Circular No. 04/2018/TT-BTC guiding the management and use of forest environmental service payment funds

CIRCULAR

GUIDELINES FOR THE MANAGEMENT AND USE OF FOREST ENVIRONMENT SERVICE FEES

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

Pursuant to Decree No. 05/2008/NĐ-CP dated January 14, 2008 of the Government on the Forest Protection and Development Fund;

Pursuant to Decree No. 99/2010/NĐ-CP dated September 24, 2010 of the Government on policies for payment for forest environmental services and Decree No. 147/2016/NĐ-CP dated November 2, 2016 of the Government amending and supplementing certain articles of Decree No. 99/2010/NĐ-CP dated September 24, 2010 of the Government onpolicies for payment for forest environmental services;||| toenvironmentservices;

At the proposal of the Director of the Administrative and Public Service Financial Department;

The Minister of Finance issues this Circular guiding the management and use of forest environmental service fees.This Circular guides the management and use of forest environmental service fees in accordance with the provisions of Decree No. 99/2010/NĐ-CP dated September 24, 2010 of the Government on policies for payment for forest environmental services (hereinafter referred to as Decree No. 99/2010/NĐ-CP) and Decree No. 147/2016/NĐ-CP dated November 2, 2016 of the Government amending and supplementing certain articles of Decree No. 99/2010/NĐ-CP (hereinafter referred to as Decree No. 147/2016/NĐ-CP).

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation and Applicability

Thông tư này quy định chi tiết khoản 4 Điều 38 Luật Thủy sản số 18/2017/QH14 đã được sửa đổi, bổ sung tại điểm c khoản 21 Điều 14 Luật số 146/2025/QH15.

Agencies, organizations, households, individuals, and village communities related to the management and use of forest environmental service fees.

Thông tư này áp dụng đối với tổ chức, cá nhân có liên quan đến hoạt động kinh doanh đối tượng thủy sản nuôi chủ lực trên lãnh thổ Việt Nam.

1. "Forest owner" means an organization including public service units, armed forces units, enterprises, and other economic organizations established and operating in accordance with the law.

Article 2. Interpretation of Terms

In this Circular, the following terms are understood as follows:

2. "Provider of forest environmental services" includes forest owners; People's Committees at commune level, political-social organizations entrusted by the State to manage forests in accordance with the law.

3. "User of forest environmental services" includes organizations and individuals engaged in hydropower production; water supply production and distribution; industrial production using water directly from sources; tourism services benefiting from forest environmental services; organizations and individuals required to pay for forest environmental services using water from forests for aquaculture.

4. "Direct managing authority" is the superior authority directly managing the unit in terms of organizational structure and administrative apparatus of the state.

5. "Actual amount of forest environmental service fees collected in the year" refers to the actual amount collected by the Forest Protection and Development Fund from January 1 to December 31, including entrusted funds actually received from users of forest environmental services, interest earned from late payments by users of forest environmental services, and interest from deposits from sources of payment for forest environmental services.

MANAGEMENT AND USE OF FOREST ENVIRONMENT SERVICE FEES

Chapter II

Article 3. Management and use of funds under direct payment form

1. The amount paid by users of forest environmental services to providers of forest environmental services shall not be lower than the amount prescribed in Article 11 of Decree No. 99/2010/NĐ-CP and Clause 3, Clause 4, Article 1 of Decree No. 147/2016/NĐ-CP.

2. Providers of forest environmental services shall use forest environmental service fees in accordance with Article 10 of Decree No. 99/2010/NĐ-CP.

2. The provider of forest environmental services shall use the forest environmental service payment in accordance with Article 10 of Decree No. 99/2010/NĐ-CP.

Article 4. Management and use of funds under indirect payment method

1. The level of payment for forest environmental service fees by the user of forest environmental services to the provider of forest environmental services shall be implemented in accordance with the provisions of Article 11 of Decree No. 99/2010/NĐ-CP; Clause 3, Clause 4 of Article 1 of Decree No. 147/2016/NĐ-CP.

2. Use of funds for the Vietnam Forest Protection and Development Fund

a) Administrative expenses may be deducted up to a maximum of 0.5% of the total forest environmental service fees actually collected in a year to cover activities of the Fund's administrative machinery. The specific deduction rate is included in the annual revenue and expenditure plan of the Fund and submitted to the Ministry of Agriculture and Rural Development for approval. The implementation of administrative expenses is carried out in accordance with Point a, Clause 1, Article 15 of Decree No. 99/2010/NĐ-CP; Point b, Clause 1, Article 4 of Circular No. 85/2012/TT-BTC dated December 25, 2012 issued by the Ministry of Finance guiding financial regulations for the Forest Protection and Development Fund (hereinafter referred to as Circular No. 85/2012/TT-BTC).

b) The remaining forest environmental service fees after deducting administrative expenses shall be allocated by the Vietnam Forest Protection and Development Fund to the provincial-level Forest Protection and Development Fund according to the guidelines of the Ministry of Agriculture and Rural Development.

c) The content and amount of expenditures for business operations and management shall be implemented in accordance with current regulations. In cases where laws do not specify the content and amount of expenditures, the Vietnam Forest Protection and Development Fund shall base on its financial capacity to establish appropriate content and amounts of expenditures, decide on spending, and bear responsibility before the law.

d) The administrative expenses specified in Point a, Clause 2 of this Article are the income of the Vietnam Forest Protection and Development Fund, which are implemented under the self-financing mechanism for public service units.

3. Use of funds for the provincial-level Forest Protection and Development Fund (hereinafter referred to as the provincial-level Forest Protection and Development Fund)

a) Administrative expenses may be deducted up to a maximum of 10% of the total forest environmental service fees actually collected in a year to cover activities of the Fund's administrative machinery, allowances for兼任公职人员的补贴和对由省人民政府（以下简称省级人民政府）指定支持省级林业保护和发展基金执行支付任务的单位、组织的管理费用支持。具体扣除率列入年度收支计划，报省级人民政府批准。

For units and organizations designated to support the provincial-level forestry protection and development fund in performing payment tasks, staff members providing support are paid a subsidy for each day worked. The standard of subsidies, number of people, and duration of entitlement to subsidies are determined by the provincial people's committee.

The content and amount of expenditures for business operations and management shall be implemented in accordance with current regulations. In cases where laws do not specify the content and amount of expenditures, the provincial-level Forest Protection and Development Fund shall base on its financial capacity to establish appropriate content and amounts of expenditures, decide on spending, and bear responsibility before the law.

b) A contingency reserve may be deducted up to a maximum of 5% of the total forest environmental service fees actually collected in a year for contingency purposes in accordance with Clause 5, Article 1 of Decree No. 147/2016/NĐ-CP. The specific deduction rate for the contingency reserve is determined by the provincial people's committee.

In case of natural disasters, drought, or if the payment level per unit area of forest environmental service provision in the province is lower than the previous year, the Director of the provincial-level Forest Protection and Development Fund shall prepare a plan to support households, individuals, and community residents responsible for long-term stable forest protection, and submit it to the provincial people's committee for approval. Any unused contingency reserve funds shall be transferred to pay the service providers.

c) The remaining funds after deducting administrative expenses and contingency reserves as stipulated in Points a and b, Clause 3 of this Article shall be transferred by the provincial-level Forest Protection and Development Fund to the service providers in accordance with the guidelines of the Ministry of Agriculture and Rural Development.

d) The administrative expenses specified in Point a, Clause 3 of this Article are the income of the provincial-level Forest Protection and Development Fund, which are implemented under the self-financing mechanism for public service units.

4. Use of funds for forest owners

a) Forest owners who are households, individuals, or village communities can use all the forest environmental service fees for managing, protecting, developing forests, and improving their living standards.

b) If the forest owner is an organization that does not lease forest protection or leases only part of the area, the remaining area is protected by the forest owner themselves, then the entire amount received corresponding to the self-protected forest area is considered the income of the forest owner, managed and used in accordance with the financial regulations applicable to different types of organizations.

The content and amount of expenditures shall be implemented in accordance with current regulations, including: Forestry engineering projects, technical facilities serving forest protection and development work; patrolling, crackdown on hotspots, handling violations of laws on forest protection and development; purchasing assets, tools, and equipment serving forest protection work; preparing payment records, building maps of forest environmental service payments, inspecting, supervising, evaluating, accepting, promoting, mobilizing, training, convening meetings, and other activities serving forest environmental service payments; paying salaries and salary-like benefits to personnel not receiving salaries from state budget sources, and other activities serving forest management, protection, and development work.

c) In the case where the forest owner is an organization with a contractual obligation to protect the forest, up to 10% of the total amount of the forest environmental service payment for the contracted protected forest area may be allocated for management activities of forest areas supplying environmental services, including: preparing files, inspecting, supervising, evaluating, accepting completion, organizing environmental education and publicity activities, mobilizing, training, holding meetings, and other activities serving the payment of forest environmental services. For those involved in implementing the payments, the forest owner shall stipulate the level of compensation based on the financial situation of the unit and pay such compensation from the management budget.

The remaining amount after deducting the management expenses shall be paid by the forest owner to the contractor according to the guidelines of the Ministry of Agriculture and Rural Development.

5. Use of funds for People's Committees at the commune level

a) For People's Committees at the commune level assigned by the State to manage forests in accordance with the provisions of the law, depending on the actual situation, the People's Committee at the provincial level shall decide to establish a Commune-level Forest Protection and Development Fund in accordance with Clause 3, Article 7 of Decree No. 05/2008/NĐ-CP dated January 14, 2008 of the Government on the Forest Protection and Development Fund, or decide to organize and staff to perform the tasks of the Commune-level Forest Protection and Development Fund.

b) The Commune-level Forest Protection and Development Fund shall manage and use the forest environmental service payment in accordance with Clause 4, Article 3 of Decision No. 07/2012/QĐ-TTg dated February 8, 2012 of the Prime Minister on some policies to strengthen forest protection work and Clause 3, Article 3 and Clause 3, Article 4 of Circular No. 85/2012/TT-BTC.

6. Use of funds for political and social organizations

The forest environmental service payment shall be managed and used according to the forest protection and management expense utilization plan approved by the People's Committee at the district level.

Article 5. Advance payment and settlement of forest environmental service payment

1. Advance payment of forest environmental service payment

Based on the revenue and expenditure plan decided by the People's Committee at the provincial level, the Provincial-level Forest Protection and Development Fund shall advance the forest environmental service payment to the provider of forest environmental services or transfer it to units and organizations entrusted to support the Provincial-level Forest Protection and Development Fund to implement the advance payment to the forest owners.

2. Settlement of forest environmental service payment

a) Based on the actual revenue for the year and the results of determining the forest area eligible for forest environmental service payment, the Provincial-level Forest Protection and Development Fund, units, and organizations entrusted to support the payment shall settle the payment to the provider of forest environmental services before April 30 of the following year.

b) After completing the settlement, the units and organizations entrusted to support the payment shall prepare a consolidated report in accordance with Appendix No. 01, 02 issued together with this Circular and submit it to the Provincial-level Forest Protection and Development Fund along with supporting documents before May 10 of the following year.

c) Based on the management budget approved by the People's Committee at the provincial level for the amount spent, the items and levels of expenditure, the Provincial-level Forest Protection and Development Fund shall settle the management costs for the units and organizations entrusted to support the payment.

Article 6. Accounting for Forest Environmental Service Funds

1. Organization of Accounting Work

The Forest Protection and Development Fund, forest owners who are organizations, People's Committees at the commune level, political and social organizations shall carry out accounting work to manage the source of forest environmental service funds in accordance with the provisions of the law.

2. Opening Accounts

a) The Forest Protection and Development Fund, forest owners who are organizations, People's Committees at the commune level, political and social organizations shall open accounts at the State Treasury or commercial banks to receive forest environmental service funds.

b) Forest owners who are households, individuals, village community groups are encouraged to open deposit accounts at commercial banks to receive forest environmental service funds.

3. Accounting System

a) The Forest Protection and Development Fund shall apply the accounting system as prescribed in Circular No. 107/2017/TT-BTC dated October 10, 2017 of the Ministry of Finance guiding the accounting system for administrative and public institutions.

b) Forest owners who are organizations, People's Committees at the commune level, political and social organizations shall apply the accounting system according to the current regulations of the State on finance for each type of organization.

Article 7. Submission of Final Accounts for Forest Environmental Service Payment Expenses

1. Time for Submitting Final Accounts

a) The Forest Protection and Development Fund shall close its accounting books on December 31 each year. The final account report for forest environmental service payment expenses shall be prepared according to Appendix No. 03 issued together with this Circular and submitted to the direct management agency before May 31 of the following year.

b) Forest owners who are organizations that have implemented forest protection contracts shall prepare the final account report for forest environmental service payment expenses according to Appendix No. 04 issued together with this Circular and submit it to the direct management agency and the Provincial Forest Protection and Development Fund before May 31 of the following year.

c) People's Committees at the commune level and political and social organizations shall close their accounting books, prepare and submit reports in accordance with the financial management regulations for each type of organization.

2. Examination and Approval of Final Accounts

a) The Ministry of Agriculture and Rural Development shall examine and approve the final account report for forest environmental service payment expenses of the Vietnam Forest Protection and Development Fund.

b) The Department of Agriculture and Rural Development (in cases where the Provincial Forest Protection and Development Fund is under the Department) or the Department of Finance (in cases where the Provincial Forest Protection and Development Fund is under the provincial People's Committee) shall examine and approve the final account report for forest environmental service payment expenses of the Fund.

c) The direct management agency shall examine and approve the final account report for forest environmental service payment expenses of forest owners who are organizations under its jurisdiction.

d) The Financial Planning Office at the district level shall examine and approve the final account report for forest environmental service payment expenses of the Commune-level Forest Protection and Development Fund, People's Committees at the commune level, and political and social organizations under the district.

3. Time for Examination and Approval of Final Accounts for Forest Environmental Service Payment Expenses: To be carried out in accordance with the current financial regulations for each type of organization.

Article 8. Audit

1. Encouragement for the Forest Protection and Development Fund, forest owners to conduct independent audits of financial reports from forest environmental service funds.

2. Audit costs shall be funded from the management budget of the unit and included in the annual revenue and expenditure plan.

Article 9. Inspection, Supervision, and Financial Transparency

1. Inspection and supervision of the management and use of forest environmental service fees:

a) The Ministry of Agriculture and Rural Development shall take the lead and coordinate with the Ministry of Finance to organize inspections involving relevant ministries, sectors, localities, and the Vietnam Forest Protection and Development Fund;

b) The Department of Agriculture and Rural Development (in cases where the Forest Protection and Development Fund is under the Department) or the Department of Finance (in cases where the Forest Protection and Development Fund is under the provincial People's Committee) shall take the lead in organizing inspections of the provincial Forest Protection and Development Fund;

c) The Vietnam Forest Protection and Development Fund shall inspect the management and use of forest environmental service fees by the provincial Forest Protection and Development Fund; and check the payment of forest environmental service fees by users;

d) The provincial Forest Protection and Development Fund shall inspect the village-level Forest Protection and Development Fund; units and organizations supporting payments; forest owners who are organizations; the village-level People's Committee, political-social organizations assigned by the State to manage forests in providing forest environmental services and managing and using forest environmental service fees; and check the payment of compensation for forest environmental services by users;

e) Forest owners who are organizations shall inspect the lessees;

f) Agencies, organizations, and all citizens shall participate in supervising state agencies, organizations, households, individuals, and community villages related to the management and use of forest environmental service fees.

2. Financial Transparency

a) The Forest Protection and Development Fund, forest owners who are organizations, the village-level People's Committee, and political-social organizations shall implement financial transparency in accordance with the laws on finance;

b) The village-level Forest Protection and Development Fund, units, and organizations entrusted with the task of making payments shall be responsible for publicly disclosing lists of beneficiaries, amounts paid, quarterly and annual payment plans at the grassroots level through the following methods:

- Publicly posting at the offices of the village-level People's Committee and at communal meeting places or other convenient public locations for easy monitoring by the people;

- Announcing by the village radio system or announcing at village meetings.

Article 10. Asset Management

1. For the Forest Protection and Development Fund; forest owners who are village-level People's Committees, political-social organizations, assets formed from forest environmental service fee funds shall be managed and used in accordance with the Law on Management and Use of State Assets and guiding documents.

2. For forest owners who are other organizations, assets formed from forest environmental service fee funds shall be managed and used in accordance with current state financial management regulations applicable to the type of organization.

Chapter III

IMPLEMENTATION

Article 11. Responsibilities of Organizations and Units

1. The Ministry of Agriculture and Rural Development shall take the lead and coordinate with the Ministry of Finance to inspect and supervise ministries, sectors, localities, and the Vietnam Forest Protection and Development Fund regarding the management and use of forest environmental service fees.

2. Provincial People's Committees shall direct the Departments of Finance, Agriculture and Rural Development, relevant departments, county-level People's Committees, village-level People's Committees, forest owners, and related organizations and individuals to implement this Circular.

Article 12. Effective Date

1. This Circular takes effect from March 5, 2018, and applies from the fiscal year 2018. Circular Joint No. 62/2012/TTLT-BNNPTNT-BTC dated November 16, 2012, issued by the Ministry of Agriculture and Rural Development and the Ministry of Finance, guiding the mechanism for managing and using forest environmental service fee funds, shall cease to be effective from the date this Circular takes effect.

2. In case the normative legal documents cited and applied in this Circular are amended, supplemented, or replaced, they shall be implemented according to those amended, supplemented, or replaced documents.

3. In cases where the Forest Protection and Development Fund, forest owners who are organizations, village-level People's Committees, and political-social organizations have submitted final reports but have not yet been reviewed and approved, the authority receiving the report shall continue to review and approve the report and notify the settlement to the unit.

4. During implementation, if there are difficulties, agencies and units shall reflect them to the Ministry of Finance for consideration and resolution./

ANNEX NO. 01:

REPORT ON THE IMPLEMENTATION OF FOREST ENVIRONMENTAL SERVICE PAYMENTS
(Attached to Circular No. 04/2018/TT-BTC dated January 17, 2018, of the Ministry of Finance)

IMPLEMENTATION REPORT
FOREST ENVIRONMENTAL SERVICE PAYMENTS

Year …

Paying Unit…reports the implementation of forest environmental service payments for the year … as follows:

1. Users of Forest Environmental Services:

(Record the name of the organization or individual user, type of service, form of payment (direct or indirect), address: establish a list for the first time, subsequent lists only record new entries)pay (directly, indirectly) address: establish a list for the first timen initial(for subsequent times, only record new items)

2. Area of Forest Providing Forest Environmental Services:

- Planned area: … ha

- Area of forest compensated for environmental services: … ha, including area under forest protection contracts … ha

3. Funds Received in the Year

- Total:

- Administrative expenses:

- Payment for Forest Environmental Services:

- Bank interest:

4. Use of Funds in the Year:

- Administrative expenses:

- Payment for Forest Environmental Services:

- Number of households, groups of households: … households, including number of households: … households, number of groups: … groups

5. Comments, Evaluation, and Recommendations.

ANNEX NO. 02.

COMPREHENSIVE TABLE OF PAYMENTS FOR FOREST ENVIRONMENTAL SERVICES
(Attached to Circular No. 04/2018/TT-BTC dated January 17, 2018, of the Ministry of Finance)Pursuant to Decree No. 24/2018/NĐ-CP dated February 27, 2018 of the Government on handling complaints and reports in the fields of labor, vocational education, dispatching Vietnamese workers abroad under contracts, employment, occupational safety and health;COMPREHENSIVE TABLE OF PAYMENTS FOR FOREST ENVIRONMENTAL SERVICES

TABLE OF COMBINED PAYMENT RECONCILIATION FOR FOREST ENVIRONMENTAL SERVICE PAYMENTSARTICLE ON CASHLESS PAYMENT||| AMOUNTS PAID FOR FOREST ENVIRONMENTAL SERVICES
Start date of lease (day/month/year)

ANNEX NO. 03.

FINAL ACCOUNTING REPORT ON FUNDS USED FOR FOREST ENVIRONMENTAL SERVICE PAYMENTS (APPLICABLE TO FOREST PROTECTION AND DEVELOPMENT FUNDS)
(Attached to Circular No. 04/2018/TT-BTC dated January 17, 2018, of the Ministry of Finance)Pursuant to Decree No. 24/2018/NĐ-CP dated February 27, 2018 of the Government on handling complaints and reports in the fields of labor, vocational education, dispatching Vietnamese workers abroad under contracts, employment, occupational safety and health;COMPREHENSIVE TABLE OF PAYMENTS FOR FOREST ENVIRONMENTAL SERVICES

FINAL ACCOUNTING REPORT ON FUNDS USED FOR FOREST ENVIRONMENTAL SERVICE PAYMENTS

Year …

Part I. FINANCIAL SITUATION AND SETTLEMENT OF EXPENSES

Unit of Measurement: thousand dong

Part II. EXPLANATIONCLARIFICATION

1. Payment situation of users of environmental services from forests

2. Implementation situation of entrusted payments to providers of environmental services from forests

3. Observations, evaluations, and recommendations

ANNEX NO. 04.

REPORT ON SETTLEMENT OF EXPENSES FOR PAYMENT OF ENVIRONMENTAL SERVICES FROM FORESTS (APPLICABLE TO FOREST OWNERS)
(Attached to Circular No. 04/2018/TT-BTC dated January 17, 2018, of the Ministry of Finance)

FINAL ACCOUNTING REPORT ON FUNDS USED FOR FOREST ENVIRONMENTAL SERVICE PAYMENTS

Year …

Part I. FINANCIAL SITUATION AND SETTLEMENT OF EXPENSES

Unit of Measurement: thousand dong

Part II. EXPLANATION

1. Situation of management expense payments.

2. Payment situation for Contracted Households.

3. Observations, evaluations, and recommendations.