JOINT CIRCULAR NO. 08/LB-TT GUIDING THE COLLECTION AND MANAGEMENT OF FUNDS FROM THE LEASE OF STATE-OWNED HOUSING.

JOINT CIRCULAR

GUIDELINES FOR THE COLLECTION AND MANAGEMENT OF FUNDS FROM THE RENTAL OF STATE-OWNED HOUSING.

Pursuant to the Prime Minister's Decision No. 118/TTg dated November 27, 1992 on "Rental Prices for Housing and Incorporation of Housing Costs into Salaries" and Decision No. 33/TTg dated February 5, 1993 on "Transition of State-Owned Housing Management to Business Operations", the Ministry of Finance and the Ministry of Construction hereby issue guidelines for the collection and management of funds from the rental of state-owned housing as follows:

I/ GENERAL PROVISIONS:

1\. All companies engaged in housing business under provinces and centrally-administered cities (hereinafter referred to as provinces), central ministries and agencies, associations, and state-owned enterprises (hereinafter referred to as administrative and service units) that have housing funds owned by the state and currently rented out to cadres, employees, and citizens according to state regulations must implement the collection of rental fees and use the collected funds in accordance with this Circular..

2\. The housing fund for rent includes all housing owned by the state managed and rented out by entities at the prices stipulated by the state (as specified in Decision No. 118/TTg dated November 27, 1992 and Circular No. 01/LBTT dated January 19, 1993). In cases where housing is rented out from the housing business fund, this Circular does not apply.

3\. All revenue from renting state-owned housing must be centralized and utilized according to general regulations:

- For joint-stock housing companies: Revenue from renting housing must be deposited into the account opened at the State Treasury. The State Treasury will pay interest on these deposits according to current regulations. After deducting the portion exempted or reduced due to implementing policies as stipulated in Decision No. 118/TTg, the basic depreciation component must be submitted to the State Budget for approval by the financial authority. The remaining portion may be used for major repairs, regular maintenance, and management costs of rented housing according to annual plans approved by competent authorities.

- For administrative and service units: All revenue from housing must be remitted to the State Budget through the State Treasury system. Units must open deposit accounts at the State Treasury to remit these funds. Costs for major repairs, regular maintenance, and housing management must be included in the annual financial plan of the unit and approved by the State Budget.

- For state-owned enterprises: Revenue from renting state-owned housing must be recorded separately. The enterprise is responsible for submitting the basic depreciation component of rented housing to the State Budget together with the submission of basic depreciation components of other assets financed by state budget funds for production and business activities.

4\. Exemptions and reductions in housing rental fees for specific groups as stipulated in Decision No. 118/TTg shall be covered by the State Budget and offset against rental income immediately at the managing entity.

II/ SPECIFIC PROVISIONS:

1\. Objectives for Collection and Exemption of Rental Fees:

a\. All cadres, employees, and retired personnel from administrative and service units, armed forces, production and business units, and citizens renting state-owned housing for residence must pay monthly rental fees to the direct housing management entity.

b\. Rental fees are determined based on the rented area as per the contract, the rental price set by the People's Committee Chairman of the province, and the confirmed exemption or reduction amount by the competent authority.

c\. Groups eligible for exemption or reduction in rental fees are guided by Circular No. 27/LBTT dated December 31, 1992 issued by the Ministry of Labor, Invalids and Social Affairs, Ministry of Finance, and Ministry of Construction regarding the implementation of incorporating housing costs into salaries.

2\. Documentation for Exemption and Reduction:

Individuals eligible for exemption or reduction in rental fees when signing rental contracts must provide complete documentation recognized by the direct management entity:

- For revolutionary veterans, war invalids, and social policy beneficiaries, there must be corresponding recognition documents issued by the competent authority (such as certificates of revolutionary veteran status, disability cards, merit awards...) and confirmation letters from the labor, invalids, and social affairs department responsible for monthly allowances.

- For employees who ceased work before November 1, 1992, as per Decision No. 111/HDBT and Decision No. 176/HDBT, there must be termination notices, confirmation of allowance receipt dates from the previous workplace, and local government confirmation of unemployment and genuine hardship.

3\. Calculation of Exemptions and Reductions:

a\. Cases Eligible for Full Exemption:

Specific provisions for individuals eligible for full exemption of rental fees as stipulated in Point 1, Section II of Circular No. 27/LBTT dated December 31, 1992 are as follows:

- In cases without salary:

+ If they were directly allocated housing previously or rented from the land management agency as the tenant, they are exempt from all rental fees.

+ If they were not directly allocated housing, are not the main tenant, and live with others receiving salaries, they are only exempt for their own standard.

- In cases with salary:

Individuals currently receiving salaries who have had housing costs incorporated into their salaries, if they are the main tenants, are subject to the following:

+ If the rental fee exceeds or equals the housing cost allocated to themselves and other salaried individuals listed in the rental contract, they only need to pay the allocated amount.

+ If the rental fee is less than the housing cost allocated to themselves and other salaried individuals listed in the rental contract, they only need to pay the actual rental fee.

The allocated housing cost must be confirmed by the salary or allowance issuing entity.

b\. Cases Eligible for Partial Reduction:

Individuals listed in Point 2, Section II of Circular No. 27/LBTT dated December 31, 1992, when paying housing costs, can receive partial reductions according to the prescribed standards (if they have the required documentation as stated in Point 2, Section II of this Circular) as follows:

In cases where the actual rent for housing is greater than the amount eligible for reduction, the difference must be paid after deducting the eligible reduction amount.

In cases where the actual rent for housing is less than or equal to the amount eligible for reduction, no rent payment is required.

c/ In cases where multiple subjects are eligible for exemption or partial reduction of rent under the same lease agreement:

- If the total amount of exemptions and reductions is less than the actual rent, only the difference needs to be paid.

- If the total amount of exemptions and reductions exceeds the actual rent, the entire rent will be waived.

The exemption and reduction of rent shall cease when the subject eligible for such benefits terminates the lease agreement, changes residence, or dies.

Specifically, workers and civil servants who were laid off pursuant to Decisions 176/HĐBT, 111/HĐBT, 315/HĐBT before November 1, 1992, and who have not found employment and are experiencing genuine financial difficulties, may have their rent reduced up to a maximum of twelve months.

4/ Collection and Exemption/Reduction of Rent:

Management and business units of housing shall re-sign or sign new lease agreements for all housing funds directly managed by them according to the guidelines of the Ministry of Construction. The lease agreement must clearly state the contract holder, number of household members residing together, usable area, subject(s) and level of exemption/reduction (if applicable).

Based on the housing fund that has been leased out, the unit shall compile relevant documentation (lease agreements, certificates of exemption/reduction...) and prepare a list of contracts and revenue (according to Form 1 attached to this Circular). On the basis of this list, a comprehensive report on the rental revenue plan, exempted/reduced revenue, and revenue due from state-owned housing funds (according to Form 2 attached to this Circular) shall be submitted to the supervising authority for verification and consolidation (if it is a state administrative service agency or production and business entity with multiple subordinate housing management units), or sent to the financial management authority (Ministry of Finance for central-level units, Department of Finance for local-level units) for review; simultaneously sending to the State Treasury where the rental deposit account is opened for management.

Based on the determined revenue plan and exempted/reduced revenue, the unit shall simultaneously collect rent and implement exemptions/reductions for subjects as stipulated in Decision 118/TTg.

For revenue from state-owned housing rentals at prices set forth in Decision 118/TTg and specific decisions of competent authorities, housing management and business units are not required to pay income tax.

The handling of sources for exempted/reduced revenue shall be carried out as follows:

- For joint venture housing companies and state-owned enterprises: Revenue from exemptions/reductions implemented by the unit for eligible subjects will be deducted from the basic depreciation portion to be paid to the state budget.

- For administrative and public service agencies, revenue from exemptions/reductions already implemented for eligible subjects will be deducted from the total revenue to be paid to the state budget.

5/ Management and Use of Rental Revenue:

All rental revenue from housing operations of housing business companies and administrative and public service agencies must be deposited into accounts opened at the State Treasury according to the guidelines of the National Treasury Administration.

The use of this revenue shall be carried out as follows:

- For housing business companies at the provincial level, the State Treasury requires the unit to calculate the basic depreciation according to the regulations of the Ministry of Finance corresponding to the revenue serving as the basis for submission to the state budget (after deducting approved exemptions/reductions). The remaining amount is considered as the unit's deposit at the State Treasury for use in expenditures according to plans and budgets approved by the competent authority. These expenditures include: major repairs, regular maintenance, management costs, and enterprise profits (if any).

- For administrative and public service agencies, the State Treasury will transfer the entire rental revenue into the state budget. The agency's expenditures for regular maintenance, major repairs, and housing management will be covered by the State Treasury according to the annual financial plan approved.

- For state-owned enterprises when submitting the basic depreciation of state-owned housing funds, the unit can deduct the approved exemptions/reductions (if any).

The above payments to the state budget are distinguished as follows: housing management and business units at the local level pay into the local budget, while those at the central level pay into the central budget.

6/ Accounting Records:

- Housing business companies, state-owned enterprises, and administrative and public service agencies must comply with current accounting and statistical reporting systems.

- Revenue from housing rentals paid into the state budget shall be recorded in the corresponding chapter, type, item, and sub-item of the current state budget classification (item 26). (The Ministry of Finance will issue a circular to supplement item 26 "revenue from housing rentals" mentioned above).

7/ Plan for Revenue and Expenditure from Housing Rentals:

- Each year, the unit shall prepare a revenue plan for housing rentals along with the financial plan and submit it to the supervising authority for consolidation and submission to the financial management authority at the same level for review according to the current hierarchy.

- Based on the revenue plan for rented housing, the unit shall prepare a budget for expenditures on major repairs, regular maintenance, and management costs, accompanied by a comprehensive report on the use of rental revenue (according to Form 3 attached to this Circular) and submit it to the supervising authority and the financial management authority for review. If it is a housing business company, these expenditures will be taken from deposits at the State Treasury. If it is an administrative and public service agency, it will be funded through the state budget via the State Treasury within the scope of revenue from housing after deducting the basic depreciation to be paid. If it is a state-owned enterprise, the costs will be taken from the remaining rental revenue after deducting the basic depreciation to be paid.

8/ Handling Violations:

- Housing business companies that fail to pay or delay payment of the basic depreciation for rental housing funds will be penalized according to the current regulations on tax collection violations.

- Administrative and service agencies that receive state budget funding will have their allocated funds deducted if they fail to remit revenue to the housing fund. Agencies with income and mass organizations not receiving state budget funding will have their deposits at banks or State Treasury deducted if they fail to remit revenue to the rental housing fund.

III\. IMPLEMENTATION:

1/ The Chairperson of the People's Committee of Provinces and Cities directly under the Central Government; Ministers, Heads of Ministries, agencies equivalent to ministries, government agencies, central-level associations, and mass organizations shall be responsible for directing subordinate agencies and units managing houses to develop plans to implement Decision 118/TTg dated November 27, 1992 and Decision No. 33/TTg dated February 5, 1993 of the Prime Minister, and other relevant regulations (as guided by the Ministry of Construction); promptly compile them into comprehensive plans for provinces, cities, ministries, and government agencies to submit to the Joint Ministry of Construction - Finance - Labor, Invalids, and Social Affairs for the simultaneous collection of rent for housing and deduction from salaries starting from March 1993.

The implementation of collecting rent for housing and incorporating housing costs into salaries shall commence on November 1, 1992.

2/ This Circular takes effect from the date of issuance. Any difficulties encountered during implementation should be reported to the Joint Ministry for consideration and supplementary guidance.

Place of filing:

- The Government

- Office of the President

- Government Office

- National Assembly Office

- Central Party Office, Party Committees

- Ministries, State Councils, government agencies

- Provincial People's Committees, Departments of Labor, Invalids, and Social Affairs, Departments of Finance - Prices, Departments of Housing and Land

Departments of Construction of provinces and centrally-administered cities

- Mass organizations, Associations at the central level

- Supreme People's Procuracy

- Supreme People's Court

- Published in the Official Gazette (Government Office)

To be filed at the Office (Ministry of Construction, Ministry of Finance)

AUTHORITY IN CHARGE:…

MANAGEMENT AND BUSINESS UNITS OF HOUSING:…

Model No. 1

LIST OF LEASE CONTRACTS AND RENTAL REVENUE FROM HOUSING

Date...month...year 199...

Note: This list is prepared by the management and business unit of housing to reflect all lease contracts managed by the unit.

- Column 4, 5, 6: leased area, rental price according to contract, and rent payable according to contract as recorded in paragraph a, point 6, section II of each housing lease contract.

- Column 7: rent exempted/reduced as recorded in paragraph b, point 6, section II of each housing lease contract (if applicable)

- Column 8: actual rent payable as recorded in paragraph c, point 6, section II of the housing lease contract.

This list is made in three copies to be sent to the authority in charge and kept at the unit.

AUTHORITY IN CHARGE:…

MANAGEMENT AND BUSINESS UNITS OF HOUSING:…

Form No. 2

COMPREHENSIVE REPORT ON PLAN, RENTAL REVENUE

FROM HOUSING; EXEMPTED/REDUCED REVENUE;

REVENUE TO BE COLLECTED FROM THE HOUSING FUND

OWNED BY THE STATE

1/ Total number of contracts signed:

2/ Total leased area according to contracts (sqm usable)

3/ Total rental revenue from housing according to contracts …đ

Where:

3.1/ Basic depreciation (according to prescribed ratio …đ for the housing fund owned by the State)

3.2/ Revenue to be exempted/reduced:…đ

4/ Total actual revenue to be collected:…đ

5/ Amount to be paid to the State Budget: …đ

Date Month Year 199...

Note:

This comprehensive report is compiled based on the list of contracts and rental revenue.

- Article 2: Total leased area according to contracts as recorded in column 4 of the list of contracts and rental revenue.

- Article 3: Total rental revenue from housing according to contracts as recorded in column 6 of the list of contracts and rental revenue.

- 3.1/ Basic depreciation calculated according to the prescribed ratio for the housing fund owned by the State, as directed in Circular No. 09/TC-TT dated February 10, 1993 of the Ministry of Finance.

- 3.2/ Recorded according to the result of column 7 of the list of contracts and rental revenue.

- Point 4: Recorded according to the result of column 8 of the list of contracts and rental revenue.

- Point 5: Amount to be paid to the State Budget.

+ For administrative and service agencies: It is the total actual revenue to be collected (Article 4).

+ For housing business companies and state-owned enterprises: It is the basic depreciation after deducting the actual exempted/reduced amount approved by the competent authority (5 = 3 - 3.2).

This report is made in four copies: to be sent to the authority in charge, financial authority, State Treasury where the account is opened, and kept at the unit.

AUTHORITY IN CHARGE:…

MANAGEMENT AND BUSINESS UNITS OF HOUSING:…

Model No. 3

COMPREHENSIVE REPORT ON PLAN FOR USE

OF FUNDS FROM HOUSING RENTAL

A/ Sources of Income:

1/ Total rental revenue actually collected in the year.

2/ Basic depreciation to be paid to the State Budget (after deducting exemptions and reductions).

3/ Total rental revenue used in the year (3 = 1 - 2).

B/ Use of Income:

- Total:…

- Of which:

1/ Major repairs of housing:

2/ Regular maintenance of housing:

3/ Management expenses:

C/ Comparison:

- Source (A3) with use of source (B):

Month Year 199...

Note:

This report is made in four copies along with detailed budget plans for major repairs, regular maintenance, and management expenses to be submitted to the authority in charge, financial authority, State Treasury where the account is opened, and kept at the unit.

GUIDELINES FOR CALCULATING EXEMPTIONS AND REDUCTIONS IN HOUSING RENT

FOR ELIGIBLE OBJECTS FOR EXEMPTIONS - REDUCTIONS

(According to Circular No. 27/LB-TT dated December 31, 1992)

1/ Section for declaration and calculation

Note:

Columns 6 and 7: Used only for those enjoying exemption without salary (recorded at point 1, section II of Circular No. 27/LB-TT), column 6 records the exempted area, column 7 records the exempted amount.

If the contract holder: the exempted area is the entire leased area of the rented house.

If not the contract holder: the exempted area is according to personal standards.

Column 8: Used only for those enjoying reduced standards (recorded at point 2, section II of Circular No. 27/LB-TT), record the reduction amount.

2/ Determine the amount of exemption and reduction in housing rent.

If the subject is the owner of the contract: the exempted area is the entire area of rented housing under the contract.

If the subject is not the owner of the contract: the exempted area is based on the individual standard.

Column 8: Only applicable to subjects entitled to reduced standards (as stipulated in Point 2, Section II of Circular Joint Circular No. 27 LB/TT), recording the amount of reduction.

2/ Determine the amount of exemption and reduction for housing costs.

Based on the above declaration, if the rental contract includes an object exempted from payment or subject to reduction, one of the following cases shall be applied for calculation of such exemption or reduction.

Case 1: The contract holder or a member of the contract who does not receive a salary and is exempted from paying rent.

a/ The contract holder is an object exempted from paying rent.

The amount exempted (equal to the entire rent) is: …đ

b/ There is a member in the contract who is an object exempted from paying rent.

The amount exempted = the standard square meter of the person exempted x the unit price of 1 square meter of rent according to the contract = …đ

Case 2: The contract holder is an object exempted from paying rent but receives a salary (rent has already been included in the salary), then the amount exempted equals: The difference, if any, between the rent payable and the rent included in the salary of the individual and other members of the contract who benefit from it.

Case 3: In the rental contract, there is one or more members who are exempted or have reduced rent, then the amount of exemption or reduction is determined as follows:

- The amount of exemption or reduction according to the policy if this amount is less than the rent.

- The amount of exemption or reduction equal to the entire rent if the amount of exemption or reduction is equal to or greater than the rent.

Related Documents:

v