Regulations on insurance management and supervision fees
On January 3, 2020, the Ministry of Finance issued Circular No. 01/2020/TT-BTC regulating the rate, regime of collection, payment, management, and usage of fees for insurance management and supervision activities. ("Circular 01/2020"), takes effect from February 20th, 2020, and will apply from the fiscal year 2020.
Accordingly, the payer is insurance business organizations which are licensed to establish and operate in Vietnam, with the corresponding fee rates as follows:
- - Insurance enterprises, branches of foreign insurers in Vietnam: 0.03% of original insurance premiums (after deducting refunds, reduction of original insurance premiums).
- - Re-insurance enterprise: 0.03% of reinsurance receipt fee (after deducting refunds, reduction of re-insurance fee).
- - Insurance brokerage enterprises: 0.03% of revenue from insurance brokerage activities.
The Agency for Insurance Supervisory and Management (Ministry of Finance) will oversee the fee collection. Fee payers shall submit fees for management and supervision of insurance activities to accounts of fee collectors containing fees waiting to be submitted to the state budget at State Treasury. The above fee is calculated yearly and paid in 2 installments, the specific deadline and method are as follows:
Installment 1: No later than August 31st every year, the payer shall calculate and pay the fee for management and supervision of insurance activities for the first 6 months of the year:
Payable fee = original premium (or reinsurance premium or insurance brokerage revenue) first 6 months x 0.03%.
Installment 2: No later than April 30th of the following year, the payer shall calculate and pay the fee for management and supervision of insurance activities for the preceding fiscal year (Instalment 2) as follows:
Payable fee = original premium (or reinsurance premium or insurance brokerage revenue) in the preceding fiscal year x 0.03% - the first paid fee.