Circular 15/2023/TT-BTC accounting contributions to Vietnam Public-utility Telecommunication Service Fund

CIRCULAR

Guiding the collection, remittance and accounting of contributions to the Vietnam Public-utility Telecommunication Service Fund through 2025

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Pursuant to Law No. 41/2009/QH12 on Telecommunications dated November 23, 2009;

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

Pursuant to the Government’s Decree No. 25/2011/ND-CP of April 6, 2011, detailing and guiding the implementation of a number of articles of the Law on Telecommunications;

In the implementation of the Prime Minister’s Decision No. 2269/QD-TTg dated December 31, 2021, approving the Program on providing public-utility telecommunication service through 2025;

At the proposal of the Director General of the Department of Corporate Finance;

The Minister of Finance promulgates the Circular guiding the collection, remittance and accounting of contributions to the Vietnam Public-utility Telecommunication Service Fund through 2025.

Article 1. Scope of regulation

This Circular guides the collection, remittance, and accounting of contributions of telecommunications enterprises to the Vietnam Public-utility Telecommunication Service Fund (hereinafter referred to as the Fund) for the implementation of the Program on providing public-utility telecommunication service through 2025 approved in the Prime Minister’s Decision No. 2269/QD-TTg dated December 31, 2021 (hereinafter referred to as Decision No. 2269/QD-TTg).

Article 2. Subjects of application

1. The telecommunications enterprise specified in Clause 2, Part IV, Article 1 of Decision No. 2269/QD-TTg (hereinafter referred to as enterprises).

2. Vietnam Public-utility Telecommunication Service Fund, agencies, organizations, and individuals involved in collecting, remittance, and accounting contributions to the Fund.

Article 3. Contributions of telecommunications enterprises to the Fund

The telecommunications enterprise shall contribute to the Fund according to Part IV Article 1 of Decision No. 2269/QD-TTg. This contribution shall be determined according to the following formula:

- The revenue arising in the year of telecommunications services included in the list of services subject to contribution calculation shall be determined in accordance with the Ministry of Information and Communications’ Circular No. 21/2019/TT-BTTTT dated December 31, 2019, regulating the explanation of telecommunication service revenues and the amendment, supplement, and replacement document (if any).

- Number of months to calculate the contribution in the year shall be determined from the time of starting to calculate the contribution (or the time of stopping collection of contributions) decided by the Ministry of Information and Communications under Clause 3, Part IV, Article 1 of Decision No. 2269 /QD-TTg and according to the rule of rounding the month (from 15 days or more shall be rounded to a full month, less than 15 days shall not be considered a month).

- Contribution rate shall be determined in accordance with Point b, Clause 2, Part IV, Article 1 of Decision No. 2269/QD-TTg.

Article 4. Planning for collection and remittance

1. For enterprises:

Based on the reporting year's business situation and the planning year's business plan, enterprises shall make plans to register financial contributions to the Fund of the plan year (with quarterly division) and send them to the Fund and the Ministry of Information and Communications. The deadline for submitting the plan is before July 31 of each year.

2. For the Fund:

a) Based on the enterprises’ annual financial contribution registration plans (with quarterly division), the Fund shall review and summarize the collected contributions plans of enterprises and submit them to the Ministry of Information and Communications for approval before September 30 of each year. The contribution collection plans of enterprises to the Fund must be consistent with Decision No. 2269/QD-TTg and shall be used as a basis for the Fund to collect contributions of enterprises.

b) Based on the Ministry of Information and Communications’ decision on the time to stop collecting enterprises’ contributions to the Fund, the Fund shall notify in writing to enterprises for implementation.

3. For the Ministry of Information and Communications:

Based on the provisions of Decision No. 2269/QD-TTg, the Ministry of Information and Communications shall approve the enterprises’ annual contribution registration plans before December 31, so that the Fund can use them to serve as a basis for collecting enterprises’ contributions.

4. For the first year of contribution:

a) In case The Ministry of Information and Communications decides the time to start calculating the contributions before June 30:

- The enterprise shall make a financial contribution plan for the remaining months of the year (with quarterly division) and the contribution plan for the following year (with quarterly division) and send them to the Fund and the Ministry of Information and Communications. The deadline for submitting the plans is before July 31 every year.

- The Fund shall review and synthesize plans for collecting contributions (with quarterly division) of enterprises (including financial contribution plan for the remaining months of the year and contribution plan for the following year) and submit them to the Ministry of Information and Communications for approval before September 30 every year.

b) In case the Ministry of Information and Communications decides the time to start calculating contributions after June 30:

- Within 30 days from the effective date of the Ministry of Information and Communications’ decision on the starting time to calculate the contribution, the enterprise shall send the contribution plan for the remaining months of the year (with quarterly division) and the contribution plan of the following year (with quarterly division) to the Fund and the Ministry of Information and Communications.

- The Fund shall review and synthesize plans for collecting contributions (with quarterly division) of enterprises (including financial contribution plan for the remaining months of the year and contribution plan for the following year) and submit them to the Ministry of Information and Communications for approval. The deadline for the Ministry of Information and Communications to approve the contribution plans is no later than December 31 of that year.

Article 5. Collection and remittance of contributions

1. For enterprises:

a) Quarterly, the enterprise shall actively make a payment into the Fund's account based on the annual financial contribution registration plans (with quarterly division) sent to the Fund and the Ministry of Information and Communications. The deadline for submission is no later than 20 days (for companies) and 45 days (for corporations) from the end of the quarter.

b) At the end of the fiscal year, based on the report explaining revenue from telecommunications services as prescribed in Circular No. 21/2019/TT-BTTTT and the annual finalization revenue, the enterprise shall determine the payable amount in the year under Article 3 of this Circular and send it to the Fund. The enterprise shall finalize the amount to be contributed in the year with the Fund. The deadline for finalization shall be decided by the Fund and the enterprise on their initiative, but it must be consistent with the deadline for submitting the annual financial reports of the enterprise specified in Circular No. 200/2014/TT-BTC dated December 22, 2014, of the Ministry of Finance and amendments, supplements, and replacements (if any).

Enterprises must fully pay the outstanding amount to the Fund within 30 days from the date of finalization with the Fund. In case an enterprise has overpaid to the Fund, the overpaid amount shall be handled according to one of the following options:

- Offsetting with the payable amount of the next period;

- To be refunded by the Fund when the enterprise does not continue to provide services that are obliged to make financial contributions to the Fund or when the Ministry of Information and Communications decides to stop collecting contributions as prescribed. The Fund shall refund such amount to the enterprise within 15 days from the date of finalization with the enterprise.

c) The telecommunications enterprise's contribution to the Fund specified in this Circular is the expenditure to fulfill the obligation to provide public-utility telecommunication services and shall be accounted into the business expenses of the enterprise.

d) The financial contribution of the enterprise specified in this Circular shall be remitted into the Fund's account in Vietnam dong.

2. For the Fund:

a) Based on the annual financial contribution plan approved by the Ministry of Information and Communications, the Fund shall collect the contributions from enterprises and report to the Ministry of Information and Communications on the annual Fund collection.

b) When the amount collected into the Fund reaches the funding level approved in Clause 1, Part IV, Article 1 of Decision No. 2269/QD-TTg, the Fund shall report to the Ministry of Information and Communications on the Fund collection, the amount collected into the Fund to the Ministry of Information and Communication for the latter to decide on the time to stop collecting enterprises’ contributions.

Based on the Ministry of Information and Communications’ decision on the time to stop collection, the Fund shall notify in writing to enterprises for implementation.

3. The Ministry of Information and Communications shall notify enterprises and the Fund of the decisions on the time to start collecting contributions or stop collecting contributions.

4. For the collection and payment of contributions for the remaining months in the first year: Based on the financial contribution plan for the remaining months of the year that has been sent to the Fund and the Ministry of Information and Communications, the enterprise and the Fund shall collect, remit and finalize the contribution as prescribed at Points a and b, Clause 1 of this Article.

Article 6. Contribution accounting

1. Adding level-2 Account to the specific account system currently applied by enterprises. To be specific:

a) Add a level-2 Account under Account 338 "Other payables" to follow payable amounts, paid amounts, the amount to be paid, and outstanding balances of financial contributions to the Fund.

b) Add a level-2 account under Account 642 "Business administration expenses" to follow the amount already included in expenses, the amount transferred to determine the business results in terms of financial contributions to the Fund.

2. The accounting methods for economic operations that are mainly related to financial contributions shall be implemented as follows:

a) At the end of the quarter:

- Based on the financial contribution plan submitted to the Fund, the following accounts shall be recorded:

- When transferring money to the Fund's account, the following accounts shall be recorded:

Credit account 112

b) At the end of the fiscal year:

- Based on the actual revenue arising in the year, the enterprise shall determine the difference between the payable amount according to the plan sent to the Fund and the payable amount determined by the enterprise for accounting:

+ In case the payable amount according to the plan sent to the Fund is smaller than the payable amount determined by the enterprise, the additional payable amount shall be recorded as follows:

+ In case the payable amount according to the plan sent to the Fund is larger than the payable amount determined by the enterprise, the decrease in payable amount (negative record) shall be recorded as follows:

- When transferring the additional payable amount to the Fund's account, the accountant shall record it as the second entry of Point a, Clause 2 of this Article.

- In case the enterprise has overpaid to the Fund, the overpaid amount shall be deducted from the payable amount of the following period. In case the overpaid amount is refunded (if any), the following accounts shall be recorded:

c) When the Fund completes the settlement with enterprises, if there is a difference between the payable amount determined by the enterprise and the payable amount determined by the Fund, the accountants shall make entry adjustment similarly to Point b, Clause 2 of this Article.

Article 7. Implementation responsibility

1. Enterprises must make statistics and separately monitor the revenue of services to be contributed, timely make contributions in accordance with the provisions of this Circular and provide data and documents explaining issues related to the implementation of their obligations of financial contribution to the Fund.

2. Fund:

a) The Fund shall regularly urge enterprises to make full and timely financial contributions and finalize the annual financial contributions payable to enterprises as prescribed.

b) The Fund may request enterprises to provide data and documents explaining issues related to the fulfillment of obligations to make financial contributions to the Fund; inspect and guide enterprises to make contributions strictly in accordance with this Circular, ensuring not to omit any revenue sources and recipients.

c) The Fund shall detect and propose competent state management agencies to handle violations committed by enterprises when fulfilling their financial contribution obligations to the Fund in accordance with this Circular and other relevant regulations.

3. The Ministry of Information and Communications shall

a) Supervise and examine the determination of contributions to the Fund by enterprises and handle enterprises violating their obligations to make financial contributions to the Fund according to law provisions.

b) Supervise and examine the enterprises’ collection and contributions to the Fund.

Article 8. Effect

1. This Circular takes effect on April 25, 2023.

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

Cao Anh Tuan