Decree No. 05/2009/ND-CP dated January 18, 2009 of the Government detailing the implementation of the Ordinance on royalties and the ordinance amending and supplementing Article 6 of the Ordinance on royalties

THE GOVERNMENT -------	SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom - Happiness ----------
No. 05/2009/ND-CP	Hanoi, January 19, 2009

DECREE

DETAILING THE IMPLEMENTATION OF THE ORDINANCE ON ROYALTIES AND THE ORDINANCE AMENDING AND SUPPLEMENTING ARTICLE 6 OF THE ORDINANCE ON ROYALTIES

THE GOVERNMENT

Pursuant to the December 25, 2001 Law on Organization of the Government;

Pursuant to the April 10, 1998 Ordinance on Royalties;

Pursuant to the November 22, 2008 Ordinance Amending and Supplementing Article 6 of the Ordinance on Royalties;

At the proposal of the Minister of Finance,

DECREES:

Chapter I

ROYALTY PAYERS AND ROYALTY-LIABLE OBJECTS

Article 1. Organizations and individuals that exploit natural resources in any forms shall pay royalties under Article 1 of the Ordinance on Royalties.

Article 2. Natural resources in the mainland, islands, internal waters, territorial seas, the exclusive economic zone and continental shelf under the sovereignty and jurisdiction of the Socialist Republic of Vietnam are liable to royalties, including:

1. Metallic minerals.

2. Non-metallic minerals, including also

minerals used as ordinary construction materials and soil exploited for ground leveling, construction and embankment or use as raw materials or for other purposes; natural mineral water and thermal water specified in the Law on Minerals.

3. Petroleum oil being crude oil specified in Clause 2, Article 3 of the Petroleum Law.

4. Fuel gas being natural gas specified in Clause 3, Article 3 of the Petroleum Law.

5. Coal gas specified in Clause 3, Article 1 of the Law Amending and Supplementing a Number of Articles of the Petroleum Law.

6. Natural forest products, covering plants and animals of all kinds and other products.

7. Natural aquatic resources, covering wild animals and plants in the sea, rivers, streams and lakes.

8. Natural water, covering surface water and ground water, excluding natural mineral water and thermal water specified in Clause 2 of this Article.

9. Other natural resources.

Article 3. For natural resource-exploiting enterprises established under joint venture or business cooperation contracts, royalties payable by joint-venture enterprises or foreign partners shall be indicated in business cooperation contracts and included in the volumes of products shared to Vietnamese partners. When sharing exploited products, Vietnamese partners shall remit royalties into the state budget in accordance with the State Budget Law and this Decree.

Chapter 11

ROYALTY BASES, TARIFF AND PAYMENT METHODS

Article 4. Royalty bases include the actually exploited output of commodity natural resources.

royally-liable price and tax rate. Particularly for crude oil, natural gas and coal gas (below collectively referred to as oil and gas), royalty bases shall be determined on the basis of the progressive part of the total actually extracted output of oil or gas in each tax period, calculated on the basis of the average daily output of extracted oil or gas under an oil or gas contract, royalty rate and number of extraction days in a tax period.