Circular No. 100-TC/TCT guides the collection, management, and use of fees for establishing and operating permanent offices of foreign economic organizations in Vietnam.

CIRCULAR

GUIDELINES ON THE COLLECTION, MANAGEMENT, AND USE OF FEES FOR THE ESTABLISHMENT AND OPERATION OF FOREIGN ECONOMIC ORGANIZATIONS' PERMANENT REPRESENTATIVE OFFICES IN VIETNAM ISSUED BY THE MINISTRY OF FINANCE NUMBER 100-TC/TCT ON DECEMBER 3, 1993

Pursuant to Article 9 of the Regulation on the Establishment and Operation of Permanent Representative Offices of Foreign Economic Organizations in the Socialist Republic of Vietnam (issued pursuant to Decree No. 382/HĐBT dated January 5, 1990 of the Council of Ministers), the Ministry of Finance and the Ministry of Trade and Tourism issued Circular No. 62 TT/LB dated November 8, 1991 regarding the collection of fees for the establishment and operation of permanent representative offices of foreign economic organizations in Vietnam (hereinafter referred to as the fee for establishing foreign economic organizations' representative offices in Vietnam).

After implementation and based on Decision No. 276/CT dated July 28, 1992 of the Chairman of the Council of Ministers (now Prime Minister) on unifying the management of various types of fees and charges, the Ministry of Finance provides guidelines for the collection, management, and use of the fee for establishing representative offices as follows:

I. OBJECTS AND AMOUNTS OF COLLECTION

1. Objects of Collection.

All foreign economic organizations and individuals who obtain from the Ministry of Trade a permit to establish a representative office or branch of a representative office at their headquarters in Vietnam must pay the fee according to this Circular.

2. Amounts of Collection.

The fee for establishing a representative office is collected in US dollars, with specific amounts as follows:

- Fee for establishing a representative office: 5,000 USD.

- Fee for establishing a branch of a representative office at its headquarters in Vietnam: 4,000 USD.

In cases where permits are granted to extend the period of operation, the fee must also be paid according to the above rates.

II. PROCEDURES FOR PAYMENT AND DISTRIBUTION OF FUNDS COLLECTED

1. Payment Procedures.

The fee for establishing foreign economic organizations' representative offices in Vietnam is a revenue item for the state budget managed by the Ministry of Trade and collected before issuing permits to foreign economic organizations in Vietnam. If a permit is issued without collecting the full fee as prescribed, the outstanding fee will be recovered and administrative penalties for tax violations as stipulated in Government Decree No. 01/CP dated October 18, 1992 will be imposed.

In cases where foreign economic organizations and individuals pay in cash, the collecting agency must use payment receipts issued by the Ministry of Finance (General Department of Taxation) and received at the local Tax Bureau where the collecting unit is located. The fee-collecting unit is responsible for managing and using the receipts in accordance with the regulations set by the Ministry of Finance.

In cases where foreign economic organizations and individuals pay through banks, the Ministry of Trade bases its issuance of permits for representative offices and branches on bank confirmation documents.

2. Use of Revenue.

a. The Ministry of Trade may temporarily retain 10% (ten percent) of the collected fees for the following purposes:

- To cover costs related to the work of collecting fees and reviewing applications for permits (if these expenses have not been included in the annual regular budget allocation for the Ministry of Trade).

- Foreign affairs expenses for issuing permits.

- Printing application forms and permits.

- Rewards for those directly involved in the work of collecting fees and issuing permits. However, the maximum reward annually should not exceed three months' basic salary.

Apart from the foreign currency retained by the Ministry of Trade for balanced use in foreign exchange spending according to the approved financial plan, the remaining amount that does not need to be used must be sold to the Bank for Foreign Trade, and at year-end, if the funds are not fully utilized, they must be remitted to the state budget.

b. The remaining amount after temporarily retaining the percentage specified above must be deposited monthly into the centralized foreign currency account of the state budget at the Central Bank for Foreign Trade under Account No. 212.210.371.000, with the latest date for deposit being five days after the end of each month.

Provincial and municipal Tax Bureaus are responsible for monitoring the collection and urging the fee-collecting units to promptly deposit the required amount into the state budget according to the regulations set out in this Circular.

This Circular takes effect from January 1, 1994, replacing Circular No. 62 TT/LB dated November 8, 1991 of the Ministry of Finance - Trade and Tourism (now the Ministry of Trade).