Circular No. 40-TC/GTBD dated April 25, 1994 of the Ministry of Finance regulations on collecting and utilizing the revenue source of commercial jurisdiction in air transportation
THE MINISTRY OF FINANCE
SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
Hanoi, April 25, 1994
REGULATIONS ON COLLECTING AND UTILIZING THE REVENUE SOURCE OF COMMERCIAL JURISDICTION IN AIR TRANSPORTATION
Pursuant to Article 58, chapter V of the Law on Vietnam Civil Aviation
Pursuant to Decree No 242/HDBT dated 30 June 1992 of the Council of Ministers (now, the government) on the establishment of the Vietnam Civil Aviation Department.
On the basis of the aviation treaties signed between the Government of the Socialist Republic of Vietnam and the Governments of other countries.
To solely manage and utilize the revenue source of commercial jurisdiction in air transportation from the foreign Airlines concerned, the Ministry of Finance hereby stipulates the following regulations:
I. GENERAL PROVISIONS
1/ Revenue source of commercial jurisdiction represents a state owned revenue, arising from the imbalance of transportation between foreign airlines which are appointed to fly in partnership with domestic Airlines or from the implementation of air transport treaties and agreements that Vietnam has signed with the foreign countries, or in cases that irregular flights of foreign Airlines are entitled to fly or out of Vietnam.
2/ To protect the interest of the state and the branch as well , the Vietnam Civil Aviation Department is responsible for giving instructions to the domestic Airlines on collecting revenue of commercial jurisdiction from the foreign Airlines concerned.
II. CONCRETE PROVISIONS
1/ Objects of commercial jurisdiction payment
Objects having to pay for commercial jurisdiction include:
- The foreign Airlines which are appointed to fly in partnership with Vietnam Airlines, carrying passengers, luggage and cargo between two countries during the implementation of an Air-transportation agreement.
- Regular flights of foreign Airlines, carrying passengers, luggage and cargo from Vietnam to the third country or returning from the there in accordance with a governmental agreement but not basing on the principle of balanced exchange of tonnage with Vietnamese Airlines.
- Leasing flights, except that of humanity character such as carrying the sick people, the repatriating people, etc.
2. Volume of payments for commercial jurisdiction
The Head of Vietnam Civil Aviation Department shall consider and make his decision on the volume of payments for commercial jurisdiction or he may trust the domestic airlines to hold the talk on this issue with the foreign counterparts. The obtained agreement must be submitted to the Head of Vietnam Civil Aviation Department for approval.
3. Revenue source of commercial jurisdiction management:
a/ The appointed domestic Airlines shall, on the basis of the volume of payments to be applied to the foreign Airlines approved by the Head of Vietnam Civil Aviation Department, assume the direction of collecting the payment, opening the book-keeping register to keep business account of the revenue of commercial jurisdiction in compliance with the valid at present provisions of the Ordinance on Accounting and the statistics, making payment registration at the local tax office.
b/ Revenue source of commercial jurisdiction shall be allocated as follows:
- At maximum 10% the total revenue shall be spent for covering the expenses of related operation such as : holding the talks, communication and information, stationary, management fee, booking, calculating and controlling the allocated revenue, etc.
Along with the accounting of transportation cost, the domestic airlines have to conduct the separated accounting of the expenditure, arising directly from the collection of this revenue.
- 4% of the total revenue shall be deducted to the reward fund of domestic Airlines. But the volume of this fund, including bonus from the profits of air transportation business and that from the source of commercial jurisdiction, must not exceed the limit as stipulated at present for the state-run enterprises.
- The remainder (after covering the expenditures and being deducted to the reward fund) shall go to the State budget through a system of treasury where the Airlines had its head office.
c/ Every month and not later than the 5th, the Airlines must draw up a payment slip in a generally established from and submit it to the local tax office, the last shall be responsible for co-ordinating with the Airlines and supervising them to pay the revenue of commercial jurisdiction to the State budget.
Every year, along with approving the Airlines' balance sheet of production and business. The figures of receipts, allowable expenditure and payment to the State budget. From the revenue source of commercial jurisdiction shall be stated.
III. PROVISION FOR IMPLEMENTATION
This circular shall go into effect from 01 January 1994. If any problem arise from the implementation, it is proposed to report to the Ministry of Finance in time for studying and making adjustment.
FOR THE MINISTRY OF FINANCE
Pham Van Trong