Circular 273/2016/TT-BTC on charges for telecommunications operation rights

CIRCULAR

On defining the collection rates, exemption, regime of collection, remittance, management and use of charges for telecommunications operation rights and fees for grant of telecommunications service business licenses and licenses for telecommunications operations

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

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

Pursuant to the Law on Telecommunications dated November 23, 2009;

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

Pursuant to the Decree No. 25/2011/ND-CP dated April 06, 2011; the Decree No. 81/2016/ND-CP dated July 01, 2016 of the Government on detailing and guiding the implementation of a number of articles of the Law on Telecommunications;

Pursuant to the Decree No. 215/2013/ND-CP dated December 23, 2013 of the Government on 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 hereby promulgates the Circular on defining the collection rates, exemption, regime of collection, remittance, management and use of charges for telecommunications operation rights and fees for grant of telecommunications service business licenses and licenses for telecommunications operations.

Article 1. Scope of regulation and subjects of application

1. This Circular provides collection rates, exemption, regime of collection, remittance, management and use of charges for telecommunications operation rights and fees for grant of telecommunications service business licenses and licenses for telecommunications operations.

2. This Circular applies to: Charge and fee payers, charge- and fee-collecting organizations; other agencies and organizations related the grant of telecommunications service business licenses and licenses for telecommunications operations and, the collection of charges and fees.

Article 2. Payers and charge- and fee-collecting agencies

1. Organizations and enterprises (hereinafter referred to as enterprises) eligible to issue telecommunications service business licenses and licenses for telecommunications operations shall pay charges and fees as prescribed in this Circular.

2. The Department of Telecommunications and the units assigned by the Ministry of Information and Communications shall collect charges and fees as prescribed in this Circular.

Article 3. Cases entitled to charge and fee exemption

Cases entitled to charge and fee exemption shall be as follows:

1. Private telecommunications network of the Ministry of Public Security and the Ministry of National Defence.

2. Private telecommunications network to serve the direction and operation of rescue and natural disaster prevention.

3. Private telecommunications networks of international agencies and organizations in Vietnam enjoy privileges and diplomatic and consular immunities.

Article 4. Charge and fee rates

Rates of the charges for telecommunications operation rights and fees for grant of telecommunications service business licenses and licenses for telecommunications operations are specified in the Table of Charges and Fees attached to this Circular.

Article 5. Declaration, remittance of charges and fees of payers

1. Telecommunications service supply charge

a) Telecommunications service revenue which is the basis for charging shall comply with Article 29 of the Decree No. 25/2011/ND-CP dated April 06, 2011 of the Government on detailing and guiding the implementation of a number of articles of the Law on Telecommunications, the Circular No.  21/2013/TT-BTTTT dated December 18, 2013 of the Minister of Information and Communications on telecommunications service revenue and the Circular No. 01/2016/TT-BTTTT dated January 25, 2016 of the Minister of Information and Communications on amending and supplementing a number of articles of the Circular No. 21/2013/TT-BTTTT dated December 18, 2013. In case the enterprise does not record the telecommunications service revenue according to the above provisions, the telecommunications service revenue shall be determined as the revenue from the sale of telecommunications services in the financial statements (including revenue from selling cards);

b) Quarterly, based on the quarterly data report on telecommunications service revenue as prescribed at Point a, Clause 1 of this Article, the enterprise shall calculate the payable charge according to the following formula:

Payable charge = Quarterly telecommunications service revenue x 0.5%.

The time to pay the charge is the same as the time when the quarterly report on revenue of telecommunications services is submitted;

c) Annually, based on the annual data report on telecommunications service revenue, the enterprise shall calculate the payable charge according to the following formula:

Annual payable charge = Annual telecommunications service revenue x 0.5%.

In case the annual payable charge amount is higher than the payable charge amount of 04 quarters, the enterprise shall additionally pay the difference to the collecting organization, the time of charge payment is the time of submitting the annual report. In case the annual payable charge amount is lower than the payable charge amount of 04 quarters, the enterprise shall be entitled to offset the difference of the payable charge on the first quarter of the following year.

c.1) In case the annual charge based on telecommunications service revenue (revenue x 0.5%) is lower than the minimum charge rate specified in the Charge and fee table, the enterprise must pay the difference to the collecting organization;

c.2) In case the enterprise is granted the operation license after January 01 every year: The payable charge = the minimum charge x the remaining months of the year (from the following month of the month of licensing)/12.

2. Charge for setting up public telecommunications networks: Telecommunication enterprises shall submit the annual payment, the submission time shall be in the first quarter.

In case the enterprise is granted the operation license after January 01 every year: The payable charge = the annual charge x the remaining months of the year (from the following month of the month of licensing)/12.

3. Fee for licensing and setting up private telecommunications networks, fee for testing telecommunications networks and services, fee for installing telecommunications cables at sea: Charge and fee payers shall make the payment at the time of issuing the license.

4. The charges and fees shall be remitted directly to the collecting organizations or remitted into their accounts of charges awaiting remittance into the state budget that is opened in the State Treasury.

Article 6. Declaration and remittance of charges and fees by charge and fee collectors

1. By the 5^th of every month at the latest, the charge- and fee-collecting agencies shall deposit the charge and fee amounts collected in the previous month into their accounts of charges awaiting remittance into the state budget.

2. Charge and fee collectors shall declare the collected charge and fee amounts monthly and make final accounts on an annual basis in accordance with Clause 3, Article 19, and Clause 2, Article 26, of the Circular No. 156/2013/TT-BTC dated November 6, 2013 of Minister of Finance on 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 Decree No. 83/2013/ND-CP dated July 22, 2013 of the Government. Charge and fee collectors shall remit 100% of the collected charge and fee amounts (at the rate specified in Article 7 of this Circular) to the State Budget according to chapters, sections and subsections of the State Budget Index.

Article 7. Charge and fee management and use

1. Charge and fee collectors assigned by the Ministry of Information and Communications shall remit 100% of the collected charge and fee amounts to the State Budget. Expenses for service provision and charge collection activities shall be included in State budget estimates of charge and fee collectors based on state budget expenditure norms under regulations of law.

In case charge and fee collectors being state agencies are subject to allocation of fixed operating funds from charge revenues under Clause 1 Article 4 of the Decree No. 120/2016/ND-CP dated August 23, 2016 of the Government on detailing and guiding the implementation of a number of articles of the Law on Charges and Fees, they shall retain 10% of the total collected charge amount to spend on providing service, collecting charge and fee, the remaining 90% shall be remitted into the State budget.

2. The Department of Telecommunications may retain 10% of the total collected charge amount to spend on providing service, collecting charge and fee, the remaining 90% shall be remitted into the State budget.

3. The retained charge amounts shall be managed and used under Article 5 of the Decree No. 120/2016/ND-CP dated August 23, 2016 of the Government on detailing and guiding the implementation of a number of articles of the Law on Charges and Fees.

Article 8. Implementation and effect

1. This Circular takes effect on January 01, 2017 and replaces the Decision No. 215/2000/QD-BTC dated December 29, 2000 of the Minister of Finance on prescribing the collection rate of fees for grant of telecommunications operation licenses and the Decision No. 76/2006/QD-BTC dated December 29, 2006 of the Minister of Finance on amending and supplementing the Decision No. 215/2000/QD-BTC dated December 29, 2000.

2. For enterprises that have the license to establish private telecommunications network; the valid license to test telecommunications networks and services at the time this Circular takes effect, the enterprise shall pay the fee for establishing private telecommunications network; charges for testing telecommunications networks and services as prescribed in this Circular.

3. Other matters related to the registration, declaration, collection, remittance, management and use and publication of the regimes on charge and fee collection which are not mentioned in this Circular must comply with the Law on Charge and Fees; the Decree No. 120/2016/ND-CP dated August 23, 2016 of the Government on detailing and guiding the implementation of a number of articles of the Law on Charges and Fees and its guiding documents; the Circular No. 156/2013/TT-BTC dated November 6, 2013 of the Minister of Finance on guiding the implementation of a number of articles of the Law on Tax Administration, the Law on Amending and Supplementing a Number of Articles of the Law on Tax Administration, and the Decree No. 83/2013/ND-CP dated July 22, 2013 of the Government and the Circular No. 153/2012/TT-BTC dated September 17, 2012 of the Minister of Finance on guiding the printing, issuance, management and use of different types of receipts of charges and fees belonging to the state budget, and  amending, supplementing or replacing documents (if any).

4. In the course of implementation, if any problems arise, agencies and units are requested to report them to the Ministry of Finance for consideration and settlement./.

For the Minister

The Deputy Minister

Vu Thi Mai

TABLE OF CHARGES AND FEES FOR LICENSING TELECOMMUNICATIONS OPERATION

(Promulgated together with the Minister of Finance’s Circular No.273/2016/TT-BTC dated November 14, 2016)

I. FEES FOR LICENSING TELECOMMUNICATIONS OPERATION

II. CHARGES FOR TELECOMMUNICATIONS OPERATION RIGHTS

1. Telecommunications service supply charge

Every year, organizations and enterprises granted the license to provide telecommunications services must pay a charge of 0.5% calculated on the revenue of telecommunications services but not lower than the minimum level in the Table below:

2. Charge for setting up public and private telecommunications networks; charge for testing networks and telecommunications services; charge for installation of telecommunications cables at sea shall be applied as follows: