Headlines 30/01/2020 13:47 CH

Regulations on collection of fees for administration and supervision of insurance business are about to take effect

Ngọc Duy

On January 3, 2020, the Ministry of Finance promulgated the Circular No. 01/2020/TT-BTC prescribing rates and regimes for collection, payment, administration and use of fees for administration and supervision of insurance business activities.

This Circular sets out regulations on insurance firms obtaining licenses in Vietnam and other entities or persons related to collection and payment of fees for administration and supervision of insurance business activities.

Rates of such fee are subject to the following regulations:

- Insurance firms, branches of foreign insurance corporations in Vietnam: 0.03% of direct insurance cost (after insurance cost reimbursement and reduction).

- Reinsurance firms: 0.03% of obtained reinsurance cost (after obtained reinsurance cost reimbursement and reduction).

- Insurance brokerage companies: 0.03% of insurance brokerage sales.

The Circular No. 01/2020/TT-BTC is entering into force on February 20, 2020 and commences from the financial year of 2020.

>> CLICK HERE TO READ THE ARTICLE IN VIETNAMESE

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