Circular No. 96/TC-CÐTC guiding the collection, management, and use of fees for issuing certificates of qualification and conditions for insurance business operations

CIRCULAR

GUIDELINES FOR THE COLLECTION, MANAGEMENT, AND USE OF FEES FOR ISSUING CERTIFICATES OF SATISFACTORY STANDARDS AND CONDITIONS FOR INSURANCE OPERATIONS

- Pursuant to Decision No. 276-CT dated July 28, 1992 of the Chairman of the Council of Ministers (now Prime Minister) on the unified management of various types of fees and charges;

- Pursuant to Decree No. 100/CP dated December 18, 1993 of the Government on insurance operations;

- The Ministry of Finance provides guidelines for the collection, management, and use of fees for issuing certificates of satisfactory standards and conditions for insurance operations as follows:

I- OBJECTS AND AMOUNT OF COLLECTION

1\. Object of Collection: All insurance enterprises and insurance brokerage organizations must pay the fee when submitting applications for certificates of satisfactory standards and conditions for insurance operations according to Clause 2, Article 21 of Decree No. 100/CP dated December 18, 1994 of the Government and Point 3, Part III of Circular No. 46 TC/CĐTC dated May 30, 1994 of the Ministry of Finance guiding the implementation of Decree No. 100/CP.

2\. Rate of Collection: The fee for issuing certificates of satisfactory standards and conditions for insurance operations (hereinafter referred to as the certificate issuance fee) shall be 0.2% of the statutory capital stipulated in Article 22 of Decree No. 100/CP, but not less than 10 million Vietnamese dong and can be paid in Vietnamese dong or US dollars.

In cases where additional time extension certificates are issued, the fee must also be paid as prescribed above.

Each time the certificate is modified or reissued, insurance enterprises and insurance brokerage organizations must pay a fee of 10 million Vietnamese dong (or equivalent foreign currency).

II\. PROCEDURES FOR PAYMENT AND DISTRIBUTION OF FUNDS

1\. Payment Procedures:

- All funds collected from the certificate issuance fee must be transferred into the domestic currency account (if paid in Vietnamese dong) or foreign currency account (if paid in foreign currency) of the Ministry of Finance for monitoring and remitting to the State Budget as prescribed.

- To obtain a certificate from the Ministry of Finance, insurance enterprises and insurance brokerage organizations must pay the fee as follows: 50% upon submission of the application and the remaining 50% upon receipt of the certificate. The Ministry of Finance will not refund the initial payment if the insurance enterprise or insurance brokerage organization does not receive the certificate or withdraws the application.

- Cases where the fee has not been paid or is insufficiently paid are considered to lack the necessary conditions for consideration of the certificate issuance.

2\. Use of Revenue from Fees: All revenue from the certificate issuance fee in foreign currency must be converted to Vietnamese dong and concentrated in the domestic currency account for remittance to the State Budget and use as prescribed.

The use of revenue from the certificate issuance fee is carried out as follows:

a\. Remit 75% to the State Budget. The remittance to the State Budget is calculated for each payment and implemented monthly. The latest date for remittance is the fifth day of the following month.

b\. The remaining amount (25%) is used for expenditures according to approved plans and for the following purposes:

- Supplementing equipment, means, and office supplies for work and expenses serving the inspection and evaluation of applications for certificate issuance;

- Office supply costs, document preparation and translation costs, printing of application forms and certificates.

- Costs for working days serving the issuance of certificates and allowances for staff involved in monitoring and managing certificate issuance, compiling related files during the certificate issuance process.

The management of this fund is carried out according to the current financial management system of the State.

This Circular takes effect from January 1, 1994. During its implementation, if there are any difficulties, they should be promptly reported to the Ministry of Finance for review, supplementation, and amendment.