Circular No. 10 TC/NT on financial regulations for officials going on short-term missions, studying, visiting, surveying, and attending training courses funded by foreign countries and organizations.

CIRCULAR

Financial regime for officials going on short-term missions, studying, touring, surveying, or attending training courses funded by foreign countries and international organizations

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Our officials who go on short-term missions, study, tour, or survey abroad (collectively referred to as going on overseas missions) are usually provided with living expenses by foreign organizations at levels higher than those in developed countries, significantly exceeding the living standards of our officials in Vietnam and also higher than the living standards of our officials working abroad supported by the State budget. The source of living expenses for these officials going abroad is closely related to foreign loans, aid, or annual fees and membership fees paid by our State to foreign entities. Therefore, given the current difficulties in foreign currency reserves, the State policy is that, apart from the necessary living expenses retained for the officials, a portion of the difference in living expenses will be regulated back to the State budget. Depending on whether the difference is high or low, progressive taxation or exemption will apply.

In accordance with Circular No. 2393-V7 dated May 28, 1986, issued by the Office of the Council of Ministers, and based on the actual implementation of financial regimes for delegations funded by foreign entities in recent times, after consulting relevant ministries, sectors, and some of our embassies abroad, the Ministry of Finance has established the following regulations on the collection of living expense differences for our officials going on overseas missions funded by foreign countries and international organizations:

I. GENERAL PROVISIONS

1- The subjects covered by this circular include officials going on missions, attending conferences, seminars, studying, internships, tours, surveys, sports performances, cultural performances, and other activities funded by foreign organizations. Not covered under this circular are officials dispatched as experts under agreements, officials sent by our country to work at international organizations for fixed terms and paid salaries by foreign organizations, and members of cultural performance groups operating under commercial conditions.

2- Officials going on missions funded by foreign organizations have the obligation to pay a portion of the living expense difference to the State budget, after deducting hotel rental fees, average living expenses, according to the ratio specified in Point 4, Section II of this circular.

In addition to the living expense difference required to be paid to the State budget, officials can use the remaining income to cover all personal expenses (including food, accommodation, daily travel expenses, waiting for transit trains or buses, petty cash, and other personal expenses). It is strictly prohibited to use the living expense difference that should be paid to the State budget for other purposes, including purchasing materials, documents, or equipment for the agency.

3- In special cases, if there is evidence that the foreign organization did not send air tickets and travel expenses in time, the official going on a mission may request their principal ministry to temporarily advance funds from their own foreign currency reserve or the principal ministry may request the Ministry of Finance to temporarily advance funds from the State budget's foreign currency reserve, subject to the condition that the person receiving the advance must fully repay the public fund.

4- If the delegation is not included in the plan approved by the State budget but is invited by a foreign entity with the condition that our side covers the air ticket costs while the foreign side only provides food and accommodation expenses, the principal ministry should carefully consider dispatching the delegation only when it calculates that the amount to be paid to the State budget will at least cover the cost of the air tickets.

II / SPECIFIC REGULATIONS

1- The foreign currency used to calculate living expenses and the obligation to pay to the State budget is Soviet Ruble (for socialist countries) and US Dollar (for non-socialist countries).

The exchange rate used for conversion in this calculation is the trade settlement rate between the currencies of socialist countries and Soviet Ruble, and the official exchange rate between US Dollar and the currencies of non-socialist countries, as published by the central banks of those countries at the time of the officials' mission.

2- The basis for calculating the living expenses received and the amount to be paid to the State budget is the total amount provided by the foreign organization, including daily accommodation expenses (food, lodging, petty cash) during the mission period, and accommodation allowances at transit countries and other amounts actually received by the officials.

The mission period includes the actual number of working days and the number of travel days covered by the foreign organization's funding, as well as the necessary waiting days for flights to Vietnam.

3- If our officials go on overseas missions and are provided with freely convertible foreign currency by foreign organizations for expenses in socialist countries, the amount to be paid to the State budget must be in freely convertible foreign currency that the officials have received. The benefit level and regulation level in this case are the same as for non-socialist countries mentioned in Point 4 below.

4- The regulation level for paying to the State budget for officials going on short-term missions in non-socialist countries funded by foreign organizations with freely convertible foreign currency.

This regulation level is determined daily based on the remaining amount after deducting the actual expenditure on hotels or housing.

If the remaining amount is $10/day, it is exempted from payment. If it exceeds $10/day, it is taxed at a percentage of the excess over $10/day. The highest tax rate does not exceed 50%. Specifically, the tax rates are as follows:

If a foreign organization invites under conditions that include providing accommodation, and granting pocket money exceeding 5 USD per day per person, and the grant period exceeds one month (30 days), then the unified rate for collection and payment to the state budget shall be 20% of the total amount granted. If the amount granted or the grant period is less than the aforementioned figures, such collection shall be exempted.

5. The adjustment level for short-term official trips funded by socialist countries, international organizations, or socialist countries.

Delegations on short-term missions to socialist countries are usually hosted by the host organization at a rate of 200 rubles or more per person per month. The regulatory amount to be paid to the state budget is 20% of the excess over 200 rubles per month.

III. IMPLEMENTATION PROVISIONS

1. Prior to the delegation's departure for an overseas mission, along with other procedures, the managing agency must submit a budget estimate for the delegation to the Ministry of Finance, including:

- Determining the amount of funds provided by the foreign organization.

- Determining the amount of money the delegation can use and the difference in living expenses that must be paid to the State Budget.

- Processing procedures for receiving foreign currency or requesting advance payment if necessary.

After returning from the mission, within 15 days, the managing agency of the delegation must submit a final report to the Ministry of Finance. The final report reflects the actual income and expenditure of the delegation, confirming the difference in living expenses that must be paid to the State Budget.

When preparing the final report, delegations must attach original receipts for income and expenditure. The final report must be signed by the Director of the Financial Department or an authorized representative.

2. Delegations on overseas missions may fulfill their obligations to the State Budget at the financial department of the Embassy of our country in the host country or in the designated collection country, obtaining documentation for settlement with the Ministry of Finance.

3. Managing agencies have the responsibility to remind, urge, and inspect their staff members on overseas missions to strictly comply with the State's regulations and policies on foreign currency management and the provisions of this Circular. If any agency fails to properly handle violations by its staff members, the Ministry of Finance will suspend the approval of budget estimates and financial procedures for subsequent delegations.

4. This Circular shall take effect from the date of issuance and replace Circulars No. 40TC/NT dated October 16, 1984, No. 52 TC/NT dated January 1, 1985, issued by the Ministry of Finance, and any other provisions inconsistent with this Circular.

The Ministry of Finance requests all Ministries, sectors, and our Embassies abroad to disseminate this Circular to relevant departments and staff members on overseas missions. /