On October 28,2016, the Ministry of Finance issued the Circular No. 174/2016/TT-BTC on amending and supplementing point a Clause 4 Article 6 of Circular No. 152/2015/TT-BTC dated October 02, 2015 by the Ministry of Finance providing guidance on resource royalty.

Accordingly, from December 12, 2016, taxable price of natural water used for hydroelectricity generation is the average selling price of electricity. Average selling price of electricity for calculating the resource royalty payable by hydroelectricity producers shall be determined according to the retail price of electricity defined by the Ministry of Industry and Trade instead of by the Ministry of Finance as previous regulations.

With some other cases, the taxable price of natural water still follows the current regulations. In particular, the natural mineral water, natural hot water, bottled/boxed purified natural water, natural water used for production/business that are not for sale, taxable prices shall be imposed by the People’s Committee of the province under the rules, taxable price of timber is the selling price at the depot (where timber is stored or extracted)…

This Circular takes effect on December 12, 2016.

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