Circular 28/2023/TT-BTC charge for appraisal of construction investment projects

CIRCULAR

On prescribing the rates, collection, remittance, management and use of charge for appraisal of construction investment projects

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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. 11/2013/ND-CP dated January 14, 2013, on management of urban development investment;

Pursuant to 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;

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 on 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 09, 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 charge for appraisal of construction investment projects.

Article 1. Scope of regulation and subjects of application

1. Scope of regulation

This Circular defines the rates, collection, remittance, management and use of charge for appraisal of construction investment projects, including:

a) Appraisal of construction investment feasibility study reports; or

b) Appraisal of construction investment techno-economic reports.

2.  Subjects of application

This Decree 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 investment projects.

Article 2. Charge payers

When competent agencies carry out the appraisal of construction investment feasibility study reports, appraisal of construction investment techno-economic reports, project owners or agencies assigned to make work construction investment project preparations specified in 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, the Government’s Decree No. 11/2013/ND-CP dated January 14, 2013 on management of urban development investment shall pay the charge in accordance with this Circular. Project owners or agencies assigned to make work construction investment project preparations shall pay the charge upon receipt of appraisal results.

Article 3. Charge collectors

Charge collectors are specialized construction agencies competent to perform the appraisal of construction investment feasibility study reports, agencies in charge of appraisal attached to the investment deciders (state agencies, public non-business units) competent to perform the appraisal of construction investment feasibility study reports, appraisal of construction investment techno-economic reports as specified in Clause 14, Clause 15 Article 1 of the Law on Amending and Supplementing a Number of Articles of the Construction Law.

Article 4. Charge rates

1. Charge rates of appraisal of construction investment projects (charge for appraisal of construction investment feasibility study reports or charge for appraisal of construction investment techno-economic reports) are prescribed in the Charge tariff issued together with this Circular. Charge rate shall be calculated according to the percentage of total investment of the project that is applied at each appraising agency.

2. Determination of charge amount payable for appraisal of a construction investment project:

a) Bases for determining the charge amount for appraisal of a construction investment project shall be the total investment (calculated according to the proposed appraisal value) and charge rate (specified in Charge Tariff), specifically:

Charge amount payable  =  The total investment  x  Charge rate

For a project with the total investment valued somewhere between two specific levels of total investment indicated in the Charge tariff, the appraisal charge amount payable shall be calculated by the interpolation method as follows:

In which:

- N_it is the charge rate for appraisal of project i to be calculated based on its value (unit of calculation: %).

- G_it is the value of project i for which the appraisal charge needs to be calculated (unit of calculation: project value).

- G_ia is the value immediately higher than the value of the project for which the appraisal charge needs to be calculated (unit of calculation: project value).

- G_ib is the value immediately lower than the value of the project for which the appraisal charge needs to be calculated (unit of calculation: project value).

- N_ia is the charge rate for appraisal of project i corresponding to G_ia (unit of calculation: %).

- N_ib is the charge rate for appraisal of project i corresponding to G_ib (unit of calculation: %).

The charge rates based on projects’ total investment are specified in the Charge tariff issued together with this Circular.

b) Charge amount for appraisal of a urban center project shall be determined under Point a of this Clause, in which the total investment of appraisal proposal serving as a basis for charge calculation does not include compensation, ground clearance and resettlement expenses in such project.

c) Charge amount for appraisal of a construction investment project must be between VND 500,000/the total investment/appraising agency and VND 150,000,000/the total investment/appraising agency.

d) Charge amount for appraisal of construction investment projects applicable to small construction works, construction works serving religious purposes and other works specified by the Government (appraisal of techno-economic reports) shall be determined in accordance with Point a of this Clause.

3. For construction investment projects, specialized construction agencies, agencies in charge of appraisal attached to the investment deciders shall request the project owners to select qualified organizations or individuals to verify necessary contents serving as the basis of the appraisal: Charge rates shall be equal to 50% of the charge rates prescribed in the Charge tariff issued together with this Circular.

4. For construction investment projects using other funding sources which are of a large scale or involve works greatly affecting safety and interests of the community specified in Clause 15 Article 1 of Law on Amending and Supplementing a Number of Articles of the Construction Law: Charge rates shall be equal to 50% of the charge rates prescribed in the Charge tariff issued together with this Circular.

5. For adjusted construction investment projects

a) In case of adjustment of projects and use of basic design appraisal contents and the total investment 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 projects without using basic design contents and the total investment 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.

6. In case the specialized construction agency is also the agency in charge of appraisal attached to the investment decider: Charge rates shall be equal to 150% 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 charge 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, part of collected appraisal charge amount shall be retained for covering expenses for appraisal and charge collection, specifically:

a) For projects using public investment funds (state budget capital): State agencies competent to appraise the projects may retain 90% of the collected charge amount and remit 10% of such amount into the state budget according to chapters and sub-sections of the current State Budget Index.

b) For construction investment projects using state capital other than public investment funds, projects on investment in the form of public-private partnership and construction investment projects using other funds (not using state budget capital): State agencies competent to appraise the projects may retain 50% of the collected charge amount while 50% of such amount shall be remitted 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 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. 209/2016/TT-BTC dated November 10, 2016, prescribing the rates, collection, remittance, management and use of charge for appraisal of construction investment projects, charge for appraisal of basic designs.

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. 209/2016/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 problem arising in the course of implementation should be promptly reported to the Ministry of Finance for consideration and guidance./.

CHARGE TARIFF FOR APPRAISAL OF CONSTRUCTION INVESTMENT PROJECTS

(CHARGE FOR APPRAISAL OF CONSTRUCTION INVESTMENT FEASIBILITY STUDY REPORTS OR CHARGE FOR APPRAISAL OF TECHNO-ECONOMIC REPORTS)

 (Issued together with the Minister of Finance's Circular No. 28/2023/TT-BTC dated May 12, 2023)

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