CIRCULAR

PRESCRIBING FEES FOR PROCESSING OF APPLICATIONS FOR ELECTRICITY LICENSES, COLLECTION, TRANSFER, MANAGEMENT AND USE THEREOF

Pursuant to the Law on fees and charges dated November 25, 2015;

Pursuant to the Law on state budget dated June 25, 2015;

Pursuant to the Law on electricity dated December 03, 2004; the Law on amendments to the Law on electricity dated November 20, 2012;

Pursuant to the Law on tax administration dated June 13, 2019;

Pursuant to the Government's Decree No. 120/2016/ND-CP dated August 23, 2016 on elaboration of the Law on fees and charges;

Pursuant to the Government’s Decree No. 137/2013/ND-CP dated October 21, 2013 on elaboration of the Law on electricity and the Law on amendments to the Law on electricity;

Pursuant to the Government’s Decree No. 08/2018/ND-CP dated January 15, 2018 on amendments to Decrees related to business requirements in fields under the management of the Ministry of Industry and Trade;

Pursuant to the Government’s Decree No. 17/2020/ND-CP dated February 05, 2020 on amendments to Decrees related to business requirements in fields under the management of the Ministry of Industry and Trade;

Pursuant to the Government’s Decree No. 87/2017/ND-CP dated July 26, 2017 defining functions, tasks, powers and organizational structure of the Ministry of Finance;

At the request of the Director of the Tax Policy Department;

The Minister of Finance promulgates a Circular prescribing fees for processing of applications for electricity licenses, collection, transfer, management and use thereof.

Article 1. Scope and regulated entities

1. This Circular stipulates fees for processing of applications for electricity licenses, collection, transfer, management and use thereof.

2. This Circular applies to applicants for electricity licenses, licensing authorities and other organizations and individuals involved in the processing of applications for electricity licenses.

Article 2. Payers

When submitting applications for electricity licenses, applicants are required to pay fees in accordance with regulations hereof. Fees may be paid in cash directly to collectors or by transfer to collectors’ accounts opened at State Treasury.

Article 3. Collectors

The Electricity Regulatory Authority of Vietnam (affiliated to the Ministry of Industry and Trade) and provincial Departments of Industry and Trade shall collect fees for processing applications for electricity licenses in accordance with regulations hereof.

Article 4. Fees

1. Fees for processing applications for electricity licenses are prescribed in the Fee Schedule enclosed herewith.

2. The fee for processing of an application for modification of electricity license shall be equal to 50% of the corresponding fee prescribed in the Fee Schedule enclosed herewith.

Article 5. Fee declaration and transfer

1. Collectors shall transfer the fees collected in the previous month to the dedicated account opened at the State Treasury by the 05th every month.

2. Collectors shall monthly declare and pay fees, and make annual statements of collected fees in accordance with regulations of the Law on tax administration and the Government’s Decree No. 126/2020/ND-CP dated October 19, 2020.

Article 6. Fee management and use

1. Collectors must fully pay collected fees to state budget. Expenditures on processing of applications and fee collection shall be covered by funding from state budget and specified in the collector's expenditure estimate under spending policies and limits prescribed by law.

2. If a collector is provided with a predetermined funding for covering its operating expenses as prescribed in Clause 1 Article 4 of the Government's Decree No. 120/2016/ND-CP dated August 23, 2016, it shall retain 90% of total amount of collected fees to cover its expenditures as prescribed in Article 5 of the Government's Decree No. 120/2016/ND-CP, in which other expenditures include costs of hiring expert consultants. The collector shall transfer the remaining amount (10%) of collected fees to state budget according to corresponding chapter, item and sub-item in the applicable State Budget Index.

Article 7. Implementation

1. This Circular comes into force from January 22, 2021 and supersedes the Circular No. 167/2016/TT-BTC dated October 26, 2016 of the Minister of Finance and the Circular No. 12/2020/TT-BTC dated March 03, 2020 of the Minister of Finance.

2. Other contents related to the declaration, collection, management and transfer of fees, and annoucement of fee collection policies, which are not provided for in this Circular, shall be performed in accordance with regulations of the Law on fees and charges, the Government's Decree No. 20/2016/ND-CP dated August 23, 2016, the Law on tax administration, the Government's Decree No. 126/2020/ND-CP dated October 19, 2020, and Circular No. 303/2016/TT-BTC dated November 15, 2016 of the Minister of Finance.

3. If any legislative documents referred to in this Circular are amended, supplemented or superseded, the new ones shall apply.

4. Difficulties that arise during the implementation of this Circular should be promptly reported to the Ministry of Finance for consideration./.

SCHEDULE OF FEES FOR PROCESSING OF APPLICATION FOR ELECTRICITY LICENSES

(Enclosed with the Circular No. 106/2020/TT-BTC dated December 08, 2020 of the Minister of Finance)

Notes:

1. The fee for processing of an application for electricity license covering at least two electricity activities is calculated as follows:

Where: - P1: The highest fee among the fees paid for electricity activities requiring the license (as prescribed in the abovementioned fee schedule);

- Pi: Fees paid for the remaining electricity activities requiring the license;

- 0,4: adjustment coefficient.

2. For electricity distribution license: if total transmission line length and total capacity of electrical substations do not fall within the same fee level specified in Section IV of the abovementioned fee schedule, the higher fee shall apply.

E.g.: An entity applies for a license for electricity distribution with total transmission line length longer than 3000 km and total capacity of electrical substations of less than 300 MVA, the fee shall be VND 21.800.000 which is determined according to total transmission line length longer than 3000 km./.

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