CIRCULAR

GUIDING THE STATE-INVESTED NATIONAL RAILWAY INFRASTRUCTURE CHARGE AND RENT RATES AND COLLECTION MODE

Pursuant to the Governments Decree No. 170/2003/ND-CP of December 25, 2003, detailing the implementation of a number of articles of the Ordinance on Price;
Pursuant to the Governments Decree No. 60/2003/ND-CP of June 10, 2003, detailing and guiding the implementation of the State Budget Law;
Pursuant to the Governments Decree No. 57/2002/ND-CP of June 3, 2002, detailing the implementation of the Ordinance on Charges and Fees, and the Governments Decree No. 24/2006/ND-CP of March 6, 2006, amending and supplementing a number of articles of Decree No. 57/2002/ND-CP;
Pursuant to the Governments Decree No. 85/2007/ND-CP of May 25, 2007, detailing the implementation of a number of articles of the Tax Administration Law;
Pursuant to the Government s Decree No. 77/2003/ND-CP of July 1, 2003, defining the functions, tasks, powers and organizational structure of the Ministry of Finance;
Pursuant to the Prime Minister s Decision No. 84/2007/QD-TTg of June 11, 2007, on the State-invested national railway charge and rent rates and collection mode;

The Ministry of Finance guides the State-invested national railway infrastructure charge and rent rates and collection mode as follows:

I. SCOPE AND SUBJECTS OF APPLICATION

1. This Circular guides the State-invested national railway infrastructure charge and rent rates and collection mode.

2. Subjects of application of this Circular are organizations and individuals engaged in the management and use of, and dealing in, State-invested national railway infrastructures.

3. The State-invested national railway infrastructure system covers:

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- The road system: Main rail routes, station railways, cargo yard railways, cargo-handling railways, road sections leading to railway stations or cargo yards belonging to road systems managed by the railway sector, switches, embankments, railway fences, water drainage systems, retaining walls, signboards and marker post systems, locomotive and carriage operation facilities and other support works necessary for organization of train operation.

- Communications and signaling equipment systems: Station entry and exit signals, signaling cable systems, communications cable systems, train operation control equipment, concentrated operation and control systems, transmission system, source system, switchboards, communications-power control houses, power supply system.

- Architectural system: Waiting lounges, booking counters, luggage and cargo warehouses, station plazas and platforms, fences, wings, cargo yards, switch posts, barrier posts, bridge posts, tunnel posts, crossroad barrier equipment.

4. In case a treaty to which the Socialist Republic of Vietnam is a contracting party otherwise provides for the chaige and rent rates for State-invested national railway infrastructures, the provisions of that treaty prevail.

II. STATE-INVESTED NATIONAL RAILWAY INFRASTRUCTURE CHARGES

1. The charge for use of State-invested national railway infrastructures constitutes a state budget revenue. Monthly, within the first 20 days of the following month, railway transport enterprises shall declare the amounts of payable charge for use of railway infrastructures equal to 8% of the railway transport turnover in the month with the tax offices of the localities where they are headquartered according to Form 01/PHLP promulgated together with Circular No. 60/2007/TT-BTC of June 14, 2007, of the Ministry of Finance, guiding the implementation of the Tax Administration Law and the Governments Decree No. 85/2007/ND-CP of May 25, 2007, detailing the implementation of a number of articles of the Tax Administration Law.

2. By the 25th day of the following month at the latest, the railway transport enterprises shall pay the railway infrastructure charges into the central budget according to corresponding chapter, type, clause, item and sub-item of the current State Budget Contents at the State Treasuries in the localities.

3. The railway transport enterprises are entitled to account the payable charge amounts for use of railway infrastructure into reasonable railway transport business expenses when determining incomes liable to corporate income tax.

4. By the 90th day after the end of a calendar year at the latest, the railway transport enterprises shall declare the final settlement with the tax offices of the localities where they are headquartered of the charge amounts for use of railway infrastructure according to Form 02/ PHLH attached to Circular No. 60/2007/TT-BTC of June 14, 2007, of the Ministry of Finance.

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1. List of services with rent rate bracket set by the State

The list of services defined in the price bracket for lease of State-invested national railway infrastructures (not related to train operation) covers:

- Warehouse- and yard-leasing service;

- Goods sale location-leasing service;

- Advertisement location- leasing service;

- Other services involving the use of railway infrastructures.

2. Price bracket formulation, submission and appraisal order

2.1. The Vietnam Railway Corporation formulates the price bracket scheme and submits it to the Transport Ministry for consideration, appraisal and written proposal to the Finance Ministry to set the service price bracket for lease of State-invested national railway infrastructures.

2.2. A dossier of proposal to approve the price bracket comprises:

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- The Transport Ministrys written appraisal of the price bracket for lease of State-invested national railway infrasuuctures.

- The price bracket scheme formulated by the Vietnam Railway Corporation, explaining the following contents:

+ The necessity to set or adjust the price bracket: the situation of production and provision of railway infrastructure-leasing services on list of those with price bracket set by the State.

+ The railway infrastructure-leasing turnover; expenses directly related to the leased railway infrastructures (wages, remuneration, other direct expenses...); the level of prices of the same type of service on the market.

+ Measures for application of new prices.

+ Other relevant documents.

2.3. Based on the national railway infrastructure-leasing price bracket set by the Ministry of Finance and the practical situation of each locality, railway infrastructure-dealing enterprises promulgate the specific prices applicable to each type of service and publicize them to organizations and individuals for implementation.

3. Railway infrastructure rent-collection mode

3.1. Monthly, within the first 20 days of the following month, railway infrastructure-dealing enterprises shall declare the payable amount equal to 20% of the revenue from railway infrastructure lease with the tax offices according to Form 01/PHLP attached to the Finance Ministrys Circular No. 60/2007/TT-BTC of June 14, 2007, guiding the implementation of a number of articles of the Tax Administration Law and the Governments Decree No. 85/2007/ND-CP of May 25. 2007, detailing the implementation of a number of articles of the Tax Administration Law.

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3.3. When collecting the railway infrastructure rents, the railway infrastructure-dealing enterprises issue added value invoices to the lessees on the entire revenue according to rent rates (excluding 20% deducted for payment into the state budget). Enterprises may calculate the state-budget payable amounts equal to 20% of the revenue from railway infrastructure lease into their reasonable expenses when determining incomes liable to corporate income tax.

3.4. By the 90th day after the end of a calendar vear at the latest, the railwav infrastructure-dealina enterprises shall declare the final settlement of their revenue from railway infrastructure lease with the tax offices of the localities where they are headquartered according to Form 02/PHLH attached to the Finance Ministrys Circular No. 60/2007/TT-BTC of June 14, 2007.

IV. MANAGEMENT AND USE OF STATE-INVESTED NATIONAL RAILWAY INFRASTRUCTURE CHARGE AND RENT

1. The entire collected charge amount for use of railway infrastructures and 20% of the revenue from railway infrastructure lease shall be included in the annual budget estimates for spending on the management, maintenance and repair of the State-invested railway system according to the State Budget Law.

2. The Transport Ministry shall assign the estimates of railway infrastructure use charge and the amount equal to 20% of the revenue from railway infrastructure lease to the Railway Corporation as follows:

- The total railway transport turnover; the total railway infrastructure-leasing turnover.

- The total collected amount of charge for use of railway infrastructure (8% of the earned railway transport turnover) and the amount equal to 20% of the revenue from railway infrastructure lease payable into the state budget.

3. The financial management, the plan assignment, the payment of economic non - business capital for state companies performing the public-utility tasks in the management and maintenance of State-invested national railways comply with the Finance Ministrys Circular No. 136/2007/TT-BTC of November 28, 2007, guiding the financial management, plan assignment, payment of economic non-business capital to state companies performing the public-utility tasks in the management and maintenance of State-invested national railways.

V. ORGANIZATION OF IMPLEMENTATION

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2. If problems arise in the course of implementation, ministries, branches, localities and enterprises should promptly report them to the Finance Ministry for study and guidance.

FOR THE MINISTER OF FINANCE
VICE MINISTER




Truong Chi Trung