
- 1 Law No. 78/2006/QH11 of November 29, 2006 on tax administration
- 2 Law No. 14/2008/QH12 of June 3, 2008, on enterprise income tax.
- 3 Decree No. 130/2013/ND-CP of October 16, 2013, on the production and provision of public-utility products and services
- 4 Decree No. 46/2014/ND-CP dated May 15, 2014, regulations on collection of land rent and water surface rent
- 5 Law No. 68/2014/QH13 dated November 26, 2014, on enterprises
- 6 Decree No. 45/2014/ND-CP dated May 15, 2014, providing the collection of land use levy
MINISTRY OF FINANCE | SOCIALIST REPUBLIC OF VIETNAM |
No. 14/2016/TT-BTC | Hanoi, January 20, 2016 |
CIRCULAR
FINANCE MECHANISM APPLIED TO WHOLLY STATE-OWNED SINGLE-MEMBER LIMITED LIABILITY COMPANIES PARTICIPATING IN POLITICAL OBJECTIVES, ASSURANCE OF SOCIAL SECURITY, AND REGULATION OF SUPPLY AND DEMAND OF THE ECONOMY
Pursuant to the Government's Decree No. 215/2013/ND-CP dated December 23, 2013 defining the functions, tasks, entitlements and organizational structure of the Ministry of Finance;
In the Furtherance of Deputy Prime Minister Vu Van Ninh's Notice No. 146/TB-VPCP dated April 0, 2014;
After reaching a consensus with the Ministry of Labor, War Invalids and Social Affairs in Dispatch No. 3657/LDTBXH-KHTC dated September 11, 2015;
At the request of Director of Corporate Finance Administration;
The Minister of Finance promulgates a Circular on finance mechanism applied to wholly state-owned single-member limited liability companies participating in political objectives, assurance of social security, and regulation of supply and demand of the economy,
Chapter I
...
...
...
Mọi chi tiết xin liên hệ: ĐT: (028) 3930 3279 DĐ: 0906 22 99 66
Article 1. Regulated entities and scope
1. Scope: This Circular provides guidance on finance mechanism applied to wholly state-owned single-member limited liability companies operating under the Law on Enterprises and participating in political objectives, assurance of social security, and regulation of supply and demand of the economy under the Prime Minister’s Decisions or voluntarily according to state policies for purposes other than making a profit and accepted by the Prime Minister.
2. Regulated entities: Wholly state-owned single-member limited liability companies (business corporations, general companies, companies) participating in political objectives, assurance of social security, and regulation of supply and demand of the economy; owner’s representative agencies, agencies, organizations, and individuals relevant to fulfillment of political objectives, assurance of social security, and regulation of supply and demand of the economy.
3. Activities in national defense and security, provision of public products and services specified in the Government's Decree No. 130/2013/ND-CP dated October 16, 2013 and the Government's Decree No. 93/2015/ND-CP dated October 15, 2015 are not regulated by this Circular.
Article 2. Interpretation of terms
For the purpose of this Circular, the terms below are construed as follows:
1. "wholly state-owned single-member limited liability companies" (hereinafter referred to as enterprises) include:
a) Single-member limited liability companies that are parent companies of business corporations; parent companies of state-owned corporations; parent companies in parent company-subsidiary company relationship;
b) Independent single-member limited liability companies affiliated to Ministries, regulatory bodies, the People’s Committees of provinces, or corporations.
...
...
...
Mọi chi tiết xin liên hệ: ĐT: (028) 3930 3279 DĐ: 0906 22 99 66
2. "political objectives, assurance of social security, and regulation of supply and demand of the economy" (hereinafter referred to as "political objectives") are objectives under directives or decisions of the Prime Minister or voluntarily performed according to state policies for purposes other than making a profit and accepted by the Prime Minister.
3. "business operation" includes business activities of an enterprise other than political objectives.
Chapter II
GENERAL PROVISIONS
Section I: FINANCE MECHANISM APPLIED TO WHOLLY STATE-OWNED SINGLE-MEMBER LIMITED LIABILITY COMPANIES PARTICIPATING IN POLITICAL OBJECTIVES, ASSURANCE OF SOCIAL SECURITY, AND REGULATION OF SUPPLY AND DEMAND OF THE ECONOMY
Article 3. Mechanism for exemption and reduction of land rents, land levies, water surface rents
Any enterprise participating in accomplishment of political objectives that satisfy conditions for exemption or reduction of land rents, land levies, or water surface rents shall be granted exemption or reduction of land rents, land levies, or water surface rents on the area of land or water surface serving accomplishment of political objectives as prescribed in the Government's Decree No. 45/2014/ND-CP dated May 15, 2014 on collection of land levies and the Government's Decree No. 46/2014/ND-CP dated May 15, 2014 on collection of land rents, water surface rents, and amendments thereto (if any).
Procedures for granting exemption and reduction of land rents, land levies, water surface rents shall comply with the Law on Tax administration and its instructional documents.
Article 4. Revenue management
...
...
...
Mọi chi tiết xin liên hệ: ĐT: (028) 3930 3279 DĐ: 0906 22 99 66
Article 5. Expenditure management
Expenditures incurred during participation in accomplishment of political objectives shall be separately, reasonably, and legitimately accounted for in accordance with the Law on Corporate income tax and relevant legislative documents.
Enterprises shall open detailed accounting books to separately monitor expenditures incurred during participation in accomplishment of political objectives as follows:
1. Fixed assets, current assets dedicated to accomplishment of political objectives, and other expenditures serving accomplishment of political objectives shall be accounted for according to actual documents.
2. If it is not possible to separate fixed assets, current assets, and other expenditures serving accomplishment of political objectives, expenditures (including depreciation of fixed assets and costs of current assets and other costs) shall be accounted for according to the ratio of revenue from business operation and provision of products and services during participation in accomplishment of political objectives to total revenue from the enterprise's overall business operation.
Article 6. Amounts payable to state budget
Amounts payable to state budget shall comply with effective regulations.
Article 7. Settlement of difference between revenue and expenditure
The difference between revenue and expenditure of business operation and provision of products and services during participation in accomplishment of political objectives shall be aggregated with the enterprise's business outcomes when determining corporate income tax as prescribed by law;
...
...
...
Mọi chi tiết xin liên hệ: ĐT: (028) 3930 3279 DĐ: 0906 22 99 66
- The revenue is smaller than expenditure, the difference shall be offset against by the profit from the enterprise's overall business operation.
Article 8. Accounting and audit
1. The enterprise shall make separate reports on accomplishment of political objectives according to the Appendix enclosed herewith.
2. The enterprise shall make and submit reports on accomplishment of political objectives together with annual financial statements to the owner’s representative agency and the finance authority at the same level.
3. Enterprises their financial statements audited, including revenues and expenditures on accomplishment of political objectives as the basis for provision of subsidies or grant of exemption or exemption of land levies, land rents, water surface rent, and preferential corporate income tax .
Article 9. Accounting
The account system applied to enterprises shall be used.
Section II: ASSESSMENT OF BUSINESS EFFECTIVENESS OF COMPANIES PARTICIPATING IN POLITICAL OBJECTIVES, ASSURANCE OF SOCIAL SECURITY, AND REGULATION OF SUPPLY AND DEMAND OF THE ECONOMY
Article 10. Exemptions when assessing business effectiveness and drawing up salary budgets of enterprises participating in accomplishment of political objectives
...
...
...
Mọi chi tiết xin liên hệ: ĐT: (028) 3930 3279 DĐ: 0906 22 99 66
1. Assessment of the enterprise's capital preservation level.
2. Ranking of the enterprise or its manager.
3. Commendation for the enterprise or its manager.
4. The allocation of the annual salary budget and actual salaries for the enterprise's employees and manager.
Chapter III
IMPLEMENTATION
Article 11. Effect
1. This Circular comes into force form March 07, 2016.
2. Difficulties that arise during the implementation of this Circular should be reported to the Ministry of Finance for consideration./.
...
...
...
Mọi chi tiết xin liên hệ: ĐT: (028) 3930 3279 DĐ: 0906 22 99 66
PP MINISTER
DEPUTY MINISTER
Tran Van Hieu
APPENDIX
(Enclosed with Circular No. 14/2016/TT-BTC dated January 20, 2016 of the Ministry of Finance)
REPORT ON BUSINESS OPERATION AND PROVISION OF PRODUCTS AND SERVICES DURING PARTICIPATION IN ACCOMPLISHMENT OF POLITICAL OBJECTIVES
Unit: million VND
No.
Content
...
...
...
Mọi chi tiết xin liên hệ: ĐT: (028) 3930 3279 DĐ: 0906 22 99 66
Reporting year
Ratio (%)
Estimation
Reality
Compared to previous year
Compared to estimation
1
...
...
...
Mọi chi tiết xin liên hệ: ĐT: (028) 3930 3279 DĐ: 0906 22 99 66
3
4=3/1
5=3/2
I
Business outcomes
...
...
...
Mọi chi tiết xin liên hệ: ĐT: (028) 3930 3279 DĐ: 0906 22 99 66
1
Total revenue
2
Total expenditure (minus land rents, land levies, water surface rents exempted or reduced)
...
...
...
Mọi chi tiết xin liên hệ: ĐT: (028) 3930 3279 DĐ: 0906 22 99 66
3
Difference between revenue and expenditure = (1 - 2)
...
...
...
Mọi chi tiết xin liên hệ: ĐT: (028) 3930 3279 DĐ: 0906 22 99 66
II
Incentives
1
...
...
...
Mọi chi tiết xin liên hệ: ĐT: (028) 3930 3279 DĐ: 0906 22 99 66
2
Land levies exempted or decrease in land levies
...
...
...
Mọi chi tiết xin liên hệ: ĐT: (028) 3930 3279 DĐ: 0906 22 99 66
3
Water surface rents exempted or decrease in water surface rents
...
...
...
Mọi chi tiết xin liên hệ: ĐT: (028) 3930 3279 DĐ: 0906 22 99 66
Corporate income tax at concessional rate
Note: Use data of activities serving accomplishment of political objectives.
[Location and date]
...
...
...
Mọi chi tiết xin liên hệ: ĐT: (028) 3930 3279 DĐ: 0906 22 99 66
CHIEF ACCOUNTANT
DIRECTOR
- 1 Resolution No. 24/2016/QH14 dated November 08, 2016, economic restructuring plan 2016 - 2020 issued by National Assembly of the Socialist Republic of Vietnam
- 2 Law No. 68/2014/QH13 dated November 26, 2014, on enterprises
- 3 Decree No. 45/2014/ND-CP dated May 15, 2014, providing the collection of land use levy
- 4 Decree No. 46/2014/ND-CP dated May 15, 2014, regulations on collection of land rent and water surface rent
- 5 Decree No. 215/2013/ND-CP dated December 23, 2013, defining the functions, tasks, powers and organizational structure of the Ministry of Finance
- 6 Decree No. 130/2013/ND-CP of October 16, 2013, on the production and provision of public-utility products and services
- 7 Decision No. 952/QD-TTg of July 26, 2012, on some financial mechanisms of the Binh Son Refinery and Petrochemical State-owned Limited Liability Company
- 8 Law No. 14/2008/QH12 of June 3, 2008, on enterprise income tax.
- 9 Law No. 78/2006/QH11 of November 29, 2006 on tax administration
- 1 Resolution No. 24/2016/QH14 dated November 08, 2016, economic restructuring plan 2016 - 2020 issued by National Assembly of the Socialist Republic of Vietnam
- 2 Decision No. 952/QD-TTg of July 26, 2012, on some financial mechanisms of the Binh Son Refinery and Petrochemical State-owned Limited Liability Company