To reduce fee rates in secured transactions from July 1, 2023 - December 31, 2023 in Vietnam

To reduce fee rates in secured transactions from July 1, 2023 - December 31, 2023 in Vietnam (Internet image)

On June 29, 2023, the Minister of Finance issued Circular 44/2023/TT-BTC on fees and charges to support the people and enterprises in Vietnam

1. To reduce fee rates in secured transactions from July 1, 2023 - December 31, 2023 in Vietnam

Specifically, in Clause 1, Article 1 of Circular 44/2023/TT-BTC stipulating the reduction of fees in the field of secured transactions from July 1, 2023 to December 31, 2023 as follows:

- Fees for registration for secured transactions is equal to 80% of the fees prescribed in Points a, b, d Section 1 of the Schedule of fees in Article 4 of Circular 202/2016/TT-BTC; equal to 80% of the fees prescribed in Points c and dd Section 1 of the Schedule of fees in Article 1 of Circular 113/2017/TT-BTC.

- Fees for provision of information on transactions secured by movable assets (except aircraft) and maritime vessels is equal to 80% of the fees prescribed in Section 2 of the Schedule of fees in Article 4 of Circular 202/2016/TT-BTC.

According to Article 4 of Circular 202/2016/TT-BTC (amended in Circular 113/2017/TT-BTC), the rate of fees on secured transactions is defined below:

2. Case of fee waiver in secured transactions in Vietnam

Pursuant to Article 5 of Circular 202/2016/TT-BTC, the fees are exempted in the following circumstances:

- Individuals and households taking out loans from credit institutions for agricultural and rural development as defined in Article 4 and Article 9 of Decree 55/2015/NĐ-CP

- Request for revision to errors, at the registrar’s fault, in the registration of the secured transaction or contract.

- Notification of the distrainment of assets for sentence enforcement, request for revision to or removal of the enforcement officer's notification as per the laws.

- Revision to the information of the organization or individual given the code of access to the secured transaction database.

- Enforcement officer's request for information on the assets distrained.

- Request by an investigator, procurator or judge for information concerning procedural activities.

3. Fee administration and use in secured transactions in Vietnam

According to Article 7 of Circular 202/2016/TT-BTC stipulating fee administration and use in secured transactions in Vietnam:

- The collection agency shall submit all fee amount collected to the state budget. The expenditure for assessment and fee collection shall be sourced from the state budget apportioned in the fee collector’s financial estimate pursuant to the regime and norm of state budget spending as per regulations.

- If the fee collector receives fixed operating subsidies according to the regulations of the government or Prime Minister on autonomy and self-responsibility for the disposition of tenure and administrative expenditure in government agencies, the agency shall manage and use the fees in the following manner:

+ Centers for registration of transactions and assets: The fee amount collected shall be managed and used as follows:

++ 80% of the fee amount collected shall be retained for the spending defined in Section 2, Article 5 of Decree 120/2016/NĐ-CP.

++ 5% of the fee amount collected shall be transferred to the account of the National Registration Agency for Secured Transaction for the operation and maintenance of the system for online registration of secured transactions.

++ 15% of the fee amount collected shall be submitted into the state budget by chapter and sub-section of the current state budget index.

+ Maritime administration branches: The fee amount collected shall be managed and used as follows:

85% of the fee amount collected shall be retained for the spending defined in Section 2, Article 5 of the Decree 120/2016/NĐ-CP while 15% of the fee amount collected shall be submitted into the state budget by chapter and sub-section of the current state budget index.

Ho Quoc Tuan

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