Circular No. 105/1999/TT-BTC detailing the mechanism for rewarding excess budget revenue from state budget collection in 1999.

CIRCULAR

Detailed guidance on the mechanism for rewarding excess revenue over the state budget revenue estimate for 1999

Pursuant to the State Budget Law (as amended and supplemented); Decree No. 87/CP dated December 19, 1996, Decree No. 51/1998/NĐ-CP dated July 18, 1998 amending and supplementing Decree 87/CP of the Government; Circular No. 103/1998/TT-BTC dated July 18, 1998 guiding the decentralization, preparation, implementation, and settlement of the state budget;

Pursuant to Decision No. 248/1998/QĐ-TTg dated December 24, 1998 of the Prime Minister and Circular No. 190/1998/TT-BTC dated December 31, 1998 guiding the implementation of certain points regarding policies and measures for managing the state budget estimate for 1999;

Pursuant to Decision No. 737/QĐ-TTg dated July 28, 1999 of the Prime Minister regarding the mechanism for rewarding excess revenue from state budget collection in 1999;

The Ministry of Finance hereby provides detailed guidance on certain points regarding rewards for exceeding the state budget revenue estimate for 1999 as follows:

a- Rewards for exceeding the revenue estimate for the following items:

a) Value-added tax on domestic production is eligible for rewards including:

- Export tax, import tax, special consumption tax on imported goods (regardless of whether they pass through land borders or not).

- Special consumption tax on domestically produced goods (excluding the portion allocated to local budgets according to the decentralization ratio).

The reward for exceeding the revenue estimates for the above items shall be implemented in accordance with Clause 6, Part IV of Circular No. 103/1998/TT-BTC dated July 18, 1998 of the Ministry of Finance, based on the revenue estimate assigned by the Government.

In cases where the export tax, import tax, and special consumption tax on imported goods are assigned to a province (city), but the Customs Office of that province (city) is authorized to allocate revenue targets to Customs Offices in other provinces, the revenue basis for award consideration will be determined based on the total actual revenue collected by the Customs Offices at the National Treasury of the province (city) where the Customs Office is headquartered and the National Treasuries of other provinces where the Customs Offices under that Customs Office have been assigned revenue targets.

b- Rewards for exceeding the revenue estimate (the central government's share) for items divided between the central government budget and local government budgets, including:

Corporate income tax (including tax arrears recovery; excluding revenue from units under full sectoral accounting, revenue from television advertising, and revenue from lottery operations);

Income tax on high-income individuals;

Tax on the transfer of income abroad by foreign organizations and individuals with investment in Vietnam (excluding income from oil and gas activities);

Revenue from the use of state budget funds by state-owned enterprises (excluding revenue from lottery operations);

The reward assessment will be based on the excess revenue of the total revenue items divided (central government's share) mentioned above, allowing offsetting among the revenue items. The basis for assessment is the revenue estimate assigned by the Ministry of Finance.

For the excess revenue from value-added tax on domestic production and business operations, once the official revenue results are available, the Ministry of Finance will compile and report to the Prime Minister for specific handling.

The excess revenue estimate serving as the basis for reward assessment for the items mentioned in Points a and b is the actual revenue paid into the state budget and adjusted according to the decentralization ratio. Revenue items recorded outside the initial annual budget, refunded revenue, additional revenue, price differences, and revenue returned by the central government are not eligible for reward assessment.

Implementation in accordance with Decision No. 737/QĐ-TTg dated July 28, 1999 of the Prime Minister. Specifically:

For provinces and centrally-administered cities with excess revenue up to 10 billion VND, they will be rewarded 100% of the excess revenue. For excess revenue above 10 billion VND, an additional 50% reward will be given for the amount exceeding 10 billion VND.

- Special consumption tax on domestically produced goods (excluding the portion allocated to local budgets according to the decentralization ratio): Reward 100% of the excess revenue over the central government's estimate;

- Export tax, import tax, and special consumption tax on imported goods: For excess revenue up to 20 billion VND compared to the central government's estimate, reward 100%; for excess revenue above 20 billion VND, reward an additional 50% of the excess amount, but the total reward shall not exceed 50 billion VND;

- Revenue items divided between the central government budget and local government budgets: Reward 50% of the excess revenue (central government's share) over the central government's estimate;

- The reward money for exceeding revenue from export tax, import tax, and special consumption tax on imported goods; special consumption tax on domestically produced goods shall be used and settled in accordance with Clause 6, Part IV of Circular No. 103/1998/TT-BTC dated July 18, 1998 of the Ministry of Finance;

Investing in building economic and social infrastructure projects in the locality;

- The reward money for exceeding revenue from revenue items divided between the central government budget and local government budgets: Based on the reward for exceeding revenue from the central government, provinces and cities shall proactively consider rewarding a portion to lower-level budgets (districts, communes) corresponding to the level of revenue exceeding the initial estimate and the reward money can only be used:

+ To invest in building economic and social infrastructure projects in the locality;

+ To supplement and support capital for state-owned enterprises, paying particular attention to enterprises engaged in production and business operations with high efficiency and actively fulfilling their tax payment obligations; enterprises operating in the export sector; enterprises engaged in processing and producing agricultural products, food, etc., but facing difficulties in operational funding or debt repayment for investment;

+ Excess revenue from revenue items divided shall be accounted for and settled in the state budget for 2000.

Reporting and proposing to allocate rewards (for both revenue items divided between the central government budget and local government budgets) shall be carried out in accordance with Point 6.3, Clause 6, Part IV of Circular No. 103/1998/TT-BTC dated July 18, 1998 of the Ministry of Finance.

4. Implementation provisions:

This circular takes effect from the date of signature. All provisions contrary to this circular are abolished.

Provincial People's Committees directly under the Central Government shall implement this circular and the guidance provided in accordance with Decision No. 737/QĐ-TTg dated July 28, 1999 of the Prime Minister.

The People's Committees of the provinces and centrally governed cities shall organize the implementation based on Decision No. 737/QD-TTg dated July 28, 1999 of the Prime Minister and this guidance.