Circular No. 65/2016/TT-BTC dated April 26, 2016 of the Ministry of Finance prescribing rates and the collection, remittance, management and use of charges for securities operations to be applied at the stock exchanges and the Vietnam securities depository center

THE MINISTRY OF FINANCE

Circular No. 65/2016/TT-BTC dated April 26, 2016 of the Ministry of Finance prescribing rates and the collection, remittance, management and use of charges for securities operations to be applied at the stock exchanges and the Vietnam securities depository center

Pursuant to the Law on Securities dated June 29, 2006 and the Law on amending, supplementing a number of articles of the Law on Securities dated November 24, 2010;

Pursuant to the Ordinance on Charges and Fees dated August 28, 2001;

Pursuant to the Government s Decree No. 57/ 2002/ND-CP of June 3, 2002, and Decree No. 24/2006/ND-CP of March 6, 2006, detailing the implementation of the Ordinance on Charges and Fees;

Pursuant to the Government’s Decree No. 58/2012/ND-CP dated July 20, 2012 and the Decree No. 60/2015/ND-CP dated June 26, 2015 of the Government guiding the implementation of a number of articles of the Law on Securities and the Law on amending, supplementing a number of articles of the Law on Securities;

Pursuant to the Decree No. 215/2013/ND-CP dated December 23, 2013 of the Government 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 Ministry of Finance prescribes the Circular on rates and the collection, remittance, management and use of charges for securities operations to be applied at the Stock Exchanges and the Vietnam Securities Depository Center as follows:

Article 1. Subjects of application

This Circular shall be levied for jobs related to securities operations at the Stock Exchanges and the Vietnam Securities Depository Center (VSD).

Article 2.Charge payers

Charge payers are institutions and individuals that perform jobs related to professional operations of the securities trading market specified in the charge tariff attached to this Circular including securities companies; commercial banks; organizations registering for listing; listed organizations; fund management companies that have fund stock listed; individuals, organizations performing the transfer of securities ownership not through transaction system of Stock Exchanges.

Article 3. Collecting organizations

Collecting organizations as stipulated under this Circular are Stock Exchanges, VSD established and operated in Vietnam.

Article 4. Charge tariff and determination of the charge

Charge tariff shall be stipulated under charge tariff attached together with this Circular. The charge amount remitted for some charges shall be determined as follows:

1. The charge for trading member management

Charge amount for trading member management = Charge fee/12 months X time (months)

a) The charge amount as stipulated under Point 1 Section I Charge tariff

b) Time for calculating the charge

- If the organization is a trading member of the Stock Exchange and still acts as a member, the time for calculating the charge is 12 months.

- If the organization is newly accepted to be a trading member and still acts as a member in a year, time for calculating the charge will be counted from the month following the month that Stock Exchanges issues the Decision approving to be as a member till the end of December of that year.

- If the organization is the trading member and the transaction is stopped to terminate the voluntary or involuntary membership in the year, time for calculating the charge shall be from the beginning of the year to the end of month that Stock Exchanges terminates the transaction or suspends trading operations to terminate the membership.

- If a new organization is accepted as a trading member of SHDCK and its operation is suspended to terminate the membership in the year, time for calculating the charge shall be counted from the month following the month that Stock Exchanges issues the Decision on approving as a member till the end of the month that Stock Exchanges suspends the operation to terminate the membership.

c) If the trading member is formed after merger and acquisition, division, transfer, repurchase and shall have to process procedures to register for new members, the charge for trading member management shall be paid the same as the case of registering new members.

d) Return the charge

If the trading member terminates the title as a member, Stock Exchanges shall return the difference between the charge submitted and the actual charge that must be submitted according to the formula to the trading member and guidelines under Point a, Point b of this Clause.

2. The charge for listing registration

a) The charge shall be prescribed under Point 2 Section I Charge tariff.

b) If listing registration organizations are approved on listing and then the listing is canceled, the listed organizations, fund management companies shall not be returned the charge for listing registration.

3. The charge for listing management

The charge for listing management remitted = Charge/12 months X time (months)

a) Charge

- The charge as stipulated under Point 3 Section I Charge tariff shall be applied with each kind of stock and listing value.

- If an organization lists many kinds of stock in the same Stock Exchange, listing management charge shall be counted on each kind of stock.

b) Time for calculating the charge

- If the stock is listed and the listing is not cancelled in the year, time for calculating the charge of the first year will be from the month following the month that Stock Exchange issues the Decision on approving the listing till the end of December of that year.

- If the stock is listed and the listing is cancelled in the year, time for calculating shall be from the first month till the month that cancelling the listing takes effect.

- If the stock is listed for the first time and the listing is cancelled in the year, time for calculating the charge shall be the month following the month the Stock Exchange issues the Decision on approving the listing till the end of the month that cancelling the listing takes effect.

c) If the listed organizations, fund management fund have changes in listing registration, and this causes the change in the charge for listing management that must be remitted (not applicable to ETF, the listing management charge shall be calculated by the sum of:

- Charge corresponding with kinds of stock, old listing value from the first month (or from the month following the month that the Stock Exchange issues the Decision on approving on listing for new listing in the year) till the end of the month that the Stock Exchange issues the Decision on approving changes on listing in the year.

- Charge corresponding with kinds of stock, new listing value from the month following the month that the Stock Exchange issued the Decision on approving changes in listing till the end of the month that the Stock Exchange approves changes on next listing or till the end of December of that year.

d) Return the charge or collect additional fees

- If the listing of stock is cancelled in the year, the Stock Exchange shall return the difference between the charge remitted in the year and the actual charge that must be remitted according to the formula and guidelines under Point a, Point b of this Clause to the listed companies, fund management fund that have listed fund stock.

- If the changes in listing cause the charge to increase or decrease compared with the charge remitted, the Stock Exchange shall collect additional fees to return the charge to listed organizations, fund management companies.

4. The charge for trading

Charge amount paid by each trading member = Charge rate X Total trading value of each member

Total trading value of each member = Purchasing value + Value of selling securities

a) The charge as stipulated under Point 4 Section I Charge tariff

b) The charge for repurchasing securities (repo) shall be counted once according to the value of the first transaction.

5. Charge for online connection

The charge for online connection includes the charge for initial online connection and the charge for yearly maintenance.\

a) The charge for initial online connection

- The charge for initial online connection shall be stipulated under Point 5.1 Section I Charge tariff.

- If the trading member is formed after merger and acquisition, division and repurchase, the charge for initial online connection is calculated as follows:

+ Collecting the charge for initial online connection for members operating not based on infrastructure, informatics system and transaction software of members participating in merger and acquisition, division, repurchase and the Stock Exchange has to survey infrastructure in the company before accepting members.

+ Not collecting the charge for initial online connection for members operating based on infrastructure, informatics system and transaction software of members participating in merger and acquisition, division, repurchase and the Stock Exchange has to survey infrastructure in the company before accepting members.

b) Yearly maintenance charge:

Maintenance charge = Rate/12 months X time (months)

- The rate as stipulated under Point 5.2 of Section I Charge tariff

- Time for calculating the charge:

+ If trading member is the online trading member and is not suspended for online connection to terminate as the member in the year, the time for calculating the charge is 12 months.

+ If the trading member is a new member and is not suspended for online connection to terminate as the member in the year, the time for calculating the charge shall be counted from the month following the month that the Stock Exchange issues the Decision on approving to be as online trading member till the end of December of that year.

+  If the trading member is online trading member,  and is suspended for online connection to terminate as the member in the year, the time for calculating the charge shall be counted from the first month of the year till the end of the month that the Stock Exchange terminates online connection as a member.

+ If the trading member is a new member and is suspended for online connection to terminate as the member in the year, the time for calculating the charge shall be counted from the month following the month that the Stock Exchange issues the Decision on approving to be as online trading member till the end of the month that the Stock Exchange suspends online connection to terminate the title as a member.

c) If trading member formed after merger and acquisition, division, transfer and repurchase must process procedures for new online trading member registration, the charge shall be paid to maintain connection as for cases of registering a new online trading member.

d) Return the charge

If the trading member suspends online trading connection to terminate the title as a member, the Stock Exchange shall return the difference between the charge that trading member has paid and the actual amount as calculated according to the guidelines under Point b of this Clause.

6. Charge for terminal equipment

Charge for terminal equipment = rate/12 months X time (months)

a) The rate as stipulated under Point 6 Section I Charge tariff

b) Time for calculating the charge

- If the securities company is a member of the Stock Exchange and its transaction is not suspended to terminate the title as a member in the year, the time for calculating the charge is 12 months.

- If organizations newly accepted are trading members and are not suspended to terminate the title as a member in the year, the time for calculating the charge is from the month following the month that the Stock Exchange issues the Decision on accepting as a member till the end of December of that year.

7. Charge for depository member management

Charge = Rate/12 months X time

a) Rate is stipulated under Point 7 Section II Charge tariff

b) Time for calculating the charge

- If the organization is a depository member of VSD and its transaction is not suspended to terminate the title as a depository member in the year, the time for calculating the charge is 12 months.

- If the organization is a depository member of VSD and its transaction is suspended to terminate the title as a depository member in the year, the time for calculating the charge is from the first month till the end of the month that VSD issues the Decision on revoking the certificate of depository member.

- If the organization is newly accepted as a depository member of VSD and is suspended to terminate the title as a depository member in the year, the time for calculating the charge is from the month following the month that VSD issues the Decision on revoking the certificate of depository member.

c) Depository member formed after merger and acquisition, division, transfer and repurchase that must process procedures for depository member registration, the charge shall be paid as for cases of registering as new depository member.

d) Return the charge

If the certificate of depository member is revoked, VSD shall return the difference between the charges that depository member has paid and the actual amount as calculated according to the guidelines under Point a, Point b of this Clause.

8. Charge for securities registration

Rate is stipulated under Point 8 Section II Charge tariff

9. Charge for securities depository

Charge must be paid = Rate/30 x ∑Vi

a) Rate is stipulated under Point 9 Section II Charge tariff

b) Way to calculate ∑Vi

Vi is the number of depository securities in day i and it is determined by adding the residual depository securities in all securities depository accounts.

i =  1->n is days in the month that arise the residualdepository securities.

The residualdepository securities are determined at the end of the day based on documents certified by VSD.

10. Charge for securities transfer

a) Charge for securities transfer among investors’ account at different depository members:

The charge that must be paid in the month is equal to the total transfer in the day i

(i = 1->n is days in the month arising transfer transactions among investors’ accounts at different depository members).

The charge for transfer in day i = ∑(rate x Vj)

Of which:

- Rate is stipulated under Point 10.1 Section II Charge tariff.

- Vj is the total number of securities code j on each depository accounts at the request of transfer on day i certified by VSD on effective day of transfer (j = 1->m is securities code that arises transfer transactions among investors’ accounts at different depository members in day i).

b) Charge for securities transfer to perform payment

The charge that must be paid in the month is equal to the total transfer in the day i

(i = 1->n is days in the month arising transfer transactions paying for securities transfer).

The charge for transfer in day i = ∑(rate x Pj)

Of which:

- Rate is stipulated under Point 10.2 Section II Charge tariff.

- Pj is the total number of securities code j (j = 1->m is securities code that arises from transfer in day i) arising in securities transfer transactions in day i according to the notification on transactions made by VSD.

11. Charge for performing rights

a) Rate is stipulated under Point 11 Section II Charge tariff.

b) Charge for performing rights shall be calculated based on the number of shareholders (including depository shareholders and non-depository shareholders) on the list made by VSD on each notification on the last registration day.

12. Charge for error correction after trading

The charge for handling with errors after trading includes the charge for handling with errors after trading and the charge for handling transactions that deadline for payment is put off.

a) The charge for handling with errors after trading:

Charge = Rate X n

- Rate is stipulated under Point 12.1 Section II Charge tariff

- n is number of transactions having errors that are accepted by VSD

b) The charge for handling with transactions that deadline for payment is put off:

Charge = Rate X n

- Rate is stipulated under Point 12.2 Section II Charge tariff.

- n is the number of transactions that deadline for payment is put off and approved by VSD.

c) If trading errors occur due to irregular technical errors, depending on each case to calculate the charge for handling with errors after trading according to Point a and/ or Point b of this Clause but the total amount of charge shouldn’t exceed 100 million dong/member/case.

13. Charge for securities ownership transfer not through transaction system of the Stock Exchange

Charge = Rate X Value of securities trading

Value of securities trading = Number of securities ownership transfer x Price

a) Rate is stipulated under Point 13 Section II Charge tariff

b) Price of securities to calculate value of ownership transfer shall be determined as follows:

- For securities that are being listed or registered for trading:

+ In the case of transfer, price of securities shall calculate according to the price stated in the transfer contract, it should not be lower than the conference price of securities on the day that VSD transfers ownership right.

+ In the case of giving as a present, inheriting or the contract has no price to transfer or there is no transfer contract, the price of securities shall determine according to the reference price of the securities on that day that VSD transfers ownership right.

+ In the case there is no reference price of bond, price of securities shall be determined according to the value of the bond.

+ If ownership transfer is made due to auction, price of securities shall be determined according to the successful auction price of the investor.

- For securities that are not listed or registered for trading yet, the price shall be determined according to the value of the securities.

c) The charge for securities ownership transfer shall be paid by parties performing ownership transfer (under Point 13.1, Point 13.3 Charge tariff) or party receiving securities ownership transfer (Point 13.2, Point 13.4 Charge tariff) or investor performing the transfer (purchase, sell of the ETF) with ETF (Point 13.5 Charge tariff) through depository members.

Article 5. Charge collection, remittance, management and use

1. If organizations re-register the title as members, the charge for member management, charge for maintenance connection, and charge for using terminal equipment shall be paid as cases of registering as new members.

2. If trading members are suspended for trading and connection lasting until the following year but the membership is not terminated, trading members shall pay the charge for trading member management, charge for connection maintenance, charge for using terminal equipment.

3. If trading members are suspended or online connection is terminated, they shall not have to pay the charge for trading member management, charge for connection maintenance, charge for using terminal equipment in the following years.

Article 6. Time for collection, remittance and return of fees

1. Organizations being members of the Stock Exchange, VSD, organizations are listing at the Stock Exchange shall remit the charge for trading member management and yearly due for depository membership, yearly maintenance charge before January 31 to the Stock Exchange, VSD.

2. Organizations that newly register as members of the Stock Exchange, VSD and newly listed organizations shall pay the charge for trading member management, depository management, listing management within 05 working days since the decision on accepting new member is issued by the Stock Exchange.

3. The Stock Exchange and VSD shall return the charge for trading member management, depository management to the trading member; depository member within 5 working days since the Stock Exchange issues the Decision on terminating the title as members, VSD issues the Decision on revoking the Certificate of depository member.

4. The Stock Exchange shall supplement or return the charge to the listed organizations, fund management companies within 05 working days since the Decision on approving changes on listing for cases of changing the listing is issued or the effective day for cases of cancelling the listing.

5. In the case of additional registration of the ETF, Fund Management Company shall pay the charge for additional registration no later than the fifteenth of the following month that it receives the notification on adjusting the certificate of securities.

Article 7. Management and use of the charge

1. The charge in the field of securities as stipulated under this Circular is the revenue that does not belong to the State Budget. The collecting organization shall pay tax according to the law and use that collect amount of money after paying tax as stipulated by the law.

2. Other regulations on remittance, collection, management, use, receipt and declaration of collection shall be implemented according to the guidelines under the Circular No. 156/2013/TT-BTC dated November 06, 2013 of the Minister of Finance providing guidance on some Articles of the Law on Tax administration, the Law on the amendments to the Law on Tax administration, and the Government s Decree No. 83/2013/ND-CP dated July 22, 2013.

3. The charge collected from securities transfer trading as stipulated under Point 13 (excluding Point 13.c and Point 13.5) of the charge tariff promulgated together with this Circular shall be divided to the Stock Exchange by 50% of the collected charge for cases of listed securities ownership transfer or trading registration on the Stock Exchange.

4. Organizations, individuals fail to pay the charge, the Stock Exchange and VSD shall consider each case to extend the time of paying the charge or handle with violations according to the regulations promulgated by the Stock Exchange and VSD.

5. The charge for securities trading will be collected in Vietnam dong. If the charge for trading Government bond is collected in foreign currency, the rate shall be converted into Vietnam dong according to the rate published by the State Bank on the day of transaction.

Article 8. Effect

1. This Circular takes effect on June 10, 2016 and replaces the Circular No. 27/2010/TT-BTC dated February 26, 2010 of the Minister of Finance prescribing rates and the collection, remittance, management and use of charges for securities operations to be applied at the Stock Exchanges and the Vietnam Securities Depository Center and the Circular No. 02/2013/TT-BTC dated January 08, 2013 of the Minister of Finance amending, supplementing a number of article of the Circular No. 27/2010/TT-BTC dated February 26, 2010 of the Minister of Finance prescribing rates and the collection, remittance, management and use of charges for securities operations to be applied at the Stock Exchanges and the Vietnam Securities Depository Center.

2. If organizations, individuals remit the charge before the effective day of this Circular and there is the difference between the charge that have to be paid as stipulated under this Circular, the Stock Exchange and VSD shall not return or collect any additional fees. For the charge for trading member management, the charge for listing management that the trading member, depository member remit in the first month of 2016, the charge rate used to calculate the returning fee shall be according to the charge that the trading member, depository member have paid in the first month of 2016.

3. To annul the securities transfer fee for exchange trading of the ETF as stipulated under Point g Clause 1 Article 22 of the Circular No. 229/2012/TT-BTC dated December 27, 2012 of the Minister of Finance guiding establishment and management of exchange traded funds.

4. In the course of implementing this Circular, any arising problems should be promptly reported to the Ministry of Finance for research and guidelines.

For the Minister

The Deputy Minister

Vu Thi Mai

* All Appendices are not translated herein.