Circular No. 65/2016/TT-BTC stipulates the level of collection, collection regime, submission, management, and use of securities trading activity fees applicable at the Stock Exchanges and the Vietnam Securities Depository.

CIRCULAR

Regulations on the level of collection, collection system, payment, management, and use of fees for exploitation and utilization of meteorological and hydrological information and data

securities activities applied at stock exchanges

and the Vietnam Securities Depository

Pursuant to the Securities Law dated June 29, 2006 and the Law Amending and Supplementing Certain Provisions of the Securities Law dated November 24, 2010;

Pursuant to the Ordinance on Fees and Charges dated August 28, 2001;

Pursuant to Decree No. 57/2002/NĐ-CP dated June 3, 2002 and Decree No. 24/2006/NĐ-CP dated March 6, 2006 of the Government detailing the implementation of the Ordinance on Fees and Charges;

Pursuant to Decree No. 58/2012/NĐ-CP dated July 20, 2012 and Decree No. 60/2015/NĐ-CP dated June 26, 2015 of the Government detailing and guiding the implementation of certain provisions of the Securities Law; June 26, 2015 of the Government amending and supplementing certain provisions of Decree No.         

  Decree No. 215/2013/NĐ-CP dated 23 of the Government stipulating the list, management, use of technical equipment and procedures for collecting and using data obtained from such equipment provided by individuals or organizations to detect administrative violations;2 Pursuant to Decree No. 32/2019/NĐ-CP dated April 10, 2019 of the Government on assigning tasks, procurement or tendering for the supply of products and services using state budget from regular operating expenses;13 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

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

The Minister of Finance promulgates this Circular stipulating the level of collection, the collection, payment, management, and use of fees for securities activities applied at stock exchanges and the Vietnam Securities Depository lsecurities deposit center as follows:

Article 1. Scope of Regulation

This Circular applies to matters related to the implementation of securities activities at stock exchanges (SGX) and at the Vietnam Securities Depository (VSD).

Article 2. Fee Payers When submitting applications for state agencies to issue Permits and Certificates in chemical activities; approval of Chemical Accident Prevention and Response Plans, organizations and individuals must pay fees as prescribed in this Circular.

The fee payers are organizations and individuals implementing tasks related to securities trading market operations specified in the Fee Schedule attached to this Circular, including securities companies; commercial banks; organizations applying for listing; listed organizations; fund management companies with listed fund certificates; issuers; organizations opening accounts directly at VSD; individuals and organizations transferring ownership of securities outside the SGX trading system.

Article 3. Fee Collection Organizations

The entities collecting fees for securities activities stipulated in this Circular are SGXs and VSD established and operating in Vietnam.

Article 4. Fee Schedule and Method of Determining Amount of Fees to be Paid

The fee levels are set forth in the Fee Schedule attached to this Circular. The amount of fees payable for certain types of fees is determined specifically as follows:

1. Trading Member Management Fee

a) The rate specified in Point 1, Section I of the Fee Schedule.

b) Fee calculation period

- In cases where an organization is currently a trading member of the SGX and does not terminate its membership during the year, the fee calculation period is 12 months.

- In cases where an organization newly approved as a trading member and does not terminate its membership during the same year, the fee calculation period starts from the month following the month when the SGX issues the Decision approving the trading member status until the end of December of that year.

- In cases where an organization is currently a trading member and is suspended from trading or has its trading activity halted to terminate its membership voluntarily or compulsorily during the year, the fee calculation period runs from the beginning of the year until the end of the month when the SGX implements the suspension or halting of trading activity to terminate the membership.

- In cases where an organization newly approved as a trading member of the SGX and is suspended from trading or has its trading activity halted to terminate its membership voluntarily or compulsorily during the year, the fee calculation period starts from the month following the month when the SGX issues the Decision approving the trading member status until the end of the month when the SGX implements the suspension or halting of trading activity to terminate the membership.

c) In cases where a trading member is formed through merger, consolidation, division, spin-off, conversion, or acquisition and must register as a new member, they must pay the trading member management fee similar to the case of registering as a new member.

d) Refund of fees

In cases where a trading member terminates its membership, the SGXs will refund the difference between the fees paid by the trading member during the year and the actual fees calculated according to the formula and guidance provided in Points a and b of this Clause.

2. Listing Registration Fee

a) The rate specified in Point 2, Section I of the Fee Schedule.

b) In cases where an organization applying for listing is approved for listing and subsequently delisted compulsorily or voluntarily, the listed organization or fund management company shall not be refunded the listing registration fee.

3. Listing Management Fee

- The rate specified in Point 3, Section I of the Fee Schedule applies correspondingly to each type of security and the listed value.

- In cases where an organization lists multiple types of securities on the same SGX, the listing management fee is calculated separately for each type of security.

- In cases where securities are listed and not delisted during the year, the fee calculation period is 12 months.

b) Fee calculation period

- In cases where an organization lists securities for the first time and does not have them delisted during the year, the listing management fee for the first year will be calculated from the month following the month when the SGX issues the Decision approving the listing until the end of December of that year.

- In cases where listed securities are delisted during the year, the fee calculation period runs from the beginning of the year until the end of the month when the delisting becomes effective.

- In cases where securities are listed for the first time and are delisted during the year, the fee calculation period starts from the month following the month when the SGX issues the Decision approving the listing until the end of the month when the delisting becomes effective.

c) In cases where listed organizations or fund management companies change their listing registration leading to changes in the amount of listing management fee payable (excluding Exchange-Traded Funds (ETF)), the listing management fee is calculated as the sum of:

- The fee calculated based on the corresponding rate for the type of security and the previous listed value from the beginning of the year (or from the month following the month when the SGX issues the Decision approving the listing for new listings during the year) until the end of the month when the SGX issues the Decision approving the change in listing in the same year.

- The fee shall be calculated based on the corresponding rate for the type of securities, with the listed value from the first month of the year (or from the nearest following month after the Stock Exchange issues the Decision approving the listing for new listings within the year) to the end of the month when the Stock Exchange issues the Decision approving the change in listing for the next year.

- Fees shall be calculated according to the corresponding level for the type of securities, the new listed value from the month immediately following the month in which the Stock Exchange issues the Decision approving the change in listing until the end of the month in which the Stock Exchange issues the next Decision approving the change in listing or until the end of December of that year.

d) Refund or supplement fees

- In cases where securities are delisted during the year, the Stock Exchanges shall refund the difference between the fees paid in that year and the actual fees payable calculated according to the formula and guidance provided at point a and point b of this clause to the listed organizations and fund management companies with listed fund certificates.

- In cases where changes in listing lead to an increase or decrease in fees after the change compared to the fees already paid, the Stock Exchanges shall recalculate the difference to supplement or refund fees to the listed organizations and fund management companies.

4. Trading fees

a) The fee level prescribed at point 4 Section I Fee Schedule.

b) Trading fees for repurchase transactions (repo) shall only be charged once based on the initial transaction value.

5. Online connection fees

Online connection fees include the initial connection fee and periodic maintenance connection fee.

a) Initial connection fee

- The initial connection fee level prescribed at point 5.1 Section I Fee Schedule.

- In cases where trading members formed through mergers, acquisitions, divisions, spin-offs, conversions, or buyouts, the initial online connection fee shall be calculated as follows:

+ Charge the initial online connection fee for members operating without relying on the existing physical infrastructure, information technology systems, and trading software of any of the participating members in the merger, acquisition, division, spin-off, conversion, or buyout, and the Stock Exchanges must conduct technical facility surveys at the company before approving the member.

+ Do not charge the initial online connection fee for members operating based on the existing physical infrastructure, information technology systems, and trading software of any of the participating members in the merger, acquisition, division, spin-off, conversion, or buyout, or those who have changed their existing physical infrastructure, information technology systems, and trading software but the Stock Exchanges do not need to conduct technical facility surveys at the company before approving the member.

b) Periodic maintenance connection fee

- The fee level prescribed at point 5.2 Section I Fee Schedule.

- Calculation period:

+ For trading members who are currently online trading members and are not disconnected by the Stock Exchange to terminate their membership status during the year, the calculation period is 12 months.

+ For newly approved online trading members who are not disconnected by the Stock Exchange to terminate their membership status during the year, the calculation period starts from the month immediately following the month in which the Stock Exchange issues the Decision approving them as online trading members until the end of December of that year.

+ For trading members who are currently online trading members and are disconnected by the Stock Exchange to terminate their membership status during the year, the calculation period starts from the beginning of the year until the end of the month in which the Stock Exchange implements the disconnection to terminate their membership status.

+ For newly approved online trading members who are disconnected by the Stock Exchange to terminate their membership status during the year, the calculation period starts from the month immediately following the month in which the Stock Exchange issues the Decision approving them as online trading members until the end of the month in which the Stock Exchange implements the disconnection to terminate their membership status.

c) In cases where trading members formed through mergers, acquisitions, divisions, spin-offs, conversions, or buyouts must go through new procedures to register as online trading members, they must pay the periodic maintenance connection fee similar to the case of registering as a new online trading member.

d) Refund of fees

In cases where trading members are disconnected by the Stock Exchange to terminate their membership status, the Stock Exchanges shall refund the periodic maintenance connection fee to the online trading members the difference between the fees paid in that year and the actual fees payable calculated according to the guidance provided at point b of this clause.

6. Terminal device usage fees

a) The fee level prescribed at point 6 Section I Fee Schedule.

b) Fee calculation period

- For securities companies that are currently trading members of the Stock Exchange and are not suspended from trading or have their trading activities suspended by the Stock Exchange to terminate their membership voluntarily or compulsorily in the same year, the calculation period is 12 months.

- For newly approved trading members who are not suspended from trading or have their trading activities suspended by the Stock Exchange to terminate their membership voluntarily or compulsorily in the same year, the calculation period starts from the month immediately following the month in which the Stock Exchange issues the Decision approving their membership status until the end of December of that year.

- For securities companies that are currently trading members of the Stock Exchange and are suspended from trading or have their trading activities suspended by the Stock Exchange to terminate their membership voluntarily or compulsorily in the same year, the calculation period starts from the beginning of the year until the end of the month in which the Stock Exchange implements the suspension or cessation of trading activities against the member to terminate their membership status.

- For newly approved trading members who are suspended from trading or have their trading activities suspended by the Stock Exchange to terminate their membership voluntarily or compulsorily in the same year, the calculation period starts from the month immediately following the month in which the Stock Exchange issues the Decision approving their membership status until the end of the month in which the Stock Exchange implements the suspension or cessation of trading activities against the member to terminate their membership status.

c) In the case where a trading member is formed after consolidation, merger, division, separation, conversion, or acquisition and must go through new membership registration procedures, they shall pay a terminal equipment usage fee similar to the case of registering as a new member.

d) Refund of fees

In the case where a trading member ceases their status as a member, the stock exchanges shall refund the member the difference in fees based on the amount of fees paid by the member during the year minus the actual fees that should have been paid according to the formula and points a and b of this clause.

7. Membership management fee

a) As specified in point 7 of Section II of the Fee Schedule.

b) Fee calculation period

- For organizations that are currently depositary members of VSD and are not revoked of their Depositary Membership Certificate during the year, the fee calculation period is 12 months.

- For organizations newly approved as depositary members and not revoked of their Depositary Membership Certificate during the same year, the fee calculation period starts from the month following the month when VSD issues the Decision to issue the Depositary Membership Certificate until the end of December of that year.

- For organizations that are currently depositary members of VSD and are revoked of their Depositary Membership Certificate during the year, the fee calculation period runs from the beginning of the year until the end of the month when VSD issues the Decision to revoke the Depositary Membership Certificate.

- For organizations newly approved as depositary members and revoked of their Depositary Membership Certificate during the same year, the fee calculation period starts from the month following the month when VSD issues the Decision to issue the Depositary Membership Certificate until the end of the month when VSD issues the Decision to revoke the Depositary Membership Certificate.

c) In the case where a depositary member is formed after consolidation, merger, division, separation, conversion, or acquisition and must go through new depositary membership registration procedures with VSD, they shall pay the depositary membership management fee as in the cases of registering as a new depositary member.

d) Refund of fees

In the case where a depositary member is revoked of their Depositary Membership Certificate, VSD shall refund the depositary member the difference in fees based on the amount of fees paid by the depositary member during the year minus the actual fees that should have been paid according to the formula and guidance at points a and b of this clause.

8. Securities registration fee

As specified in point 8 of Section II of the Fee Schedule.

9. Securities deposit fee

a) As specified in point 9 of Section II of the Fee Schedule.

b) Calculation method ∑On Administrative Sanctions dated June 20, 2012; the Law Amending and

Vi is the quantity of securities deposited on day i determined by summing up the balance of securities deposited across all securities deposit accounts for brokerage activities as well as proprietary trading.

i = 1->n are the days in the month when the balance of securities deposited occurs.

The daily balance of securities deposited is calculated at the end of each day based on documents confirmed effective by VSD.

10. Securities transfer fee

a) Securities transfer fee between investor accounts at different depositary members:

The total fee to be paid in the month equals the sum of the transfer fees on day i

(i = 1->n are the days in the month when securities transfer transactions occur between investor accounts at different depositary members)

The transfer fee on day i = ∑(Fee rate x Vj)

Where:    

- The fee rate is specified in point 10.1 of Section II of the Fee Schedule.

- Vj is the total number of shares of code j on each securities deposit account according to the securities transfer request on day i of the transferring member, confirmed by VSD on the effective date of the transfer (j = 1->m are the share codes involved in securities transfer transactions between investor accounts at different depositary members on day i).

b) Securities transfer fee for settlement purposes:

The total fee to be paid in the month equals the sum of the settlement transfer fees on day i (i = 1->n are the days in the month when settlement transfer transactions occur for securities sale transactions)

The settlement transfer fee on day i = ∑(Fee rate x Pj)

Where:

- The fee rate is specified in Point 10.2 of Section II of the Fee Schedule.

- Pj is the total number of shares of code j (j = 1->m are the share codes sold in settlement transfer transactions on day i) sold in settlement transfer transactions on day i according to the Transaction Result Notification issued by VSD.

11Exercise right fee

a) As specified in point 11 of Section II of the Fee Schedule.

b) The exercise right fee is calculated based on the number of shareholders (including both registered and unregistered shareholders) listed on the consolidated list of security holders compiled by VSD according to each announcement of the final registration date.

12. Post-trade error processing fee

Post-trade error processing fee includes post-trade correction fee and delayed settlement transaction processing fee.

- The fee rate is specified in point 12.1 of Section II of the Fee Schedule.

- n is the number of erroneous transactions approved for processing by VSD.

b) Delayed settlement transaction processing fee:

- n is the number of delayed settlement transactions approved for processing by VSD.

c) In the case where a trade error occurs due to unforeseeable technical issues, the post-trade error processing fee will be calculated according to points a and/or b of this clause depending on the specific incident, but the total fee that the depositary member must pay shall not exceed 100 million dong/member/incident.

13. Securities ownership transfer fee outside the stock exchange trading system.

The amount of securities ownership transfer fee to be paid

b) The security price for calculating the transfer value is determined as follows:

- For listed or traded securities:

+ In the case of transfer, the security price is calculated based on the price recorded in the transfer contract but not lower than the reference price of the security on the day VSD performs the ownership transfer.

- In the case of transfer, the price of the securities shall be calculated according to the price recorded in the transfer contract but not lower than the reference price of the securities on the day the Securities Depository Corporation implements the transfer of ownership rights.

+ In cases of gifts, donations, bequests, or contracts without a transfer price or without a transfer agreement, the stock price shall be calculated based on the reference price of the securities on the day the Vietnam Securities Depository (VSD) performs the ownership transfer.

+ If there is no reference price for bonds, the securities price shall be calculated based on the face value of the bonds.

+ In cases where ownership is transferred through auction sales, the securities price shall be determined based on the successful bid price of the investor.

- For unlisted or non-registered securities, the securities price shall be calculated based on the face value of the securities.

c) The ownership transfer fee for securities shall be paid by the parties performing the ownership transfer (as specified in Points 13.1 and 13.3 of the Fee Schedule) or by the party receiving the ownership transfer (as specified in Points 13.2 and 13.4 of the Fee Schedule) or by the investor executing an exchange (buying or selling back ETF certificates) with the ETF fund (as specified in Point 13.5 of the Fee Schedule), through the depositary member where the parties have opened a securities deposit account for listed securities or through the issuing organization for unlisted securities.

Article 5. Collection and Payment of Fees

1. In cases where an organization re-registers its status as a trading member, it shall pay the trading member management fee, periodic connection maintenance fee, and terminal equipment usage fee as if it were registering as a new member.

2. In cases where trading members are suspended from trading or their trading activities are halted or their online connections are interrupted and continue into the following year without termination of their membership status, the trading members must still pay the full trading member management fee, periodic connection maintenance fee, and terminal equipment usage fee for the following year.

3. In cases where trading members cease trading or their trading activities are halted or their online connections are interrupted to terminate their membership status within that year, they will not be required to pay the trading member management fee, periodic connection maintenance fee, and terminal equipment usage fee for subsequent years.

Article 6. Timeframe for Collection, Payment, and Refund of Fees

1. Organizations currently members of the Stock Exchange, VSD, and those listed on the Stock Exchanges shall pay the trading member management fee, depositary member management fee, listing management fee, periodic online connection maintenance fee, and terminal equipment usage fee before January 31 each year to the Stock Exchange and VSD.

2. New organizations registering as members of the Stock Exchange, VSD, and newly registering for listing shall pay the trading member management fee, depositary member management fee, listing management fee, periodic online connection maintenance fee, and terminal equipment usage fee within five working days from the date the Stock Exchange issues the Decision Approving Member Status, Listing Approval Decision, and VSD issues the Decision Issuing Depositary Membership Certificate.

3. The Stock Exchange and VSD shall refund the trading member management fee and depositary member management fee to trading members and depositary members within five working days from the date the Stock Exchange issues the Decision Terminating Member Status and VSD issues the Decision Revoking Depositary Membership Certificate.

4. The Stock Exchange shall collect additional fees or refund fees to listed organizations and fund management companies within five working days from the date the Stock Exchange issues the Decision Approving Listing Change for listing changes or the effective date of delisting for delisting cases.

5. In cases of supplementary registration of ETF certificates, the fund management company shall pay the supplementary securities registration fee no later than the 15th day of the month following the month in which the VSD notifies adjustments to the Securities Registration Certificate.

Article 7. Management and Use of Fees

1. Fees in the securities sector stipulated in this Circular are not included in the state budget. The fee collecting entity has the obligation to pay taxes according to the provisions of the law on the amount of fees collected and has the right to manage and use the collected fees after paying taxes according to the provisions of the law.

2. Other regulations regarding collection, payment, management, use, revenue receipts, and publicizing the fee collection system shall be implemented in accordance with the guidance provided in Circular No. 156/2013/TT-BTC dated November 6, 2013, issued by 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, issued by the Government.

3. The fees collected from securities transfer transactions as specified in Point 13 (excluding Points 13.1c and 13.5) of the Fee Schedule attached to this Circular shall be allocated to the Stock Exchange at a ratio of 50% of the collected fees for cases involving the transfer of ownership of listed or registered-for-trading securities on the Stock Exchange.

4. Organizations and individuals who fail to pay fees on time or do not pay the full amount of fees shall be subject to extensions of payment deadlines or penalties as stipulated in the operational rules issued by the Stock Exchange and VSD.

5. Securities activity fees shall be collected in Vietnamese Dong. In cases where government bond transaction fees are collected in foreign currency, they shall be converted to Vietnamese Dong based on the central exchange rate published by the State Bank of Vietnam on the transaction date.

Article 8. Implementation clause

1. This Circular takes effect from June 10, 2016, and replaces Circular No. 27/2010/TT-BTC dated February 26, 2010, issued by the Minister of Finance, regulating the level of collection, payment, management, and use of securities activity fees applicable at the Stock Exchange and the Vietnam Securities Depository, and Circular No. 02/2013/TT-BTC dated January 8, 2013, issued by the Minister of Finance, amending and supplementing Circular No. 27/2010/TT-BTC dated February 26, 2010, regulating the level of collection, payment, management, and use of securities activity fees applicable at the Stock Exchanges and the Vietnam Securities Depository.

2. In cases where organizations and individuals have paid fees prior to the effective date of this Circular and there is a discrepancy with the amount of fees required under this Circular, the Vietnam Stock Exchange (VSE) and the Vietnam Securities Depository (VSD) shall neither refund nor collect the difference in fees. For membership management fees, listing fees, periodic connection maintenance fees, terminal equipment usage fees, and depository member management fees that trading members and depository members have paid since the beginning of 2016, the fee level for calculating the refundable amount shall be based on the fee level paid by trading members and depository members from the start of 2016.

3. Repeal the securities transfer fee rate for ETF share swap transactions specified at Point g Clause 1 Article 22 of Circular No. 229/2012/TT-BTC dated December 27, 2012, issued by the Minister of Finance, guiding the establishment and management of index fund swap funds.

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.