Recently, the Vietnam Ministry of Information and Communications officially signed and issued Circular 12/2020/TT-BTTTT on the instruction manual on determination of costs of outsourcing for information technology services covered by state budget capital by employing the costing method.
Method for calculating the cost of outsourcing for on-demand information technology services (Illustrative Image)
The method for calculating the cost of outsourcing for information technology services not available in the market (hereinafter referred to as on-demand services) is stipulated by Circular 12/2020/TT-BTTTT as follows:
Cost of outsourcing for on-demand services is determined by the formula:
Gt = Gtdv + Gv + Gbt + Gk
Where:
- Gt: Cost of on-demand services (VND)
- Gtdv: Service costs (VND)
- Gv: Administration and service operation costs (VND)
- Gbt: Service maintenance costs (VND)
- Gk: Other costs related to service provision (VND)
Specifically, Circular 12/2020/TT-BTTTT stipulates:
Method for calculating service costs (Gtdv)
Service costs are determined by the formula: Gtdv = Gdv * n
Where:
- Gdv: Service cost per payment period as determined by the methods specified in clauses 2 and 3 of this Article.
- n: Number of payment periods during the rental duration of on-demand services.
For cases where the service cost per payment period is paid equally at the end of each period, the formula is determined as follows:
Gdv = |
Tđ * r * (1 + r)n - S * r |
* (1 + GTGT) |
(1 + r)n - 1 |
Where:
- Tđ: Costs for the construction, development and formation of services before value-added tax (VND). Such costs are calculated under the provisions of Article 7 of this Circular.
- r: Rental interest rate per payment period (%). r is determined as:
N: The average interest rate of the deposit interest rates in Vietnam dong for a term of 01 year and a term equivalent to the number of years for renting on-demand services (if there is no equivalent term, the nearest shorter term to the number of years for renting on-demand services) listed by three reputable local commercial joint-stock banks in Vietnam at the nearest point within 06 months before the approval of the plan for renting on-demand services.
k: Number of payment periods within a year for renting on-demand services.
- S: The remaining value of the assets forming the services of the lessor at the end of the rental period after depreciation (using the straight-line depreciation method) (VND).
- VAT: Value-added tax.
For cases where the service cost per payment period is paid equally at the beginning of each period, the formula is determined as follows:
Where: The quantities are determined similarly as specified in clause 2 of this Article.
An example of calculating service costs is illustrated in the Appendix issued with this Circular.
Method for calculating construction, development, and formation costs of services (Tđ)
- Costs for the construction, development, and formation of services are calculated according to the regulations of the Ministry of Information and Communications on the formulation and management of investment project costs for information technology application.
- In cases where the custom service rental plan anticipates using already existing infrastructure equipment, the costs for the construction, development, and formation of services are calculated based on the remaining value of the equipment after depreciation (using the straight-line depreciation method).
Method for calculating service administration and operation costs (Gv), service maintenance costs (Gbt), and other costs related to service provision (Gk)
- Service maintenance costs are determined based on market prices ensuring compliance with specific requirements of the hiring agency or organization for on-demand services.
- Service administration and operation costs and other costs related to service provision are determined by one of the following methods:
+ Based on market prices ensuring compliance with the contents of each type of cost.
+ Preparing cost estimates based on the volume of tasks performed for each type of cost and the unit prices, and standard amounts as stipulated (if any) to perform that volume of tasks.
The cost estimate preparation follows the regulations of the Ministry of Information and Communications on the formulation and management of investment project costs for information technology application.
Full regulations may be found in Circular 12/2020/TT-BTTTT effective from July 14, 2020.
Thu Ba
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