Vietnam: Mechanisms for managing and utilizing fees in secured transactions

Fee administration and use in secured transactions are specified in Circular No. 202/2016/TT-BTC of the Ministry of Finance of Vietnam as follows:

1. The collection agency shall submit all fee amounts collected to the state budget.

2. 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 No. 120/2016/ND-CP of Vietnam’s Government.

+ 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 Decree No. 120/2016/ND-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.

View more details at Circular No. 202/2016/TT-BTC of the Ministry of Finance of Vietnam, effective from January 01, 2017.

- Thanh Lam -

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE