Methods for determining the cost of public service for urban lighting and urban green space in Vietnam from February 15, 2025

Methods for determining the cost of public service for urban lighting and urban green space in Vietnam from February 15, 2025

The methods for determining the cost components in the cost estimate of public service activities is guided in Annex No. 2 attached to Circular 12/2024/TT-BXD as follows:

- Direct costs include: costs of materials, labor costs, and costs for the use of vehicles, machinery, and construction equipment.

- General management costs include general expenses for the management apparatus, business operations; indirect expenses for management tasks; worker support expenses (including labor protection costs, tools expenses; excluding meal allowances already accounted for in direct labor costs); interest payments on bank loans and other credit institutions; social expenses employers must contribute to the state (social insurance, health insurance, trade union fees, unemployment insurance); fees and charges; costs of renting assets, workshop premises (if any); depreciation costs, repair of fixed assets serving enterprise management apparatus, audit costs for enterprises and other related expenses in providing public service activities.

General management costs in the cost estimate for public service activities are determined by applying a percentage (%) rate multiplied by direct labor costs or costs for vehicles, machinery, and construction equipment. The percentage rate for general management costs is prescribed by the provincial People's Committee and must align with the actual service provision conditions of the locality (refer to the rate in Section 2, Part I, Annex No. 2 attached to Circular 12/2024/TT-BXD).

- Pre-tax taxable income is calculated on direct costs and general management costs in the cost estimate for performing public service activities (refer to the rate in Section 3, Part I, Annex No. 2 attached to Circular 12/2024/TT-BXD).

- Value-added tax (if any): Implement according to the Ministry of Finance's regulations. For public service activities not subject to value-added tax, additional value-added tax is calculated for input costs.

More details can be found in Circular 12/2024/TT-BXD, effective from February 15, 2025.

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