Circular No. 03/2025/TT-BTC guides the financial regime in asset auction activities; it stipulates the collection, expenditure, management, and use of the proceeds from selling bidding documents and the bid deposit of participants not to be refunded as prescribed by the law on asset auctions.

CIRCULAR

Guidelines on financial regulations in auction activities; provisions on the collection, expenditure, management, and use of money from the sale of bidding invitation documents and the deposit of bidders that are not refundable according to the laws on asset auctions

Pursuant to the Auction Law dated November 17, 2016;

Pursuant to the Law Amending and Supplementing Certain Articles of the Auction Law dated June 27, 2024;

Pursuant to Decree No. 14/2023/NĐ-CP dated April 20, 2023, issued by the Government, stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

At the proposal of the Director of the State Asset Management Department;

The Minister of Finance issues this Circular guiding financial regulations in auction activities; provisions on the collection, expenditure, management, and use of money from the sale of bidding invitation documents and the deposit of bidders that are not refundable according to the laws on asset auctions.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation and Application Principles

1. This Circular guides financial regulations in auction activities; provisions on the collection, expenditure, management, and use of money from the sale of bidding invitation documents and the deposit of bidders that are not refundable according to the laws on asset auctions when auctioning assets as stipulated in Clause 1, Article 4 of the Auction Law (amended and supplemented at Clause 2, Article 1 of the Law Amending and Supplementing Certain Articles of the Auction Law).

2. Financial regulations in auction activities; collection, expenditure, management, and use of money from the sale of bidding invitation documents and the deposit of bidders that are not refundable according to the laws on asset auctions when auctioning securities, overseas Vietnamese agencies' state assets, and vehicle registration numbers shall be implemented in accordance with relevant laws, and not subject to the provisions of this Circular.

3. In cases where specialized laws related to auctioned assets provide for financial regulations; collection, expenditure, management, and use of money from the sale of bidding invitation documents and the deposit of bidders that are not refundable according to the laws on asset auctions differently from the provisions of this Circular, such specialized laws shall apply.

4. Costs related to land use right auction activities such as: costs for hiring organizations with advisory functions to determine the initial price of land; costs for appraising the initial price of land; costs for surveying, dividing plots, and determining boundaries; costs for preparing land auction plans; costs for preparing land administrative files for auction; costs for organizing the selection of auction service organizations; costs for implementing procedures to transfer land and related documents to the successful bidder for land use right certificates shall be carried out in accordance with land laws, and not in accordance with this Circular.

Article 2. Applicability

1. The person holding the auctioned asset as provided by the laws on asset auctions.

2. Auction service organizations as provided by the laws on asset auctions, including: Auction Service Centers and asset auction enterprises.

3. The Auction Committee established in accordance with the laws.

4. Organizations wholly owned by the State with charter capital established by the State Bank of Vietnam to handle non-performing loans of credit institutions (hereinafter referred to as organizations buying and handling bad debts) when such organizations self-auction assets according to Clause 2, Article 64 of the Auction Law (amended at Point c, Clause 45, Article 1 of the Law Amending and Supplementing Certain Articles of the Auction Law).

Other related organizations and individuals.

Chapter II

FINANCIAL REGULATIONS IN AUCTION ACTIVITIES

Article 3. Financial regime in the auction of assets by auction service organizations and organizations buying and handling bad debts

The management and use of funds from auction service fees, auction costs, money from selling bidding documents, and other revenues (if any) shall be regulated as follows:

1. In the case where the auction service organization is the Auction Service Center, it shall implement in accordance with the provisions of the law on the self-financing mechanism of public service units and related laws.

2. In the case where the auction service organization is an auction company, it shall implement in accordance with the provisions of the law on enterprises.

3. In the case where the organization buying and handling bad debts auctions its own assets as stipulated in Clause 2, Article 64 of the Auction Law, it shall implement in accordance with the provisions of the law on enterprises and credit institutions.

Article 4. Financial regime in the auction of assets by the Auction Asset Council

1. The Auction Asset Council shall be guaranteed funding by the owner of the auctioned asset to organize the auction of assets.

2. Based on the content and level of expenditure specified in Clauses 3 and 4 of this Article, the Auction Asset Council shall report to the owner of the auctioned asset regarding the funding for organizing the auction of assets to be included in the overall budget of asset disposal costs of the owner of the auctioned asset; based on this, the owner of the auctioned asset shall approve the budget for organizing the auction of assets within the asset disposal cost budget according to the law, either directly or by submitting it to the competent authority for approval.

3. Expenditure items:

a) Costs for publicly announcing the auction of assets;

b) Costs for organizing potential bidders to view the assets;

c) Costs for organizing the auction session (including costs for renting venues for the auction if no venue can be arranged; costs for renting machinery and equipment; costs for hiring security for the auction session; costs for using the National Auction Portal or online auction information website to organize online auctions; costs paid to the auction service organization to send an auctioneer to manage the auction session when the auctioneer manages the session under a contract between the Auction Asset Council and the auction service organization where the auctioneer practices);

d) Costs for preparing and organizing the sale of bidding documents;

đ) Other expenses directly related to the organization and implementation of the auction of assets.

4. Level of expenditure:

a) For expenditure items that have standards, norms, and regulations set by authorized agencies or individuals, they shall be implemented according to those standards, norms, and regulations;

b) For outsourced expenditure items, they shall be implemented according to the contracts signed between the owner of the auctioned asset and the organizations or individuals providing services. The selection of organizations or individuals providing services shall be carried out in accordance with relevant laws;

c) For expenditure items outside the scope specified in points a and b of this clause, the Auction Asset Council shall report to the owner of the auctioned asset to decide on the level of expenditure, ensuring compliance with current financial management regulations under the law and bearing responsibility for their decision.

5. The Auction Asset Council shall prepare payment application documents and report to the owner of the auctioned asset to pay the relevant expenses for the auction as prescribed. For outsourced expenditure items, the Auction Asset Council shall be responsible for reporting to the owner of the auctioned asset to pay the organizations or individuals providing services according to the law.

6. The owner of the auctioned asset shall be responsible for retaining documents and vouchers related to the Auction Asset Council's organizational auction expenses in accordance with the law.

7. Funding for the auction of assets is part of the asset disposal costs of the owner of the auctioned asset. The owner of the auctioned asset shall be responsible for summarizing these costs and settling accounts according to relevant laws.

Article 5. Financial regime in the auctioning of assets by the asset owner

1. Sources of funds for auctioning assets include:

a) The state budget estimate allocated to the asset owner in cases where all proceeds from the auction must be paid into the state budget. The preparation, use, and settlement of funds for auctioning assets shall be carried out in accordance with the laws on the state budget;

b) Proceeds from the auction of assets held in a temporary account (including the sale price of the bidding invitation documents when the Auction Committee is established; the bid deposit of participants not refunded according to Clause 6, Article 39 of the Auction Law) in cases where all proceeds from the auction of assets must be deposited into a temporary account at the State Treasury by the agency establishing the Auction Committee as the account holder or a temporary account of the agency or unit designated by the agency or authorized person as the temporary account holder, and such proceeds can be deducted for costs incurred in handling the asset before being paid into the state budget;

c) Funds for handling secured assets, bad debts, seized assets, assets of cooperatives, cooperative unions, bankrupt enterprises (including the sale price of the bidding invitation documents when the Auction Committee is established; the bid deposit of participants not refunded according to Clause 6, Article 39 of the Auction Law) in cases where the auction of assets is conducted to handle secured assets, bad debts, seized assets, assets of cooperatives, cooperative unions, and bankrupt enterprises;

d) Proceeds from the auction of assets (including the sale price of the bidding invitation documents when the Auction Committee is established; the bid deposit of participants not refunded according to Clause 6, Article 39 of the Auction Law) in cases where the proceeds from the auction of assets are the revenue of the asset owner.

2. The asset owner is responsible for managing and using the sources of funds specified in Clause 1 of this Article or requesting the agency or unit designated by the agency or authorized person to manage the temporary account to settle payments to the auction service organization or the Auction Committee as stipulated in Clauses 3 and 4 of this Article or expenses for organizations buying and handling bad debts in accordance with the laws on handling bad debts of credit institutions as stipulated in Clause 5 of this Article.

3. Payments to auction service organizations:

a) The auction service fee for assets that must be sold through auction as prescribed by law within the framework set by the Ministry of Justice according to the Price Law dated June 19, 2023;

b) Auction expenses as stipulated in Clause 2, Article 66 of the Auction Law and expenses for using the National Auction Portal, online auction information rental expenses as stipulated in Clause 28, Article 1 of the Law amending and supplementing certain provisions of the Auction Law;

c) In cases where the auction does not succeed or the auction session cannot be organized due to force majeure as defined in Point c, Clause 2, Article 24 of the Auction Law, the auction service organization is entitled to reimbursement for reasonable and legitimate actual expenses incurred as stipulated in Point b of this clause but not exceeding the auction expenses as stipulated in the signed auction contract.

4. The Auction Committee, organizations, and individuals providing services to the Auction Committee are entitled to reimbursement for expenditures as stipulated in Clause 3 of Article 4 of this Circular at the level specified in Clause 4 of Article 4 of this Circular.

5. In cases where organizations buying and handling bad debts conduct auctions independently as stipulated in Clause 2, Article 64 of the Auction Law, the organization buying and handling bad debts shall manage the funds for auctioning assets in accordance with the financial regime in auction activities of organizations buying and handling bad debts as stipulated in Clause 3, Article 3 of this Circular.

Chapter III

COLLECTION, EXPENDITURE, MANAGEMENT, AND USE OF PROCEEDS FROM THE SALE OF BIDDING INVITATION DOCUMENTS FOR AUCTIONING ASSETS

Article 6. Amount of fees for purchasing bidding invitation documents for auctioning assets

1. In case of land use rights auction:

a) For residential land for individuals:

b) In cases of land use rights auction not covered under point a of this clause:

2. Amount of fees for purchasing bidding invitation documents for auctioning assets not within the scope defined in Clause 1 of this Article:

a) In cases of auctioning houses, lands, and structures attached to lands, and radio frequency usage rights, the fee shall be applied according to the levels specified in point b of Clause 1 of this Article;

b) In cases of auctioning assets not covered under point a of this clause:

Article 7. Collection, expenditure, management, and utilization of funds from selling bidding invitation documents for auctioning

1. In cases where the owner of the asset hires an auction service organization to organize the auction: The auction service organization is responsible for selling and collecting fees for purchasing bidding invitation documents for auctioning. Funds from selling bidding invitation documents for auctioning belong to the auction service organization. Management and utilization of these funds shall be carried out in accordance with the provisions of Article 3 of this Circular.

2. In cases where the owner of the asset establishes an Auction Committee to organize the auction: The Auction Committee is responsible for selling and collecting fees for purchasing bidding invitation documents for auctioning. Funds from selling bidding invitation documents for auctioning belong to the owner of the auctioned asset. Management and utilization of these funds shall be carried out in accordance with the provisions of Clause 2 of Article 5 of this Circular.

3. In cases where an organization buys and processes bad debts conducts auctions in accordance with Clause 2 of Article 64 of the Auction Law: The organization buying and processing bad debts is responsible for collecting fees for purchasing bidding invitation documents for auctioning. Management and utilization of these funds shall be carried out in accordance with the provisions of Clause 5 of Article 5 of this Circular.

4. The issuance and use of invoices and certificates when selling bidding invitation documents for auctioning as stipulated in Clauses 1, 2, and 3 of this Article shall be carried out in accordance with the laws on invoices and certificates.

In cases where payment for purchasing bidding invitation documents is made directly, the issuance of invoices for selling bidding invitation documents for auctioning must comply with the laws on invoices and certificates but must be completed no later than the end of the bidding invitation document sale period.

In cases where payment for purchasing bidding invitation documents is made through electronic means, the transaction must be completed before the end of the bidding invitation document sale period. The issuance of invoices for selling bidding invitation documents for auctioning must comply with the laws on invoices and certificates but must be completed on the last day of the sale period at the latest.

Chapter IV

MANAGEMENT AND UTILIZATION OF DEPOSITS FROM PARTICIPANTS IN AUCTIONS NOT RETURNABLE AS PROVIDED BY THE LAW ON AUCTIONING OF ASSETS

Article 8. Transfer of deposits from participants in auctions not returnable to the owner of the auctioned asset

The auction service organization and the Auction Committee are responsible for transferring deposits from participants in auctions not returnable as provided for in Clause 6 of Article 39 of the Auction Law (including accrued interest if any) to the owner of the auctioned asset within five working days from the end of the auction session or the announcement of the price.

Article 9. Management and use of advance payment from participants in auction who are not to be refunded

1. In cases where the person with the asset is assigned a state budget estimate to organize the auction of the asset, within five working days from the date of organizing the auction practice, the Auction Asset Council shall transfer the money, and the person with the auctioned asset shall be responsible for depositing the entire advance payment from participants in the auction who are not to be refunded, as stipulated in Article 8 of this Circular, into the state budget.

2. In cases where the funding source for the auction of the asset is the proceeds from the auction of the asset in the temporary account, within five working days from the date of receiving the advance payment from participants in the auction who are not to be refunded, the person with the auctioned asset shall be responsible for depositing the advance payment from participants in the auction who are not to be refunded, as stipulated in Article 8 of this Circular, into the temporary account of the person with the auctioned asset or the temporary account of the agency or unit entrusted by the competent authority to manage the proceeds from the disposal of the asset opened at the State Treasury according to the provisions of the law and used to settle costs related to the auction of the asset before being deposited into the state budget as provided for in point b clause 1 of Article 5 of this Circular.

3. In cases where the auction is conducted to dispose of collateral assets or bad debts, the advance payment from participants in the auction who are not to be refunded, as stipulated in Article 8 of this Circular, shall be consolidated into the revenue from the disposal of collateral assets or bad debts for management and disposal according to the relevant laws governing the auctioned asset as stipulated in Article 3 of this Circular.

4. In cases not covered by clauses 1, 2, and 3 of this Article, the management and use of the advance payment from participants in the auction who are not to be refunded, as stipulated in Article 8 of this Circular, shall be implemented according to the financial mechanism applicable to the person with the auctioned asset.

Chapter V

IMPLEMENTATION

Article 10. Transitional Provisions

1. In cases where this Circular takes effect on the day it comes into force and the person with the auctioned asset has signed a Contract with the auction practice organization regarding the financial system, the amount of money charged for auction participation documents, and the management of advance payment from participants in the auction who are not to be refunded, as stipulated in Circular No. 48/2017/TT-BTC dated May 15, 2017, issued by the Minister of Finance, regulating the financial system in auction activities, then continue to implement according to the signed Contract. The management and use of money charged for auction participation documents and advance payment from participants in the auction who are not to be refunded shall be carried out according to the provisions of Circular No. 48/2017/TT-BTC.

2. In cases where the person with the auctioned asset has established an Auction Asset Council to organize the sale auction but by the time this Circular takes effect, the Auction Asset Council has not completed the organization of the auction session, the financial system for the Auction Asset Council shall continue to be implemented according to the provisions of Circular No. 48/2017/TT-BTC dated May 15, 2017, issued by the Minister of Finance.

3. In cases not covered by clause 1 and clause 2 of this Article, the financial system, the collection, expenditure, management, and use of money charged for auction participation documents, and advance payment from participants in the auction who are not to be refunded shall be applied according to the provisions of this Circular.

Article 11. Implementation Provisions

1. This Circular takes effect from January 22, 2025.

2. This Circular replaces Circular No. 48/2017/TT-BTC dated May 15, 2017, issued by the Minister of Finance, regulating the financial system in auction activities.

3. Abolish Circular No. 137/2010/TT-BTC dated September 15, 2010, issued by the Minister of Finance, regulating the determination of the starting price of state-owned assets sold at auction and the financial system of the Sale Auction Asset Council.

4. The person with the auctioned asset shall conduct inspection and supervision of the process of organizing the auction (including the collection of advance payment from participants in the auction who are not to be refunded according to the law on auction) according to the provisions of Article 47 of the Auction Law.

5. In cases where the legal normative documents cited in this Circular are amended, supplemented, or replaced by other legal normative documents, they shall be implemented according to the provisions of the amended, supplemented, or replacing document.

6. Ministries, agencies equivalent to ministries, government agencies, central-level agencies, provincial People's Committees, municipal People's Committees directly under the central government, and related agencies, organizations, units, and enterprises have the responsibility to implement this Circular./.