Circular No. 24 - TC/TCĐN stipulates the financial regime for the revenue sources of Vietnamese representative agencies abroad, including notary fees, entry-exit fees, and other services. This document aims to strengthen management and encourage the full utilization of foreign currency.
Scope of application
Vietnamese representative agencies abroad such as Embassies, Consulates, Military Attaché Offices; this does not apply to economic organizations of Vietnam abroad.
Key points
- Representative agencies are entitled to collect notary fees and entry-exit fees at levels prescribed by the competent ministry (Article III).
- 100% of the revenue from notary fees must be deposited into the state budget, with none retained by the representative agency (Point 2.1 Article III).
- 70% of the revenue from entry-exit fees must be deposited into the state budget, while the remaining 30% may be retained by the representative agency (Point 2.2 Article III).
- 90% of the revenue from short-term rental services and 80% of the revenue from guest house and dormitory services must be deposited into the state budget (Article III).
- Representative agencies must fully record all revenues and expenditures in accounting books and submit quarterly and annual reports (Article IV).
🌐 Social impact of this document
- Strengthening financial management of the revenue of Vietnamese representative agencies abroad.
- Encouraging the full utilization of foreign currency from service activities, contributing to increasing state budget revenue.
- Reducing operational costs for representative agencies due to additional revenue from services.
- Economic organizations abroad are not eligible for benefits under this regulation.
❓ Frequently asked questions
How are the levels of notary fees and entry-exit fees determined?
The head of the representative agency establishes the fee levels based on the principle of covering necessary expenses, in accordance with local customs and price levels (Article III).
How is the revenue from short-term rental services distributed?
90% of the revenue must be deposited into the state budget, while the remaining 10% may be retained by the representative agency (Point 2.3 Article III).
What responsibilities do representative agencies have regarding accounting and reporting?
They must timely and accurately reflect all revenues and expenditures in accounting records and prepare periodic quarterly and annual settlement reports (Article IV).
What role do supervising agencies play in implementing this circular?
Guide representative agencies to open accounting books, prepare accounting-statistical report forms, and review settlements (Article V).
When does this circular take effect?
It takes effect from January 1, 1993.
Full text
| MINISTRY OF FINANCE |
SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom - Happiness |
| Number: 24-TC/TCĐN | Hanoi, March 23, 1993 |
CIRCULAR
REGULATIONS ON THE FINANCIAL SYSTEM FOR CERTAIN SOURCES OF REVENUE OF VIETNAMESE REPRESENTATIVE AGENCIES ABROAD.
In order to strengthen management and encourage full utilization of foreign currency sources abroad, after consulting relevant agencies, the Ministry of Finance hereby stipulates the financial system for certain revenue sources of Vietnamese representative agencies abroad as follows:
I. APPLICABLE OBJECTS.
The financial system under this Circular shall only apply to representative agencies abroad that receive funding from the State budget, specifically: Diplomatic Representative Agencies, Trade Representative Agencies, News Agency Representative Agencies, Military Attaché Offices (hereinafter collectively referred to as our representative agencies abroad).
Representative agencies for economic organizations of Vietnam abroad such as: Airline Representative Agencies, Maritime Representative Agencies, Tourism Representative Agencies, Import-Export Corporation Representative Agencies... are not subject to this Circular.
II/ SCOPE OF APPLICATION.
This Circular only regulates the financial system for revenues related to the activities of Vietnamese representative agencies abroad, mainly including fee revenues and service revenues carried out by these agencies, specifically:
1/ Revenue from fees for nationality-related services, notarization, legalization of inheritance documents and other similar services (collectively referred to as notarization fees).
2/ Revenue from fees for issuing or extending passports, visas, and other documents with equivalent value to passports (collectively referred to as entry-exit fees).
3/ Revenue from services, including renting premises for business transactions or residential purposes to organizations or individuals; renting guest rooms or lodgings to transient guests within the permissible limits of the laws of the host country.
4/ Revenue from bank interest: This is revenue generated by utilizing specific foreign exchange regulations of each host country to apply the most beneficial deposit methods for both the allocated state budget funds and temporarily held funds for the state budget and domestic sectors.
5/ Revenue from tax refunds: This is revenue arising from some representative agencies due to the host country's diplomatic exemption policies which refund a portion of VAT or business taxes included in the prices of goods or services consumed by the representative agencies.
6/ Revenue from services such as booking or purchasing air tickets, transportation, pick-up and drop-off by car for transient guests.
III/ LEVEL OF COLLECTION AND USE OF REVENUES.
1/ Level of Collection:
On the principle of covering necessary costs, being consistent with local customs and price levels in the host country, as well as being appropriate to the political and diplomatic relations between our country and the host country at different times, the head of the representative agency shall establish the collection level for each type of fee and report it to the competent ministry and the Ministry of Finance.
After consultation with the Ministry of Finance, the competent ministry will set the expression of the fee collection and service charge levels for each representative agency and notify the representative agency to implement them.
2/ Distribution of Financial Results.
To simplify accounting for representative agencies, actual expenses incurred for fee collection and service activities (excluding allowances paid directly to staff involved in these activities) are charged against the state budget funds. The total revenue from each category is recorded separately and distributed as follows:
|
Type of Revenue |
Submitted to the State Budget |
Retained by the Representative Agency |
|
2.1/ Revenue from notarization fees |
100% |
0 |
|
2.2/ Revenue from entry-exit fees |
70% |
30% |
|
2.3/ Revenue from services of renting premises for organizations and individuals on a time-limited basis. |
90% |
10% |
|
2.4/ Revenue from guest house services, room rentals, pick-up and drop-off by car, and bank interest revenue |
80% |
20% |
|
2.5/ Revenue from services such as booking or purchasing air tickets... |
50% |
50% |
(Specifically, for entry-exit fee revenue, distribution occurs after deducting direct payments to domestic organizations, such as passport purchase and delivery fees, postage, etc.)
For guest houses operated by representative agencies that provide collective dining facilities for transient guests, financial regulation does not apply to this activity, but it must ensure that the state budget is reimbursed for energy and equipment depreciation costs if these costs are funded by the state budget.
The portion of the above revenues to be deposited into the budget suspense fund shall be made in accordance with Point 6b, Section II of Circular No. 11 TC/TCĐN dated April 20, 1992 of the Ministry of Finance. The remaining portion shall be guided by the principal ministry (after reaching consensus with the Ministry of Finance) for the purposes of:
- Establishing a fund for equipping and repairing Representative Offices (at least equal to one-third of the total amount retained by the Representative Office).
- Establishing a reward and welfare fund for the Representative Office, and providing allowances to staff directly involved in revenue-generating activities.
IV/ ACCOUNTING SYSTEM AND REPORTING.
All revenues and expenditures from fee collection and service activities must be fully and promptly reflected in the accounting books of the Representative Office, and must be supported by valid vouchers (fee stamps or payment invoices, receipt forms, disbursement forms, etc.) in accordance with the prescribed formats issued by the General Department of Taxation.
Each Representative Office shall maintain separate accounting records for income and expenses and the distribution of financial results of each revenue and expenditure activity. Quarterly and annually, they shall prepare final reports and submit them to the principal ministry and the Ministry of Finance.
Depending on specific conditions, accounting may be conducted in US dollars or local currency; when conversion is necessary, the exchange rate on the date of conversion must be clearly recorded for ease of verification and monitoring.
V/ IMPLEMENTATION PROVISIONS.
This Circular takes effect from January 1, 1993.
The principal ministries are responsible for guiding subordinate Representative Offices to open accounting books and establish reporting forms for accounting and statistics; at the same time, they shall review the final accounts of the aforementioned revenue activities and notify the Ministry of Finance.
The Ministry of Finance will periodically coordinate with the principal ministries to conduct actual inspections when necessary.
|
Place of Receipt: - Vietnamese Representative Offices abroad - Principal Ministries with Representative Offices abroad - Departments and Bureaus under Ministries - For record: Office |
CERTIFIED BY THE MINISTER OF FINANCE DEPUTY MINISTER Pham Van Trong |
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