Circular 127/2021/TT-BTC amending Circular 94/2020/TT-BTC, charges for the right to provide pay television services, and fees for grant of a registration certificate for the provision of foreign program channels on pay television

CIRCULAR

Amending and supplementing Clauses 1, 2 Article 1 of the Minister of Finance’s Circular No. 94/2020/TT-BTC dated November 16, 2020, amending and supplementing a number of articles of the Minister of Finance’s Circular No. 307/2016/TT-BTC dated November 15, 2016, on prescribing the rates and collection, remittance, management and use of charges for the right to provide pay television services, and fees for grant of a registration certificate for the provision of foreign program channels on pay television

______________

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

Pursuant to the Law on Press dated April 05, 2016;

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

Pursuant to the Government’s Decree No. 06/2016/ND-CP dated January 18, 2016, on management, provision and use of radio and television services;

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

Implement the Government’s Resolution No. 63/NQ-CP dated June 29, 2021, on key tasks and solutions to promote economic growth, disbursement of public investment capital and sustainable export in the last months of 2021 and early 2022; Official Letter No. 8374/VPCP-KTTH dated November 15, 2021 of the Government Office on the review and reduction of fees and charges to remove difficulties for subject affected by the Covid-19 pandemic;

At the request of the Director of the Tax Policy Department;

The Minister of Finance promulgates the Circular amending and supplementing Clauses 1, 2 Article 1 of the Minister of Finance’s Circular No. 94/2020/TT-BTC dated November 16, 2020, amending and supplementing a number of articles of the Minister of Finance’s Circular No. 307/2016/TT-BTC dated November 15, 2016, on prescribing the rates and collection, remittance, management and use of charges for the right to provide pay television services, and fees for grant of a registration certificate for the provision of foreign program channels on pay television.

Article 1. To amend and supplement Clauses 1, 2 Article 1 of the Minister of Finance’s Circular No. 94/2020/TT-BTC dated November 16, 2020, amending and supplementing a number of articles of the Minister of Finance’s Circular No. 307/2016/TT-BTC dated November 15, 2016, on prescribing the rates and collection, remittance, management and use of charges for the right to provide pay television services, and fees for grant of a registration certificate for the provision of foreign program channels on pay television

1. To amend and supplement Clause 1 Article 1 as follows:

“1. Charge rates for the right to provide pay television services are 0.3% of the revenue from charging the right to provide pay television services.

a) From January 01, 2022, the revenue from charging the right to provide pay television services is the total revenue of more than VND 50 billion (excluding value-added tax) arising from contracts with pay television subscribers in the calendar year.

b) From January 01, 2023, the revenue from charging the right to provide pay television services is the total revenue arising from contracts with pay television subscribers in the billing period (excluding value-added tax)”.

2. To amend and supplement Clause 2 Article 1 as follows:

“b) For charges:

- From January 01, 2022 to the end of December 31, 2022, pay television service providers shall pay quarterly charges. From the quarter when the total accumulated revenue from January 1 of the calendar year is more than VND 50 billion, the provider shall calculate and pay charges for the part of the total revenue that is more than VND 50 billion.

Example 1, in 2022, enterprise A has revenue of pay television services of VND 40 billion in the first quarter and VND 20 billion in the second quarter. In the first quarter, enterprise A must not pay charges. In the second quarter, enterprise A must pay charges as follow: VND (40 + 20 - 50) billion x 0.3% = VND 30 million. From the third quarter, if there is arising revenue from pay television services, enterprise A must pay a charge = 0.3% x Quarterly revenue.

Example 2, in 2022, enterprise B has revenue of pay television services of VND 60 billion in the first quarter. In the first quarter, enterprise B must pay charges as follow: VND (60 - 50) billion x 0.3% = VND 30 million. From the second quarter, if there is arising revenue from pay television services, enterprise A must pay a charge = 0.3% x Quarterly revenue.

Example 3, in 2022, if enterprise C has revenue of less than or equal to VND 50 billion, enterprise C must not pay charges in 2022.

- From January 1, 2023, pay television service providers shall pay quarterly charges. Providers shall calculate and pay charges for total revenue arising in the quarter.

- The deadline for paying charges is the 20^th (twentieth) day of the first month of the next quarter.”

Article 2. Organization of implementation

1. This Circular takes effect on January 01, 2022.

2. Any problems arising in the course of implementation should be promptly reported to the Ministry of Finance for consideration and settlement./.

For the Minister

The Deputy Minister

Vu Thi Mai