Presidential Ordinance No.002 on Natural Resource Royalty Rates.
Country
Type of law
Regulation
Abstract
This Presidential Ordinance establishes the official royalty rates and principles for the extraction and use of natural resources within the Lao PDR. Its primary objective is to strengthen the management of state assets, ensure the government receives fair economic compensation from the exploitation of the country's natural wealth, and promote sustainable resource development.
The Ordinance provides specific calculation methods for different resource categories. For general natural resources, royalties are calculated based on the sales price or a predetermined price multiplied by the set rate. For mineral resources, the calculation uses the current market price—whether international, regional, or domestic—multiplied by the volume and quality of the minerals extracted, without deducting production costs. The Ministry of Finance is designated as the primary body responsible for calculating and collecting these royalties based on volume and quality certifications provided by relevant technical sectors.
The Ordinance provides specific calculation methods for different resource categories. For general natural resources, royalties are calculated based on the sales price or a predetermined price multiplied by the set rate. For mineral resources, the calculation uses the current market price—whether international, regional, or domestic—multiplied by the volume and quality of the minerals extracted, without deducting production costs. The Ministry of Finance is designated as the primary body responsible for calculating and collecting these royalties based on volume and quality certifications provided by relevant technical sectors.
Attached files
Date of text
Repealed
No
Source language
English
Legislation Amendment
No