Circular No. 116/2009/TT-BTC guiding the implementation of Decision No. 64/2009/QD-TTg dated April 20, 2009 of the Prime Minister on the issuance of financial management mechanisms and staffing for the Tax sector in 2009 and 2010.

CIRCULAR

Guidelines for implementing Decision No. 64/2009/QĐ-TTg dated April 20, 2009 of the Prime Minister on the issuance of financial management mechanisms and staffing levels for the Tax Sector in 2009 and 2010.

On the basis of Decision No. 64/2009/QĐ-TTg dated April 20, 2009 of the Prime Minister on the issuance of financial management mechanisms and staffing levels for the Tax Sector in 2009 and 2010;

The Ministry of Finance guides the implementation of financial management mechanisms and staffing levels for the Tax Sector in 2009 and 2010 as follows:

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Pursuant to Decree No. 60/2003/NĐ-CP dated June 6, 2003 of the Government detailing and guiding the implementation of the State Budget Law;

Pursuant to Decree No. 118/2008/NĐ-CP dated November 27, 2008 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Implementing the financial management mechanisms and staffing levels for units under the Tax Sector directly subordinate to the Ministry of Finance in 2009 and 2010 according to Decision No. 64/2009/QĐ-TTg dated April 20, 2009 of the Prime Minister.

The implementation of financial management mechanisms and staffing levels of the Tax Sector must ensure the following objectives and requirements:

Article 1. Scope of Application

1. Effectively perform the state management function over domestic revenue; complete the tax collection tasks assigned by the State for the State budget.

Article 2. Purpose and Requirements

2. Reform the staffing and operating fund management mechanism of the Tax Sector; promote organizational restructuring, building a clean, strong, and highly qualified workforce; allocate the allocated funds in conjunction with the results and effectiveness of State budget revenue collection activities; grant autonomy and accountability to unit heads in organizing work, using labor, and utilizing financial resources.

3. Actively utilize the allocated operating funds, practice thrift, and prevent waste; focus on modernizing information technology and equipping modern technical equipment to enhance efficiency and modernize management technology to effectively fulfill the functions and tasks assigned by the State, meet international integration conditions; strengthen training and supplement income for civil servants.

4. Implement transparency and democracy in accordance with the provisions of the law, ensuring the legitimate rights of civil servants in the Tax Sector.

1. The staffing of the Tax Sector is determined within the total number of positions granted by the competent state agency to the Ministry of Finance. The Minister of Finance allocates staffing quotas to the Tax Sector in accordance with its functions and tasks assigned based on actively organizing and restructuring the management apparatus and utilizing labor in accordance with the State's policy of reducing staffing.

2. The Director of the General Department of Taxation proactively organizes, manages, and uses civil servants and public officials in accordance with the law and regulations of the Ministry of Finance. The total number of positions allocated to units under the Tax Sector shall not exceed the staffing quota already granted by the Minister of Finance to the Tax Sector.

Article 3. On Staffing

In addition to the allocated staffing, the Tax Sector may enter into service contracts and labor contracts in accordance with the law.

3. In cases where additional Tax Bureaus are established at provincial and centrally-administered city levels or new functions and tasks are added according to decisions of competent authorities, the Director of the General Department of Taxation proactively reorganizes staffing within the total staffing quota granted by the Minister of Finance. If it is necessary to increase staffing quotas to meet newly arising tasks, the Director of the General Department of Taxation reports to the Minister of Finance for consideration and coordination with the Minister of Home Affairs to submit to the Prime Minister for decision.

In addition to the number of positions allocated, the Tax sector is permitted to enter into service contracts and labor contracts in accordance with the provisions of the law.

3. In cases where new Tax Bureaus are established or merged at provincial and centrally governed city levels, or where functions and tasks are supplemented according to the decision of the competent authority, the Director of the General Department of Taxation shall proactively arrange positions within the total number of positions assigned by the Minister of Finance. If it is necessary to increase the staffing quota to meet newly arising work requirements, the Director of the General Department of Taxation shall report to the Minister of Finance for consideration and coordination with the Minister of Home Affairs to submit to the Prime Minister for decision.

Article 4. Funding to Ensure the Operation of the Tax Sector

1. The funding to ensure the operation of the Tax Sector (including subordinate public service units under the Tax Sector) shall be determined at 1.8% of the revenue forecast approved by the National Assembly for the Tax Sector to organize and implement within the annual state budget revenue-expenditure plan.

2. The revenue forecast serving as the basis for determining the funding to ensure the operation of the Tax Sector includes:

a) Crude oil revenues pursuant to agreements and contracts;

b) Domestic tax revenues (excluding crude oil), including:

- Value-added tax;

- Corporate income tax;

- Special consumption tax;

- Resource tax;

- Business registration tax;

- Agricultural land use tax;

- Land transfer tax from previous years (if applicable);

- Property tax;

- Personal income tax;

- Rent fees for land and water surfaces;

- Rent fees for state-owned assets;

- Land use fees;

- Proceeds from the sale of state-owned houses;

- Other state budget revenues managed by tax authorities;

- Fuel taxes;

- Natural gas revenues allocated to the Government according to exploration and production contracts;

- Stamp duty;

- Fees and charges.

3. In cases where the actual revenue collected annually by the Tax Sector exceeds or falls short of the revenue forecast approved by the National Assembly, the Minister of Finance shall report to the Government for its submission to the Standing Committee of the National Assembly for decision in accordance with Article 59 of the State Budget Law.

4. When the State changes policies or systems, the Tax Sector shall cover additional expenditures arising from new policies or systems on its own. In cases where objective factors lead to insufficient allocated funding to ensure the minimum operational expenditure of the Tax Sector's machinery, the Minister of Finance shall report to the Prime Minister for consideration and adjustment as appropriate.

Article 5. Other Sources of Funding

In addition to the funding allocated in accordance with Article 4 of this Circular, the Tax Sector may also utilize the following sources of funding:

1. State budget funding allocated to perform the following tasks:

a) Implementing scientific management tasks and national-level research projects;

b) Training and upgrading cadres and civil servants according to the state’s program;

c) Implementing national target programs and other government programs outside the regular tasks of the Tax Sector;

d) Reducing staff in accordance with the system prescribed by the State.

2. Other legitimate sources of funding as provided by law.

The Tax Sector must manage and use these sources of funding in accordance with their intended purposes and current expenditure regulations suitable for each source of funding.

Article 6. Contents of Funding to Ensure the Operation of the Tax Sector

1. Regular Expenditure Items:

The regular funding to ensure the operation of the Tax Sector includes the following items:

a) Personal payment expenses: salaries, wages, allowances, contributions (including social insurance, health insurance, trade union fees), rewards and collective welfare benefits as stipulated by the state, and other payments to individuals (including salary increases, outsourcing work payments, and external labor contract payments). The average salary level across the sector is 1.8 times the salary scale set by the state for cadres, civil servants, and officials (grade, rank, position, and various allowances, excluding night shift and overtime allowances).

b) Administrative management expenses and expenses to ensure professional operations, including:

- Expenses for public services, office supplies, telecommunications, meetings, travel expenses, rental expenses, etc.;

- Expenses for taxpayer support and publicity;

- Expenses for scientific research, training, upgrading, and professional training for cadres and civil servants according to the Tax Sector’s program and plans;

- Stamp duty expenses, tax collection agency expenses as prescribed by law; uniform expenses;

- Cooperation expenses;

- Expenses to compensate taxpayers for losses of money and property as prescribed by law;

- Expenses for inspection and control to prevent tax evasion and violations of tax laws;

- Expenses for purchasing, repairing, and major repairs of assets, equipment, facilities, and office premises to serve the professional operations of the Tax Sector (including purchasing tools, equipment, information technology equipment; repairing assets and office premises);

- Expenses for overseas trips; expenses for hosting foreign guests visiting Vietnam for work, organizing international conferences and seminars in Vietnam;

- Expenses to support cadre rotation, dispatch, and assignment within the Tax System;

- Other regular operational expenses.

c) Information technology application and modernization expenses according to approved programs and plans, ensuring a minimum of 18% of the total regular expenditure of the Tax Sector.

d) Implementation of information technology application programs, equipment procurement, infrastructure enhancement, cadre training and upgrading, and other tasks as part of the overall financial sector mission, including supporting the specialized mission of the Tax Sector. The Minister of Finance decides on the budget allocation to carry out the above tasks within the approved Tax Sector budget.

e) Expenses to ensure the operation of party organizations according to Decision No. 84-QD/TW dated October 1, 2003 of the Central Party Secretariat; expenses to ensure the operation of mass organizations according to current laws.

Unspent regular operational funding at the end of the year may be carried over to the next year for continued use.

2. Investment Construction Expenditure Items:

Investment construction expenditure shall ensure a minimum of 10% of the annual approved expenditure of the Tax Sector.

Investment capital is allocated for constructing and renovating Tax Sector offices. Management and use of investment capital shall comply with current regulations.

In necessary cases, the Minister of Finance has the authority to reallocate investment capital already allocated to the Tax Sector for investment in other construction projects serving the common mission of the financial sector that have completed all required procedures but lack funds.

Article 7. Standards, expenditure levels, and expenditure regimes

1. For expenditure regimes, standards, and levels that have been issued by competent authorities, the Director of the Tax General Department shall proactively guide units within the Tax sector to implement them in accordance with the activities of the Tax sector.

2. For special expenditure items, the Director of the Tax General Department shall base on specific circumstances and the capacity of financial resources, applying existing expenditure standards and levels to establish special expenditure standards and levels suitable for approval and issuance by the Minister of Finance.

3. Regarding expenditure levels for salaries and wages: Based on the number of positions assigned by the Minister of Finance and the operational budget, the expenditure level for salaries and wages for cadres, civil servants, and public officials shall be implemented according to the provisions at point a, Clause 1, Article 6 of this Circular.

The Director of the Tax General Department decides on the distribution of salaries and wages based on the quality of work completion results of each cadre, civil servant, and public official, following the principle of fair and reasonable distribution, linking salaries with work performance, while also being reflected in the internal expenditure regulations of the Tax sector.

Article 8. Utilization of saved funds

Annually, the amount of saved funds from regular budgets (excluding the expenditure contents stipulated at points c and d, Clause 1, Article 6 of this Circular), the Tax sector may use for the following purposes:

1. In cases where it is necessary to accelerate the construction progress of physical infrastructure and modernize the sector while investment capital for basic construction has not yet met requirements, the Tax sector may use saved funds to allocate for construction projects and modernization of the sector.

Based on the capacity of saved funds and the need for funds to accelerate the construction progress of physical infrastructure and modernize the sector, the Director of the Tax General Department reports to the Minister of Finance for approval to allocate for each item of work.

2. To set up a reserve fund for income stabilization to ensure income stability for cadres, civil servants, and public officials in the Tax sector due to objective reasons reducing their income; to support cadres, civil servants, and public officials in the Tax sector facing difficult situations, suffering from serious illnesses, death, or other special cases. The Minister of Finance will specify the specific level of setting up the reserve fund for income stabilization appropriately.

3. To supplement income for cadres, civil servants, and public officials in the entire Tax sector, with a maximum of 0.2 times the salary level prescribed by the state (grade, rank, position, and various allowances, excluding night shift and overtime allowances).

The level of supplementary income for each cadre, civil servant, and public official is decided by the head of the unit based on the principle of linking with work performance, fairness, and reasonableness, while also being consistent with the trade union organization of the unit and made public throughout the unit.

4. To reward organizations and individuals inside and outside the Tax sector who have made contributions and supported tax activities; to spend on collective welfare. The Director of the Tax General Department guides the specific expenditure levels appropriately.

The total expenditure level for rewards and welfare in the Tax sector shall not exceed three months' worth of salaries, wages, and actual income realized in the year.

5. To provide additional subsidies beyond general policies for those voluntarily retiring during the process of labor restructuring and organization; to support public institutions under the Tax sector. The Director of the Tax General Department guides the specific expenditure levels appropriately.

6. To support the activities of party organizations and mass organizations, the specific level of support is determined by the Director of the Tax General Department and the heads of agencies and units under the Tax sector as appropriate.

7. Any remaining funds (if any) after ensuring the above expenditure items, the Tax sector may transfer to the next year for continued use.

Article 9. Funding to ensure operations for units under the Tax General Department

Units under the Tax General Department shall be guaranteed operational funding from the state budget according to regulations from the source of funding allocated by the state to ensure the operation of the Tax sector as stipulated in Article 4 of this Circular; they shall apply the expenditure regime as prescribed in this Circular and exercise autonomy and self-responsibility for their tasks, organizational structure, staffing, and finances as prescribed in Decree No. 43/2006/NĐ-CP dated April 25, 2006 of the Government for public service units.

Article 10. Budget preparation, execution, and settlement

The preparation, execution, and settlement of budgets shall be carried out in accordance with current regulations.

Article 11. Implementation Organization

1. The Ministry of Finance (primary budget unit) is responsible for guiding and implementing the financial management mechanism and staffing for the Tax sector as prescribed in Decision No. 64/2009/QĐ-TTg dated April 20, 2009 of the Prime Minister and the guidance provided in this Circular.

2. Based on the guidance of the Ministry of Finance (primary budget unit), the Director-General of the Tax General Department is responsible for guiding and organizing the implementation of the financial management mechanism and staffing for units within the Tax sector.

Annually, the Tax General Department shall organize inspections and evaluations to draw lessons from the implementation of the financial management mechanism and staffing to ensure compliance with the objectives and requirements set forth in Decision No. 64/2009/QĐ-TTg dated April 20, 2009 of the Prime Minister.

In the third quarter of 2010, the Director-General of the Tax General Department shall organize a summary and evaluation of the implementation of the financial management mechanism and staffing for the Tax sector in 2009 and 2010, develop the financial management mechanism and staffing for the Tax sector for the subsequent period, and report to the Minister of Finance for submission to the Prime Minister for decision.

3. Operational funding assigned to the Tax sector (including all funds) that remained unused and unclaimed up to 2007 shall continue to be utilized to serve specialized tasks, investment construction expenses, and expenses to enhance infrastructure and develop the sector as guided in this Circular.

Based on the amount of remaining unused and unclaimed funding and the necessary expenditures to meet specialized tasks, investment construction expenses, and expenses to enhance infrastructure and develop the sector, the Director-General of the Tax General Department shall report to the Minister of Finance for a decision on the utilization of such funding to ensure effectiveness and practicality.

4. This Circular shall take effect 45 days from the date of signature and shall apply to the fiscal years 2009 and 2010. Circular No. 54/2005/TT-BTC of the Ministry of Finance guiding the implementation of Decision No. 107/QĐ-TTg dated May 16, 2005 of the Prime Minister regarding the pilot assignment of staffing and operational funding for the Tax General Department for the period 2005-2007 is hereby repealed.

During the implementation process, if there are difficulties or obstacles, units are requested to reflect them to the Ministry of Finance for timely research and resolution./.