Circular 60/2021/TT-BTC amending Circular 38/2014/TT-BTC on guiding the Government's Decree No. 89/2013/ND-CP detailing Law on Price regarding valuation

CIRCULAR

On amending and supplementing a number of articles of the Circular No. 38/2014/TT-BTC dated March 28, 2014 on guiding a number of articles of the Government's Decree No. 89/2013/ND-CP dated August 06, 2013 detailing a number of articles of the Law on Price regarding valuation

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Pursuant to the Law on Price dated June 20, 2012;

Pursuant to the Government’s Decree No. 89/2013/ND-CP dated August 06, 2013 detailing a number of articles of the Law on Price regarding valuations;

Pursuant to the Government’s Decree No. 12/2021/ND-CP dated February 24, 2021, amending and supplementing a number of articles of the Government’s Decree No. 89/2013/ND-CP of August 06, 2013, detailing a number of articles of the Law on Price regarding valuation;

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;

At the proposal of the Director of Price Management Department;

The Minister of Finance promulgates the Circular amending and supplementing a number of articles of the Circular No. 38/2014/TT-BTC dated March 28, 2014 on guiding a number of articles of the Government's Decree No. 89/2013/ND-CP dated August 06, 2013 detailing a number of articles of the Law on Price regarding valuation as follows:.

Article 1. To amend and supplement a number of articles of the Circular No. 38/2014/TT-BTC dated March 28, 2014 on guiding a number of articles of the Government's Decree No. 89/2013/ND-CP dated August 06, 2013 detailing a number of articles of the Law on Price regarding valuation (hereinafter referred to as the Circular No. 38/2014/TT-BTC)

1. To amend and supplement Clause 2, Article 3 as follows:

“2. An enterprise shall submit the application for valuation practice registration for its valuers as prescribed at Points c and d, Clause 1, Article 14 of the Government's Decree No. 89/2013/ND-CP dated August 06, 2013 detailing a number of articles of the Law on Price regarding valuation (hereinafter referred to as the Decree No. 89/2013/ND-CP) and in Clause 7, Article 1 of the Government’s Decree No. 12/2021/ND-CP dated February 24, 2021, amending and supplementing a number of articles of the Decree No. 89/2013/ND-CP (hereinafter referred to as the Decree No. 12/2021/ND-CP), including:

a) Their written registrations for valuation practice at the enterprise, made according to the Form in Appendix No. 01 to this Circular, that are certified by the at-law representative of the enterprise;

b) Copies of their valuer cards or certificates of issuance of valuer card granted by the Ministry of Finance;

c) Certified copies or certified true copies of documents of termination of labor contracts or notification of dissolution of the enterprises/operation termination of the previous valuation enterprises before the time of practice registration;

d) Copies of their professional valuation training certificates for the practicing valuers according to regulations of the Ministry of Finance;

c) Certified copies of their work permits issued to foreign workers by competent Vietnamese agencies with the working period in conformity with the term of the labor contracts, for the valuers being foreigners;

c) Certified copies or certified true copies of their labor contracts and appendices to the labor contracts (if any) at the valuation enterprise where the valuer registers for practice, stating the working period and jobs in conformity with contents of registration for valuation practice;

g) A list of at least 10 sets of valuation brief reports and valuation result reports signed by a valuer in the previous year, except the following cases: The valuer practicing for under 06 (six) months in the previous year; the valuer being in the list of valuers fully qualified to practice the valuation in the registration year announced by the Ministry of Finance; the valuer being the at-law representative of the valuation enterprise with the name stated in the enterprise’s certificate of eligibility for provision of valuation services in the previous year.

Contents of declaration of 10 sets of valuation brief reports and valuation result reports comprise: Numbers, issuance date of valuation brief reports and valuation result reports; customers; valuation enterprise(s) and certification of valuation enterprise(s).”

2. To amend and supplement Clauses 4 and 5, Article 3 as follows:

“4. The valuation enterprise additionally registering for its valuers shall comply with Clause 2 of this Article and send a written request of additional registration of valuers practicing in the enterprise to the Ministry of Finance (the Department of Price Management) at the same time. In case of registration for reduction of the number of valuers, the valuation enterprise shall send a written request for registration for reduction of the number of valuers practicing at the enterprise together with certified copies or certified true copies of documents on termination of labor contracts or termination of practice registration (for the valuers continuing working at the enterprise) of the enterprise, for the valuers subject to the reduction registration to the Ministry of Finance (the Department of Price Management). In case of registration for transfer of valuers, the valuation enterprise shall send a written request for registration for transfer of valuers practicing at the enterprise, together with the dossier of transfer to the Ministry of Finance (the Department of Price Management).

5. Periodically, the Ministry of Finance shall issue the Notice announcing the list of valuers fully qualified to practice the valuation at the valuation enterprises no later than the last working day of each month, for valuation enterprises submitting complete applications for valuation practice registration for their valuers at the enterprise before 20^th of every month (the day stated on the stamp of received official dispatch), before December 10 (the day stated on the stamp of received official dispatch). Valuers are only allowed to practice the valuation after the issuance of the Notice of the Ministry of Finance.”

3. To amend and supplement Clause 1, Article 4 as follows:

“1. Dossiers of request for grant or re-grant of certificates of eligibility provision of valuation services include the documents specified in Article 14 of the Decree No. 89/2013/ND-CP and Clause 7 Article 1 of the Decree No. 12/2021/ND-CP. An application for grant or re-grant of a certificate of eligibility for provision of valuation services shall be made according to the form in Appendix No. 02 issued together with this Circular.

In case of registration of provision of valuation services for a branch of a valuation enterprise as specified in Article 41 of the Law on Price, the valuation enterprise shall send simultaneously a certified copy of branch operation registration certificate and written authorization given by the valuation enterprise to its branch. The content that the branch of the valuation enterprise may carry out a part or the whole of valuation work must be clearly stated in the written authorization. The branch of the valuation enterprise implementing a part of valuation work must not issue valuation brief reports. The branch of the valuation enterprise implementing the whole of valuation work may issue valuation brief reports.”

4. To amend and supplement Clauses 2 and 3, Article 5 as follows:

“2. Valuation enterprises must notify in writing changes as specified in Article 17 of the Decree No. 89/2013/ND-CP and Clause 9 Article 1 of the Decree No. 12/2021/ND-CP to the Ministry of Finance.

3. Valuation enterprises shall send applications of registration for the lists of valuers practicing at the enterprises for the next year, made according to the form in the Appendix No. 03 to this Circular to the Ministry of Finance (the Department of Price Management) before December 20 (the day stated on the stamp of received official dispatch). The Ministry of Finance (the Department of Price Management) shall, based on the valuation enterprises’ applications of registration, review and issue the Notice announcing the list of valuers fully qualified to practice the valuation from January 01 of the next year according to regulations.”

5. To amend and supplement Clauses 2 and 3, Article 6 as follows:

“2. Valuation enterprises may purchase the professional liability insurance for valuation according to the law on insurance business.

Expenses for the purchase of the insurance shall be included in business expenses of valuation enterprises according to the law on enterprise income tax.

3. Setting up of professional risk provision funds

If an valuation enterprise does not purchase the professional liability insurance for valuation, it must set up professional risk provision funds with the annual rate equal to 1% of turnover of valuation service (not including the value-added tax) that are accounted as cases of payable amount of setting up of risk provisions. Enterprises must formulate and promulgate internal regulations on management and use of professional risk provision funds.

 b) In case of the balance of professional risk provision funds at the end of the fiscal year equivalent to 10% of turnover of valuation service in the fiscal year, not to set up professional risk provision funds. In case enterprises terminate their valuation activities, the balance of professional risk provision funds that are not used up shall be accounted in other turnovers.”

6. To amend Clause 2, Article 7 as follows:

“2. The time limit of storage of valuation dossiers is at least 10 (ten) years from the date of issuance of valuation brief reports. Valuation enterprises must take measures to maintain the confidentiality, safety, integrity, accessibility and recoverability of valuation dossiers during the time limit of storage.”

7. To amend Clause 5, Article 7 as follows:

“5. The at-law representatives of valuation enterprises must be responsible for organizing the preservation, storage and destruction of valuation dossiers in accordance with the law on archives.”

8. To amend and supplement Article 8 as follows:

“Article 8. Reporting regime

1. For valuation enterprises

a) Periodic reports: On an annual basis, valuation enterprises shall make reports, using the form of Report on situation of the enterprise and a number of valuation activity indicators of the year as specified in Appendix No. 07 to this Circular. The report must be submitted on March 31 of the year immediately following the reporting year at the latest.

b) Irregular reports: Valuation enterprises shall make irregular reports when receiving a written request by the Ministry of Finance or a competent agency according to law regulations.

2. For professional valuation associations

a) Periodic reports: On an annual basis, professional valuation associations shall make reports, using the form of Report on situation and orientation of operation of professional valuation associations as specified in Appendix No. 08 to this Circular. The report must be submitted on January 31 of the year immediately following the reporting year at the latest.

b) Irregular reports: Professional valuation associations shall make irregular reports (if any) or when receiving a written request by the Ministry of Finance in case of examination, inspection, handling of complaint and denunciation, handling of administrative violations, disputes arising in the field of valuation.

3. Periodic and irregular reports specified in Clauses 1 and 2 of this Article shall be send to the Ministry of Finance (the Department of Price Management) by one of the following methods:

- Sending them directly at the receiving agency's office;

- Sending them via postal service;

- Sending them via fax or email at [email protected] (with scanned copy).

Valuation enterprises, branches of valuation enterprises and professional valuation associations shall be responsible for the accuracy and truthfulness of their reports.”

9. To amend and supplement Article 9 as follows:

“Article 9. Quality control for valuation activities

Valuation enterprises shall formulate the procedures for and carry out the control of quality of their valuation activities according to the system of Vietnam valuation standards, guidance of the Ministry of Finance (if any).

Valuation enterprises may proactively request the competent agencies to evaluate the quality of valuation activities at the enterprises after at least 06 (six) months from the time of announcing the results of the evaluation of the quality of their valuation activities.”

10. To amend and supplement Clause 2, Article 10 as follows:

“2. Valuation enterprises shall be responsible for build a system of valuation database to serve professional activities of enterprises and connect this database with the national database on price according to the guidance of the Ministry of Finance.”

11. To replace Appendices from No. 01/TDG to No. 08/TDG to the Circular No. 38/2014/TT-BTC with the Appendices to this Circular.

Article 2. Implementation provision

1. This Circular takes effect on September 03, 2021.

2. The Ministry of Finance assigns the Department of Price Management to coordinate with ministries, sectors, People's Committees and Departments of Finance of provinces and centrally-run cities in implementing and guiding valuation enterprises to implement this Circular. The Director of the Price Management Department, valuation enterprises, valuers and relevant organizations and individuals shall be responsible for the implementation of this Circular.

Any problem arising in the course of implementation should be promptly reported to the Ministry of Finance for amendment and supplementation./.

* All Appendices are not translated herein.