Circular No. 109/2021/TT-BTC amends and supplements certain Articles of Circular No. 58/2019/TT-BTC dated August 30, 2019, issued by the Minister of Finance, concerning the management and use of State Treasury accounts opened at the State Bank of Vietnam and commercial banks.

CIRCULAR

Amending and supplementing certain provisions of Circular No. 58/2019/TT-BTC dated August 30, 2019 of the Minister of Finance on management and use of accounts opened by State Treasury at the State Bank of Vietnam and commercial banks

 on August 30, 2019, stipulating the management and use of accounts opened by State Treasury at the State Bank of Vietnam and commercial banks

of Vietnam and commercial banks

Pursuant to the Law on State Budget dated June 25, 2015;

Pursuant to Decree No. 163/2016/NĐ-CP dated December 21, 2016 of the Government detailing the implementation of certain provisions of the State Budget Law;

Pursuant to Decree No. 24/2016/NĐ-CP dated April 5, 2016 of the Government stipulating the regime for managing state treasury funds;

Pursuant to Decree No. 87/2017/NĐ-CP dated July 26, 2017 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

At the proposal of the General Director of the State Treasury;

The Minister of Finance issues this Circular amending and supplementing certain provisions of Circular No. 58/2019/TT-BTC dated August 30, 2019 of the Minister of Finance stipulating the management and use of accounts opened by State Treasury at the State Bank of Vietnam and commercial banks.

Article 1. Amending and supplementing certain provisions of Circular No. 58/2019/TT-BTC dated August 30, 2019 of the Minister of Finance stipulating the management and use of accounts opened by State Treasury at the State Bank of Vietnam and commercial banks as follows:

1. Amend and supplement certain clauses of Article 2 as follows:

a) Amending and supplementing Clause 5 as follows:

“5. Consolidated payment account: Is an account without fixed term deposit of the Central State Treasury at the State Bank of Vietnam and commercial banks, used to concentrate revenues and pay expenditures of state treasury funds; to concentrate balances from other payment accounts, specialized revenue accounts within the same banking system or from other consolidated payment accounts, consolidated specialized revenue accounts (if any).”

b) Amending and supplementing Clause 7 as follows:

“7. Consolidated specialized revenue account: Is an account without fixed term deposit of the Central State Treasury at commercial banks, used to concentrate revenues of the state budget and to concentrate balances from specialized revenue accounts within the same commercial bank system.”

c) Supplementing Clause 13 into Article 2 as follows:

“13. Mandate for collection and payment of state treasury funds in cash: Is the act of the State Treasury mandating commercial banks where the State Treasury has opened accounts to handle the collection of state treasury funds in cash into the State Treasury's account or to make payments and disbursements of state treasury funds in cash to beneficiaries according to transfer orders issued by the State Treasury.”

2. Amending and supplementing certain points and clauses of Article 4 as follows:

a) Amendments and supplements to Point a Clause 3 as follows:

“a) Open one VND-denominated payment account at a branch of a commercial bank located in the same province within the commercial bank system that has implemented bilateral electronic payment with the State Treasury.

In case the provincial State Treasury is located in a province where district-level State Treasuries have been merged into the provincial State Treasury, it may open an additional VND-denominated payment account at a branch or service point of a commercial bank convenient for transactions and within the commercial bank system that has implemented bilateral electronic payment with the State Treasury.”

b) Amend and supplement Point a of Clause 4 as follows:

“a) Open one VND-denominated payment account at a branch or service point of a commercial bank convenient for transactions and within the commercial bank system that has implemented bilateral electronic payment with the State Treasury.

In case the district-level State Treasury is located in a district where administrative units at the district level or district-level State Treasuries have been merged, it may open an additional VND-denominated payment account at a branch or service point of a commercial bank convenient for transactions and within the commercial bank system that has implemented bilateral electronic payment with the State Treasury.”

c) Amending and supplementing Clause 5 as follows:

“5. Commercial bank systems selected to open payment accounts and specialized revenue accounts must meet the following conditions:

a) Having a Core Banking system located in Vietnam.

b) The bank’s information technology system must meet the requirements for connection and exchange of bilateral electronic payment information with the State Treasury, ensuring connectivity standards as required by the Central State Treasury.

c) Already connected to the Electronic Information Portal and cooperating with tax authorities and customs authorities in collecting state budget revenues.

d) Committing to the State Treasury:

- Having adequate technical equipment, infrastructure, information technology facilities, and human resources to meet the requirements for implementing bilateral electronic payment and organizing cooperation in collecting state budget revenues with the State Treasury.

- Meeting the requirements for implementing mandates for collection and payment of state treasury funds in cash by the State Treasury (for commercial banks where the State Treasury opens payment accounts); meeting the requirements for implementing mandates for collection of state treasury funds in cash by the State Treasury (for commercial banks where the State Treasury opens specialized revenue accounts).

- Cooperating with the State Treasury to develop and implement agreements on organizing cooperation in collecting state budget revenues and bilateral electronic payment.”

d) Supplementing Clause 6 into Article 4 as follows:

“6. The State Treasury shall base its decision to open payment accounts and specialized revenue accounts at commercial bank systems on the list of commercial banks ranked by the State Bank of Vietnam according to Clause 3, Article 14 of Decree No. 24/2016/NĐ-CP dated April 5, 2016 of the Government stipulating the regime for managing state treasury funds (Decree No. 24/2016/NĐ-CP), ensuring safe and effective management of revenue and expenditure of state treasury funds.

In case a commercial bank where the State Treasury has opened payment accounts and specialized revenue accounts no longer meets the conditions for opening such accounts as stipulated in Clause 5 of this Article or is not included in the list of commercial banks ranked by the State Bank of Vietnam according to Clause 3, Article 14 of Decree No. 24/2016/NĐ-CP for two consecutive years, then within thirty working days from the date when the State Treasury has sufficient grounds to determine that the commercial bank no longer meets the conditions for opening payment accounts and specialized revenue accounts as stipulated in Clause 5 of this Article or from the date when the State Treasury receives information about the ranking of commercial banks provided by the State Bank of Vietnam according to Clause 3, Article 14 of Decree No. 24/2016/NĐ-CP, the State Treasury shall close the payment accounts and specialized revenue accounts of the State Treasury at that commercial bank system.”

3. Amending and supplementing certain points and clauses of Article 5 as follows:

a) Amend and supplement point a and point b, Clause 1 as follows:

"a) For settlement accounts and dedicated collection accounts of the State Treasury's Trading Department, provincial-level State Treasuries, and district-level State Treasuries at commercial bank systems, at the end of the trading day (after the COT time point), after reconciling with commercial banks, the entire balance on these accounts at the COT time point shall be transferred to the central State Treasury's consolidated settlement account and consolidated dedicated collection account at the same commercial bank system, ensuring that these accounts have a zero balance (except for revenues generated after the COT time point). In case of force majeure events preventing the daily transfer, the transfer shall be carried out on the next working day."

"b) For consolidated settlement accounts and consolidated dedicated collection accounts of the central State Treasury at commercial bank systems, at the end of the trading day (before the time when the National Inter-bank Electronic Payment System stops accepting high-value orders according to the regulations of the State Bank of Vietnam), after receiving the settlement amounts from the settlement accounts and dedicated collection accounts, the entire balance on these accounts (including revenues generated up to the COT time point, settlement amounts received from the settlement accounts and dedicated collection accounts) shall be transferred to the central State Treasury's consolidated settlement account at the State Bank of Vietnam's Trading Department, ensuring that these accounts have a zero balance (except for revenues generated after the COT time point and except for consolidated settlement accounts in foreign currencies for which the State Bank of Vietnam has not opened accounts for the State Treasury). In case of force majeure events preventing the daily transfer, the transfer shall be carried out on the next working day."

b) Amend and supplement point b and point c, Clause 2 as follows:

"b) The consolidated settlement account of the central State Treasury opened at the main office of commercial banks is used to implement state treasury receipts and payments of State Treasury units; inter-state treasury fund transfers; and daily settlement transactions from settlement accounts and dedicated collection accounts of provincial-level State Treasuries and district-level State Treasuries at the same commercial bank system."

"c) The consolidated dedicated collection account of the central State Treasury opened at the main office of commercial banks is used to concentrate state budget revenues; implement daily settlement transactions from dedicated collection accounts of provincial-level State Treasuries and district-level State Treasuries at the same commercial bank system; and daily inter-state treasury fund transfers back to the central State Treasury's consolidated settlement account at the State Bank of Vietnam's Trading Department."

"c) Amend and supplement points e and g of Clause 2 as follows:"

"e) Foreign currency settlement accounts of the State Treasury's Trading Department and provincial-level State Treasuries at commercial banks are used to implement state treasury receipts and payments, and inter-state treasury fund transfers in foreign currencies."

"g) Settlement accounts of district-level State Treasuries opened at commercial banks are used to implement state treasury receipts and payments; and inter-state treasury fund transfers."

"For additional settlement accounts of district-level State Treasuries opened at commercial banks as stipulated in point a of Clause 4 of this Circular, they can only be used to concentrate state treasury receipts through transfers and cash; pay and settle state treasury payments in cash; and implement inter-state treasury fund transfers."

"d) Add Clause 4 to Article 5 as follows:"

"4. In cases where State Treasury units discover unreconciled revenues that were not recorded and transferred to the State Treasury's accounts at commercial banks as required by Clause 1 of this Article and determined to be due to subjective reasons of the commercial bank branch or trading department where the State Treasury has its account, in addition to interest on the balances in the State Treasury's accounts at commercial banks that the commercial bank branch or trading department must pay to the State Treasury according to the regulations of the State Bank of Vietnam, within the latest one working day from the date of discovery and determination of the subjective fault of the commercial bank branch or trading department, such commercial bank branch or trading department shall be responsible for paying the delayed settlement and transfer amount to the State Treasury, calculated as follows:

In which, the number of days delayed in settlement and transfer (including holidays and non-working days as prescribed by law) is counted from the day the revenue should have been settled and transferred until the last day before the revenue was settled and transferred into the central State Treasury's account at the State Bank of Vietnam.

Article 2. Repeal Article 8 and Clause 1 of Article 10 of Circular No. 58/2019/TT-BTC dated August 30, 2019, issued by the Minister of Finance, stipulates the management and use of accounts opened by the State Treasury at the State Bank of Vietnam and commercial banks.

Article 3. Transitional Provisions

As for the accounts of the State Treasury currently opened at commercial bank systems until the date this Circular takes effect, the Central State Treasury, the State Treasury Trading Department, provincial State Treasuries, and district State Treasuries shall review and implement as follows:

1. For accounts that comply with the provisions of this Circular, continue to maintain and use such accounts.

2. For accounts that do not comply with the provisions of this Circular, procedures for settlement and closure of these accounts must be completed according to regulations, ensuring that account closure is finalized before April 1, 2022.

Article 4. Effectiveness and Implementation

This Circular takes effect from February 1, 2022.

2. The KBNN, relevant agencies, units, organizations, and individuals are responsible for implementing this Circular./.