Vietnam: On what basis shall the provincial-level People’s Council decide on the exemption or reduction of fees and charges?

According to Circular No. 85/2019/TT-BTC of the Ministry of Finance of Vietnam, the provincial-level People’s Council shall prescribe in detail entities entitled to fee or charge exemption or reduction; rate of reduction in fees or charges within its jurisdiction, but adhere to the principles specified in Clause 1 Article 10 of the Law on Fees and Charges of Vietnam.

Circular No. 85/2019/TT-BTC stipulates that the decision on exemption or reduction shall be based on:

- Regulations laid down in specialized laws and documents specifying and providing guidance on implementation of laws related to fee or charge exemption or reduction;

- Schemes or policies adopted by the Communist Party and Government over periods of time with respect to policies related to fee or charge exemption or reduction;

- The economic and social conditions of the local area where the service provision activities and fee/charge collection occur.

Notably, other contents related to collection and payment of fees or charges on which guidance is not given in this Circular shall comply with instructions laid down in the Law on Fees and Charges, Decree No. 120/2016/ND-CP dated August 23, 2016 of Vietnam’s Government specifying and providing guidance on implementation of certain articles of the Law on Fees and Charges; Circular No. 156/2013/TT-BTC dated November 06, 2013 of the Minister of Finance of Vietnam providing guidance on implementation of certain articles of the Law on Tax Administration; the Law on amendments or supplements to certain articles of the Law on Tax Administration and Decree No. 83/2013/ND-CP dated July 22, 2013 of Vietnam’s Government and Circular No. 303/2016/TT-BTC dated November 15, 2016 of the Minister of Finance of Vietnam guiding the printing, issuance, management and use of documents for the collection of charges and fees belonging to the state budget.

View full text at Circular No. 85/2019/TT-BTC of the Ministry of Finance of Vietnam, effective from January 13, 2020.

Thu Ba

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