How to Use Revenue Generated at Vietnamese Agencies Abroad?

Currently, the Vietnamese representative offices abroad collect, submit, manage, and use revenues in accordance with Circular 264/2016/TT-BTC dated November 14, 2016, by the Ministry of Finance, which prescribes the rates, collection, submission, management, and use of fees and charges in the field of diplomacy applicable to Vietnamese representative offices abroad, and the provisions of Circular 07/2020/TT-BTC. For the declaration of fees and charges collected by Vietnamese representative offices abroad, regulations are specified in the Decree of the Government of Vietnam detailing and guiding the implementation of several articles of the Tax Administration Law.

Illustrative image (source: internet)

Notably, Circular 07/2020/TT-BTC stipulates the management, submission, and use of other revenues generated at Vietnamese representative offices abroad as follows:

Firstly, regarding the receipt of value-added tax refunds: Vietnamese representative offices abroad are allowed to use 100% for agency budget reimbursement and account for reduced expenditures in the corresponding sub-items if refunded within the same fiscal year. In cases where refunds are received in a different fiscal year (after January 31 of the following year), the following applies:

- If expenses are from the budget allocated for implementing self-financing policies, 100% can be used for agency budget reimbursement, and account for reduced expenditures in the corresponding sub-items.

- If expenses are from the budget not allocated for implementing self-financing policies, the amount should be transferred to the State Budget Provisional Fund at the Vietnamese representative office abroad (hereinafter referred to as the State Budget Provisional Fund).

Secondly, regarding interest on bank deposits and compensation from organizations or individuals when agency assets are damaged: 100% of these amounts should be transferred to the State Budget Provisional Fund.

Thirdly, regarding revenues from guesthouse services, dormitories, and short-term house rentals to organizations and individuals: The amount collected, after deducting direct service-related expenses, should be entirely transferred to the State Budget Provisional Fund on a monthly basis, by the 10th of the following month.

Fourthly, regarding sponsorships for activities or events of Vietnamese representative offices abroad from organizations or individuals: After expenses in line with sponsorship commitments (if any) or sponsored activities/events, the remaining funds (if any) should be transferred to the State Budget Provisional Fund.

Proceeds from the sale of office premises, career operation facilities, private residences of Ambassadors; liquidation of houses, buildings, and other assets belonging to office premises, career operation facilities, private residences of Ambassadors; the sale, liquidation of cars, other vehicles; machinery, equipment, and other assets should be transferred to the State Budget Provisional Fund after deducting related expenses.

Details can be found in Circular 07/2020/TT-BTC effective from March 20, 2020.

Thu Ba

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