JOINT CIRCULAR No. 02/1996/TTLB/BTC-BNNPTNT of the Ministry of Agriculture and Rural Development - Finance guiding the establishment and use of investment development funds, welfare funds, and management costs in land leasing for agricultural and forestry production purposes at state-owned enterprises.

JOINT CIRCULAR

of the Ministry of Agriculture and Rural Development - Finance No. 02/1996/TTLB/BTC-BNNPTNT dated January 10, 1996 guiding the establishment and use of development investment funds, welfare funds, and management costs for land lease contracts to be used for agricultural and forestry production purposes at state-owned enterprises.

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Implementing Decree No. 01/CP dated January 4, 1995 of the Government on the leasing of land for agricultural and forestry production and aquaculture purposes in state-owned enterprises. The Joint Ministries of Agriculture and Rural Development - Finance guide the establishment and use of development investment funds, welfare funds, and management costs as follows:

I. OBJECTS OF ESTABLISHMENT OF FUNDS AND MANAGEMENT COSTS.

1. The party leasing the land includes: State-owned enterprises that have implemented land lease contracts for agricultural and forestry production purposes.

2. The party receiving the lease includes:

- Households and individuals who are workers and officials currently working for the party leasing, or those who have retired, left work due to health reasons, or terminated employment and are entitled to benefits, and members of their families who have reached working age.

- Households and individuals residing legally in other localities with a need to lease and produce according to the planning of the party leasing.

II. PRINCIPLES AND BASIS FOR ESTABLISHMENT.

1. Principles of establishment.

a) Fairness, democracy, transparency, and acceptance by the party receiving the lease through a meeting between the party leasing and the party receiving the lease.

b) The party receiving the lease has the responsibility to contribute according to the agreement in the contract.

2. Basis for establishment.

a) Based on the area and profitability conditions of the leased land.

b) Based on the plan for investment in construction of facilities serving production and welfare and accepted by the party receiving the lease.

c) Based on the business conditions of each enterprise and the impact in management work between the party leasing and the party receiving the lease to calculate income.

III. LEVEL OF RAISING AND METHODS OF COLLECTION:

1. Level of raising: Is the agreed level between the party leasing and the party receiving the lease, defined as a percentage of the tax quota and controlled maximum as follows:

a) Development investment fund not exceeding 10% of the tax quota for agricultural land use.

b) Welfare fund not exceeding 5% of the tax quota for agricultural land use.

c) Management cost not exceeding 15% of the tax quota for agricultural land use.

d) In special cases where there is a need to spend more than the agreed level but not exceeding the maximum control level mentioned above, the party leasing must negotiate and reach consensus with the party receiving the lease.

2. Method of collection: The party leasing agrees with the party receiving the lease to collect contributions once a year in cash for perennial crop land and twice a year for annual crop land.

IV. CONTENTS OF MANAGEMENT AND USE OF FUNDS AND MANAGEMENT COSTS:

1. Content of management: The revenues stipulated in this circular are to supplement the sources of funds and management expenses of the enterprise. The management of these funds shall comply with the regulations and guidance of the Ministry of Finance.

2. Contents of using the funds and management costs.

a) Development investment fund: For investment and maintenance of irrigation works, internal roads to serve common production on leased land.

b) Welfare fund: For construction, purchase, renovation, and maintenance of public welfare facilities such as schools, kindergartens.

c) Management cost of leased land: Used to pay for books, documents, labor compensation for those directly overseeing the land lease contract (excluding costs for industrial processing, service, and social welfare activities of the enterprise).

V. REGARDING IMPLEMENTATION:

1. State-owned agricultural enterprises that have leased land for production purposes. Based on the contents of this circular to plan the establishment and use of funds and management costs of leased land.

2. Annually, enterprises must publicly settle accounts regarding the establishment and use of funds and management costs of leased land with the party receiving the lease and report to the competent authority for review together with the annual settlement of the unit.

3. This circular takes effect from the date of signing. Any provisions contrary to this circular are abolished. During implementation, if there are any difficulties, units should promptly report to the Joint Ministries of Agriculture and Rural Development - Finance for consideration and resolution.