Circular No. 60/2014/TT-BTC guiding the regime for collecting, remitting, managing, and using membership fees to participate in the International Civil Aviation Organization (ICAO)

CIRCULAR

Guidelines on the collection, submission, management, and use of membership fees for participation in the International Civil Aviation Organization (ICAO)

International Civil Aviation Organization (ICAO)

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

Pursuant to Decision No. 110/1998/QĐ-TTg dated June 25, 1998 of the Prime Minister on payment of annual membership fees for international organizations;

At the proposal of the Director of the Enterprise Finance Department,

The Minister of Finance issues this Circular guiding the regime of collection, submission, management, and use of membership fees for participation in the International Civil Aviation Organization (ICAO).

Article 1. Scope of Regulation and Applicability

Article 1. This Circular stipulates the procedures for collecting, submitting, managing, using, and settling accounts for membership fees for participation in the International Civil Aviation Organization, hereinafter referred to as "ICAO Membership Fees."

Article 2. The subjects to which this Circular applies are enterprises, organizations, and individuals operating in the civil aviation sector related to the activities of ICAO.

Article 2. Principles of Collection

Clause 1. ICAO Membership Fees shall be collected annually in United States Dollars (USD) or Canadian Dollars (CAD) and shall comply with current regulations on foreign currency management.

Clause 2. The total amount of ICAO Membership Fees to be collected in a year shall be approved by the Ministry of Transport and the Ministry of Finance, and allocated by the Vietnam Civil Aviation Authority according to the provisions of Article 3 of this Circular for relevant units to collect.

Clause 3. The collection of ICAO Membership Fees must meet the following requirements:

Point a) Publicly announce the collection rate, method of calculation, form, and address for submission of ICAO Membership Fees;

Point b) Units submitting ICAO Membership Fees must pay through bank transfer (accompanied by a bank-confirmed payment authorization form); they may also pay in Vietnamese Dong converted from USD or CAD at the inter-bank exchange rate prevailing at the time of submission of ICAO Membership Fees.

Article 3. Allocation of Collection Rates

Clause 1. The total amount of ICAO Membership Fees to be submitted annually shall be allocated as follows:

Point a) 50% allocated to air transport enterprises.

Point b) 30% allocated to the Vietnam Air Navigation Enterprise Corporation.

Point c) 20% allocated to the Vietnam Airports Enterprise Corporation.

Clause 2. The amount of ICAO Membership Fees allocated to air transport enterprises as specified in point a, Clause 1 of this Article shall be distributed among each air transport enterprise based on passenger traffic volume in the preceding year. Passenger traffic volume of air transport enterprises shall be received and compiled by the Vietnam Civil Aviation Authority and reported to the Ministry of Transport as the basis for distributing the ICAO Membership Fee collection rate among each air transport enterprise.

Article 4. Accounting

Enterprises are allowed to account for the ICAO Membership Fee as production and business expenses in accordance with tax laws.

Article 5. Content of Expenditure

Clause 1. Annual membership fees paid according to ICAO's notification.

Clause 2. Expenses for attending ICAO meetings abroad (at the level prescribed by current regulations on travel expenses for state officials on short-term missions abroad funded by the state budget).

Clause 3. Expenses for participating in regional and global cooperation programs as notified by ICAO.

Clause 4. Expenses for hosting ICAO delegations visiting Vietnam (in accordance with current regulations on: State protocol and reception of foreign guests; organization and management of international conferences and seminars in Vietnam).

Clause 5. Specialized conferences, dissemination, and popularization of ICAO regulations according to prescribed regulations.

Clause 6. Other expenses: office supplies, printing, purchase and translation of ICAO documents, exchange rate differences, and transfer fees as prescribed.

Article 6. Establishment, Approval, Allocation of Budget Estimates and Finalization of Accounts

1. Annually, based on the membership fees announced by ICAO, the remaining funds from the previous year, and the estimated expenses to be incurred during the year as stipulated in Article 5 of this Circular, on the principle of thrift, efficiency, and suitability with actual conditions, within the first quarter, the Civil Aviation Authority of Vietnam shall establish the budget estimates for income and expenditure of ICAO membership fees according to the model provided in Appendix No. 01 attached to this Circular, submit it for consideration to the Ministry of Transport, and send it to the Ministry of Finance for approval. Based on the approval document from the Ministry of Finance, the Ministry of Transport shall allocate the budget estimates for income and expenditure of ICAO membership fees to the Civil Aviation Authority of Vietnam.

2. Annually, before January 15, the Civil Aviation Authority of Vietnam shall issue a document requesting units to temporarily pay half of the amount of the previous year's approved income for ICAO membership fees. After receiving the decision on the allocation of the budget estimates for income and expenditure of ICAO membership fees from the Ministry of Transport, the Civil Aviation Authority of Vietnam shall balance and notify the remaining portion of the funds to be paid by the units.

3. Based on the decision on the allocation of the budget estimates for income and expenditure of ICAO membership fees from the Ministry of Transport, the Civil Aviation Authority of Vietnam shall organize the collection and management of income in accordance with current regulations of the State and the provisions of this Circular, following the principles of thrift and efficiency, and using the funds for their intended purposes.

4. At the end of the fiscal year, the Civil Aviation Authority of Vietnam shall prepare a final account report on income and expenditure of ICAO membership fees, which will be included in the final account report of the Civil Aviation Authority of Vietnam for submission to the Ministry of Transport for review and approval in accordance with regulations. Any unspent ICAO membership fees in the year shall be carried over to the next year.

Article 7. Effectiveness and Implementation Organization

1. This Circular takes effect from July 10, 2014, and applies from the 2014 fiscal year, replacing Circular No. 104/TC/GTBĐ dated December 7, 1994, issued by the Ministry of Finance regarding guidance on participation fees for the International Civil Aviation Organization (ICAO).

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