Expenditures on valuation operations conducted by valuation councils in Vietnam as of July 1, 2024

Expenditures on valuation operations conducted by valuation councils in Vietnam as of July 1, 2024 (Internet image) 

On May 16, 2024, the Minister of Finance issued Circular 38/2024/TT-BTC on prescribing assessment of operations of valuation enterprises; establishment of provisions for professional risks, operational reporting by valuation enterprises, and costs associated with valuation operations of valuation councils in Vietnam.

Expenditures on valuation operations conducted by valuation councils in Vietnam as of July 1, 2024

According to Clause 1, Article 6 of Circular 38/2024/TT-BTC, expenditures on valuation operations conducted by valuation councils in the cases prescribed in clause 1 Article 65 of the Prices Law 2023, and limits thereof are subject to the following provisions:

(i) Business trip allowances are determined according to provisions of the Circular 40/2017/TT-BTC on work-trip allowances and conference expenditures and its amending or superseding documents (if any);

(ii) Expenditures on surveys and collection of information on the property to be valued are determined according to point c clause 5 Article 3 of the Circular 109/2016/TT-BTC prescribing estimation, management, use and statement of funding for statistical surveys and national statistical censuses and its amending or superseding documents (if any);

(iii) Expenditures on preparation of reports on specialized descriptions or explanations serving the property valuation of the valuation council are determined according to clause 3 Article 1 of the Circular 42/2022/TT-BTC amending Circular 338/2016/TT-BTC on budget preparation, management, use and settlement of state budget funds to ensure the work of drafting legal documents and perfecting the legal system and its amending or superseding documents (if any); the expenditure limit is VND 1.200.000/report;

(iv) Expenditures on meetings of the valuation council are determined according to clause 3 Article 1 of the Circular 42/2022/TT-BTC and its amending or superseding documents (if any);

(v) Expenditures on office stationery and printing of documents serving the property valuation are paid according to lawful invoices and receipts and do not exceed those specified in allocated cost estimates;

(vi) Expenditures on hiring of persons possessing professional certificates as prescribed to act as members of the valuation council, hiring of qualified inspection organizations to carry out inspection of technical-economic status and quality of property, and hiring of property valuation organizations (if any) are determined in accordance with regulations of law on bidding;

(vii) The head of the authority competent to establish the valuation council shall consider and decide other costs associated with valuation operations of the valuation council which are not mentioned in (i), (ii), (iii), (iv) and (v) within his/her competence or request competent authorities to make decision on these costs in accordance with applicable laws.

Provisions on expenditures other than salaries of officials and public employees to be covered by state budget-funding enshrined in Circular 38/2024/TT-BTC and other legislative documents referred to in Circular 38/2024/TT-BTC shall apply until regulations on salary reform under the Resolution 27/NQ-TW dated May 21, 2018 of the 7th Meeting of the 12th Central Executive Committee come into force.

Management, use and statement of funding used for covering costs of valuation operations conducted by valuation as prescribed shall be carried out in accordance with applicable regulations of law on management of state budget and in an economic and efficient manner that combats wastefulness.

More details can be found in Circular 38/2024/TT-BTC which comes into force from July 1, 2024.

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