Circular 28/2023/TT-BTC regulates the construction investment project appraisal fees

Recently, the Ministry of Finance issued Circular 28/2023/TT-BTC regulating the collection, payment, management, and use of construction investment project appraisal fees, replacing Circular No. 209/2016/TT-BTC dated November 10, 2016.

Basic information of Circular 28/2023/TT-BTC regulates the construction investment project appraisal fees

• Symbol number: 28/2023/TT-BTC
• Date of issue: July 1, 2023
• Effective date: July 1, 2023
• Document type: Circular
• Issuing agency: Ministry of Finance
• Signed by: Cao Anh Tuan

New points of Circular 28/2023/TT-BTC regulates the construction investment project appraisal fees

Scope

• Appraisal of Feasibility Study Report.
• Appraisal of technical and economic reports.

Meanwhile, previous Circular No. 209/2016/TT-BTC stipulated the collection rates, collection, payment, management, and use of construction appraisal fees and basic design appraisal fees.

Applicable subjects

• Fee payer;
• Organize fee collection;
• Other relevant organizations and individuals involved in collecting and paying construction investment project appraisal fees.

Circular 28/2023/TT-BTC has expanded the subjects of application compared to Circular 209/2016/TT-BTC before to include investors, state agencies competent to evaluate construction investment projects and determine the basic design, and other organizations and individuals related to the collection and payment of construction investment project appraisal fees and basic design appraisal fees.

Regulations on fee payers

• The investor or the agency assigned to prepare the construction investment project is specified in Decree 15/2021/ND-CP.
• The investor and the agency assigned to pay the fee upon receiving the appraisal results.

Meanwhile, the previous circular stipulates that the fee payer is the investor when appraised by a competent construction agency specified in Decree 59/2015/ND-CP and the investor. Therefore, not all investors are allowed to pay fees but must be assigned the task of paying fees.

Regulations on fee collection organizations

• The specialized construction agency has the authority to appraise.
• The specialized agency under the investment decider has the authority to appraise.

The old circular stipulates that the toll collection organization is the state agency with the authority to evaluate construction investment projects and basic design authority. Instead of a competent agency, a specialized agency has enough experience and specialized knowledge to meet the fee collection according to the new, more complex fee levels prescribed in Circular 28/2023/TT-BTC.

Regulations on fee levels

Fees for appraisal of construction investment projects (fees for appraisal of construction investment feasibility study reports or fees for appraisal of economic-technical reports for construction investment) are specified in the issued fee schedule attached to Circular 28/2023/TT-BTC.

Fees calculated as a percentage of the total project investment are applied at each appraisal agency.

Determine the amount of construction investment project appraisal fee (Clause 2, Article 4, Circular 28/2023/TT-BTC )

• The basis for determining the amount of construction investment project appraisal fee is the total investment (calculated according to the value of the appraisal request) and the fee rate (specified in the Fee Rate Schedule), specifically as follows:

Amount of fee payable = Total investment x Fee level

• In case the project has a total investment within the range between the total investment levels recorded on the Fee Collection Table issued with Circular 28/2023/TT-BTC, the appraisal fee is determined according to the following formula:

Nit = Nib – [(Nib – Nia)/(Gia – Gib)] x (Git – Gib)

In there:

• Nit is the appraisal fee for the i times project according to the value scale to be calculated (unit: percentage).
• Git is the value scale of the i times project that needs to calculate appraisal fees (unit: project value).
• Gia is the upper bound value scale of the value scale that needs to calculate the appraisal fee (calculation unit: project value).
• Gib is the value scale below the value scale that needs to calculate the appraisal fee (unit: project value).
• Nia is the appraisal fee for the ith project corresponding to Gia (unit: percentage).
• Nib is the appraisal fee for the ith project corresponding to Gib (unit: percentage).

The fee level according to the total project investment is specified in the Fee Schedule issued with Circular 28/2023/TT-BTC.

• The fee for appraisal of construction investment projects for urban areas is determined according to the instructions in Point a, Clause 2, Article 4 of Circular 28/2023/TT-BTC, in which the total investment proposed for appraisal is the basis. Fees do not include compensation, site clearance, support, and resettlement costs in the project.
• The maximum construction investment project appraisal fee is not more than 150,000,000 VND/total project investment/appraisal agency and the minimum is not less than 500,000 VND/total project investment/appraisal agency.
• Construction investment project appraisal fees for small-scale construction works, construction works used for religious purposes, and other works prescribed by the Government (appraisal of economic-technical reports) determined according to the instructions in point a, clause 2, Article 4 of Circular 28/2023/TT-BTC.

Note:

• For construction investment projects, specialized construction agencies and appraisal agencies belonging to the investment decider require the investor to select a qualified organization or individual as a basis for appraisal. Fees are equal to 50% of the fees specified in the Fees Schedule issued with Circular 28/2023/TT-BTC.
• For large-scale construction investment projects or works that greatly affect safety and community benefits using capital other than those specified in Clause 15, Article 1 of the Law amending and supplementing several articles of the Construction Law: Fees are equal to 50% of the fees specified in the Fees Schedule issued with Circular 28/2023/TT-BTC.
• For adjusted construction investment projects:
• In case of project adjustment using basic design appraisal content and total investment assessed before adjustment: The fee rate is equal to 50% of the fee rate specified in the Fee Rate Schedule issued with Circular 28/2023/TT-BTC.
• In case the project is adjusted without using the basic design content and total investment assessed before adjustment: The fee rate is equal to 100% of the fee rate specified in the Fee schedule issued with Circular 28/2023/TT-BTC.
• In case a specialized construction agency is also the appraisal agency of the person deciding on the investment: The fee level is equal to 150% of the fee level specified in the Fee schedule issued with Circular 28/2023/TT-BTC.

Thus, compared to Circular 209/2016/TT-BTC, Circular 28/2023/TT-BTC has added a minimum fee for the appraisal of construction investment projects. This helps fee payers determine the fee to be paid more easily and economically for each level of the project while also making it easier for competent organizations to collect appraisal fees.

If you need advice on the construction investment project appraisal fees, please contact Viet An Law Firm for the best support.