Circular No. 21/2019/TT-BTTTT on the explanation of telecommunications service revenue

CIRCULAR

Regulations on the Explanation of Telecommunications Service Revenue

On the basis of Law on Telecommunications November 23, 2009;

On the basis of Accounting Law November 20, 2015;

Decree No. Resolution No. 17/2017/NĐ-CP dated February 17, 2017 of the Government detailing the functions, tasks, powers, and organizational structure of the Ministry of Information and Communications;

Decree No. 25/2011/ND-CP dated April 6, 2011, detailing and guiding the implementation of certain provisions of the Law on Telecommunications; Decree No. 81/2016/NĐ-CP July 1, 2016, amending and supplementing certain provisions of the Government's Decree No. 25/2011/ND-CP April 6, 2011, detailing and guiding the implementation of certain provisions of the Law on Telecommunications and Decree No. 49/2017/NĐ-CP April 24, 2017, amending and supplementing Article 15 of Decree No. 25/2011/NĐ-CP April 6, 2011, detailing and guiding the implementation of certain provisions of the Law on Telecommunications and Article 30 of Decree No. 174/2013/NĐ-CP November 13, 2013, stipulating administrative penalties for violations in the fields of postal services, telecommunications, information technology, and radio frequency spectrum management;

At the proposal of the Director of the Telecommunications Administration,

The Minister of Information and Communications issues this Circular on the Explanation of Telecommunications Service Revenue.

Article 1. Scope of Regulation

1. This Circular regulates the Explanation of Telecommunications Service Revenue, including types of telecommunications services that require revenue explanation and reporting procedures for revenue explanation serving the following activities:

a) Telecommunications business management;

b) Determination of market share of telecommunications enterprises;

c) Collection and payment of fees for telecommunications operation rights;

d) Calculation of contributions of telecommunications enterprises to the Vietnam Universal Telecommunications Service Fund.

2. The recording of telecommunications service revenue by telecommunications enterprises shall be carried out in accordance with accounting laws.

Article 2. Applicability

This Circular applies to:

1. State management agencies shall use telecommunications service revenue data in their management activities.

2. Telecommunications enterprise (hereinafter referred to as the enterprise).

Article 3. General Provisions on the Explanation of Telecommunications Service Revenue

1. Telecommunications enterprises have the responsibility to explain telecommunications service revenue in accordance with accounting laws for the following types of revenue:

a) Revenue from providing telecommunications services to telecommunications service users (hereinafter referred to as customer revenue) (excluding revenue specified in points b, c, and d of this clause);

b) Revenue from providing telecommunications services to domestic telecommunications enterprises (hereinafter referred to as domestic revenue);

c) Revenue from providing telecommunications services to foreign partners operating outside the territory of Vietnam (hereinafter referred to as international revenue);

d) Revenue from providing public telecommunications services to telecommunications service users who are beneficiaries of public telecommunications services (hereinafter referred to as public revenue).

2. The following types of revenue shall not be included in telecommunications service revenue:

a) Revenue from providing services that are not telecommunications services, provided by the enterprise through its own telecommunications services;

b) Revenue from cooperative provision of services that are not telecommunications services, provided by the enterprise in cooperation with other organizations and enterprises through its own telecommunications services;

c) Donations as prescribed in Circular No. 09/2015/TT-BTTTT dated April 24, 2015 of the Minister of Information and Communications on the management and organization of donation activities through the National Humanitarian Portal;

d) Revenue from selling or leasing various goods and equipment, including telecommunications equipment, sold or leased by the enterprise through its own telecommunications services.

Article 4. Explanation of Customer Revenue

1. Explanation of customer revenue (including prepaid and postpaid customers) includes the following types of revenue:

a) Network subscription revenue (including mobile information service subscription revenue, mobile telecommunications number portability subscription revenue, revenue from customers when changing subscriber information), installation revenue (including installation revenue, revenue from customers when changing subscriber information) for service use;

b) Subscription revenue;

c) Information revenue.

2. Network subscription revenue and installation revenue (if any) is revenue generated from the telecommunications enterprise providing users with the right to connect to the public telecommunications network.

3. Subscription revenue (if any) is revenue generated from the telecommunications enterprise providing users with the ability to maintain the right to connect to the public telecommunications network for a certain period of time.

4. Information revenue (if any) is revenue generated from the telecommunications enterprise providing users with the ability to send and receive information through the public telecommunications network based on communication time (year, month, week, day, hour, minute, second), data volume (byte), or number of information packages (call, message).

5. Customer revenue as defined in this Article is used to determine the obligation to pay the telecommunications operation fee and the company's contribution to the Vietnam Telecommunications Public Service Fund.

6. The telecommunications enterprise prepares a business report explaining customer revenue according to the provisions in Annex 1 issued together with this Circular.

Article 5. Explanation of Domestic Revenue and Domestic Settlement Difference

1. Explanation of domestic revenue includes the following types of revenue:

a) Revenue from providing telecommunications services to domestic telecommunications enterprises;

b) Revenue from allowing domestic enterprises to connect to the public telecommunications network, telecommunications services of the enterprise.

2. The domestic settlement difference of a telecommunications enterprise is the difference between the domestic revenue as stipulated in Clause 1 of this Article and the costs that the enterprise must pay to domestic telecommunications enterprises when:

a) Using telecommunications services of domestic telecommunications enterprises;

b) Connecting to the public telecommunications network, telecommunications services of domestic telecommunications enterprises.

3. The domestic settlement difference as stipulated in Clause 2 of this Article is used to determine the obligation to pay the telecommunications operation fee and the company's contribution to the Vietnam Telecommunications Public Service Fund. In cases where the total domestic settlement difference is negative, when determining the obligation to pay the telecommunications operation fee and the company's contribution to the Vietnam Telecommunications Public Service Fund, this value will be determined as a negative value.

4. The telecommunications enterprise prepares a business report explaining domestic revenue and domestic settlement difference according to the model prescribed in Annex 2 issued together with this Circular.

Article 6. Explanation of International Revenue and International Settlement Difference

1. Explanation of international revenue includes the following types of revenue:

a) Revenue from providing telecommunications services to foreign partners operating outside the territory of Vietnam;

b) Revenue from allowing foreign partners operating outside the territory of Vietnam to connect to the public telecommunications network, telecommunications services of the enterprise.

2. The international settlement difference of a telecommunications enterprise is the difference between the international revenue as stipulated in Clause 1 of this Article and the costs that the enterprise must pay to foreign partners when:

a) Using telecommunications services of foreign partners operating outside the territory of Vietnam;

b) Connecting to the telecommunications network, telecommunications services of foreign partners operating outside the territory of Vietnam.

3. The international settlement difference as stipulated in Clause 2 of this Article is used to determine the obligation to pay the telecommunications operation fee and the company's contribution to the Vietnam Telecommunications Public Service Fund. In cases where the total international settlement difference is negative, when determining the obligation to pay the telecommunications operation fee and the company's contribution to the Vietnam Telecommunications Public Service Fund, this value will be determined as a negative value.

4. The telecommunications enterprise prepares a business report explaining international revenue and international settlement difference according to the model prescribed in Annex 3 issued together with this Circular.

Article 7. Explanation of Public Utility Revenue

1. The explanation of public utility revenue shall include the following types of revenue:

a) Revenue from providing public utility telecommunications services to service recipients under the public utility telecommunications tariff for the portion of such services;

b) Revenue received from the Vietnam Universal Service Fund to provide public utility telecommunications services to service recipients.

2. Telecommunications enterprises shall prepare business reports explaining public utility revenue according to the form prescribed in Appendix 4 issued together with this Circular.

3. Public utility revenue shall not be used to determine the obligation to pay the telecommunications operation fee and the contribution of the enterprise to the Vietnam Universal Service Fund.

Article 8. Business Report Explaining Telecommunications Service Revenue

1. Telecommunications enterprises shall be responsible for preparing business reports explaining telecommunications service revenue according to the forms prescribed in the Appendices issued together with this Circular and submit them to the Telecommunications Authority within the following deadlines:

a) Quarterly business report explaining telecommunications service revenue no later than 45 days from the end of the accounting quarter;

b) Annual business report explaining telecommunications service revenue along with the section explaining telecommunications service revenue in the annual financial statement audited by the enterprise (if applicable) no later than 105 days from the end of the accounting year.

2. The period for preparing business reports explaining telecommunications service revenue shall comply with the period for preparing financial statements as stipulated by accounting laws.

3. Enterprises shall submit business reports explaining telecommunications service revenue through one of the following methods:

a) Submitting via postal service or express delivery to the Telecommunications Authority;

b) Submitting directly at the Telecommunications Authority's office;

c) Submitting via the enterprise's official email address a signed report or a scanned report with signatures and stamps of the enterprise to the email address published by the Telecommunications Authority;

d) Using the online reporting system provided by the Telecommunications Authority.

Article 9. Effectiveness and Implementation Organization

1. This Circular takes effect from April 1, 2020.

2. From the date this Circular takes effect, the following documents shall be abolished:

a) Circular No. 21/2013/TT-BTTTT dated December 18, 2013, issued by the Minister of Information and Communications on telecommunications service revenue;

b) Circular No. 01/2016/TT-BTTTT dated January 25, 2016, issued by the Minister of Information and Communications amending and supplementing certain provisions of Circular No. 21/2013/TT-BTTTT dated December 18, 2013, issued by the Minister of Information and Communications on telecommunications service revenue.

3. In cases where the legal normative documents cited in this Circular are amended, supplemented, or replaced by other legal normative documents, the amended, supplemented, or replacing documents shall apply.

4. The Director of the Office, the Director of the Telecommunications Authority, the Heads of agencies and units under the Ministry, the General Directors, and the Directors of telecommunications enterprises, and related organizations and individuals are responsible for implementing this Circular.

5. During implementation, if there are any difficulties, please reflect them to the Ministry of Information and Communications (Telecommunications Authority) for consideration and resolution./.