Vietnam: Guidance for insurance business organizations to calculate annual management fees and pay in 02 installments

Specifically, according to Article 4 of Circular No. 01/2020/TT-BTC of the Ministry of Finance of Vietnam, fee payers (insurance enterprises and branches of foreign insurance enterprises in Vietnam; reinsurance enterprises; insurance brokerage enterprises) shall submit fees for management and supervision of insurance activities to accounts of fee collectors containing fees waiting to be submitted to state budget at the State Treasury. The fees for management and supervision of insurance activities shall be calculated on a yearly basis and submitted in 2 installments.

- Before the end of August 31 of each year, the payers shall calculate fees for management and supervision of insurance activities for the first 6 months of the year (1st installment) as follows:

Fee amount = insurance premiums (or reinsurance premium or insurance broker revenues) of the first 6 months of the year x 0.03%.

- Before the end of April 30 of each year, the payers shall calculate fees for management and supervision of insurance activities for the previous financial year (2nd installment) as follows:

Fee amount = insurance premiums (or reinsurance premium or insurance broker revenues) of the previous financial year x 0.03% - fee amount submitted in the 1st installment.

Before the end of the 05th of every month, the fee collectors must send the collected fees for management and supervision of insurance activities of the previous month to the fee account waiting to be submitted to the budget at the State Treasury.

Besides, the fee collectors shall declare and submit the collected fees for management and supervision of insurance activities with tax authorities on a monthly basis, make annual statement as specified in Clause 3 Article 19 and Clause 2 Article 26 of Circular No. 156/2013/TT-BTC dated November 06, 2013 of the Minister of Finance on elaborating to a number of Articles of the Law on Tax Administration of Vietnam; The Law on amendments to a number of Articles of the Law on Tax Administration and Decree No. 83/2013/NĐ-CP dated July 22, 2013 of Vietnam’s Government. The fee collectors shall submit 52% of the collected fees for management and supervision of insurance activities to the state budget in the correct chapter, section, sub-section of Annexes of the state budget.

View full text at Circular No. 01/2020/TT-BTC of the Ministry of Finance of Vietnam, effective from February 20, 2020. 

Thu Ba

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