Circular No. 01/2020/TT-BTC dated January 03, 2020 of the Ministry of Finance prescribing the rates and collection, remittance, management and use of charges for management and supervision of insurance activities

CIRCULAR

Prescribing the rates and collection, remittance, management and use of charges for management and supervision of insurance activities^[1]

Pursuant to the November 25, 2015 Law on Charges and Fees;

Pursuant to the June 25, 2015 Law on the State Budget;

Pursuant to the Government’s Decree No. 120/2016/ND-CP of August 23, 2016, detailing and guiding a number of articles of the Law on Charges and Fees;

Pursuant to the Government’s Decree No. 87/2017/ND-CP of July 26, 2017, defining the functions, tasks, powers and organizational structure of the Ministry of Finance;

At the proposal of the Director of the Tax Policy Department,

The Minister of Finance promulgates the Circular prescribing the rates and collection, remittance, management and use of charges for management and supervision of insurance activities.

Article 1.Scope of regulation and subjects of application

1. This Circular prescribes the rates and collection, remittance, management and use of charges for management and supervision of insurance activities.

2. This Circular applies to:

a/ Insurance business organizations licensed for establishment and operation in Vietnam.

b/ Other agencies, organizations and individuals involved in the collection and remittance of charges for management and supervision of insurance activities.

Article 2.Charge payers and charge-collecting organizations

1. Charge payers are insurance business organizations licensed for establishment and operation in Vietnam, including:

a/ Insurance enterprises and branches of foreign insurance enterprises in Vietnam.

b/ Reinsurance enterprises.

c/ Insurance brokerage enterprises.

2. The Department of the Insurance Supervisory Authority (the Ministry of Finance) shall organize the charge collection as prescribed in this Circular.

Article 3.Charge rates

The charge rates for management and supervision of insurance activities are as follows:

1. For insurance enterprises and branches of foreign insurance enterprises in Vietnam: The charge rate is 0.03% of the original insurance premium (after deducting refundable and reducible amounts).

2. For reinsurance enterprises: The charge rate is 0.03% of the reinsurance premium (after deducting refundable and reducible amounts).

3. For insurance brokerage enterprises: The charge rate is 0.03% of the revenue from insurance brokerage activities.

Article 4.Charge declaration, collection and remittance

1. Charge payers shall remit their payable charge amounts for management and supervision of insurance activities into the charge-collecting organization’s State Treasury account of charges pending remittance into the state budget. Charges for management and supervision of insurance activities shall be calculated on an annual basis and paid in 2 installments.

a/ By August 31 every year at the latest, a charge payer shall calculate and pay the charge for management and supervision of insurance activities for the first haft of the year (first installment) as follows:

Payable charge amount = original insurance premium (or reinsurance premium or revenue from insurance brokerage activities) of the first haft of the year x 0.03%.

b/ By April 30 of the subsequent year at the latest, a charge payer shall calculate and pay the charge for management and supervision of insurance activities for the previous fiscal year (the second installment) as follows:

Payable charge amount = original insurance premium (or reinsurance premium or revenue from insurance brokerage activities) of the previous fiscal year x 0.03% - charge amount paid in the first installment.

2. By the 5^thof every month at the latest, the charge-collecting organization shall deposit the charge amount for management and supervision of insurance activities collected in the previous month to its State Treasury account of charges pending remittance into the state budget.

3. The charge-collecting organization shall declare and remit the collected amount of charge for management and supervision of insurance activities to the tax office on a monthly basis, and make final accounts on an annual basis as guided in Clause 3, Article 19, and Clause 2, Article 26, of the Minister of Finance’s Circular No. 156/2013/TT-BTC of November 6, 2013, guiding the implementation of a number of articles of the Law on Tax Administration, the Law Amending and Supplementing a Number of Articles of the Law on Tax Administration, and the Government’s Decree No. 83/2013/ND-CP of July 22, 2013. The charge-collecting organization shall remit 52% of the collected amount of charge for management and supervision of insurance activities into the state budget according to the chapters, sections, and sub-sections of the state budget index.

Article 5.Charge management and use

The charge-collecting organization shall keep 48% of the collected amount of charge for management and supervision of insurance activities to cover expenses for supervision and charge collection work as prescribed in Article 5 of the Government’s Decree No. 120/2016/ND-CP of August 23, 2016, detailing and guiding a number of articles of the Law on Charges and Fees.

Article 6.Organization of implementation and implementation provisions

1. This Circular takes effect on February 20, 2020, and applies from the 2020 fiscal year.

2. Other contents related to charge collection and remittance, documents for charge collection, and publicity of regulations on collection the charge for management and supervision of insurance activities which are not mentioned in this Circular must comply with the Law on Charges and Fees; the Government’s Decree No. 120/2016/ND-CP of August 23, 2016, detailing and guiding a number of articles of the Law on Charges and Fees; and the Minister of Finance’s Circular No. 328/2016/TT-BTC of December 26, 2016, guiding the collection and management of state budget revenues via the State Treasury, Circular No. 156/2013/TT-BTC of November 6, 2013, guiding the implementation of a number of articles of the Law on Tax Administration, the Law Amending and Supplementing a Number of Articles of the Law on Tax Administration, and the Government’s Decree No. 83/2013/ND-CP of July 22, 2013, and Circular No. 303/2016/TT-BTC of November 15, 2016, guiding the printing, distribution, management and use of documents for the collection of charges and fees belonging to the state budget.

3. In case the legal documents referred to in this Circular are amended, supplemented or replaced, the amending, supplementing or replacing documents shall prevail.

4. Any problems arising in the course of implementation of this Circular should be promptly reported to the Ministry of Finance for study and additional guidance.-

For the Minister of Finance
Deputy Minister
VU THI MAI