How much is range of sea area usage fees for aquaculture per year in Vietnam?

How much is range of sea area usage fees for aquaculture per year in Vietnam?

Pursuant to Article 34 of Decree No. 11/2021/ND-CP stipulating range and specific rates of sea area usage fees area as follows:

1. Activities on which sea area usage fees are charged shall be classified into 6 groups based on intended uses of sea areas with the range as follows:

a) Fees for use of sea areas for sea dumping (group 1) range from VND 15,000/m³ to VND 20,000/m³;

b) Fees for use of sea areas as seaports, floating platforms, offshore oil ports and other ports and berths; as waters facing against wharves, turning basins, anchorage areas, transhipment areas, storm shelters, pilot boarding areas, quarantine areas, specialized navigational channels and other auxiliary works; as waters serving operations of ship building and repair facilities and construction of passenger ports; as waters serving operations of restaurants and recreation and sports areas; as anchorage areas for tourist boats; for petroleum extraction; mineral mining; for salvage of artifacts and archaeology (group 2) range from VND 6,500,000/ha/year to VND 7,500,000/ha/year;

c) Fees for use of sea areas for construction of suspension cable systems, floating, submarine and land reclamation facilities, artificial islands, civil construction and other works range from VND 6,000,000/ha/year to VND 7,500,000/ha/year;

d) Fees for use of sea areas for building underwater pipelines, installing telecommunications and electromagnetic cables range (group 4) range from VND 5,000,000/ha/year to VND 7,500,000/ha/year;

dd) Fees for use of sea areas used for aquaculture and construction of fishing ports (group 5) range from VND 4,000,000/ha/year to VND 7,500,000 ha/year;

e) Fees for use of sea areas for exploitation of energy of such types as oceanic wind, waves, tides, currents and other activities (group 6) range from VND 3,000,000/ha/year to VND 7,500,000/ha/year.

2. Specific rates of sea area usage fees shall be determined as follows:

a) According to the ranges specified in Clause 1 of this Article and specific socio-economic conditions, the Ministry of Natural Resources and Environment shall, every 05 years, decide specific rates of sea area usage fees charged on each group of activities in sea areas under its and the Prime Minister’s assignment authority;

b) According to the ranges specified in Clause 1 of this Article and specific socio-economic conditions, provincial People’s Committees shall, every 05 years, decide specific rates of sea area usage fees charged on each group of activities in sea areas within their provinces within under their assignment authority;

c) The Ministry of Natural Resources and Environment and provincial People’s Committees shall decide specific rates of sea area usage fees as prescribed in Points a and b of this Clause within 90 days from the effective date of this Decree.

3. If a sea area has multiple uses but the specific size reserved for each of which cannot be determined, the highest rate shall apply.

4. Regarding activities on which specific rates of sea area usage fees have yet to charge as prescribed in Clause 2 of this Article, the Ministry of Natural Resources and Environment and provincial People’s Committees shall make a decision in each specific case but the rate must not be less than VND 3,000,000/ha/year and more than VND 7,500,000/ha/year.

5. The Ministry of Natural Resources and Environment shall preside over and cooperate with the Ministry of Finance in requesting the Government to adjust ranges of sea area usage fees from time to time in conformity with socio-economic conditions.

Thus, for the case of using the marine area for aquaculture in Vietnam, the range of sea area usage fees will be from 4,000,000 VND/ha/year to 7,500,000 VND/ha/year, specifically the range of sea area usage fees will be set by Provincial People's Committee promulgates but will not exceed the above framework.

When are sea area usage fees charged in Vietnam?

According to Article 35 of Decree 11/2021/ND-CP stipulating methods for collecting and determining sea area usage fees as follows:

1. Sea area usage fees shall be charged from the effective date of the decision on sea area assignment issued by the competent authority.

2. The method for payment of sea area usage fees is proposed by the applicant upon submitting the application for sea area assignment. The payment methods and amount of sea area usage fees payable corresponding to each method written on the decision on sea area assignment shall be decided by the assigning authority and specified in the decision on sea area assignment. Except for the case of use of sea areas for sea dumping, one of the following payment methods shall be adopted:

a) Payment of sea area usage fees on an annual basis;

b) Payment of sea area usage fees in a lump sum for 05 years;

c) Payment of sea area usage fees in a lump sum for the entire assignment duration regarding aquaculture.

3. If the payment of sea area usage fees is made annually, follow the instructions below:

a) The amount of sea area usage fees payable annually equals the size of the assigned sea area multiplied by (x) specific rate specified in Article 34 hereof at the time of fee calculation multiplied by (x) 01 years;

b) Deadline for making the first fee payment: within 90 days from the date on which the tax authority signs the payment notice, the organization or individual shall fully pay the fees payable in the year. From the second year onwards, the organization or individual may choose between paying annually or biannually. If the organization or individual chooses the former, fees shall be paid by the 31st of May of the year.

c) If the organization or individual opts to pay biannually, fees shall be paid for each period as follows:

The first period: pay the first 50% by May 31 of the year;

The second period: fully pay the rest by October 31 of the year.

4. If sea area usage fees are paid in a lump sum for 05 years, follow the instructions below:

a) The amount of sea area usage fees payable annually equals the size of the assigned sea area multiplied by (x) specific rate specified in Article 34 hereof at the time of calculation multiplied by (x) 05 years;

b) The specific rate of sea area usage fees in this case shall remain unchanged for 05 years. When the 05-year period expires, the assigning authority shall determine the amount of the fees payable for the next 05-year period based on the specific rate at the time of fee calculation;

c) The payment of sea area usage fees in a lump sum for 05 years shall be made once. Within 30 days from the date on which the tax authority signs the payment notice, the organization or individual shall fully pay the fees.

5. If the organization or individual assigned a sea area for aquaculture opts to pay sea area usage fees in a lump sum for the entire assignment duration, follow the instructions below:

a) The amount of sea area usage fees payable annually equals the size of the assigned sea area multiplied by (x) specific rate specified in Article 34 hereof at the time of fee calculation multiplied by (x) the assignment duration;

b) The specific rate of sea area usage fees in this case shall remain unchanged for the entire assignment duration. Within 30 days from the date on which the tax authority signs the payment notice, the organization or individual shall fully pay the fees.

6. If the sea area is used for dumping, the organization or individual shall pay sea area usage fees in a lump sum. To be specific:

a) The amount of fees payable equals the weight of dumped physical objects/matters (expressed in m³) multiplied by (x) the specific rate specified in Article 34 hereof at the time of fee calculation;

b) Within 30 days from the date on which the tax authority signs the payment notice, the organization or individual shall fully pay the fees.

According to this Article, the sea area usage fees for aquaculture is calculated from the effective date of the decision on sea area assignment issued by the competent authority. The payable amount for using the sea area is determined according to the above regulations in Vietnam.

What are procedures for collection and payment of sea area usage fees for aquaculture in Vietnam?

Article 36 of Decree 11/2021/ND-CP stipulates procedures for collection and payment of sea area usage fees as follows:

1. Within 05 working days from the receipt of decision on sea area assignment issued by the competent authority, based on the amount of sea area usage fees specified in the decision on sea area assignment, the Department of Taxation of the province where the sea area is available shall issue a payment notice according to the Form No. 11 enclosed herewith to the organization or individual assigned the sea area.

The tax authority shall send a payment notice to the organization or individual 30 working days before the next payment period. The fees for use of sea areas for dumping shall be paid as prescribed in Clause 6 Article 35 hereof.

2. The organization or individual assigned the sea area shall fully pay sea area usage fees to the state budget by the deadline specified in the notice given by the tax authority.

3. If the organization or individual assigned the sea area fails to fully pay fees to the state budget by the deadline written on the notice issued by the tax authority as prescribed in Clause 2 of this Article, such organization or individual is required to pay late payment interest in accordance with regulations of Law on Tax Administration. If the organization or individual violates the law, thereby having its/his/her license revoked as prescribed in Point c Clause 1 Article 28 of this Decree, the authority revoking the license shall notify the assigning authority for decision on expropriation of the assigned sea area.

4. Every organization and individual assigned sea areas shall pay sea area usage fees directly to the state budget at the State Treasury or an authorized organization as prescribed by the Law on Tax Administration. Contents related to documents and procedures for collection and payment shall comply with regulations on management of state budget revenues in accordance with the Law on Tax Administration.

Thus, the procedures for collection and payment of sea area usage fees assigned to aquaculture shall comply with the above provisions in Vietnam.

Best Regards!