Circular No. 264/2016/TT-BTC dated November 14, 2016 of the Ministry of Finance on providing for diplomatic service fees and charges collected by overseas representative missions of Vietnam, and the collection, transfer and management thereof

THE MINISTRY OF FINANCE

Circular No.264/2016/TT-BTC dated November 14, 2016 of the Ministry of Finance on providing for diplomatic service fees and charges collected by overseas representative missions of Vietnam, and the collection, transfer and management thereof

Pursuant to the Law on fees and charges dated November 25, 2015;

Pursuant to the Law on overseas representative missions of the Socialist Republic of Vietnam dated June 18, 2009;

Pursuant to the Law on immigration, transit and residence of foreigners in Vietnam dated June 16, 2014;

Pursuant to the Law on state budget dated June 25, 2015;

Pursuant to the Law on nationality dated November 13, 2008;

Pursuant to the Government s Decree No. 136/2007/ND-CP dated August 17, 20007 providing for the immigration of Vietnamese citizens;

Pursuant to the Government s Decree No. 94/2015/ND-CP dated October 16, 2015 on amendments to a number of articles of the Government s Decree No. 136/2007/ND-CP dated August 17, 20007 providing for the immigration of Vietnamese citizens;

Pursuant to the Government s Decree No. 111/2011/ND-CP dated December 05, 2011 providing for the consular authentication and legalization;

Pursuant to the Government s Decree No. 82/2015/ND-CP dated September 14, 2015 providing for the visa-free entry for Vietnamese people residing in foreign countries and for foreigners who are spouses and children of Vietnamese people residing in foreign countries or of Vietnamese citizens;

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

Pursuant to the Government s Decree No. 215/2013/ND-CP dated December 23, 2013 defining the functions, tasks, powers and organizational structure of Ministry of Finance;

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

Minister of Finance promulgates a Circular to provide the following regulations on the diplomatic service fees and charges collected by the overseas representative missions of Vietnam, and the collection, transfer and management thereof.

Article 1. Scope of adjustment

This Circular provides for the diplomatic service fees and charges collected by the overseas diplomatic missions, overseas consular missions and other overseas missions of Vietnam that are designated to perform consular affairs in foreign countries (hereinafter referred to as the overseas representative missions of Vietnam), and the collection, transfer and management thereof.

Article 2. Payers

Any Vietnamese and foreign organizations and individuals that are provided with public services or state management-related services by overseas representative missions of Vietnam must pay diplomatic service fees and charges in accordance with regulations herein.

Article 3. Collectors

Overseas representative missions of Vietnam that directly provides state management-related services in the diplomatic sector to organizations/ individuals in conformity with the applicable laws shall assume responsibility to collect fees and charges in accordance with regulations herein.

Article 4. Fee and charge

Diplomatic service fees and charges are prescribed in the Schedules of diplomatic service fees and charges enclosed herein and applied to all overseas representative missions of Vietnam.

Article 5. Fee and charge exemption or reduction

1. The following entities are eligible for exemption from fees and charges:

a) Foreign guests (including their accompanying spouses, natural parents, parents-in-lawand children) invited in their personal capacity by theCommunistParty, the National Assembly, the Stateorthe Government,or by leaders of theCommunistParty, the National Assembly, the Stateorthe Government of the Socialist Republic of Vietnam;

b)Public employees or technical coordinators of foreign diplomatic missions, foreign consular missions or representative missions of international organizations in Vietnam and their family members (including their spouses, natural parents, parents-in-law and minor children) onthe principle of reciprocity;

c) Foreign holders of diplomatic passports, official passports, ordinary passports or travel papers used as passport substitutes issued by foreign competent authorities, who are eligible for visa fee exemption under treaties to which Vietnam is a signatory, in accordance with the law of Vietnam, or on the principle of reciprocity;

d) Foreigners entering Vietnam to provide humanitarian relief oraidfor Vietnamese organizations and individuals;

dd) Foreigners entering Vietnam at the invitation for exchanges of Ministries, regulatory bodies, provincial or city-level governments on the principle of reciprocity;

e) Persons who are accredited with significant contribution to the revolution and the fatherland; persons who have considerable achievements in community affairs or have made practical and useful contribution to overseas representative missions of Vietnam.

g) Cases as required by external relations or humanitarian activities or Vietnamese citizens facing severely disadvantaged circumstances or risks.

h) Persons who apply for visa but are eligible for visa fee exemption in accordance with regulations of the Vietnam’s Government, under treatiesto which Vietnam is a signatoryor under bilateral agreements.

Overseas representative missions of Vietnam should, pursuant to the said regulations, consider fee and charge exemption for each case.

2.Vietnamesepeoplepermanently residing in China, Laos, Thailand and Cambodiaor countries facing war or epidemicsare eligibleto receive reduction of diplomatic service fees and charges as prescribed in the Schedules of diplomatic service fees and charges enclosed herein.

3. Collectors shall append the seal “miễn phí” (GRATIS) on the papers/documents issued to entities that are eligible for fee and charge exemption according to the said regulations.

Article 6. Refund of fees and charges

1. If a Vietnamese or foreign organization/ individual has paid the fee/ charge in diplomatic sector in accordance with regulations herein but is not qualified for being issued consular paper/document, the collector must not refund the collected fee/charge to the payer.

2. The collector must also not refund the collected fee/charge to a Vietnamese or foreign organization or individual who refuses to receive its/his/her application processing result.

Article 7. Declaration and transfer of fees and charges

Heads of overseas representative missions of Vietnam shall decide reputable banks to open accounts of overseas representative missions of Vietnam to serve their activities, ensuring security of deposits of state budget funds at such overseas representative missions.

1. Charges:

Ministry of Foreign Affairs shall instruct overseas representative missions of Vietnam to enter collected charges into accounts; transfer 100% (one hundred percent) of collected charges and interests accrued from bank deposits into state budget funds at overseas representative missions of Vietnam.

Expenditure for carrying out the collection of charges shall be covered by funding from state budget included in each collector’s estimate under policies and levels of state budget expenditures as regulated by laws.

2. Fees:

Ministry of Foreign Affairs shall instruct overseas representative missions of Vietnam to enter collectedfeesin diplomatic sectorinto accounts; transfer 70% (seventypercent) of collectedfees and interests accured from bank deposits into state budget funds at overseas representative missions of Vietnam.

3. Diplomatic service fees and charges shall be paid in US dollar (USD) according to the Schedules of diplomatic service fees and charges enclosed herein.When charges and fees are collected in the currency of the host country, the conversion between the US dollar (USD) and the currency of the host country shall be based on the selling rate of the US dollar (USD) announced by the bank at which the concerned overseas representative missionof Vietnamopens its account.

When the exchange rate for converting the US dollar (USD) to the currency of the host country fluctuates (either increase or decrease) by more than 10% (ten percent) compared with the currently applied exchange rate, the head of the overseas representative mission of Vietnam may reset the consular fees and charges collected in the currency of the host country according to the new exchange rate and, at the same time, send a written report thereon to the Ministry of Foreign Affairs and the Ministry of Finance before applying the new fees and charges.

In case there are two (02) or more representative missionsof Vietnampermitted to collectdiplomatic servicefeesand chargein one country or territory, the head of the representative missionof Vietnamwith the highest competence shall baseon theselling rateof its selected bankto decidethe fees and chargesforconsistentapplication by other overseas representative missionsof Vietnam.

Article 8. Management and use of fees and charges

1. Management and use of the amounts transferred to the state budget fund

a) Based on the estimate of state budget expenditures annually allocated by a competent authority for overseas representative missions of Vietnam, Ministry of Foreign Affairs may use funding from the state budget funds at overseas representative missions of Vietnam to cover current operating expenditures, provided that it shall not exceed the maximum amount predetermined in the approved estimate of state budget expenditures, and infrastructural development expenditures for overseas representative missions of Vietnam after completing procedures for recording state budget expenditures and revenues.

b) On the 05^thday of every month (particularly, recording of state budget expenditures and revenues with respect to the amounts arisen in December of current year shall be made on the 05^thof January of the following year – during the adjustment of accounting statements), the overseas representative missions of Vietnam shall transfer collected diplomatic service fees and charges (100% of charges and 70% of fees) and interests accrued from bank deposits to state budget funds. With regard to funding actually borrowed from state budget funds for covering expenditures, the State Treasuries shall make recording of state budget expenditures and revenues in corresponding with estimated expenditures in the following month of each overseas representative mission of Vietnam.

c) If the balance of the state budget fund at an overseas representative mission of Vietnam is not enough to cover its estimated expenditures, Ministry of Foreign Affairs shall transfer funding (deficiency) to that overseas representative mission of Vietnam to cover its expenditures.

d) If the balance of the state budget fund at an overseas representative mission of Vietnam exceeds the estimated funding provided to that overseas representative mission of Vietnam, then:

- The overseas representative mission of Vietnam located in a country/ territory where it is difficult to convert collected fees and charges into a hard currency, the money transfer fee is high or procedures for transferring money to Vietnam are very complex may retain the balance of the state budget fund for covering its expenditures in the next period.

Ministry of Foreign Affairs shall, based on actual conditions of countries/territories, announce the list of representative missions of Vietnam in foreign countries/ territories where it is difficult to convert collected fees and charges into a hard currency, the money transfer fee is high or procedures for transferring money to Vietnam are very complex, and inform it to relevant overseas representative missions of Vietnam for implementation and the State Treasuries for monitoring. Ministry of Foreign Affairs shall annually check and modify the said list in conformity with actual conditions.

- The overseas representative mission of Vietnam located in a country/territory where it is convenient currency conversion shall, between December 31^stof current year and January 31^stof following year (the period for annual adjustment of state budget statements), transfer the remaining amount of the state budget fund at its location to the concentrated foreign currency state budget account opened at the State Treasury for accounting as state budget revenues.

2. Management and use of the amount left forMinistry of Foreign Affairs

a) Ministry of Foreign Affairs may use 30% (thirty percent) of the collected diplomatic service fees for covering its expenditures as regulated in Clause 2 and Clause 3 Article 5 of the Government s Decree No. 120/2016/ND-CP dated August 23, 2016 detailing and guiding the implementation of a number of articles of the Law on fees and charges.

b) Ministry of Foreign Affairs shall promulgate regulations on the management and use of 30%(thirty percent) of the collected diplomatic service fees left for it. The surplus of the amount of diplomatic service fees annually left forMinistry of Foreign Affairsat the end of current year shall be carried forward to the following year for covering its expenditures as regulated herein.

Article 9. Statement of revenues and expenditures relating to diplomatic service fees and charges

1. Each overseas representative mission of Vietnam assumes responsibility to set up accounting book to record revenues and expenditures relating to its collected fees and charges from providing diplomatic services in accordance with current regulations on accounting for public service providers. The head of each overseas representative mission of Vietnam shall manage and take into accounts its collected diplomatic service fees and charges; send monthly report on the collection of diplomatic service fees and charges (by using the forms stated in Appendix 3 and Appendix 4 herein) to Ministry of Foreign Affairs.

2.Ministry of Foreign Affairsshall verify and make statement of revenues and expenditures related to diplomatic service fees and charges of overseas representative missions of Vietnam in accordance with prevailing laws.

3.Ministry of Foreign Affairs shallcoordinate with Ministry of Finance in conducting regular or unscheduled inspections of the collection, transfer and management ofdiplomatic service fees and chargesbyoverseas representative missions of Vietnam in accordance withregulations herein.

Article 10. Implementation organization

1. This Circular takes effect as of January 01, 2017 and replaces the Circular No.236/2009/TT-BTCdated December 15, 2009 by Minister of Finance providing guidance on the collection, transfer, management and use of diplomatic service fees and charges by overseas diplomatic missions and overseas consular missions of Vietnam, the Circular No.156/2015/TT-BTCdated October 08, 2015 on amendments to the Circular No.236/2009/TT-BTCdated December 15, 2009 by Minister of Finance providing guidance on the collection, transfer, management and use of diplomatic service fees and charges by overseas diplomatic missions and overseas consular missions of Vietnam.

2. Responsibilities of collectors ofdiplomatic service fees and charges:

a) Post the schedule of diplomatic service fees and charges at the collection locations in both Vietnamese and English or the official language of the host country;

b) Set up accounting books to monitor and record state budget expenditures and revenues, and manage and use collected fees and charges in accordance with regulations.

3. Other contents related to the collection, transfer, management and use of the fees and charges, which are not provided for in this Circular, shall be performed in conformity with regulations in the Law on fees and charges; the Government s Decree No. 120/2016/ND-CP dated August 23, 2016 detailing and guiding the implementation of a number of articles of the Law on fees and charges; the Circular No. 156/2013/TT-BTC dated November 06, 2013 by Minister of Finance providing guidance on a number of articles of the Law on tax management; the Law on amendments to the Law on tax management and the Government s Decree No. 83/2013/ND-CP dated July 22, 2013, and the Circular by Minister of Finance providing for the printing, issuance, management and use of receipts of fees and charges and other documents on amendments and supplements thereof (if any).

4. Any difficulties arising in the course of implementation of this Circular should be promptly reported to Ministry of Finance for consideration./.

For the Minister

The Deputy Minister

Vu Thi Mai

APPENDIX 1: SCHEDULE OF DIPLOMATIC SERVICE CHARGES

(Attached with the Circular No. /2016/TT-BTC dated ………….. 2016 by Minister of Finance)

APPENDIX 2: SCHEDULE OF DIPLOMATIC SERVICE FEES

(Attached with the Circular No. /2016/TT-BTC dated ……/…….. /2016 by Minister of Finance)

APPENDIX 3

(Attached with the Circular No. /2016/TT-BTC dated ………….. 2016 by Minister of Finance)

VIETNAMESE REPRESENTATIVE MISSION AT …………………….

REPORT ON COLLECTED DIPLOMATIC SERVICE CHARGES

Month……….year……….
(Applied to Vietnamese representative missions)

APPENDIX 4

(Attached with the Circular No. /2016/TT-BTC dated ………….. 2016 by Minister of Finance)

VIETNAMESE REPRESENTATIVE MISSION AT …………………….

REPORT ON COLLECTED DIPLOMATIC SERVICE FEES

Month……….year……….
(Applied to Vietnamese representative missions)