Determining Cost Components in Expert-Based Estimation Method for IT Application Investment Projects, How?

According to Section 3 of Appendix 05 issued together with Circular 04/2020/TT-BTTTT (effective from April 09, 2020) specifying the method for determining cost components in the budget estimation method by experts in information technology application investment projects as follows:

- Direct Expert Costs (Ccg): These are the necessary expenses for hiring experts to perform the work requiring budget estimation, determined by the number of experts, their working hours, and the experts' salaries.

- Management Costs (Cql): These are expenses related to the salaries of the management department, expenses for maintaining organizational operations, office expenses, and professional liability insurance costs for experts, etc. Management costs are determined by a percentage rate of the expert costs. The percentage rates are specified in Table 5.2 of this Appendix.

- Other Costs (Ck): These include all other related expenses for carrying out the work requiring budget estimation.

- Pre-Tax Income (TN): This is determined as 6% of the total expert costs, management costs, and other costs.

- Value Added Tax (VAT): This is determined according to each type of work by regulations.

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