Circular No. 273/2016/TT-BTC stipulates the levels of fees and exemptions, collection, payment, management, and use of telecommunications operation rights fees and license fees for telecommunication service business licenses and telecommunication business operation licenses.

CIRCULAR

REGULATIONS ON THE LEVEL OF COLLECTION, EXEMPTION, SYSTEM OF COLLECTION, PAYMENT, MANAGEMENT AND USE OF FEES FOR TELECOMMUNICATION ACTIVITIES AND LICENSE FEES FOR BUSINESS LICENSES AND OPERATIONAL LICENSES IN TELECOMMUNICATION SERVICES

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

Pursuant to the State Budget Law dated June 25, 2015;

Pursuant to the Law on Telecommunications dated November 23, 2009;

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. 25/2011/NĐ-CP dated April 6, 2011; Decree No. 81/2016/NĐ-CP dated July 1, 2016 of the Government detailing and guiding the implementation of certain provisions of the Law on Telecommunications;

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

At the proposal of the Director of the Department of Tax Policy,

The Minister of Finance promulgates this Circular stipulating the level of collection, exemption, system of collection, payment, management and use of fees for telecommunications activities and license fees for business licenses and operational licenses in telecommunications services.

Article 1. Scope of Regulation and Applicability

1. This Circular stipulates the level of collection, exemption, system of collection, payment, management and use of fees for telecommunications activities and license fees for business licenses and operational licenses in telecommunications services.

2. This Circular applies to: fee and license fee payers; organizations collecting fees and license fees; other agencies and organizations related to issuing business licenses and operational licenses in telecommunications services and collecting fees and license fees.

Article 2. Persons Paying and Organizations Collecting Fees and Charges

1. Organizations and enterprises (hereinafter referred to as enterprises) that have been granted business licenses and operational licenses in telecommunications services must pay fees and license fees according to the provisions of this Circular.

2. The Telecommunications Department and units assigned by the Ministry of Information and Communications to collect fees and license fees according to the provisions of this Circular.

Article 3. Cases of Exemption from Fees and License Fees

Exemption from fees and license fees shall apply to the following cases:

1. Dedicated telecommunications networks of the Ministry of Public Security and the Ministry of National Defense.

2. Dedicated telecommunications networks serving command and control operations for rescue, disaster relief, and prevention of natural disasters.

3. Dedicated telecommunications networks of international organizations in Vietnam enjoying diplomatic privileges and immunities, consular privileges and immunities.

Article 4. Rates of Fees and Charges

The level of fees for telecommunications activities and license fees for business licenses and operational licenses in telecommunications services is specified in the Table of Fee and License Fee Levels attached to this Circular.

Article 5. Declaration and Payment of Fees and License Fees by Payers

1. Telecommunication service provision fee

a) Telecommunications service revenue used as the basis for calculating fees shall be implemented according to the provisions of Article 29 of Decree No. 25/2011/NĐ-CP dated April 6, 2011 of the Government detailing and guiding the implementation of certain provisions of the Law on Telecommunications, Circular No. 21/2013/TT-BTTTT dated December 18, 2013 of the Minister of Information and Communications on telecommunications service revenue, and Circular No. 01/2016/TT-BTTTT dated January 25, 2016 of the Minister of Information and Communications amending and supplementing certain provisions of Circular No. 21/2013/TT-BTTTT dated December 18, 2013. In cases where enterprises do not account for telecommunications service revenue according to the above regulations, telecommunications service revenue is determined as sales revenue from providing telecommunications services in financial statements (including revenue from selling cards).

b) Quarterly, based on quarterly telecommunications service revenue data according to point a, Clause 1 of this Article, enterprises calculate the amount of fee payable using the following formula:

Amount of fee payable = Telecommunications service revenue for the quarter x 0.5%.

The time of fee payment coincides with the time of submitting quarterly telecommunications service revenue reports.

c) Annually, based on annual telecommunications service revenue data, enterprises calculate the amount of fee payable using the following formula:

Annual amount of fee payable = Telecommunications service revenue for the year x 0.5%.

In case the annual fee payable calculated based on telecommunications service revenue is higher than the total fee payable for four quarters, the enterprise shall pay the difference to the collecting organization at the time of submitting the annual report. In case the annual fee payable calculated based on telecommunications service revenue is lower than the total fee payable for four quarters, the enterprise may offset the difference against the fee payable for the first quarter of the following year.

c.1) In case the annual fee payable calculated based on telecommunications service revenue (revenue x 0.5%) is lower than the minimum fee level specified in the Table of Fee Levels, the enterprise shall pay the difference to the collecting organization.

c.2) In case the enterprise is granted a license after January 1 each year: Amount of fee payable = Minimum fee x Number of remaining months of the year (from the month following the month of issuance of the license)/12.

2. Network establishment fee for public telecommunications networks: Telecommunications enterprises pay annually, within the first quarter.

In case the enterprise is granted a license after January 1 each year: Amount of fee payable = Annual fee x Number of remaining months of the year (from the month following the month of issuance of the license)/12.

3. License fees for issuing licenses, network establishment fees for dedicated networks, testing fees for networks and telecommunications services, installation fees for submarine telecommunications cables: Fee and license fee payers shall pay the fees and license fees when they are issued licenses.

4. Fees and license fees shall be paid directly to the collecting organization or deposited into the special account for pending budget payments opened at the State Treasury by the collecting organization.

Article 6. Declaration, Payment of Fees and Charges by Fee Collection Organizations

1. By the fifth day of each month, fee collection organizations must deposit the collected fee amount of the previous month into the account for pending budget payments opened at the State Treasury.

2. Collecting organizations shall declare collected fees and license fees monthly and settle accounts annually according to the guidance provided in Clause 3, Article 19 and Clause 2, Article 26 of Circular No. 156/2013/TT-BTC dated November 6, 2013 of 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. Collecting organizations shall remit 100% of the license fee revenue and the amount of fees collected (at the ratio specified in Article 7 of this Circular) into the state budget according to the chapters, sections, and sub-sections of the State Budget Classification.

Article 7. Management and Use of Fees

1. Units assigned by the Ministry of Information and Communications to collect fees must remit 100% of the collected fees into the state budget. Operating costs for providing services and collecting fees shall be covered by the state budget in the organizational budget according to the state budget expenditure regulations.

In case these units are entitled to operate with cost recovery from fee revenues according to Clause 1, Article 4 of 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 Licenses, they may retain 10% of the collected fees for operating costs and remit 90% into the state budget.

2. The Telecommunications Department may retain 10% of the collected fees for operating costs and remit 90% into the state budget.

3. The amount left shall be managed and used in accordance with Article 5 of 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.

Article 8. Implementation organization and enforcement clauses

1. This Circular takes effect from January 1, 2017, and replaces Decision No. 215/2000/QĐ-BTC dated December 29, 2000, of the Minister of Finance promulgating the fee rates for issuing telecommunications operation licenses and Decision No. 76/2006/QĐ-BTC dated December 29, 2006, of the Minister of Finance amending and supplementing Decision No. 215/2000/QĐ-BTC dated December 29, 2000.

2. For enterprises holding valid private telecommunication network establishment permits; trial network and telecommunication service permits at the time this Circular takes effect, enterprises shall pay the telecommunication network establishment fee; trial network and telecommunication service fee according to the provisions of this Circular.

3. Other matters related to registration, declaration, collection, management, use, and publicizing the fee and charge collection system not specified 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, of the Government detailing and guiding the implementation of certain provisions of the Law on Fees and Charges and other guiding documents; Circular No. 156/2013/TT-BTC dated November 6, 2013, of 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 Circular No. 153/2012/TT-BTC dated September 17, 2012, of the Minister of Finance guiding the printing, issuance, management, and use of various types of receipts for fees and charges under the state budget and other amended, supplemented, or replaced documents (if any).

4. During the implementation process, if there are any difficulties, organizations and individuals are requested to promptly reflect them to the Ministry of Finance for research and supplementary guidance.

TABLE OF FEES AND CHARGES FOR TELECOMMUNICATION LICENSES

(Attached to Circular No. 273/2016/TT-BTC dated November 14, 2016, of the Minister of Finance)

I. CHARGE FOR ISSUING TELECOMMUNICATION LICENSES

II. TELECOMMUNICATION OPERATING FEE

1. Telecommunication service provision fee

Annually, organizations and enterprises granted telecommunication service provision licenses must pay a fee at a rate of 0.5% of their telecommunication service revenue but not less than the minimum level set out in the table below:

2. Fee for establishing public and private telecommunication networks; trial network and telecommunication service fees; submarine telecommunication cable installation fee shall be applied as follows: