Circular No. 03/2019/TT-BTC stipulates the sources of funds, contents, and expenditure levels from the state budget to implement initiatives activities.

CIRCULAR

Regulations on sources of funds, contents, and expenditure levels from the state budget to implement innovation activities
Implementing innovation activities

Pursuant to the State Budget Law dated June 25, 2015;

Pursuant to Decree No. 163/2016/NĐ-CP dated December 21, 2016 of the Government detailing implementation of certain provisions of the State Budget Law;

Pursuant to Decree No. 87/2017/NĐ-CP dated July 26, 2017 of the Government stipulating functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Decree No. 13/2012/NĐ-CP dated March 2, 2012 of the Government promulgating the Innovation Regulation;

At the request of the Director of the Department of Administrative and Public Service Financial Affairs;

The Minister of Finance issues this Circular stipulating sources of funds, contents, and expenditure levels from the state budget to implement innovation activities.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation and Applicability

Article 1. This Circular stipulates sources of funds, contents, and expenditure levels from the state budget to implement the contents prescribed in Article 8, Clause 1 of Article 14, Article 15, and Article 16 of the Innovation Regulation issued together with Decree No. 13/2012/NĐ-CP dated March 2, 2012 of the Government (hereinafter referred to as Decree No. 13/2012/NĐ-CP of the Government).
Article 2. Scope of application

This Circular applies to ministries, central agencies, localities, and other organizations and individuals related to innovation activities as prescribed in Decree No. 13/2012/NĐ-CP of the Government.

Article 3. Sources of funds for implementing innovation activities

1. State budget funds allocated in the annual budget estimate according to the分级任务的翻译结果已提供，请确认是否需要继续处理剩余部分。根据您的指示，我将继续完成剩余部分的翻译。

a) The state budget ensures full funding for innovation activities at state management agencies (state budget for agency operations) and public service units fully funded by the state (state budget for unit operations).

b) Public service units that self-fund part of their regular operational costs may receive partial support from the state budget within the annual budget estimate of the unit based on its revenue capacity and can use the Development Fund for Unit Operations to implement innovation activities.

c) Public service units that self-fund regular expenditures and investments, those that self-fund regular expenditures can use the Development Fund for Unit Operations to implement innovation activities.

2. Funds from enterprises for implementing enterprise innovation activities.

a) The level of expenditure for enterprise innovation activities is determined by the enterprise itself based on the principle of thrift and effectiveness and must be specified in the internal expenditure regulations of the enterprise.

b) The accounting treatment of innovation awards and improvements as deductible expenses when determining corporate income tax is carried out in accordance with the provisions of the Corporate Income Tax Law.

c) In cases where enterprises use the Science and Technology Development Fund of the enterprise to implement innovation activities, enterprises must ensure compliance with the provisions on the content of expenditures and management of the Fund as stipulated in Joint Circular No. 12/2016/TTLT-BKHCN-BTC dated June 28, 2016 of the Ministry of Science and Technology and the Ministry of Finance and other relevant regulations.

3. Funding raised from other legitimate sources.

Article 3. Principles for managing and using funds from the state budget
1. The contents and levels of expenditure from the state budget to support the implementation of initiatives as stipulated in Chapter II of this Circular are maximum levels. Based on the ability to balance resources, the Ministers of Ministries, Heads of central agencies, Provincial People's Councils, and centrally governed cities shall decide on specific contents and levels of expenditure for initiative activities that ensure appropriateness.

2. Ministries, central agencies, provincial people's committees, centrally governed cities, and organizations and individuals responsible for managing and using state budget funds to implement initiative activities must do so effectively, ensuring compliance with the purpose, current standards, norms, and spending regulations, and are subject to inspection and supervision by authorized agencies as prescribed by law.

Article 4. Contents and levels of expenditure of the Initiative Council

PART II
SPECIFIC PROVISIONS

1. The Initiative Council is established according to the provisions of Article 8 of the Initiative Charter issued together with Government Decree No. 13/2012/NĐ-CP and guidelines of the Ministry of Science and Technology.

2. The contents and levels of expenditure for meetings of the Initiative Council are as follows:

a) Chairperson of the Council: Maximum not exceeding 500,000 VND/meeting.

b) Vice-Chairpersons, Secretaries, and members of the Council (including experts or those with expertise related to the field of the initiative): Maximum not exceeding 200,000 VND/person/meeting.

c) Other participants in the Council as decided by the head of the entity recognizing the initiative: Maximum not exceeding 100,000 VND/person/meeting.

d) Expenditure for meeting materials and office supplies: Reimbursed based on actual invoices within the approved budget estimate.

Article 5. Contents and levels of expenditure for promoting initiatives

Ministries, central agencies, provincial people's committees, and centrally governed cities shall implement measures to promote initiatives under their management as stipulated in Clause 1, Article 14 of the Initiative Charter issued together with Government Decree No. 13/2012/NĐ-CP. The contents and levels of expenditure are as follows:

1. Organizing intermediary services for transferring initiatives and transaction forms regarding initiatives (trade fairs, exhibitions) to support the transfer of initiatives created through state-funded investment and material-technical means, or initiatives from individuals and organizations lacking sufficient capacity to apply them:

a) Organizing intermediary services for transferring initiatives: Implemented according to current regulations on state budget spending systems and norms, paid according to contracts and actual expenses within the approved budget estimate.

b) Implementing transaction forms regarding initiatives (trade fairs, exhibitions):

The state budget will support rental fees for space (electricity, water, sanitation, security, protection), transportation and design costs for booth setup, and common activity costs of the organizing committee (overall decoration, opening and closing ceremonies, printing of documents, and other related costs).
The maximum support level is 10 million VND/per participating unit.

2. Organizing conferences and seminars to support the initial application of initiatives, announcing, promoting, and widely applying initiatives (including: initiatives with broad applicability and significant benefits to society, management and operational solutions in administrative and public service fields of the state, and initiatives created through state-funded investment and material-technical means): Implemented according to Circular No. 40/2017/TT-BTC dated April 28, 2017, of the Ministry of Finance on travel expense allowances and conference spending regulations.

2. Organize conferences and seminars to support the implementation and application of initial initiatives, announce, disseminate, and widely apply such initiatives (including: initiatives that have the potential for widespread application and bring significant benefits to society, management solutions and operational solutions in the administrative and public service sectors of the State, and initiatives created through State investment in financial resources and material-technical means):
Effective date of implementation.

Article 6. Content and expenditure levels for encouraging labor innovation movements

Ministries, central agencies, provincial people's committees under the central government shall implement measures to encourage the public's participation in innovation movements in accordance with Article 15 of the Regulation on Initiatives issued together with Decree No. 13/2012/NĐ-CP of the Government. The contents and expenditure levels are as follows:

1. Organizing innovation contests, exhibitions of labor innovation results, National Initiative Week, annual summaries and awards for outstanding initiatives that can be widely applied and bring practical benefits to society: Implement in accordance with Circular No. 27/2018/TT-BTC dated March 21, 2018 of the Ministry of Finance on financial regulations for organizing the Vietnam Innovation Science and Technology Award, Technical Innovation Contest, and Youth and Children Creativity Contest, and other relevant provisions.

2. Publicizing and promoting information about exemplary organizations and individuals in innovation movements: Implement according to current regulations on state budget expenditure systems and standards, payment under contracts, and actual expenses within approved budgets.

3. Prioritizing consideration and allocation of funds to organizations and individuals with outstanding achievements in creating and applying initiatives for scientific and technological tasks to research, develop, and improve initiatives: Implement in accordance with Joint Circular No. 55/2015/TTLT-BTC-BKHCN dated April 22, 2015 of the Ministry of Finance and the Ministry of Science and Technology guiding standards for building, allocating, and settling accounts for scientific and technological tasks using state budget funds, and other relevant provisions.
4. Organizing summary conferences on initiative activities at various sectors and levels: Implement in accordance with Circular No. 40/2017/TT-BTC dated April 28, 2017 of the Ministry of Finance on travel expense regulations and conference expense regulations.

Article 7. Budget preparation, execution, and settlement for initiative activities

The preparation of the state budget, execution of the state budget, and settlement of the state budget for initiative activities shall be carried out in accordance with the State Budget Law and current regulations. This circular guides specific contents as follows:

Preparation of the state budget: Each year, when preparing the state budget revenue and expenditure plan, ministries, central agencies, provincial people's committees under the central government shall approve plans to implement initiative activities for the planning year; based on the guidance provided in Articles 4, 5, and 6 of this circular, they shall prepare the budget for initiative activities within their management scope, consolidate it into the overall budget of ministries, sectors, and localities (according to budget management levels), and submit it to the finance authority for approval by the competent authority.

For the year 2019, ministries, central agencies, provincial people's committees under the central government shall proactively allocate funds in the already assigned budget to implement initiative activities in accordance with this circular's guidelines.

2. Allocation, assignment, and settlement of initiative activity funding: Implement in accordance with the State Budget Law and guiding documents.

1. This circular takes effect from March 3, 2019.

Chapter III
IMPLEMENTATION

Article 8. Implementation clause

2. The expenditure levels specified in Article 4 of this circular cease to be effective when a document issued by a competent state agency regarding new salary systems according to Resolution No. 27-NQ/TW dated May 21, 2018 of the Seventh Plenary Session of the 12th Central Committee on salary policy reform for cadres, civil servants, public officials, armed forces personnel, and workers in enterprises becomes effective.

4. During implementation, if there are difficulties or obstacles, agencies, organizations, and individuals are advised to report to the Ministry of Finance and the Ministry of Science and Technology for coordination in resolving them./.
4. During the implementation process, if there are difficulties or obstacles, it is requested that agencies, organizations, and individuals report them to the Ministry of Finance and the Ministry of Science and Technology for coordinated resolution./.

3. In cases where the referenced documents in this Circular are amended, supplemented, or replaced, they shall be implemented according to the amended, supplemented, or replacement documents.

4. During the implementation process, if there are difficulties or obstacles, it is recommended that agencies, organizations, and individuals reflect them to the Ministry of Finance and the Ministry of Science and Technology for coordination and resolution./.