Nghị định 204/2013/ND-CP

DECREE

DETAILING AND GUIDING THE IMPLEMENTATION OF RESOLUTION OF NATIONAL ASSEMBLY ON A NUMBER OF SOLUTIONS TO STATE BUDGET IMPLEMENTATION IN 2013 AND 2014

Pursuant to the Law on organization of Government dated December 25, 2001;

Pursuant to Resolution No. 54/2013/QH13 dated November 12, 2013 of National Assembly on adjustment of state budget estimate in 2013;

Pursuant to Resolution No. 57/2013 / QH13 dated November 12, 2013 by the National Assembly on the state budget estimate in 2014;

At the request of the Minister of Finance;

The Government issues the Decree detailing and guiding the implementation of resolution of national assembly on a number of solutions to state budget implementation in 2013 and 2014;

Article 1. State budget collection for dividend divided in 2013 and 2014 for the state capital at the joint stock company with state capital whose owner is represented by the Ministries, sectors and localities and the remaining profit after appropriation of funds in accordance with regulations of law of the groups and corporations in which the State holds 100% of charter capital

1. State budget collection for dividend divided in 2013 and 2014 for the state capital at the joint stock company with state capital whose owner is represented by the Ministries, sectors and localities.

a) Dividend divided for the state capital specified in this Clause is the number of dividend divided under the Resolution of the General Meeting of Shareholders and Board of Directors for the state capital generated in 2013 and 2014 (including the dividend of previous years divided in the year and the number of dividend temporarily divided under the Resolution of the General Meeting of Shareholders and Board of Directors).

Representative of state capital at the joint stock company is responsible for urging the company to transfer the divided dividend for the state capital to the fund for support of arrangement and development of enterprises (hereafter referred to as Fund) placed at the State Capital and Investment Corporation (hereinafter referred to as SCIC) within 10 days from the date of issue of the Resolution of the Board of Directors.

For the divided dividend which is specified at this Point has been transferred to the Fund under the management of SCIC from 01/01/2013 to 10/12/2013, SCIC is responsible for payment to the state budget before 15/12/2013.

The SCIC must review and coordinate with the representative organs of state capital at the joint stock companies to urge them to promptly and completely transfer the divided dividend specified at this Point to the Fund for transfer to the state budget within 03 working days from the date the Fund receives the money.

b) The amount of dividend transferred to the state budget specified in this Clause will be regulated by 100% for the central budget.

2. The state budget collection for the remaining profit in 2013 and 2014 after appropriation of funds in accordance with regulations of law of the groups and corporations in which the State holds 100% of charter capital.

a) The groups and corporations in which the State holds 100% of charter capital specified in this Clause including: One-member limited liability companies as parent company of economic groups, state corporations, parent company in parent – subsidiary model (including SCIC).

b) The remaining profits to be transferred to the state budget in 2013 and 2014 specified in this Clause is the profit after minus (-) the losses of previous years which are expired for deduction from the pretax earning and appropriation of funds under the provisions of Decree No. 71/2013/ND-CP dated July 11, 2013 of the Government on investment of state capital in enterprises and financial management for enterprises in which the state holds 100% of charter capital (hereafter referred to as Decree No. 71/2013/ND-CP) and other specific funds as prescribed by the Government and the Prime Minister. Particularly in 2013, the expenditures from the profits after tax are deducted under the Prime Minister’s Decision (if any).

For SCIC, in addition to collection and transfer of remaining profits to the state budget under the provisions in this Clause, will also transfer into the state budget the remaining profits earned on the Fund generated in 2013 and 2014 of independent one-member limited liability companies with 100% state capital represented as owner by the Ministries, sectors and localities.

c) Time of declaration and payment to the state budget

The enterprises specified at Point a of this Clause must declare and transfer to the state budget before 10/12/2013 the profit specified at Point b of this Clause temporarily calculated for the first 9 months of 2013 and transfer the remaining amount to the state budget no later than 31/3/2014 upon finalization of 2013.

The amount of payment to the state budget will be declared and paid by the time of declaration and payment of business income tax of quarterly temporary calculation and the time of annual finalization of business income tax.

In case of finalization in 2013 and 2014, if the amount paid to the state budget is larger than the actual amount payable, the enterprise will be refunded the overpaid amount or deducted from the tax payable of the following period.

d) Collection and payment organs:

The tax organs will carry out the collection, payment and inspection of collection and payment to the state budget over the enterprises in which the state holds 100% of charter capital specified at Point a of this Clause.

SCIC will urge and collect into the Fund the remaining profit of independent one-member limited liability companies with 100% state capital represented as owner by the Ministries, sectors and localities under the provisions of Decree No. 71/2013/ND-CP and make payment to the state budget within 03 working days from the date of collection into Fund.

dd) The profits for payment into the state budget specified in this Clause of the groups and corporations in which the state holds 100% of charter capital and enterprises under the management of central government are regulated by 100% for central budget. The profits of enterprises with 100% of state capital established and managed by the People’s Committee of provinces and centrally-run cities will be regulated by 100% for local budget.

Article 2. Collection and use of interest of oil and gas divided for the host country and money from reading and use of oil and gas documents in 2013 and 2014

1. State budget collection of 75% of interest of oil and gas divided for the host country from the Vietnam-Russia venture -  “Vietsovpetro" and contracts to divide oil and gas product division, the money from reading and use of oil and gas documents generated in 2013 and 2014. The remaining amount (25%) will be used by the Vietnam Oil and Gas Group to invest in key oil and gas projects and supplement a portion to the Fund for search and exploration of oil and gas under the provisions in Decree No. 142/2007/ND-CP dated September 05, 2007 of the Government on issuing Regulation on financial management of the parent company - Vietnam Oil and Gas Group.

The use of interest of oil and gas divided for the host country and 25% of money from reading and use of oil and gas documents to invest in key oil and gas projects must comply with the Regulation on financial management of the parent company - Vietnam Oil and Gas Group (issued together with Decree No. 142/2007/ND-CP dated September 05, 2007 of the Government), the Prime Minister’s decision and other relevant laws.

2. The Vietnam Oil and Gas Group, the operators or Vietnamese contractors authorized by the Vietnam Oil and Gas Group to carry out the declaration and tax payment must make declaration and payment to the budget with the collection of 75% specified in Clause 1 of this Article by the actual generation.

Article 3. Use of local financial reserve fund to offset the reduced collection of local budget

The provincial People’s Committee may use not more than 70% of balance of local financial reserve fund to offset the reduced collection of local budget in 2013 in case of deficit of collection of local budget balance without sufficient offsetting after mobilization of all local financial sources and re-arrangement of budget expenditure task.

Article 4. Exemption of flat-rate tax (VAT and personal income tax) and business income tax in 2013 and 2014 for households, individuals and organizations

1. Exemption of lump-sum tax (VAT and personal income tax) and business income tax in 2013 and 2014 for households, individuals that do business of house renting to workers, employees, students; households and individuals doing business of child caregiving and households and individuals providing shift serving for workers.

The rate of lump-sum tax of VAT and personal income tax specified in this Clause is determined as prescribed by law on tax management and the law on VAT and personal income tax.

2. Exemption of VAT and business income tax payable incurred in 2013 and 2014 for the provision of shift serving for workers (excluding provision of shift serving for transport or air transport enterprises and other business activities) of enterprises.

In case the enterprise carries out many business activities, the business income tax to be exempted is only calculated on the income from the provision of shift serving for workers. In case of failure to determine the income of tax-exempt activities, the income to calculate the exempted tax is determined by the percentage (%) between the revenue of provision of shift serving for workers with the total revenues of enterprise in the year of tax exemption.

The amount of exempted VAT is determined on the ratio between the revenue subject to VAT of provision of shift serving of each month over the total revenues of goods and services subject to VAT in a month.

Enterprises exempted from tax specified in this Clause are the ones that are established and operating under the Vietnam law, implement the regulations on accounting, invoices and documents as prescribed by law, pay tax by declaration and meet the provisions in Clause 3 of this Article and pay VAT by the method of deduction.

3. Business households and individuals and enterprises that are exempted from tax specified in this Article must commit that the rent of house and room, the charge of child caregiving and the price of provision of shift serving in 2013 and 2014 will not be higher than the rate of December of preceding year.

All of such prices must be publicized and posted at the business establishments and announced to the authorities of communes and wards where the business is carried out and the managing tax organs. In case of inspecting and finding that the business households, organizations and individuals fail to comply with the commitment to the price specified in this Clause, they will not be exempted from tax specified in this Article. If the business households, organizations and individuals are not exempted from tax but make declaration of tax exemption, they will be collected arrears and fined for late payment of tax as prescribed by law on tax management.

4. The Ministry of Finance will provide the guidance on the refund or offsetting in the amount of tax to be paid in case the enterprises, households and individuals have declared and paid to the state budget the tax exempted as prescribed by the provisions of this Article.

Article 5. Effect

This Decree takes effect from the date of its signing.

Article 6. Implementation organization

1.The Ministry of Finance will provide the guidance on implementation of this Decree.

2. The Ministries, sectors, People’s Committees of provinces and centrally-run cities within their authority in accordance with law, must direct the authorized representative of state capital invested at enterprises to inspect and urge the collection and payment of collected amounts specified in this Decree to the state budget.

3. The SCIC must urge, collect and pay into the state budget the dividends divided for the state capital at the joint stock companies with the state capital and the payment of remaining profits to the budget at independent one-member limited liability companies with 100% state capital represented as owner by the Ministries, sectors and localities and coordinate with the tax organs to urge the collection for payment into the budget of the profits specified in this Decree.

4. The tax organs at all levels must urge and promptly collect for payment into the state budget the collected amounts under their tasks specified in this Decree and urge and inspect the collection and payment of divided dividend to the Fund under the management of SCIC.

5. The member Board at the groups and state-owned corporations must direct and urge the authorized representative of the enterprise’s capital invested at other enterprises:

a) Temporarily make payment of profit and dividend of the first 09 months of 2013 and 2014 at the joint stock companies and one-member limited liability companies with 100% of state capital to the parent company for payment to state budget as prescribed by this Decree.

b) Hold the General Meeting of Shareholders in accordance with regulations, distribute profits and divide dividends and promptly transfer such dividends to the groups and corporations in which the State holds 100% of charter capital.

6. The tax consultation Council of communes and wards must coordinate with the state management organs on the price at localities to certify, monitor and inspect the implementation of commitment to stabilization of price of business households, individuals and enterprises specified in Article 4 of this Decree.

7. Ministers, Heads of ministerial-level agencies, Heads of government-attached agencies and Chairman of People's Committees of provinces and centrally-run cities, organizations and individuals are liable to execute this Decree. / .