Circular 27/2023/TT-BTC the charge for appraisal of technical design

CIRCULAR

Prescribing the rates, collection, remittance, management and use of the charges for appraisal of technical design, appraisal of construction cost estimates

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

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

Pursuant to the Construction Law dated June 18, 2014; the Law on Amending and Supplementing a Number of Articles of the Construction Law dated June 17, 2020;

Pursuant to the Law on Tax Administration dated June 13, 2019;

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

Pursuant to the Government's Decree No. 126/2020/ND-CP dated October 19, 2020, detailing a number of articles of the Law on Tax Administration; the Government's Decree No. 91/2022/ND-CP dated October 30, 2022, amending and supplementing a number of articles of the Government's Decree No. 126/2020/ND-CP dated October 19, 2020, detailing a number of articles of the Law on Tax Administration;

Pursuant to the Government's Decree No. 10/2021/ND-CP dated February 9, 2021, on the management of construction investment costs;

Pursuant to the Government’s Decree No. 15/2021/ND-CP dated March 03, 2021 on detailing a number of provisions on management of construction investment projects;

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 the Tax Policy Department;

The Minister of Finance promulgates the Circular prescribing the rates, collection, remittance, management and use of the charges for appraisal of technical design, appraisal of construction cost estimates.

Article 1. Scope of regulation and subjects of application

1. Scope of regulation

This Circular defines the rates, collection, remittance, management and use of the charge for appraisal of technical design (charge for appraisal of construction design to be implemented after basic design), the charge of appraisal of construction cost estimates when performing the appraisal of designs and cost estimates of construction works as prescribed in the Construction Law, the Government’s Decree No. 15/2021/ND-CP dated March 03, 2021 on detailing a number of provisions on management of construction investment projects.

2.  Subjects of application

This Circular shall apply to:

a) Charge payers.

b) Charge collectors.

c) Other organizations and individuals involving in the collection, remittance, management and use of charge for appraisal of construction design  to be implemented after basic design, charge for appraisal of construction cost estimates.

Article 2. Charge payers

When specialized construction agencies, specialized agencies under the investment deciders competent to appraise construction designs to be implemented after basic designs, construction cost estimates, investors of work construction investment projects specified in Clause 26, Article 1 of the Law on Amending and Supplementing a Number of Articles of the Construction Law, Article 36 of the Decree No. 15/2021/ND-CP must pay the charges prescribed in this Circular. Investors pay the charges when receiving appraisal results.

Article 3. Charge collectors

Charge collectors are specialized construction agencies, specialized agencies under the investment deciders (state agencies, public non-business units) competent to perform the appraisal of construction designs to be implemented after basic designs, construction cost estimates specified in Clause 1 Article 35, Article 36 of the Decree No. 15/2021/ND-CP.

Article 4. Charge rates

1. Charge rates of appraisal of construction designs  to be implemented after basic designs, construction cost estimates are prescribed in the Charge tariff issued together with this Circular. Charge rates shall be calculated according to the percentage of the construction costs in the estimates of the work requested for appraisal that are applied at each appraising agency.

2. Determination of charge amount payable for appraisal of construction designs to be implemented after basic designs, construction cost estimates:

a) The appraisal charge amount payable is determined according to the following formula:

The appraisal charge amount payable = Construction cost x Charge rate.

In which:

- Construction cost (according to the law on construction cost management) do not include value added tax in the estimates of the work requested for appraisal.

- Charge rate is in accordance with Charge Tariff attached to this Circular.

b) Charge amount for appraisal of construction designs to be implemented after basic designs, construction cost estimates must be between VND 500,000/appraisal cost/appraising agency and VND 150,000,000/appraisal cost/appraising agency.

3. In case the work has construction cost in the range between the construction costs stated in the Charge Tariff promulgated together with this Circular, the appraisal charge amount is determined according to the following formula:

In which:

- N_t: The rate of collection according to the construction cost to be calculated (unit of calculation: %).

- G_t: Construction cost for which the amount needs to be calculated (unit of calculation: Work value).

- G_a: The construction cost immediately higher than the cost for which the amount needs to be calculated (unit of calculation: work value).

- G_b: The construction cost immediately lower than the cost for which the amount needs to be calculated (unit of calculation: work value).

- N_a: Charge rate corresponding to G_a (unit of calculation: %).

- N_b: Charge rate corresponding to G_b (unit of calculation: %).

4. For construction investment projects in which the appraisal of construction designs to be implemented after basic designs, construction cost estimates is adjusted:

a) In case of adjustment of designs, estimates and use of contents of the appraisal of construction designs or construction cost estimates that have been appraised before adjustment: Charge rates shall be equal to 50% of the charge rates prescribed in the Charge tariff issued together with this Circular.

b) In case of adjustment of design, estimate without using contents that have been appraised before adjustment: Charge rates shall be equal to 100% of the charge rates prescribed in the Charge tariff issued together with this Circular.

Article 5. Declaration, payment of charges

1. Charge payers shall pay charge amount according to the charge rates specified in Article 4 of this Circular to the charge collectors by the forms defined in the Minister of Finance’s Circular No. 74/2022/TT-BTC dated December 22, 2022, providing for forms and time limits for the collection, payment and declaration of charges and fees falling under the Ministry of Finance’s competence.

2. By the 5^th every month at the latest, charge collectors shall deposit the charge amount collected in the previous month into an account of charges to be paid to the state budget, opened at the State Treasury.

The charge collectors shall declare, collect, remit the collected charge amount and make finalization of such collected charge amount in accordance with Circular No. 74/2022/TT-BTC.

Article 6. Management and use of charge amount

1. Charge collectors being state agencies shall remit the entire collected charge amount into the state budget (charge amount managed by central units shall be remitted into the central budget, charge amount managed by local units shall be remitted into the local budget). Sources of expenses to cover the appraisal and and collection of charges shall be allocated by the state budget in the charge collectors' estimates according to the state budget expenditure regime and norms under laws.

In case charge collectors are allowed to have their operating expenses covered by charge revenues as specified in Clause 1 Article 4 of the Government’s Decree No. 120/2016/ND-CP of August 23, 2016 on detailing and guiding the implementation of a number of articles of the Law on Charges and Fees, they may retain 90% of collected appraisal charge amount for covering expenses for appraisal and charge collection; remit 10% of such amount into the state budget according to chapters and sub-sections of the current State Budget Index.

2. Charge collectors being public non-business units may retain 90% of the collected appraisal charge amount for covering expenses for appraisal and charge collection; and remit 10% of the amount into the state budget (charge amount managed by central units shall be remitted into the central budget, charge amount managed by local units shall be remitted into the local budget) according to chapters and sub-sections of the current State Budget Index.

3. Retained charge amounts specified in Clauses 1 and 2 of this Article shall be managed and used in accordance with Article 5 of Decree No. 120/2016/ND-CP.

Article 7. Organization of implementation

1. This Circular takes effect on July 01, 2023.

2. Repeal the Minister of Finance’s Circular No. 210/2016/TT-BTC dated November 10, 2016, prescribing the rates, collection, remittance, management and use of the charges for appraisal of technical designs, appraisal of construction cost estimates.

3. For construction investment projects of which competent agencies have implemented all appraisal steps as specified but not notified the appraisal results before the effective date of this Circular, the charge collectors shall collect the charge upon return of appraisal results and apply the charge rates defined in Circular No. 210/2016/TT-BTC.

4. Other contents relating to the collection, remittance, management, use, collection documents and disclosure of charge collection regime that are not specified in this Circular shall comply with the following documents: Law on Charges and Fees; Decree No. 120/2016/ND-CP; Law on Tax Administration; the Government’s Decree No. 126/2020/ND-CP dated October 19, 2020, detailing a number of articles of the Law on Tax Administration; the Government’s Decree No. 91/2022/ND-CP dated October 30, 2022 on amending and supplementing a number of articles of Decree No. 126/2020/ND-CP; the Government’s Decree No. 11/2020/ND-CP dated January 20, 2020 providing for administrative procedures in the field of state treasury; the Government’s Decree No. 123/2020/ND-CP dated October 19, 2020, on invoices and documents; and the Minister of Finance’s Circular No. 78/2021/TT-BTC dated September 17, 2021, guiding the implementation of a number of articles of the Law on Tax Administration dated June 13, 2019 and the Government’s Decree No. 123/2020/ND-CP dated October 19, 2020, on invoices and documents.

5. In case legal normative documents mentioned herein are amended, supplemented or replaced, these amending, supplementing or replacing documents shall apply.

6. Charge payers and related agencies shall be responsible for implementing this Circular. Any problems arising in the course of implementation should be promptly reported to the Ministry of Finance for consideration and guidance./.

* All Appendices are not translated herein.