Circular No. 57/2016/TT-BTC guiding the collection, submission, accounting for contributions to the Vietnam Universal Service Fund and the transfer of assets formed from the fund until 2020.

                 

CIRCULAR

Guidelines on the collection, accounting of contributions to the Vietnam Universal Service Fund and the transfer of assets formed from the fund's budget until 2020

into the Vietnam Universal Service Fund and the transfer of assets

formed from the funds of the Vietnam Universal Service Fund

by 2020 

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

Pursuant to Decree No. 25/2011/NĐ-CP dated April 6, 2011 of the Government detailing and guiding the implementation of certain provisions of the Telecommunications Law;

Implementing Decision No. 1168/QĐ-TTg dated July 24, 2015 of the Prime Minister approving the program for providing public telecommunications services until 2020;

The Minister of Finance hereby issues this Circular amending and supplementing certain Articles of Circular No. 133/2015/TT-BTC dated August 31, 2015, issued by the Minister of Finance guiding the financial management mechanism for the Vietnam Chamber of Commerce and Industry (hereinafter referred to as Circular No. 133/2015/TT-BTC).

The Minister of Finance issues this Circular guiding the collection and accounting of contributions to the Vietnam Universal Service Fund during the period 2015-2020 by telecommunications enterprises and the transfer of assets formed from the Vietnam Universal Service Fund's budget as follows:

Chapter I. GENERAL PROVISIONS

This Circular guides the collection and accounting of contributions to the Vietnam Universal Service Fund during the period 2015-2020 by telecommunications enterprises and the transfer of assets formed from the Vietnam Universal Service Fund's budget to enterprises.

Article 2. Applicability

2. Relevant agencies, organizations, and enterprises involved in the collection, accounting of contributions to the Fund, and the transfer or receipt of transferred assets formed from the Fund's budget.

Chapter II. CONTRIBUTION LEVELS AND ACCOUNTING REGIME FOR COLLECTION

Article 3. Financial contribution levels of enterprises include

Specifically, for prepaid telecommunications services (telecommunications cards), if an enterprise has not determined the service revenue as prescribed in Circular No. 21/2013/TT-BTTTT, it shall use the revenue from telecommunications cards to determine the contribution level to the Fund. The enterprise is responsible for reporting clearly the method of determining the revenue from prepaid telecommunications services to the Vietnam Universal Service Fund as the basis for settling the amount collected in the year.

a) Revenue from the Fund's support budget;

b) Revenue from entities subject to public service telecommunications tariff policies;

c) Revenue from other public service telecommunications services.

Enterprises are responsible for reporting clearly the revenues from public service telecommunications services to the Vietnam Universal Service Fund as the basis for settling the amount collected in the year.

Article 4. Collection and Payment Regime

a) Based on the implementation situation of the year and the business plan for the planning year, enterprises are responsible for building the financial contribution plan to the Fund for the planning year together with the enterprise's financial plan for the planning year, divided quarterly, and submitting it to the Fund and the Ministry of Information and Communications. The latest submission deadline is September 30th each year.

Specifically for the year 2016, enterprises shall build the financial contribution plan to the Fund, divided quarterly, and submit it to the Fund and the Ministry of Information and Communications before June 1, 2016.

b) Based on the annual financial contribution plan divided quarterly announced by the Fund, enterprises are responsible for paying money into the Fund's account quarterly. The latest payment deadline shall not exceed twenty days (for companies) and forty-five days (for groups and corporations) from the end of the quarter.

Specifically for the year 2016, based on the annual financial contribution plan to the Fund announced by the Fund, enterprises shall pay the first two quarters' financial contributions into the Fund's account before August 15, 2016.

Enterprises must pay the remaining amount due to the Fund within thirty days from the date of settlement with the Fund. In case an enterprise has overpaid the Fund, the excess payment can be deducted from the amount due in the next period or refunded by the Fund if the enterprise ceases to provide services subject to financial contribution to the Fund. The Fund shall refund the enterprise within fifteen days from the date of settlement with the Fund.

Specifically for the year 2015, based on the Telecommunications Service Revenue Report stipulated in Article 8 of Circular No. 21/2013/TT-BTTTT and the final revenue of the year, enterprises shall determine the amount to be paid in the year according to this Circular, submit it to the Fund, and settle the amount of financial contribution with the Fund before June 30, 2016.

In case enterprises violate the contribution and collection regime into the Fund as prescribed in this Circular, they will be handled according to the provisions of Decree No. 174/2013/NĐ-CP dated November 13, 2013 of the Government on administrative penalties in the fields of postal services, telecommunications, information technology, and radio frequency.

The telecommunications enterprises' contributions to the Fund as prescribed in this Circular are expenses incurred in fulfilling their obligation to provide public telecommunications services and are recorded as business expenses of the enterprise.

Enterprises must separately record revenues from services subject to contribution as specified in Article 3 of this Circular and are responsible for timely payment of contributions according to the provisions of this Circular.

Financial contributions of enterprises prescribed in this Circular shall be made in Vietnamese dong into the Fund's account.

Enterprises have the responsibility to provide data, documents, and explanations related to the fulfillment of financial contribution obligations to the Fund.

2. For the Fund:

b) Based on the annual financial contribution plan approved by the Ministry of Information and Communications, the Fund is responsible for establishing and announcing the annual financial contribution plan to enterprises before January 31st of the planning year.

Specifically for the year 2016, the Fund is responsible for establishing and announcing the annual financial contribution plan to enterprises, divided quarterly, before July 1, 2016.

Continuously urging enterprises to make full and timely financial contributions. Implementing annual financial contribution settlement with contributors according to the prescribed regime.

c) Inspecting and guiding enterprises subject to financial contribution payments according to the guidelines set out in this Circular to ensure that no sources of income or contributors are overlooked.

d) The Fund has the right to request enterprises to provide data, documents, and explanations related to the fulfillment of financial contribution obligations to the Fund.

Detecting and recommending competent state management agencies to handle violations by enterprises in complying with financial contribution obligations to the Fund as prescribed in this Circular and other relevant laws.

Supervising and inspecting the determination of telecommunications revenue as the basis for calculating the contribution level to the Public Telecommunications Service Fund of enterprises and handling enterprises late in contributing to the Public Telecommunications Service Fund according to the law.

Article 5. Accounting for contributions

a) Supplement a second-level account under Account 338 "Other Payables and Due Payments" to record amounts due, paid, still due, and balances regarding financial contributions to the Public Telecommunications Service Fund.

b) Supplement a second-level account under Account 642 "Enterprise Management Expenses" to record amounts included in expenses, transferred to determine business results regarding financial contributions to the Public Telecommunications Service Fund.

2. The accounting methods for main economic transactions related to financial contributions shall be carried out as follows:

a) At the end of each quarter:

- Based on the notification from the Fund regarding the financial contribution, record:

Debit Account 642: Enterprise Management Expenses (Second-level Account Detail - Financial Contribution to the Fund)

Credit Account 338: Other Payables and Due Payments (Second-level Account Detail - Due Payment to the Fund)

- When transferring payment into the Fund's account, record:

Debit Account 338: Other Payables and Due Payments (Second-level Account Detail - Due Payment to the Fund)

Credit Accounts 111, 112

b) At the end of the fiscal year:

- Based on actual revenue generated during the year, the enterprise determines the difference between the amount due according to the Fund's notification and the amount due determined by the enterprise for accounting purposes:

+ In cases where the amount due according to the Fund's notification is less than the amount due determined by the enterprise, the additional amount due is recorded.

Debit Account 642: Enterprise Management Expenses (Second-level Account Detail - Financial Contribution to the Fund)

Credit Account 338: Other Payables and Due Payments (Second-level Account Detail - Due Payment to the Fund)

+ In cases where the amount due according to the Fund's notification is greater than the amount due determined by the enterprise, the amount due is reduced (recorded negatively).

Debit Account 642: Enterprise Management Expenses (Second-level Account Detail - Financial Contribution to the Fund)

Credit Account 338: Other Payables and Due Payments (Second-level Account Detail - Due Payment to the Fund)

- When transferring the additional amount due into the Fund's account, the accounting entry is made as the second journal entry of point a, Clause 2 of this Article.

- If the enterprise has overpaid to the Fund, the excess payment is deducted from the amount due in the following period; if the excess payment is refunded (if applicable), record:

Debit Accounts 111, 112

Credit Account 338: Other Payables and Due Payments (Second-level Account Detail - Due Payment to the Fund)

c) At the time when the Fund completes settlement with enterprises, if there is a discrepancy between the amount due determined by the enterprise and the amount due determined by the Fund, the accounting entries for adjustment are made similarly to point b, Clause 2 of this Article.

Article 6. Principles for Transfer and Acceptance of Assets

1. Transferred assets are those invested using funds from the Vietnam Public Telecommunications Service Fund.

2. The transfer and acceptance of assets shall be based on the asset list, asset value, and decision on asset transfer issued by the Ministry of Information and Communications.

3. Transferred and accepted assets must have complete documentation and physical assets. In cases where assets lack documentation or physical presence, the transferring and receiving parties must report in writing to the Ministry of Information and Communications detailing the reasons and proposing solutions for handling according to their authority.

4. When transferring and accepting assets, both the transferring and receiving parties must prepare a Handover Certificate, signed and confirmed by all parties. The Handover Certificate must be prepared within ten days from the date of the Ministry of Information and Communications' decision on asset transfer.

5. The receiving party is responsible for managing, utilizing, and maintaining the operation of the asset to provide public telecommunications services from the date of signing the Handover Certificate.

Article 7. Management of Transferred Assets

1. For Enterprises

- The enterprise shall be responsible for managing the assets and maintaining their operation to provide universal telecommunications services. All costs related to the management and maintenance of the assets (excluding major repair costs and upgrade costs of the assets) shall be recorded as business expenses of the enterprise and deducted when calculating corporate income tax provided that all supporting documents comply with the current Corporate Income Tax Law.

- The enterprise shall not record an increase in transferred assets, shall not increase state capital investment in the enterprise corresponding to the value of the assets, and shall not depreciate these fixed assets.

- The enterprise shall track the assets within the management accounting system and disclose them in the financial statement notes when preparing financial statements. Disclosure of information about these assets shall be carried out in accordance with Circular No. 200/2014/TT-BTC dated December 22, 2014, issued by the Ministry of Finance, guiding the accounting regulations for enterprises.

- In cases where major repairs or upgrades of assets are required, the enterprise shall develop a plan for major repairs/upgrades of assets, submit it to the Ministry of Information and Communications for review, and allocate funds from the Universal Telecommunications Service Supply Program to implement according to regulations. The reporting time for the plan on major repairs/upgrades of assets and the implementation deadline shall be included in the contribution period specified in Clause 1, Article 4 of this Circular.

The procedures and formalities for settlement of major repair or upgrade costs shall be carried out in accordance with guidelines on expenditures from the Universal Telecommunications Service Supply Program.

2. For the Vietnam Universal Telecommunications Service Fund

The Fund shall be responsible for tracking the list of transferred assets, determining asset depreciation, compiling quarterly/yearly asset depreciation status reports, compiling plans for major repairs/upgrades of transferred assets, plans for replacement investments in assets, and proposing handling measures to be submitted to the Ministry of Information and Communications for consideration and decision-making within its authority.

3. For the Ministry of Information and Communications

The Ministry of Information and Communications shall supervise the operation of transferred assets, decide within its authority on the use of funds from the Universal Telecommunications Service Supply Program for major repairs/upgrades of transferred assets and replacement investments in assets to meet the program's objectives.

Chapter IV. IMPLEMENTATION ORGANIZATION

Article 8. The Ministry of Information and Communications shall be responsible for performing the tasks stipulated in Clause 3, Article 4 and Clause 3, Article 7 of this Circular.

Article 9. Agencies assigned as asset owners' representatives shall be responsible for supervising and urging subordinate units to make financial contributions to the Fund in accordance with regulations.

Article 10. This Circular shall take effect from May 15, 2016.

During the implementation process, if there are any difficulties, they should be promptly reported to the Ministry of Finance for research and guidance on implementation./.