Circular No. 127/2021/TT-BTC amends and supplements Clause 1 and Clause 2 of Article 1 of Circular No. 94/2020/TT-BTC dated November 16, 2020, issued by the Minister of Finance to amend and supplement certain provisions of Circular No. 307/2016/TT-BTC dated November 15, 2016 on the level of collection, payment, management, and use of fees for the right to provide pay television services and registration fees for issuing certificates to provide foreign channels on pay television.

CIRCULAR

AMENDING AND SUPPLEMENTING CLAUSE 1 AND CLAUSE 2 OF ARTICLE 1 OF CIRCULAR NO. 94/2020/TT-BTC DATED OCTOBER 16, 2020 ISSUED BY THE MINISTER OF FINANCE TO AMEND AND SUPPLEMENT CERTAIN ARTICLES OF CIRCULAR NO. 307/2016/TT-BTC DATED NOVEMBER 15, 2016 ON THE LEVELS OF FEES FOR PROVIDING PAY TELEVISION SERVICES AND LICENSE FEES FOR ISSUING LICENSES TO PROVIDE FOREIGN CHANNEL PROGRAMS ON PAY TELEVISION

Pursuant to the Law on Fees and Charges dated November 25, 2015;

Pursuant to the Press Law dated April 5, 2016;

Pursuant to the Decree No. 120/2016/NĐ-CP dated August 23, 2016 of the Government detailing and guiding the implementation of certain articles of the Law on Fees and Stamp Duties;

Pursuant to Decree No. 06/2016/NĐ-CP dated January 18, 2016 of the Government on the management, provision, and use of radio and television services;

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;

Implementing Resolution No. 63/NQ-CP dated June 29, 2021 of the Government on major tasks and key solutions to promote economic growth, disbursement of public investment capital, and sustainable exports in the last months of 2021 and the first months of 2022; Circular No. 8374/VPCP-KTTH dated November 15, 2021 of the Government Office on reviewing and reducing fees and license fees to address difficulties for those affected by the COVID-19 pandemic;

At the request of the Director of the Tax Policy Department;

The Minister of Finance issues this Circular to amend and supplement Clause 1 and Clause 2 of Article 1 of Circular No. 94/2020/TT-BTC dated October 16, 2020 amending and supplementing certain articles of Circular No. 307/2016/TT-BTC dated November 15, 2016 on the levels of fees for providing pay television services and license fees for issuing licenses to provide foreign channel programs on pay television.

Article 1. Amend and supplement

1. Amending and supplementing Clause 1 of Article 1 as follows:

“1. The level of fees for providing pay television services is 0.3% of the revenue subject to the fee for providing pay television services.

a) As of January 1, 2022, the revenue subject to the fee for providing pay television services is the total revenue exceeding 50 billion VND (excluding VAT) generated from contracts with pay television subscribers in the calendar year.

b) As of January 1, 2023 onwards, the revenue subject to the fee for providing pay television services is the total revenue generated from contracts with pay television subscribers during the period of calculation (excluding VAT)”.

2. Amend and supplement Clause 2 of Article 1 as follows:

“b) For fees:

- From January 1, 2022 to December 31, 2022, enterprises providing pay television services shall pay the fee quarterly. Starting from the quarter when the cumulative revenue from January 1 of the calendar year exceeds 50 billion VND, the enterprise calculates and pays the fee on the portion of the total revenue exceeding 50 billion VND.

Example 1, in 2022, Enterprise A has revenue from pay television services in Q1 at 40 billion VND, and Q2 at 20 billion VND. In Q1, Enterprise A does not have to pay the fee. In Q2, Enterprise A must pay the fee as follows: (40 + 20 - 50) billion VND x 0.3% = 30 million VND. From Q3 onwards, if there is revenue from pay television services, Enterprise A must pay the fee = 0.3% x Quarterly Revenue.

Example 2, in 2022, Enterprise B has revenue from pay television services in Q1 at 60 billion VND. Enterprise B must pay the fee in Q1 as follows: (60 - 50) billion VND x 0.3% = 30 million VND. From Q2 onwards, if there is revenue from pay television services, Enterprise B must pay the fee = 0.3% x Quarterly Revenue.

Example 3, in 2022, Enterprise C has revenue from pay television services less than or equal to 50 billion VND, Enterprise C does not have to pay the fee in 2022.

- From January 1, 2023 onwards, enterprises providing pay television services shall pay the fee quarterly. Enterprises calculate and pay the fee based on the total revenue generated in the quarter.

- The deadline for payment of the fee is the twentieth day of the first month of the following quarter”.

Article 2. Implementation

1. This Circular takes effect from January 1, 2022.

2. During the implementation process, if there are any difficulties, organizations and individuals are requested to promptly report them to the Ministry of Finance for consideration and guidance./.