Circular No. 146/2016/TT-BTC stipulates the level of collection, collection system, payment, management, and use of fees for flying through Vietnamese airspace.

CIRCULAR

Regulations on the level of collection, collection system, payment, management
and the use of overflight fees for Vietnam's airspace

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Pursuant to the Civil Aviation Law of Vietnam dated June 29, 2006 and the Law Amending and Supplementing Certain Provisions of the Civil Aviation Law of Vietnam dated November 21, 2014;

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

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

Pursuant to Decree No. 215/2013/NĐ-CP dated December 23, 2013 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

At the proposal of the Director of the Enterprise Finance Department,

The Minister of Finance issues this Circular prescribing the rates, collection, payment, management, and use of overflight fees for Vietnam's airspace.

Article 1. Scope of Regulation and Applicability

1. This Circular prescribes the rates, exemptions, collection, payment, management, and use of overflight fees for Vietnam's airspace.

2. This Circular applies to organizations and individuals owning, using, or managing aircraft conducting flights through Vietnam's airspace (hereinafter referred to as aircraft operators), organizations providing air traffic control services through Vietnam's airspace, competent state agencies, and other related organizations and individuals.

3. In cases where international treaties to which the Socialist Republic of Vietnam is a party provide different provisions from those of this Circular, such treaties shall be applied.

Article 2. Interpretation of Terms

In this Circular, the following terms are understood as follows:

1.Maximum Takeoff Weight (MTOW): is the maximum takeoff weight recorded in the Aircraft Operating Specifications (AOS) of each aircraft.

2. Air Traffic Control Distance Through Vietnam's Airspace calculated from the entry point to the exit point of airways within Vietnam's airspace.

3. Air Traffic Control Distance Through Vietnam's Airspace and controlled airspace managed by Vietnam calculated from the entry point to the exit point of airways managed by Vietnam.

4. Regular Flight: is a commercial flight regularly conducted according to a published schedule on the booking and ticketing system of the carrier.

5. Irregular Flight: is a commercial flight that is not a regular flight as defined in Clause 4 of this Article.

6. Official flight: is a military flight, a specialized aircraft of customs, police forces, and civil aircraft used exclusively for official purposes.

7. Charter Flight: is a flight as prescribed in Clause 1, Article 2 of Decree No. 03/2009/NĐ-CP dated January 9, 2009 of the Government on charter flight support operations.

8. Charter Flight of Vietnam: is a flight as prescribed in Clause 2, Article 2 of Decree No. 03/2009/NĐ-CP dated January 9, 2009 of the Government on charter flight support operations.

9. Charter Flight of Foreign Countries: is a flight as prescribed in Clause 3, Article 2 of Decree No. 03/2009/NĐ-CP dated January 9, 2009 of the Government on charter flight support operations.

Article 3. Objects Subject to Fees

1. Regular Flights.

2. Irregular Flights.

3. Combined Charter Flights with Commercial Transport (to be treated as regular flights or irregular flights as provided in Clause 4, Clause 5 of Article 2 and Clause 1, Clause 2 of this Circular).

Article 4. Free Objects

Non-commercial flights over Vietnamese airspace include:

1. Official aircraft flights (excluding combined commercial transport official aircraft flights).

2. Official business flights.

3. Search and rescue flights, humanitarian aid transport, flood relief, disaster relief and other humanitarian missions.

Article 5. Fee Levels for Flights Over Vietnamese Airspace

1. Regular flight fee levels

a) For flights over Vietnamese airspace

b) For flights over Vietnamese airspace and Vietnamese-controlled air traffic zones

2. For non-regular flights: Apply a fee level equal to 120% of the regular flight fee level specified in Clause 1 of this Article.

Article 6. Organization of Collection, Management, and Submission to the State Budget of Fees for Flights Over Vietnamese Airspace

1. Fees for flights over Vietnamese airspace are revenue items belonging to the State Budget. The Vietnam Air Traffic Management Corporation is responsible for collecting fees, submitting 100% to the Central State Budget, and accounting them in corresponding sub-items and chapters. Costs for organizing the collection of fees for flights over Vietnamese airspace are compensated from the revenue of service prices of the Vietnam Air Traffic Management Corporation.

2. Responsibilities of the Vietnam Air Traffic Management Corporation:

Based on the list of air routes flying over Vietnamese airspace published by the Civil Aviation Administration of Vietnam, the Vietnam Air Traffic Management Corporation is responsible for:

a) Collecting accurately, fully, and promptly fees for flights over Vietnamese airspace.

b) According to the number of flights subject to fees for flights over Vietnamese airspace, the Vietnam Air Traffic Management Corporation shall account for the amount of fees due to the State Budget according to the relevant regulations.

c) Registering and declaring payment of fees for flights over Vietnamese airspace with the tax authority at its main office location in accordance with Circular No. 156/2013/TT-BTC dated November 6, 2013, guiding the implementation of certain provisions of the Law on Tax Administration; the Law Amending and Supplementing Certain Provisions of the Law on Tax Administration, and Decree No. 83/2013/NĐ-CP dated July 22, 2013 of the Government.

d) On a monthly basis, the Vietnam Air Traffic Management Corporation must deposit the collected fees into the Central State Budget account according to the guidance of the tax authority at its main office location. Any surplus or deficit in the monthly settlement of fees and the fees already deposited at the end of the month will be submitted to the Central State Budget according to paragraph c, Clause 2 of this Article of the Circular.

3. The Vietnam Air Traffic Management Corporation may deduct from the amount of fees due for flights over Vietnamese airspace those fees that cannot be recovered within three years in the following cases:

a) Aircraft operators declared bankrupt;

b) Customers have ceased operating flights over Vietnamese airspace.

The Vietnam Air Traffic Management Corporation is responsible for continuing to monitor these debts after processing for a minimum period of ten years and a maximum of fifteen years from the date of processing, and continue to take measures to recover the debts. If the debts are recovered, they must be fully submitted to the Central State Budget according to the regulations.

Article 7. Establishment and Allocation of the Budget for Air Navigation Charges over Vietnam's Airspace

1. Based on the actual implementation situation and forecasted demand for air transport services reported by the Civil Aviation Administration of Vietnam, the Vietnam Air Traffic Management Corporation shall establish the budget for air navigation charges over Vietnam's airspace and submit it to the Civil Aviation Administration of Vietnam for consolidation and submission to the Ministry of Transport before July 15 each year. The Ministry of Transport will review and consolidate this budget into its next year's revenue and expenditure budget, which will then be submitted to the Ministry of Finance before July 20 each year.

2. After receiving the allocation decision from the Ministry of Finance, the Ministry of Transport will allocate the budget to the Civil Aviation Administration of Vietnam, which will then allocate the air navigation charge budget to the Vietnam Air Traffic Management Corporation for implementation.

Article 8. Settlement of Revenue from Air Navigation Charges over Vietnam's Airspace

1. The Vietnam Air Traffic Management Corporation shall settle air navigation charges over Vietnam's airspace in accordance with Article 3 of Decree No. 120/2016/NĐ-CP dated August 23, 2016, detailing and guiding the implementation of certain provisions of the Law on Fees and Charges.

2. At the end of the fiscal year, the Vietnam Air Traffic Management Corporation shall prepare a settlement report on air navigation charges for the year and submit it to the Civil Aviation Administration of Vietnam. The Civil Aviation Administration of Vietnam will organize verification and consolidation, and report to the Ministry of Transport and the Ministry of Finance in accordance with regulations.

Article 9. Effective Date

1. This Circular takes effect from January 1, 2017 and applies from the 2017 fiscal year, replacing Circular No. 196/2015/TT-BTC dated December 1, 2015 issued by the Minister of Finance regarding the rates, collection, payment, management, and utilization of air navigation charges over Vietnam's airspace, and Joint Circular No. 03/2015/TTLT-BGTVT-BTC dated February 27, 2015 issued by the Ministry of Transport and the Ministry of Finance guiding financial management, allocation plans for public service provision ensuring flight operations.

2. Other contents related to collection, payment, management, utilization, receipt documentation, and publicizing the fee collection system not mentioned in this Circular shall be implemented in accordance with the Law on Fees and Charges, Decree No. 120/2016/NĐ-CP dated August 23, 2016 detailing and guiding the implementation of certain provisions of the Law on Fees and Charges, Circular No. 156/2013/TT-BTC dated November 6, 2013 issued by the Minister of Finance guiding the implementation of certain provisions of the Law on Tax Administration; the Law Amending and Supplementing Certain Provisions of the Law on Tax Administration, and Decree No. 83/2013/NĐ-CP dated July 22, 2013 of the Government, and the regulations of the Ministry of Finance guiding the printing, issuance, management, and use of fee and charge receipts.

3. In case the referenced documents in this Circular are amended, supplemented, or replaced, they shall be implemented according to the provisions of the amended, supplemented, or replacing documents.

4. During implementation, if there are any difficulties, the Ministry of Transport and relevant units shall report to the Ministry of Finance for consideration and resolution./.