Expectation to adjust the Vietnam Fly-Over Fee

Illustrative photo.

This draft basically retains the content of current regulations in Circular No. 196/2015 / TT-BTC issued from Ministry of Finance but there are several changes on the organizing of collection and remittance to fit the new Law on Fees and Charges.

Accordingly, the amount of fees are expected to remain the same and calculated on maximum take off load.

In detail, with flights that usually have distance to fly over Vietnam less than 500 km, the fee will be from $115 USD/flight to $480 USD/flight; 500km or above will be from $129 USD/flight to $520 USD/flight.

For flights over Vietnam's airspace and over flight information in regions managed by Vietnam, the corresponding revenue will be $61USD/flight to $253USD/flight or $68 USD/flights to $274 USD/flight.

With non-scheduled flights, the fee will be by 120% of above revenue.

Flights not for commercial purpose will be free, which includes: Special aircraft flights; public service flights; flights for search and rescue, transport of humanitarian aid, flood relief, natural disasters and other humanitarian missions.

Vietnam fly-over fees are revenue of the state budget, and not subject to value added tax. Vietnam Air Traffic Management Corporation is responsible for charging and pay back 100% to central budget.

Simultaneously, the responsibility of the Vietnam Air Traffic Management Corporation is monthly, within the first 20 days of the following month, the department must declare with Tax offices where headquartered and emitted into central budget the amount of fees to fly over Vietnam actually collected in the preceeding month, instead of the fees that were actually collected in the month.

The settlement of fee income to fly over Vietnam is in the draft regulation of the Ministry of Finance that was specifically given to the Vietnam Air Traffic Management Corporation for performing declaration and payment and settlement of charges reported for flying over Vietnamese airspace under the provisions of the Decree of the Government detailing the implementation of the Law on Fees and charges, instead of the Law on Tax Administration and guiding documents.