Circular No. 109/2000/TT-BTC guiding the regime for collecting, remitting, and using fees for investment appraisal

MINISTRY OF FINANCE

Guidelines on the collection, submission, and use of fees for investment appraisal

Based on Decree No. 04/1999/NĐ-CP dated January 30, 1999 of the Government onfees and charges under the State budget;

Based on Decree No. 52/1999/NĐ-CP dated July 8, 1999 of the Government on theissuance of regulations on investment management and construction; Decree No.12/2000/NĐ-CP dated May 5, 2000 of the Government on amending and supplementing somerules of the regulations on investment management and construction issued alongwith Decree No. 52/1999/NĐ-CP dated July 8, 1999 of the Government;

After receiving comments from the Ministry of Construction, the Ministry ofPlanning and Investment, and the Ministry of Finance, guidelines on thecollection, submission, and management of the use of fees for investmentappraisal are as follows: 

I. OBJECTS OF COLLECTION AND AMOUNT OF FEES

2. Rates:

For investment projects that must be appraised by state agencies withcompetent authority according to regulations, the project investors must pay theinvestment appraisal fee as stipulated in this Circular.

2. The amount of the investment appraisal fee for projects, technical designappraisal, and total estimate appraisal (collectively referred to as the investment appraisal fee) is defined in theFee Collection Table attached to this Circular and shall be implemented asfollows:

a) For investment projects that must be appraised by state agencies withcompetent authority according to regulations but lack the necessary conditionsfor appraisal and therefore must hire experts or consultants for appraisal, thestate agency may only collect a fee equal to 50% (fifty percent) of the amountstipulated in the Fee Collection Table attached to this Circular.

b) The groups of works specified in the Fee Collection Table for investmentappraisal are interpreted as follows:

b1 Group I includes mining, mechanical, chemical, metallurgical, buildingmaterials, light industry, power, processing and petrochemical works, oil storages, explosive material storage facilities, and other similar works.

b2 Group II includes water supply and drainage, telecommunications, signaling,lighting, power transmission lines, oil pipelines, and other works not includedin Group I.

b3 Group III includes agricultural, fisheries, forestry, and irrigation works.

b4 Group IV includes transportation works (railways, roads), runways, aircraftparking areas, taxiways, bridges, traffic intersections, navigation aids, ferryterminals, inland ports, seaports, railway stations, and other transportationworks.

b5 Group V includes civil works (residential buildings, hotels), cultural,educational, health, sports, commercial, service, office, administrative, andother public works.

3. Determination of the amount of investment appraisal fee to be collected:

a) The basis for determining the amount of the investment appraisal fee to becollected is the approved project cost estimate (excluding value-added tax) andthe rate specified in Clause 2 of this Section, specifically as follows:

In cases where the value of the group of works falls between the values listedon the Fee Collection Table, the investment appraisal fee to be collected shallbe calculated using the interpolation method as follows:

c) The Reorganization Enterprise Fund at the state-owned holding corporation level is centralized in a separate account of the state-owned holding corporation, managed by the Board of Directors, to support the reorganization and ownership conversion of enterprises under the state-owned holding corporation as stipulated in Article 2 of this Decision and is responsible for settling accounts with the Ministry

N |||_it is the investment appraisal fee for group i based on the scale of value to becalculated (unit: %)

G_it is the scale of value of group i to be calculated for the investment appraisalproject (unit: value of the work)

G_ia is the upper limit of the scale of value for calculating the investmentappraisal fee (unit: value of the work)

G_ib is the lower limit of the scale of value for calculating the investmentappraisal fee (unit: value of the work)

N |||_ia is the investment appraisal fee for group i corresponding to G_ib (unit: %)

N |||_ib is the investment appraisal fee for group i corresponding to G_ib (unit: %)

b) The amount of the investment appraisal fee to be collected for a singleinvestment project shall be determined according to the guidance provided in aof this point but shall not exceed the following maximum amounts:

The maximum investment appraisal fee to be collected shall not exceed50,000,000 (fifty million) VND/project.

The maximum technical design appraisal fee or total estimate appraisal feeto be collected shall not exceed 114,000,000 (one hundred fourteen million)VND/project.

In special cases, the Ministry of Finance will consider and decide on theamount of the investment appraisal fee to be collected for each specific project.

c) For works that use standard designs or similar designs, the amount of theinvestment appraisal fee to be collected shall be equal to the amount of theinvestment appraisal fee determined according to the provisions of a and b ofthis point multiplied by the following coefficient:

For works that use standard designs:

First work (or component): coefficient 0.36

Second work (or component) onwards: coefficient 0.18

For works that use similar designs within a complex or within the sameproject:

First work (or component): coefficient 1;

Second work (or component): coefficient 0.36;

Third work (or component) onwards: coefficient 0.18;

d) Investment projects that only prepare investment reports shall not becharged an investment appraisal fee.

II. MANAGEMENT OF COLLECTION, SUBMISSION, AND USE

1. State agencies entrusted with the task of investment appraisal shallcollect the investment appraisal fee according to the provisions of thisCircular (hereinafter referred to as the agency collecting the investmentappraisal fee).

The agency collecting the investment appraisal fee shall have duties,powers, and responsibilities as prescribed in Article 14 of Decree No. 04/1999/NĐ-CP dated January 30, 1999 of the Government on fees and charges under the Statebudget.

2. Monthly, the agency collecting the investment appraisal fee shall reportand submit to the State budget 25% of the actual collected investment appraisalfee during the period according to the relevant chapter, type, and item asprescribed in Item 045 of the State budget.

3. The agency collecting the investment appraisal fee may retain 75% (seventy-five percent) of the actual collected investment appraisal fee beforesubmitting it to the State budget to cover costs for appraisal activities andorganizing the collection of the investment appraisal fee as follows:

a) When state agencies conduct direct appraisals, the agency collecting thefee may use the retained funds to cover costs for investment appraisalactivities and organizing the collection of the investment appraisal fee asfollows:

Article to pay remuneration for the direct participants in the appraisal, including those from other agencies involved in the appraisal.

Article to pay for public services and communication information.

Article for office supplies.

Article for travel expenses.

Article for repair of assets, machinery, and equipment.

Article for conference and seminar fees with relevant agencies during the appraisal process; training and short-term professional development fees for specialized staff participating in the appraisal.

Article for on-site survey expenses at project locations or operating facilities with similar investment content.

Article for renting means and equipment for the appraisal when the agency does not have sufficient resources to serve the appraisal work.

Article to allocate a reward fund for those performing the appraisal work and collecting fees. The average allocation per person per year shall not exceed three months' salary.

Other articles directly related to the appraisal work.

b) In cases where state agencies must hire independent experts or consultants for the appraisal and have collected appraisal fees according to the regulations of the Ministry of Construction, the collecting agency may use the collected fee as follows:

Article for expenses related to the appraisal work under the responsibility of the appraisal agencies (excluding the hired appraisal works) and for organizing the collection of appraisal fees.

Article to allocate a reward fund for those performing the appraisal work and collecting fees. The average allocation per person per year shall not exceed three months' salary.

4. The agency responsible for collecting appraisal fees must open a "temporary holding account" at the State Treasury to monitor and manage the collected appraisal fees, organize the collection, declaration, payment, management, and use of the appraisal fees according to Circular No. 54/1999/TT-BTC dated May 10, 1999, issued by the Ministry of Finance guiding the implementation of Decree No. 04/1999/NĐ-CP dated January 30, 1999, of the Government on fees and charges under the State Budget.

Every 5 to 10 days, the agency responsible for collecting appraisal fees must deposit the collected fees into the temporary holding account and record this income separately according to the accounting system for administrative and public institutions. The State Treasury will base its temporary advance or payment to the agency on the collected fees, approved budget estimates, and the agency's request for disbursement according to Circular No. 40/1998/TT-BTC dated March 31, 1998, issued by the Ministry of Finance guiding the management, issuance, and settlement of state budget expenditures through the State Treasury and the provisions of this Circular.

Annually, based on the upper-level budget revenue and expenditure inspection figures, the agency responsible for collecting appraisal fees must prepare the budget for revenue and expenditure of the appraisal fees together with its own budget. The implementation of preparing and adhering to the budget must comply with the guidance provided in Circular No. 103/1998/TT-BTC dated July 18, 1998, issued by the Ministry of Finance guiding the decentralization, preparation, and execution of the final accounts of the state budget.

5. The agency responsible for collecting appraisal fees must be responsible for preparing a comprehensive report on all revenues and expenditures related to the appraisal fees according to the accounting system applicable to administrative and public institutions and current financial regulations.

If at the end of the year, the remaining appraisal fees are not fully utilized, the excess amount must be deposited into the State Budget.

6. Local tax authorities responsible for collecting appraisal fees must issue receipts for the collection of appraisal fees, guide, and inspect the implementation of the collection of appraisal fees according to this Circular and Circular No. 54/1999/TT-BTC dated May 10, 1999, issued by the Ministry of Finance guiding the implementation of Decree No. 04/1999/NĐ-CP dated January 30, 1999, of the Government on fees and charges under the State Budget.

III. IMPLEMENTATION

This Circular replaces Decision No. 141/1999/QĐ-BTC dated November 16, 1999, of the Minister of Finance regarding appraisal fees and takes effect 15 days after the date of signature; All other regulations concerning appraisal fees for investment projects, technical design, and total preliminary estimates that conflict with this Circular are abolished.

Organizations subject to the payment of appraisal fees, units assigned the task of collecting appraisal fees, and related agencies are responsible for implementing this Circular./.

TABLE OF APPRAISAL FEES FOR INVESTMENT PROJECTS

(Annexed to Circular No. 109/2000/TT-BTC

dated November 13, 2000, of the Ministry of Finance)

Unit of measurement: % value of construction works