Quyết định 43/2008/QD-BTC

DECISION

PROMULGATING THE REGULATION ON COLLECTION AND USE OF CHARGES FOR MAINTENANCE AND RENOVATION OF INFRASTRUCTURE OF INDUSTRIAL PARKS AND EXPORT- PROCESSING ZONES IN HO CHI MINH CITY

THE MINISTER OF FINANCE

Pursuant to the Governments Decree No. 77/2003/ND-CP of July 1, 2003, defining the functions, tasks, powers and organizational structure of the Ministry of Finance;
Pursuant to the Governments Decree No. 29/2008/ND-CP of March 14, 2008, on industrial parks, export-processing zones and economic zones;
In furtherance of the Deputy Prime Ministers instructions in the Government Offices Official Utter No. 6962/VPCP-KTTH of November 29, 2007, and after reaching agreement with the Peoples Committee of Ho Chi Minh City;
At the proposal of the director of the Legal Department,

DECIDES:

Article 1. To promulgate together with this Decision the Regulation on collection and use of charges for maintenance and renovation of infrastructure of industrial parks and export-processing zones in Ho Chi Minh City.

Article 2. This Decision takes effect 15 days after its publication in "CONG BAO." To annul the Regulation on collection and use of charges for maintenance of infrastructure of Tan Thuan export-processing zone, promulgated together with the Finance Ministers Decision No. 139/2001/QD-BTC of December 19, 2001; and the regulations to add on a pilot basis charge payers in industrial parks and export-processing zones in Ho Chi Minh City, promulgated together with the Finance Ministers Decision No. 03/2003/QD-BTC of January 10, 2003.

Article 3. Heads of units of the Ministry of Finance, the Management Board of industrial parks and export-processing zones in Ho Chi Minh City, the Finance Service of Ho Chi Minh City, and directors of infrastructure business companies in industrial parks and export-processing zones in Ho Chi Minh City shall implement this Decision.

REGULATION

ON COLLECTION AND USE OF CHARGES FOR MAINTENANCE AND RENOVATION OF INFRASTRUCTURE OF INDUSTRIAL PARKS AND EXPORT-PROCESSING ZONES IN HO CHI MINH CITY
(Promulgated together with the Finance Ministers Decision No. 43/2008/QD-BTC of June 25, 2008)

I. GENERAL PROVISIONS

Article 1. Subjects and scope of application

1. This Regulation provides for the collection and use of charges for maintenance and renovation of infrastructure of industrial parks (IPs) and export-processing zones (EPZs) in Ho Chi Minh City.

2. This Regulation applies to:

- Enterprises investing and operating in IPs and EPZs in Ho Chi Minh City;

- Infrastructure business companies;

- The Management Board of IPs and EPZs in Ho Chi Minh City.

3. The Management Board of IPs and EPZs in Ho Chi Minh City (below referred to as the Management Board) shall organize the implementation of this Regulation in IPs and EPZs under its management when the following conditions are fully met:

a/ An IP or EPZ has at least 80% of its industrial land area occupied by production and business establishments and fully meets basic infrastructure conditions under a scheme approved by a competent authority to facilitate the operation of enterprises.

b/ Infrastructure business companies in IPs and EPZs and the Management Board have written agreements on the deduction and payment of infrastructure maintenance and renovation charges to the Management Board to serve the operation of IPs and EPZs and enterprises therein according to this Regulation.

Article 2. Interpretation of terms

1. IP or EPZ infrastructure means IP or EPZ infrastructure items under justification reports approved or adjusted by competent agencies, and public-utility assets.

2. Public-utility assets means assets equipped to provide utility services for the operation of enterprises, which are not included in IP or EPZ infrastructure items under justification reports approved or adjusted by competent agencies, and are formed from public-utility charges contributed by enterprises. These assets must meet the conditions on fixed assets under the Finance Ministrys regulations.

3. Infrastructure maintenance and restoration charges are those contributed by enterprises for the operation, maintenance and renovation of IP or EPZ infrastructure, excluding public-utility charges.

Article 3. Principles for application of the Regulation

1. The implementation of the Regulation must not affect the investment environment of IPs and EPZs in Ho Chi Minh City as well as the overall investment environment.

2. The Regulation applies only to infrastructure maintenance and restoration charges collected by infrastructure business companies from IP and IPZ enterprises.

3. The-use of charges collected under this Regulation for infrastructure business companies infrastructure maintenance and renovation activities must be agreed by the Management Board.

4. The use of charge amounts deducted to the Management Board must comply with the Finance Ministrys Regulation on the Management Boards self-management of its operating fund.

Article 4. Accounting and taxation

1. Charge amounts actually paid by enterprises under notices of infrastructure business companies shall be accounted as business expenses of these enterprises and deducted upon the determination of incomes subject to enterprise income tax.

2. Infrastructure maintenance and renovation charges (referred to as charges for short) collected by infrastructure business companies are not subject to tax. Infrastructure business companies shall account these charges separately from their turnovers from other activities.

3. Infrastructure business companies shall open detailed accounting books to monitor charge increase or reduction (collection, distribution and use). The Management Board shall specify forms of operational reports and promulgate regulations on publicity of charge collection, distribution and use.

II. COLLECTION AND USE OF CHARGES

Article 5. Charge rates

1. An enterprise shall pay a charge amount equal to the charge rate multiplied by one of the following bases:

a/ Total export turnover;

b/ Total service turnover;

c/ Total amount for sub-leasing land with infrastructure in the IP or EPZ.

2. The regressive charge rate depends on changes in charge calculation bases and shall be determined on the following principles:

a/ Partial regression;

b/ The maximum charge rate in the Table of regressive charge rates must not exceed 0.3% of the base used for charge calculation;

c/ The charge rate shall be reduced when the charge calculation bases specified in Clause 1 of this Article increase by over 30% against those projected upon the formulation of the current Table of regressive charge rates.

3. Infrastructure business companies shall determine and report charge calculation bases to the Management Board before implementation and send the Table of regressive charge rates to the Management Board for approval before implementation.

Article 6. Organization of charge collection

1. Infrastructure business companies shall organize the collection of charges from IP or EPZ enterprises and reach agreement with enterprises on the order of and procedures for charge collection and payment. The charge collection and payment must be publicly notified in writing to enterprises.

2. Enterprises are obliged to fully pay charge amounts notified by infrastructure business companies and may report problems, if any, to the Management Board for study and settlement.

3. The Management Board shall, based on document forms set by the Ministry of Finance, notify document forms to infrastructure business companies for use in charge collection. Infrastructure business companies shall issue receipts to charge payers for use as valid proof of the charge payment by IP or EPZ enterprises.

4. Annually, infrastructure business companies shall work out (quarterly, biannual and annual) charge collection plans and send them to the Management Board for consideration and approval before implementation. In the course of implementation, if charge collection plans need to be adjusted, infrastructure business companies shall make and send adjusted plans to the Management Board for consideration and approval.

Article 7. Charge distribution

1. Infrastructure business companies shall distribute collected charge amounts as follows:

a/ To deduct and transfer a maximum of 20% of the charge amount to the Management Board to cover the Boards activities.

b/ To use a minimum of 80% of the charge amount for the maintenance and renovation of infrastructure and public utilities in IPs and EPZs.

2. Depending on the practical situation of charge collection, payment and use, the Management Board and infrastructure business companies shall reach agreement on the specific charge distribution percentages and notify them to the Finance Service of Ho Chi Minh City.

3. Within the first 10 days of the subsequent month, infrastructure business companies shall, based on monthly collected charge amounts, temporarily transfer the charge amount enjoyable by the Management Board according to the agreed distribution percentage into the Management Boards account opened at the State Treasury of Ho Chi Minh City.

4. At the end of a fiscal year, infrastructure business companies and the Management Board shall finalize charge collection, distribution and use under regulations.

Article 8. Use of charges

1. After deducting charge amounts for the Management Board, infrastructure business companies shall use the remainder of collected charge amounts to maintain and renovate IP or EPZ infrastructure for the spending contents already agreed with the Management Board in order to maintain the normal operation of IP or EPZ infrastructure to serve enterprises.

2. The management and use of charge amounts deducted by infrastructure business companies for the Management Board must comply with the Finance Ministrys Regulation on the Management Boards self-management of its operating fund.

3. Within the first 10 days of January every year, infrastructure business companies shall work, out and send to the Management Board plans on the use of charges for the maintenance and renovation of IP or EPZ infrastructure based on the spending contents and needs already agreed with the Management Board under Clause 1 of this Article.

4. If. infrastructure must be maintained and renovated not as planned or when there are considerable changes in the course of performing plans, infrastructure business companies shall make additional or adjusted plans and notify them to the Management Board for consideration and approval for use as a basis for implementation.

5. Infrastructure business companies shall use collected charge amounts for infrastructure maintenance and renovation under plans approved by the Management Board. By January 31 of the subsequent year, infrastructure business companies shall report to the Management Board on the previous years performance of charge use plans.

Article 9. Management and monitoring of charge collection and use

1. Infrastructure business companies shall reflect in detail the years infrastructure maintenance and renovation expenses in accounting books under current regulations on accounting and Article 4 of this Regulation.

2. Infrastructure business companies shall open their own accounts at commercial banks lawfully operating in Ho Chi Minh City (referred to as charge accumulation accounts) to monitor and manage annual charge revenue-expenditure differences. The Management Board shall, together with infrastructure business companies, determine the differences deposited at charge accumulation accounts in accordance with this Article.

3. Charge accumulation accounts deposit balances may be used only to maintain and renovate IP or EPZ infrastructure under charge use plans specified in Articles 8 and 9 of this Regulation.

4. The collection and use of charges under Articles 6 and 8 of this Regulation constitute a content of an annual audit plan of infrastructure business companies.

5. The collection and use of charges at infrastructure business companies must be publicized to enterprises according to the following regulations:

a/ Within 90 days after the end of a fiscal year, infrastructure business companies shall notify the Management Board (together with audited financial statements) of:

The situation and results of implementation of the charge collection plan in the fiscal year;

The situation and results of infrastructure maintenance and renovation in the fiscal year;

The charge accumulation accounts balance as of December 31 of the year of reporting.

b/ Within 15 days after receiving notices of infrastructure business companies, the Management Board shall inspect and certify audited data and send them to the Peoples Committee of Ho Chi Minh City. The inspected and certified contents must be publicly posted up at head offices of infrastructure business companies and sent to IP or EPZ enterprises or notified in other forms, when necessary.

III. ORGANIZATION OF IMPLEMENTATION

Article 10. Responsibilities of the Management Board

1. To guide infrastructure business companies in determining bases for calculating infrastructure maintenance and renovation charges; to elaborate the Table of regressive charge rates; to propagate and disseminate this Regulation among infrastructure business companies and enterprises for implementation.

2. To reach agreement with infrastructure business companies on the Table of regressive charge rates, publicly notify it to IP or EPZ enterprises, and report it to the Peoples Committee of Ho Chi Minh City; to coordinate with infrastructure business companies in distributing collected charge amounts; to consider, approve, and supervise the implementation of, charge use plans in accordance with this Regulation. To receive and settle enterprises requests and inquiries.

3. To inspect the collection of charges and the use of collected charge amounts by infrastructure business companies, ensuring that charges are collected according to regulations and used for proper purposes.

4. To manage and use charge amounts deducted and remitted by infrastructure business companies under the Finance Ministrys Regulation on the Management Boards self-management of its operating fund.

5. To review and report to the Finance Service of Ho Chi Minh City and the Ministry of Finance on the collection and use of charges in IPs and EPZs in Ho Chi Minh City. To detect in time problems arising in the course of implementation and propose solutions to the Ministry of Finance.

Article 11. Responsibilities of infrastructure business companies

1. To determine charge calculation bases and elaborate the Table of regressive charge rates agreed with the Management Board for publicization and organization of implementation; to organize the collection, distribution and use of charges according to this Regulation.

2. To propagate and explain this Regulation to enterprises so that they can properly understand the purposes and significance of the charge collection and distribution prescribed in this Regulation.

3. To regularly report to the Management Board in accordance with this Regulation and to the Finance Service of Ho Chi Minh City and the Ministry of Finance upon request. To detect in time problems arising in the course of implementation and propose solutions to the Management Board, the Finance Service of Ho Chi Minh City and the Ministry of Finance.

4. Before applying this Regulation, infrastructure business companies shall finalize with the Management Board the previous collection, distribution and use of charges (if any) and deposit charge differences as finalized into charge accumulation accounts specified in Article 9 of this Regulation.

Article 12. Responsibility of the Peoples Committee of Ho Chi Minh City

The Peoples Committee of Ho Chi Minh City shall direct concerned state management agencies under its management in inspecting and supervising the implementation of this Regulation.