Regulations on Declaration and Payment of Fees for Providing AD Telecommunication Services from March 01, 2018

Currently, organizations and enterprises that are granted telecommunications service business licenses and telecommunications operating licenses must pay fees and charges as stipulated in Circular 273/2016/TT-BTC. The declaration and payment of fees and charges for those providing telecommunications services applicable from March 1, 2018, are detailed at Clause 2, Article 1 of Circular 03/2018/TT-BTC, which amends and supplements Clause 1, Article 5 of Circular 273/2016/TT-BTC, as follows:

Illustration (source Internet)

- Telecommunications service revenue as a basis for fee calculation is implemented according to the regulations in Article 29 of Decree 25/2011/ND-CP dated April 6, 2011 of the Government of Vietnam stipulating details and guiding the implementation of several articles of the Telecommunications Law, Circular 21/2013/TT-BTTTT dated December 18, 2013, by the Minister of Information and Communications regarding telecommunications service revenue, and Circular 01/2016/TT-BTTTT dated January 25, 2016, by the Minister of Information and Communications amending and supplementing several regulations of Circular 21/2013/TT-BTTTT dated December 18, 2013. In cases where enterprises do not account for telecommunications service revenue according to these regulations, telecommunications service revenue is determined as the revenue from telecommunications service provision in financial reports (including card sales revenue).

- Quarterly, based on the quarterly telecommunications service revenue report data, enterprises calculate the fees payable using the following formula (fee payment time coincides with the time of submitting the quarterly telecommunications service revenue report):

Fee Payable = Quarterly Telecommunications Service Revenue x 0.5%

- Annually, based on the annual telecommunications service revenue report data, enterprises calculate the fees payable using the following formula:

Annual Fee Payable = Annual Telecommunications Service Revenue x 0.5%.

For certain special cases, enterprises need to pay attention after calculating the annual fees payable:

+ In cases where the annual fee payable is higher than the total fee payable for the 4 quarters, enterprises must pay the additional difference to the collecting organization; the fee payment timing coincides with the annual report submission. If the annual fee payable is lower than the total fee payable for the 4 quarters, enterprises are allowed to offset the difference for the next quarter's fee payable.

+ If the annual fee calculated based on telecommunications service revenue (revenue x 0.5%) is lower than the Minimum Fee stipulated in the Fee Schedule, enterprises must pay the difference to the collecting organization.

+ In cases where enterprises are granted telecommunications service licenses (including new, amended, and supplemented licenses) after January 1 annually; the license expires or is revoked before January 1 of the following year (not operating for a full year), the Minimum Fee in these cases will be calculated as follows:

Minimum Fee in these cases = Annual Minimum Fee (stipulated in the Fee Schedule) x Fee calculation months/12.

Where: The fee calculation months are from the month following the month the license is granted (including new, amended, and supplemented licenses) to the end of the month the license expires or is revoked (including license revocation upon amendment and supplementation). If the license is granted and expires or is revoked within different years, the fee calculation months of the licensing year are from the month following the month the license is granted to the end of December of that year; the fee calculation months of the year the license expires or is revoked are from January to the end of the month the license expires or is revoked.

Some examples:

Example 1: Enterprise A is granted a telecommunications service license from March 15, 2018, and it is revoked on October 15, 2018: The fee calculation months are 7, from April to the end of October.

Example 2: Enterprise B is granted a telecommunications service license on March 15, 2018: The fee calculation months for 2018 are 9, from April to the end of December. For the next year, the fee calculation months are from January onwards.

Example 3: Enterprise C is granted a telecommunications service license before 2018, and the license is revoked on June 15, 2018: The fee calculation months for 2018 are 6, from January to the end of June.

Refer to other regulations in Circular 03/2018/TT-BTC, which takes effect from March 1, 2018.

Thu Ba

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE