Circular No. 21/2001/TT-BTC guiding amendments to certain contents in Circular No. 54/1999/TT-BTC dated May 10, 1999 of the Ministry of Finance guiding the implementation of Government Decree No. 04/1999/NĐ-CP on fees and charges under the State budget.

CIRCULAR

Guidance on amending certain contents of Circular No. 54/1999/TT-BTC dated May 10, 1999

of the Ministry of Finance guiding the implementation of Government Decree No. 04/1999/NĐ-CP

on fees and charges under the state budget

_________________________

Pursuant to Government Decree No. 04/1999/NĐ-CP dated January 30, 1999 on fees and charges under the state budget, the Ministry of Finance issued Circular No. 54/1999/TT-BTC dated May 10, 1999 to guide the implementation thereof;

After a period of implementation, the Ministry of Finance guides the amendment and supplementation of certain contents of Circular No. 54/1999/TT-BTC as follows:

1. The last paragraph of sub-item b, point 8, Section II of Circular No. 54/1999/TT-BTC on the authority to issue regulations on the collection, payment, and use of fees and charges shall be amended as follows: "The People's Committee of the province, after having a resolution on the policy of collecting fees and charges from the Provincial People's Council, implements the provisions on the level of collection and management of revenue for types of fees and charges within the local scope..."

2. Sub-item b, point 5, Section III of Circular No. 54/1999/TT-BTC on the management and use of fee and charge revenues shall be replaced with a new sub-item b as follows:

b) In accordance with Clause 2, Article 12 of Government Decree No. 04/1999/NĐ-CP, money collected from fees and charges under the state budget must be fully reflected in the state budget. To align with current financial management systems and create conditions for organizations to proactively fulfill their assigned tasks, before being paid into the state budget, organizations collecting fees and charges may retain a portion of the collected fees and charges for expenses related to organizing the collection of such fees and charges. The retention rate for each organization will be determined by the competent authority issuing regulations on the collection, payment, and use of specific types of fees and charges, but it shall not exceed 90% of the actual revenue from such fees and charges (except where otherwise stipulated by the Government and the Ministry of Finance).

The retained amount of fees and charges shall be used for the following purposes:

b1) For state-owned enterprises and state-owned enterprises engaged in public services collecting fees and charges, the amount retained according to the provisions of the competent authority shall be included in the revenue of the enterprise. For state-owned enterprises engaged in public services managing and using funds in accordance with Circular No. 06/TC-TCDN dated February 24, 1997 of the Ministry of Finance guiding the implementation of Government Decree No. 56/CP dated October 2, 1996 on financial management systems for state-owned enterprises engaged in public services and Circulars of the Ministry of Finance specifying financial management systems applicable to specific industries (if any).

b2) For organizations collecting fees and charges other than those mentioned in b1 above, they shall be distinguished as follows:

b2.1) In cases where organizations collecting fees and charges are provided regular funding from the state budget for their fee and charge collection activities, the retained amount can be used for the following expenditures:

- Payment of remuneration for civil servants and employees undertaking additional work in fee and charge collection beyond their assigned functions and duties (including overtime).

- Labor costs and allowances (if any) for outsourced labor (including experts, consultants, and non-staff personnel). The head of the fee and charge collection organization shall determine the appropriate expenditure based on the revenue from fees and charges and the nature and complexity of the work.

- Repair costs for equipment directly serving the fee and charge collection process.

- Other direct expenses related to fee and charge collection.

- Retention for a reward fund for staff directly involved in organizing the collection of fees and charges. The average annual maximum retention for each person shall not exceed three months' salary.

b2.2) In cases where organizations collecting fees and charges are not provided regular funding from the state budget for their fee and charge collection activities, the retained amount can be used for the following expenditures:

- Salary and allowances as prescribed.

- Contributions required by law for employees.

- Hazard pay for employees as prescribed.

- Payment for public service fees.

- Office supplies, information, propaganda, and communication materials.

- Conference, seminar, and vocational training expenses serving fee and charge collection.

- Travel expenses.

- Regular maintenance and major repair of fixed assets.

- Printing (purchase) of declaration forms, permits, and seals for fee and charge collection.

- Special operational expenses for fee and charge collection such as chemicals, materials, fuel, etc.

- Purchase of protective gear and uniforms as prescribed, applicable to organizations collecting fees and charges that are required to provide protective gear and uniforms.

- Purchase of equipment, materials, and working tools directly serving fee and charge collection according to the approved budget by the competent authority.

- Other regular expenses directly serving fee and charge collection as prescribed.

- Retention for a reward fund for staff directly involved in organizing the collection of fees and charges. The average annual maximum retention for each person shall not exceed three months' salary.

b2.3) In cases where an organization collects a particular type of fee or charge and requires expenses different from those listed above, the organization collecting fees and charges shall submit a request to the competent authority to specify regulations for that type of fee or charge.

3. The first bullet point of item 1, Section V of Circular No. 54/1999/TT-BTC shall be amended as follows: "If an organization or individual disagrees with the decision resolving the complaint made by the fee and charge collection agency or organization, they have the right to appeal to the next higher authority or file a lawsuit with the court in accordance with the law." At the same time, sub-item d of item 2, Section V of Circular No. 54/1999/TT-BTC concerning the authority to resolve complaints of the superior agency of the fee and charge collection agency shall be abolished.

4. Sub-item a of item 5, Section V of Circular No. 54/1999/TT-BTC shall be amended as follows:

a) Staff collecting fees and charges who lack a sense of responsibility or handle matters incorrectly causing damage to the payer of fees and charges shall be liable for compensation in accordance with the law and, depending on the nature and severity of the violation, may be subject to disciplinary action or criminal prosecution as prescribed by the law.

5. This Circular is issued with Appendix 1 and Appendix 2, which replace Appendix 1 and Appendix 2 promulgated together with Circular No. 54/1999/TT-BTC dated May 10, 1999 of the Ministry of Finance mentioned above.

This Circular takes effect fifteen days from the date of signature. Other contents not addressed in this Circular shall continue to be implemented in accordance with Circular No. 54/1999/TT-BTC dated May 10, 1999 of the Ministry of Finance guiding the implementation of Decree No. 04/1999/NĐ-CP dated January 30, 1999 of the Government./.