Joint Circular No. 33/2002/TTLT/BTC-BTP guides the regime for the collection, submission, management, and utilization of registration fees and service charges for providing information on secured transactions and financial lease assets.

JOINT CIRCULAR

JOINT CIRCULAR NO. 33/2002/TTLT-BTC-BTP OF THE MINISTRY OF FINANCE AND THE MINISTRY OF JUSTICE ON APRIL 12, 2002 GUIDING REGIME FOR COLLECTION, PAYMENT, AND MANAGEMENT OF USE OF FEES FOR REGISTRATION AND INFORMATION PROVISION FEES FOR SECURED TRANSACTIONS AND FINANCIAL LEASE ASSETS

Based on the Ordinance on Fees and Charges and guiding documents;
Pursuant to Decree No. 08/2000/NĐ-CP dated March 10, 2000 of the Government on secured transaction registration and Decree No. 16/2001/NĐ-CP dated May 2, 2001 of the Government on organization and operation of financial leasing companies;
Pursuant to the Law on Value Added Tax and the Law on Corporate Income Tax;
The Ministry of Finance and the Ministry of Justice jointly issue guidelines for the regime of collection, payment, and management of use of fees for registration and information provision fees for secured transactions and financial lease assets as follows:

A. REGISTRATION FEES FOR SECURED TRANSACTIONS AND FINANCIAL LEASE ASSETS

I. OBJECTS OF COLLECTION AND AMOUNT OF FEES

1. Organizations and individuals, both domestic and foreign, when registering secured transactions and financial lease assets with the Secured Transaction Registration Authority in accordance with Article 2 of Decree No. 08/2000/NĐ-CP dated March 10, 2000 of the Government on secured transaction registration and Article 19 of Decree No. 16/2001/NĐ-CP dated May 2, 2001 of the Government on organization and operation of financial leasing companies must pay the registration fee as stipulated herein. Exempted from payment are the following cases:

- Requests to correct errors in the certificate of secured transaction registration or financial lease asset registration due to the registrar's mistake;

- Requests to cancel secured transaction registration or financial lease asset registration.

2. The amount of registration fees for secured transactions and financial lease assets is specified in Annex Tables 1 and 2 attached hereto. In certain specific cases, the following applies:

a) For organizations and individuals registering secured transactions in accordance with Article 19 of the Civil Aviation Law dated April 1, 1992, the fee rate shall be applied as stipulated in Decision No. 116/1999/QĐ-BTC dated September 21, 1999 of the Minister of Finance on the table of fee rates for state management over civil aviation.

b) The amount of registration fees for secured transactions and financial lease assets through electronic means will be regulated in another document.

3. Registration fees for secured transactions and financial lease assets shall be collected in Vietnamese Dong.

II. ORGANIZATION OF COLLECTION, PAYMENT, AND MANAGEMENT OF USE

1. The Secured Transaction Registration Authority specified in Article 8 of Decree No. 08/2000/NĐ-CP and Article 19 of Decree No. 16/2001/NĐ-CP mentioned above is responsible for organizing the collection of registration fees for secured transactions and financial lease assets.

2. The Secured Transaction Registration Authority is responsible for:

a) Publicly posting the amount of registration fees for secured transactions and financial lease assets at its headquarters.

b) When collecting money for registration fees, it must issue a receipt for the payer issued by the Ministry of Finance (General Department of Taxation). Receipts are obtained from the local Tax Bureau where the Secured Transaction Registration Authority is located and managed and used according to the regulations of the Ministry of Finance.

The Secured Transaction Registration Authority must open a temporary account to hold registration fee collections (including cash, checks, or transfers) at the State Treasury where the transaction takes place; for cash collections, a daily or maximum weekly report must be prepared and sent to the State Treasury.

c) Register, declare, and pay registration fees to the local Tax Authority where the headquarters is located.

d) Implement payments, settle receipts for registration fees, and settle the collection and payment of registration fees with the directly managing Tax Authority in accordance with the Regulations on Fees and Charges and guiding documents thereof, ensuring that all income and expenditure of registration fees are fully reflected in the annual budget and financial settlement of the unit.

3. The Secured Transaction Registration Authority may temporarily retain 30% of the total actual registration fee revenue before remitting it to the state budget to cover expenses for serving the collection of registration fees for secured transactions and financial lease assets as follows:

a) Paying wages or salaries, allowances, contributions based on wages or salaries according to current regulations to hired labor directly collecting registration fees (including overtime hours worked by staff of the Secured Transaction Registration Authority outside regular working hours as prescribed).

b) Direct costs for collecting registration fees such as office supplies, office materials, telephone, electricity, water, travel expenses, and administrative expenses according to current standards and norms.

c) Regular maintenance and major repair costs for property, machinery, and equipment directly serving the collection of registration fees for secured transactions and financial lease assets.

d) Purchasing materials, raw materials, and other expenses directly related to the collection of registration fees for secured transactions and financial lease assets.

đ) Setting up a reward fund for staff directly involved in collecting registration fees at the Secured Transaction Registration Authority. The average annual reward amount per person shall not exceed three months' salary.

All funds temporarily retained according to the above provisions must be used for their intended purpose, supported by legitimate documentation according to the prescribed system and settled annually; if unused, the remaining amount must be remitted to the state budget.

4. The total actual registration fees for secured transactions and financial lease assets collected (including cash, checks, or transfers), after deducting the temporarily retained amount at the ratio of 30% as stipulated in point 3 of this section, the remainder (70%) must be remitted to the state budget (corresponding chapter, type, item, sub-item 046 of the current State Budget Classification) within the time limit and procedures prescribed in the Regulations on Fees and Charges and guiding documents thereof.

5. Preparation and implementation of the budget for income and expenditure of registration fees for secured transactions and financial lease assets:

a) Annually, based on the level of registration fee revenue for secured transaction registration, financial lease assets, the content of guidance expenses stipulated in this Circular, and the current financial expenditure regime, the secured transaction registration authority shall prepare a detailed budget for income and expenditure of registration fees according to the current state budget classification, submit it to the superior supervisory authority for review and consolidation, and send it to the competent financial authority at the same level for approval.

b) Based on the annual income and expenditure budget that has been approved by the competent authority, the secured transaction registration authority and financial lease asset registration authority shall prepare quarterly income and expenditure budgets in detail according to the state budget classification, submit them to the supervisory authority, the State Treasury where the transactions take place, and the financial authority at the same level as the basis for controlling income and expenditure.

6. Settlement of income and expenditure of registration fees for secured transaction registration, financial lease assets.

a) The secured transaction registration authority is responsible for opening accounting books to record, account for, and settle the amount of income and expenditure of registration fees according to the current administrative and public service accounting system; implement the settlement of payment receipts, the amount of registration fees already paid into the state budget with the directly managing tax authority, and report the settlement of income and payment of registration fees for secured transaction registration, financial lease assets to the tax authority before the end of February of the following year, and must pay any outstanding registration fees into the state budget within ten days from the date of submission of the report.

b) The superior supervisory authority of the secured transaction registration authority is responsible for inspecting and confirming the settlement of income and expenditure of registration fees for secured transaction registration, financial lease assets of subordinate registration authorities, consolidate the annual settlement report sent to the financial authority for examination, issue a notice approving the annual settlement together with the annual settlement of the supervisory authority in accordance with the current State Budget Law.

B- FEES FOR PROVIDING INFORMATION ON SECURED TRANSACTIONS AND FINANCIAL LEASE ASSETS

I- SCOPE OF APPLICATION AND AMOUNTS OF COLLECTION

1. Organizations and individuals who request and are provided information on secured transactions and financial lease assets by the secured transaction registration authority must pay service fees for providing information to the Secured Transaction Registration Authority.

2. The level of service fees for providing information on secured transactions and financial lease assets issued along with this Circular includes value-added tax.

II- MANAGEMENT AND USE OF SERVICE FEE REVENUE

The secured transaction registration authority generating service fee revenue for providing information shall be responsible for:

1. Collecting service fees for providing information according to the levels stipulated in this Circular. When providing information services, the regulations on invoices and receipts must be implemented. In cases where the value of providing information services on secured transactions and financial lease assets is below the specified level and does not require issuing an invoice, if the requesting party requests an invoice, then an invoice must be issued; if no invoice is issued, then a list must be prepared according to the regulations as the basis for calculating taxes.

2. Opening accounting books to track and account separately for costs and revenues from providing information services on secured transactions and financial lease assets in accordance with accounting and statistical laws.

3. After covering reasonable necessary expenses (including labor hire costs, if any, directly serving the service activity with valid invoices and receipts), paying the full value-added tax and corporate income tax as prescribed by law, the remaining amount shall be managed and used in accordance with Decree No. 10/2002/NĐ-CP dated January 16, 2002 of the Government on financial systems applicable to units with income.

C- IMPLEMENTATION

1. This Circular takes effect fifteen days from the date of signature. Previous provisions on registration fees for secured transactions and financial lease assets and service fees for providing information on secured transactions and financial lease assets contrary to this Circular cease to be effective.

For secured transactions and financial lease assets concluded before the date this Circular takes effect but still have implementation periods, if registered with the secured transaction registration authority within three months from the date this Circular takes effect, they will not be required to pay registration fees for secured transactions and financial lease assets.

2. Provincial Departments of Finance and Prices, Tax Bureaus of centrally governed cities, secured transaction registration authorities, and fee payers shall be responsible for strictly implementing the provisions of this Circular.

During implementation, if there are difficulties, please promptly reflect them to the Ministry of Finance and the Ministry of Justice for research and supplementary guidance.

ANNEX 1:

TABLE OF REGISTRATION FEES AND INFORMATION PROVISION FEES FOR SECURED TRANSACTIONS

ANNEX 2:

TABLE OF REGISTRATION FEES AND INFORMATION PROVISION FEES FOR FINANCIAL LEASE ASSETS