Circular No. 29/2008/TT-BTC amending and supplementing Circular No. 110/2005/TT-BTC dated December 8, 2005 of the Ministry of Finance guiding the accounting system and collection of contributions to the Vietnam Universal Service Fund.

CIRCULAR

Amending and supplementing Circular No. 110/2005/TT-BTC dated December 8, 2005 of the Ministry of Finance guiding accounting regulations and collection of contributions to the Vietnam Universal Service Fund

Pursuant to Decree No. 160/2004/NĐ-CP dated September 3, 2004 of the Government detailing implementation of certain provisions of the Ordinance on Posts and Telecommunications regarding telecommunications;

Pursuant to Decision No. 191/2004/QĐ-TTg dated November 8, 2004 of the Prime Minister on establishment, organization, and operation of the Vietnam Universal Service Fund;

Pursuant to Decision No. 186/2007/QĐ-TTg dated December 3, 2007 of the Prime Minister amending Decision No. 191/2004/QĐ-TTg of the Prime Minister on establishment, organization, and operation of the Vietnam Universal Service Fund;

The Ministry of Finance guides amendment and supplementation of Circular No. 110/2005/TT-BTC dated December 8, 2005 of the Ministry of Finance guiding accounting regulations and collection of contributions to the Vietnam Universal Service Fund as follows:

1. Amend bullet point 3 of item a, Clause 2, Section I as follows:

"- International long-distance telephone services, domestic long-distance telephone services (including both inter-provincial and intra-provincial leased circuits)."

2. Delete item b, Clause 2, Section I.

3. Amend Clause 1, Section II as follows:

"1. Financial contribution rate of enterprises for the following services shall be as follows:

a. Mobile telecommunication services, the contribution rate is 3% of revenue;

b. International long-distance telephone services, international leased circuits, the contribution rate is 2% of revenue;

c. Domestic inter-provincial long-distance telephone services, domestic leased circuits, the contribution rate is 1% of revenue."

4. Amend Clause 2, Section II as follows:

- Amend the title of Clause 2: "Revenue for determining the contribution level to the Fund shall be calculated based on revenue from services provided to customers, excluding connection charges (connection charges received are not included, connection charges paid out are not deducted). Specifically:"

- Amend item b as follows: "Revenue from domestic inter-provincial long-distance telephone services: is the revenue from inter-provincial long-distance telephone calls from fixed-line networks (wireless and wired) and from mobile networks within the same region."

- Add to the end of item d as follows: "Revenue from international roaming services shall also be calculated according to the principle for determining revenue from international long-distance telephone services as stipulated herein."

5. Add to the end of item c Point 3.1, Clause 3, Section II as follows: "Enterprises are responsible for submitting final payment of the financial contribution obligation to the Vietnam Universal Service Fund and the Ministry of Information and Communications in accordance with the deadlines set forth above."

6. Organization of implementation:

All telecommunications enterprises operating in Vietnam must fulfill their obligation to provide financial support for public telecommunications services in Vietnam through contributions to the Vietnam Universal Service Fund in accordance with this Circular and may account for such contributions as business expenses starting from the fiscal year 2007.

This Circular takes effect fifteen days after its publication in the Official Gazette. Provisions in Circular No. 110/2005/TT-BTC dated December 8, 2005 that have not been amended or supplemented in this Circular remain in effect.

In the course of implementation, if there are any difficulties, units are requested to report to the Ministry of Finance for further study and supplementary guidance.