Responsibilities for Managing Transferred Asset Contributions to the Public Telecommunications Service Fund

Responsibilities for managing transferred assets contributed to the Public Telecommunications Service Fund - Illustrated photo

At Article 7 of Circular 57/2016/TT-BTC, it stipulates the responsibilities for managing transferred assets contributed to the financial resources of the Vietnam Public Telecommunications Service Fund and transferring assets formed from the expenditures of the Vietnam Public Telecommunications Service Fund to 2020 as follows:

For Enterprises

- Enterprises are responsible for managing the assets and maintaining the operation of the assets to provide public telecommunications services. All costs related to managing and maintaining the operation of the assets (excluding significant repair costs and asset upgrading costs) are accounted for as business expenses of the enterprise and are deductible when calculating corporate income tax, provided that all legal documentation is in accordance with the current Law on Corporate Income Tax.- Enterprises do not account for an increase in the value of transferred assets, do not increase state investment capital in the enterprise corresponding to the value of the assets, and do not depreciate these fixed assets.- Enterprises shall monitor the assets in their management accounting system and disclose them in the explanatory notes to the financial statements when preparing the financial statements. The disclosure of information about these assets shall be carried out in accordance with the provisions of Circular 200/2014/TT-BTC dated December 22, 2014, of the Ministry of Finance guiding enterprise accounting policies.- In case of significant repairs or asset upgrades, the enterprise shall prepare a plan for major repairs/upgrades and send it to the Ministry of Information and Communications for review and allocation of funds from the Public Telecommunications Service Provision Program in accordance with the regulations. The reporting time for significant repair/upgrade plans shall coincide with the deadline for contributions to the Fund mentioned in Clause 1, Article 4 of Circular 57/2016/TT-BTC.

The procedures for settlement of funds for major repairs or upgrades are carried out according to the guidelines for expenditures from the Public Telecommunications Service Provision Program.

For the Vietnam Public Telecommunications Service Fund

The Fund is responsible for monitoring the list of transferred assets, determining the depreciation of assets, aggregating the quarterly/annual depreciation situations of transferred assets, summarizing the plans for major repairs/upgrades of transferred assets, formulating replacement investment plans for the assets, and proposing handling measures to the Ministry of Information and Communications for review and decision according to its authority.

For the Ministry of Information and Communications

The Ministry of Information and Communications supervises the maintenance of the operation of transferred assets, decides on the usage of funds from the Public Telecommunications Service Provision Program for major repairs/upgrades of transferred assets, and invests in replacing the assets to meet the objectives of the public telecommunications program.

Details can be found in Circular 57/2016/TT-BTC, effective from May 15, 2016.

Le Vy

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