Circular No. 108/2020/TT-BTC Amends and Supplements Certain Articles of Circular No. 45/2017/TT-BTC dated May 12, 2017, issued by the Minister of Finance, concerning the framework for remuneration of auction services under the Auction Law.

CIRCULAR

AMENDMENTS AND SUPPLEMENTS TO CERTAIN PROVISIONS OF CIRCULAR NO. 45/2017/TT-BTC DATED MAY 12, 2017 ISSUED BY THE MINISTER OF FINANCE ON THE FRAMEWORK FOR FEES FOR AUCTION SERVICES IN ACCORDANCE WITH THE LAW ON AUCTIONS

Pursuant to the Auction Law dated November 17, 2016;

Pursuant to the Price Law dated June 20, 2012;

Pursuant to Decree No. 177/2013/NĐ-CP dated November 14, 2013 and Decree No. 149/2016/NĐ-CP dated November 11, 2016 of the Government amending and supplementing certain provisions of Decree No. 177/2013/NĐ-CP dated November 14, 2013 of the Government detailing and guiding the implementation of certain provisions of the Price Law;

Pursuant to Decree No. 87/2017/NĐ-CP dated July 26, 2017, 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 Price Management Department,

The Minister of Finance issues this Circular amending and supplementing certain provisions of Circular No. 45/2017/TT-BTC dated May 12, 2017 of the Minister of Finance on the framework for fees for auction services in accordance with the Auction Law.

Article 1. Amending and supplementing certain provisions of Circular No. 45/2017/TT-BTC dated May 12, 2017 of the Minister of Finance on the framework for fees for auction services in accordance with the Auction Law.

1. Clause 3 shall be amended and supplemented as follows:

"1. The framework for fees for auction services for one auction service contract in the case of successful auction shall be as follows:

a) Minimum fee: VND 1,000,000 per contract (One million dong per contract);

b) Maximum fee corresponding to each value range of assets based on the starting price as specified in Appendix I and Appendix II attached hereto but not exceeding VND 400,000,000 per contract (Four hundred million dong per contract).

2. The fees for auction services prescribed in Clause 1 of this Article do not include: value-added tax and auction costs as stipulated in Clause 2 of Article 66 of the Auction Law.

3. In the case of unsuccessful auction, the person owning the auctioned asset shall pay the auction organization the auction costs as stipulated in Clause 2 of Article 66 of the Auction Law, which have been agreed upon by both parties in the auction service contract.

4. Determination of specific fees for auction services and auction costs for each auction service contract shall be agreed upon by the owner of the auctioned asset and the auction organization in the auction service contract based on the result of selecting the auction organization and the provisions on fees for auction services and auction costs under the Auction Law. The owner of the asset shall be responsible for deciding the specific level of fees for auction services, ensuring that such fees fall within the framework set forth by the Ministry of Finance in this Circular and do not exceed the maximum fee corresponding to the asset value range based on the starting price as specified in Appendices I and II attached hereto.

5. Within twenty days from the end date of the auction, the owner of the auctioned asset shall pay the auction organization the fees for auction services and the auction costs as stipulated in Clause 2 of Article 66 of the Auction Law; except where the parties have agreed otherwise or where other laws provide differently."

2. Clause 3 of Article 4 is amended as follows:

"The auction organization shall use invoices for service provision in accordance with the law on invoices."

3. Replacing Appendices No. 1 and No. 2 issued together with Circular No. 45/2017/TT-BTC dated May 12, 2017 of the Minister of Finance on the framework for fees for auction services in accordance with the Auction Law as follows:

a) Replacing Appendix No. 1 issued together with Circular No. 45/2017/TT-BTC dated May 12, 2017 of the Minister of Finance on the framework for fees for auction services in accordance with the Auction Law with Appendix I issued together with this Circular.

b) Replacing Appendix No. 2 issued together with Circular No. 45/2017/TT-BTC dated May 12, 2017 of the Minister of Finance on the framework for fees for auction services in accordance with the Auction Law with Appendix II issued together with this Circular.

Article 2. Implementation

1. This Circular takes effect from February 4, 2021.

2. For auction service contracts signed before the effective date of this Circular, they shall continue to be implemented in accordance with Circular No. 45/2017/TT-BTC dated May 12, 2017 of the Minister of Finance on the framework for fees for auction services in accordance with the Auction Law until the completion of the contract.

3. In cases where legal regulations serving as the basis or referred to in this Circular are amended, supplemented, or replaced, the amended, supplemented, or replaced legal regulations shall apply.

4. During the implementation process, if there are any difficulties, please report them to the Ministry of Finance for consideration and resolution./.

ANNEX I

MAXIMUM FEES FOR AUCTION SERVICES CORRESPONDING TO THE FRAMEWORK OF ASSET VALUES BASED ON THE STARTING PRICE FOR ASSETS PROVIDED FOR IN CLAUSE 1 OF ARTICLE 4 OF THE AUCTION LAW EXCEPT AS SET OUT IN APPENDIX II

Note: The maximum fee corresponding to each range of asset value according to the starting price shall not exceed 400,000,000 dong per one service contract.

In case a property auction service contract includes multiple assets where some assets are successfully auctioned and others are not, the auction organization must determine the percentage of successfully auctioned assets and the percentage of unsuccessfully auctioned assets based on the starting price to calculate the service fee for the auctioned property, as stipulated in Appendix I, Clause 1, Article 1 of this Circular.

Example: Department X is assigned to handle the auction of two used cars with starting prices of 80 million dong and 120 million dong, respectively, with percentages of the starting price being 40% and 60%, totaling 200 million dong. According to Appendix I of this Circular, the maximum fee that the auction organization can receive is: 6,82 million dong plus 6% on the difference between the auction winning price and the starting price of the asset value.

Department X publishes a public notice to select an auction organization. As a result, Auction Organization A is selected with a registered fee of 6 million dong plus 6% on the difference between the auction winning price and the starting price of the asset value. The registration fee of 6 million dong plus 6% on the difference between the auction winning price and the starting price of the asset value serves as the basis for paying the auction service fee to Auction Organization A. Department X and Auction Organization A sign the property auction service contract.

- In case both cars are successfully auctioned, within 20 days from the end of the auction, Auction Organization A will be paid: 6 million dong plus 6% on the difference between the auction winning price and the starting price of the asset value, and the auction expenses as stipulated in Clause 2, Article 66 of the Auction Law, which have been agreed upon in the property auction service contract.

- In case neither car is successfully auctioned, within 20 days from the end of the auction, Auction Organization A will be paid the auction expenses as stipulated in Clause 2, Article 66 of the Auction Law, which have been agreed upon in the property auction service contract.

- In case the car with a starting price of 80 million dong is successfully auctioned, but the car with a starting price of 120 million dong is not, within 20 days from the end of the auction, Organization A will be paid:

+ Service fee for the successfully auctioned car: 6 million dong x 40% plus 6% on the difference between the auction winning price and the starting price of the successfully auctioned asset.

+ Auction expenses as stipulated in Clause 2, Article 66 of the Auction Law, which have been agreed upon in the property auction service contract.

ANNEX II

MAXIMUM SERVICE FEE FOR AUCTIONING PROPERTY WITHIN THE FRAMEWORK OF ASSET VALUE ACCORDING TO THE STARTING PRICE FOR PROPERTY AS STATED IN CLAUSE 1, ARTICLE 4 OF THE AUCTION LAW IS THE RIGHT TO USE LAND FOR TRANSFERRING LAND WITH PAYMENT FOR LAND USE OR LEASING LAND

Note: The maximum fee corresponding to each range of asset value according to the starting price shall not exceed 400,000,000 dong per one service contract.

In case a property auction service contract includes multiple plots of land where some are not successfully auctioned, the percentage of successfully auctioned plots and the percentage of unsuccessfully auctioned plots must be determined based on the starting price to calculate the service fee for the auctioned property according to the provisions in Appendix II, Clause 1, Article 1 of this Circular.

Example: Land Development Fund Center A is assigned to handle the auction of two plots of land, each with a starting price of 60 billion dong, with a percentage of the starting price for each plot being 50%, totaling 120 billion dong. According to Appendix II of this Circular, the maximum fee is 59,09 million dong plus 1% on the difference between the auction winning price and the starting price of the right to use land.

Land Development Fund Center A publishes a public notice to select an auction organization. As a result, Auction Organization B is selected with a registered fee of 55 million dong plus 1% on the difference between the auction winning price and the starting price of the right to use land. The registration fee of 55 million dong plus 1% on the difference between the auction winning price and the starting price of the right to use land serves as the basis for paying the auction service fee to Auction Organization B. Land Development Fund Center A and Auction Organization B sign the property auction service contract.

- In the event that both land lots are successfully auctioned, within twenty days from the date of the conclusion of the auction, Organization B for Auctions shall be paid: fifty-five million Vietnamese dong plus (1%) on the difference in value of the land use rights according to the winning bid price with the starting price and the costs of auctioning the property as stipulated in Clause 2 of Article 66 of the Law on Auctions, which have been agreed upon between the Land Development Fund of County A and Organization B for Auction Services in their service contract for auctioning property.

- In the event that neither of the two land lots is successfully auctioned, within twenty days from the date of the conclusion of the auction, Organization B for Auctions shall be paid the costs of auctioning the property as stipulated in Clause 2 of Article 66 of the Law on Auctions, which have been agreed upon between the Land Development Fund of County A and Organization B for Auction Services in their service contract for auctioning property.

- In the event that one land lot is successfully auctioned and the other is not, within twenty days from the date of the conclusion of the auction, Organization B for Auctions shall be paid as follows:

+ Service fee for auctioning property for the successfully auctioned land lot: fifty-five million Vietnamese dong times (50%) plus (1%) on the difference between the successful bid price and the starting price of the successfully auctioned property.

+ Costs of auctioning the property as stipulated in Clause 2 of Article 66 of the Law on Auctions, which have been agreed upon between the Land Development Fund of County A and Organization B for Auction Services in their service contract for auctioning property.