Thông tư 38/2024/TT-BTC

CIRCULAR

PRESCRIBING ASSESSMENT OF OPERATIONS OF VALUATION ENTERPRISES; ESTABLISHMENT OF PROVISIONS FOR PROFESSIONAL RISKS, OPERATIONAL REPORTING BY VALUATION ENTERPRISES, AND COSTS ASSOCIATED WITH VALUATION OPERATIONS OF VALUATION COUNCILS

Pursuant to the Prices Law dated June 19, 2023;

Pursuant to the Government’s Decree No. 14/2023/ND-CP dated April 20, 2023 defining functions, tasks, powers and organizational structure of the Ministry of Finance of Vietnam;

At the request of the Director of the Department of Price Management;

The Minister of Finance of Vietnam promulgates a Circular prescribing assessment of operations of valuation enterprises; establishment of provisions for professional risks, operational reporting by valuation enterprises, and costs associated with valuation operations of valuation councils.

Article 1. Scope

This Circular elaborates on point e clause 10 Article 14 of the Prices Law regarding the assessment of operations of valuation enterprises; points e and h clause 2 Article 53 of the Prices Law regarding the establishment of provisions for professional risks, and operational reporting by valuation enterprises; clause 1 Article 65 of the Prices Law regarding costs associated with valuation operations of valuation councils.

Article 2. Regulated entities

Price authorities, regulatory authorities competent to establish valuation councils, valuation enterprises, valuers, and other relevant organizations and individuals.

Article 3. Assessment of operations of valuation enterprises

1. Contents of assessment

a) Maintenance of fulfillment of eligibility requirements to provide valuation services;

b) Compliance with regulations of law on valuation and fulfillment of obligations of valuation enterprises;

c) Cooperation in formulating and organizing the implementation of legislative documents on prices and valuation with the Ministry of Finance of Vietnam that plays the leading role in performing such tasks;

d) Cooperation in performing international cooperation tasks;

dd) Cooperation in performing state management of prices and valuation with Ministries, central-government authorities and local governments;

e) Cooperation in doing scientific researches in the field of valuation.

2. Assessment period: from January 01 to December 31 of the year preceding the year in which the assessment is carried out.

During the period from April 15 to the end of May 31 of each year, the Department of Price Management shall carry out assessment of operations of the valuation enterprises that meet all of the following conditions:

a) Have been issued with certificate of eligibility to provide valuation services before the assessment period;

b) Have fulfilled eligibility requirements to be satisfied by valuation enterprises for at least 06 months in the assessment period;

c) Have fulfilled eligibility requirements to be satisfied by valuation enterprises during the period in which the assessment is carried out.

Valuation enterprises shall submit the reports prescribed in point a clause 1 Article 5 of this Circular which shall be then used as the basis for assessment of their operations.

3. The assessment shall be carried out by scoring assessment contents on the basis of the following information:

a) Information/data in the reports prescribed in Point a Clause 1 Article 5 of this Circular;

b) Information/data obtained during the performance of state management of valuation in respect of valuation enterprises and valuers;

c) Information received from Ministries, central-government authorities, local governments, and other organizations and individuals (if any).

4. Each assessment content shall be considered a criterion comprising a set of subcriteria given specific scores (see Appendix I enclosed herewith).

5. The purpose of an assessment is to improve the operational quality of the assessed valuation enterprise. Assessment results will be published by the Department of Price Management on the website of the Ministry of Finance of Vietnam before June 30 each year. Assessment results do not reflect the quality of specific valuation certificates or valuation reports issued or made by valuers or valuation enterprises.

Article 4. Provisions for professional risks established by valuation enterprises

1. Each valuation enterprise that does not purchase professional liability insurance shall be required to establish a provision for professional risks and make an annual contribution equaling 1% of its revenues earned from provision of valuation services (exclusive of VAT) to its provision for professional risks at the end of the fiscal year. This contribution shall be recorded in the same manner as provision for payables.

2. If the closing balance on the provision for professional risks of a valuation enterprise exceeds 10% of its last 03 years' average revenue from provision of valuation services (exclusive of VAT), the excess amount shall be reversed and recorded as other incomes of the valuation enterprise.

3. Valuation enterprises shall formulate and promulgate their own internal regulations on management and use of provisions for professional risks.

4. When an enterprise terminates its provision of valuation services, the unused balance on its provision for professional risks shall be recorded as its other incomes.

Article 5. Operational reporting by valuation enterprises

1. Periodic reports:

a) Within the period from January 01 to March 31 each year, each valuation enterprise shall make a periodic report on its current status and certain valuation criteria using the form in Appendix II enclosed herewith. The report includes data collected from January 01 to December 31 of the year preceding the year in which the report is submitted. Such a report must be submitted by March 31 of the year preceding the year in which the report is submitted.

b) After December 15 each year, each valuation enterprise shall make a periodic report on the list of its valuers using the form in Appendix III enclosed herewith. The report includes data collected until December 15 of the reporting year. Such a report must be submitted by December 20 of the reporting year.

2. Periodic reports mentioned in clause 1 of this Article are submitted to the Ministry of Finance of Vietnam (via the Department of Price Management)

a) directly at the correspondence section of the Ministry of Finance of Vietnam;

b) by post;

c) by fax or via the following email: baocaotdg@mof.gov.vn (scanned copies); or

d) via the specialized reporting software system of the Ministry of Finance of Vietnam (if any).

3. Ad hoc reports: Valuation enterprises shall submit ad hoc reports on the compliance with regulations of law on valuation by the valuation enterprise and by its valuers

a) at the written request of the Ministry of Finance of Vietnam (via the Department of Price Management); or

b) at the written request of inspection authorities, state audit offices, or authorities competent to initiate proceedings, to serve the consideration of signs of violations involving valuation certificates and/or valuation reports issued or made by the valuation enterprises in accordance with regulations of laws on inspection and state audit, and the criminal procedure code.

4. Valuation enterprises assume responsibility for the accuracy and truthfulness of information and data provided in their reports.

Article 6. Costs associated with valuation operations of valuation councils

1. Expenditures on valuation operations conducted by valuation councils in the cases prescribed in clause 1 Article 65 of the Prices Law, and limits thereof are subject to the following provisions:

a) Business trip allowances are determined according to provisions of the Circular No. 40/2017/TT-BTC dated April 28, 2017 of the Ministry of Finance of Vietnam and its amending or superseding documents (if any);

b) Expenditures on surveys and collection of information on the property to be valued are determined according to point c clause 5 Article 3 of the Circular No. 109/2016/TT-BTC dated June 30, 2016 of the Ministry of Finance of Vietnam and its amending or superseding documents (if any);

c) Expenditures on preparation of reports on specialized descriptions or explanations serving the property valuation of the valuation council are determined according to clause 3 Article 1 of the Circular No. 42/2022/TT-BTC dated July 06, 2022 of the Minister of Finance of Vietnam and its amending or superseding documents (if any); the expenditure limit is VND 1.200.000/report;

d) Expenditures on meetings of the valuation council are determined according to clause 3 Article 1 of the Circular No. 42/2022/TT-BTC and its amending or superseding documents (if any);

dd) Expenditures on office stationery and printing of documents serving the property valuation are paid according to lawful invoices and receipts and do not exceed those specified in allocated cost estimates;

e) Expenditures on hiring of persons possessing professional certificates as prescribed to act as members of the valuation council, hiring of qualified inspection organizations to carry out inspection of technical-economic status and quality of property, and hiring of property valuation organizations (if any) are determined in accordance with regulations of law on bidding;

g) The head of the authority competent to establish the valuation council shall consider and decide other costs associated with valuation operations of the valuation council which are not mentioned in Points a, b, c, d and dd Clause 1 of this Article within his/her competence or request competent authorities to make decision on these costs in accordance with applicable laws.

2. Provisions on expenditures other than salaries of officials and public employees to be covered by state budget-funding enshrined in this Circular and other legislative documents referred to in this Circular shall apply until regulations on salary reform under the Resolution No. 27/NQ-TW dated May 21, 2018 of the 7^th Meeting of the 12^th Central Executive Committee come into force.

3. The authority competent to establish the valuation council shall make annual estimate of budget for covering costs of valuation operations of the valuation council, and submit it to a competent authority for approval. In case unexpected tasks are assigned during the year, an additional budget estimate shall be prepared in accordance with regulations of law on management of state budget.

4. Management, use and statement of funding used for covering costs of valuation operations conducted by valuation as prescribed in clause 1 of this Article shall be carried out in accordance with applicable regulations of law on management of state budget and in an economic and efficient manner that combats wastefulness.

Article 7. Effect

1. This Circular comes into force from July 01, 2024.

2. The following regulations shall cease to have effect from July 01, 2024:

a) The Circular No. 38/2014/TT-BTC dated March 28, 2014 of the Minister of Finance of Vietnam;

b) Article 2 of the Circular No. 76/2020/TT-BTC dated August 14, 2020 of the Minister of Finance of Vietnam;

c) The Circular No. 323/2016/TT-BTC dated December 16, 2016 of the Minister of Finance of Vietnam;

d) The Circular No. 60/2021/TT-BTC dated July 21, 2021 of the Minister of Finance of Vietnam;

dd) The Circular No. 25/2019/TT-BTC dated April 22, 2019 of the Minister of Finance of Vietnam.

Article 8. Implementation

1. Relevant organizations and individuals shall be responsible for implementation of this Circular.

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

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