
Article 1. Subjects and scope of application
Organizations and individuals that are allowed to transfer the rights to explore, exploit and process minerals under Clause 6, Article 53 of the Government's Decree No. 160/2005/ND-CP and have actually transferred these rights shall be regarded as having transferred investment projects and obliged to pay taxes under this Circular.
Article 2. Value-added tax
Transfer of the rights to explore, exploit and process minerals and transfer of land use rights are not liable to value-added tax.
In case of transferring the whole investment project on mineral exploration, exploitation and processing accompanied by works and infrastructure facilities on land, machinery, equipment and vehicles, the values of these works and infrastructure facilities on land, machinery, equipment and vehicles must be separated and liable to value-added tax under the Law on Value-Added Tax and its guiding documents. In case the values of these items cannot be separated, value-added tax shall be paid at the rate of 10% of the whole transfer value.