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

CIRCULAR

Guidelines for collecting, managing, and using fees for issuing certificates of qualification and conditions for insurance business operations

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

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

- The Ministry of Finance provides guidelines for collecting, managing, and using fees for issuing certificates of qualification and conditions for insurance business 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 qualification and conditions for insurance business operations according to Clause 2, Article 21 of Decree No. 100/CP dated December 18, 1994, of the Government and Section 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\. Collection rate: The fee for issuing certificates of qualification and conditions for insurance business operations (hereinafter referred to as the certificate issuance fee) shall be 0.2% of the statutory capital specified in Article 22 of Decree No. 100/CP, but not less than 10 million Vietnamese dong and shall be collected in Vietnamese dong or US dollars.

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

Each time the certificate is amended or reissued, the insurance enterprise or insurance brokerage organization must pay a fee of 10 million Vietnamese dong (or equivalent foreign currency).

II\. PROCEDURES FOR PAYMENT AND DISTRIBUTION

USE OF REVENUE

1\. Payment procedures:

- All funds collected from the certificate issuance fee must be transferred into a Vietnamese dong account (if paid in Vietnamese dong) or a 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 the fee: All revenue from the certificate issuance fee in foreign currency must be converted to Vietnamese dong and concentrated in a Vietnamese dong 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 fee payment and implemented monthly. The latest date for remittance is the fifth day of the month following the previous month's payment.

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 supplies, translation and preparation of documents, printing of application forms and certificates.

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

Management of this budget is carried out under 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./.