Circular No. 121/2008/TT-BTC guiding the preferential mechanism and financial support for solid waste management investment activities

 

CIRCULAR

Guidelines for preferential mechanisms and financial support for solid waste management investment activities

Pursuant to the State Budget Law;

The Prime Minister issues this Decision amending and supplementing certain provisions of the Regulation on Response Activities to Oil Spill Incidents issued together with Decision No. 02/2013/QĐ-TTg dated January 14, 2013 of the Prime Minister.

Pursuant to Decree No. 59/2007/NĐ-CP dated April 9, 2007 of the Government on solid waste management;

The Ministry of Finance hereby issues guidelines for preferential mechanisms and financial support applicable to domestic organizations and individuals; foreign organizations and individuals (hereinafter referred to as organizations and individuals) engaging in one of the following solid waste management investment activities: construction of solid waste treatment facilities; collection and transportation of solid waste; and cooperatives and households implementing collection, transportation, and treatment of solid waste in rural residential areas and craft villages without existing collection and transportation services.

This technical regulation sets out technical requirements, testing methods, sampling procedures; management requirements; responsibilities of organizations and individuals producing, trading, and importing cigarettes.

1. These guidelines provide guidance on preferential mechanisms and financial support applicable to domestic organizations and individuals; foreign organizations and individuals (hereinafter referred to as organizations and individuals) engaging in one of the following solid waste management investment activities: construction of solid waste treatment facilities; collection and transportation of solid waste; and cooperatives and households implementing collection, transportation, and treatment of solid waste in rural residential areas and craft villages without existing collection and transportation services.

2. The investment in solid waste management activities subject to preferential treatment and financial support as provided in these guidelines shall be implemented in accordance with Article 13 of Decree No. 59/2007/NĐ-CP dated April 9, 2007 of the Government on solid waste management.

3. To enjoy preferential treatment and financial support, organizations and individuals engaged in solid waste management investment activities must meet the conditions stipulated in these guidelines.

II. PREFERENTIAL POLICIES AND FINANCIAL SUPPORT FOR SOLID WASTE TREATMENT FACILITIES

1. Conditions for enjoying preferential policies and financial support

Organizations and individuals investing in solid waste treatment facilities as prescribed in Clause 15, Article 3 of Decree No. 59/2007/NĐ-CP shall enjoy preferential policies and financial support as provided in Clause 2 of this Section if they satisfy all of the following conditions:

a. They have been granted permission by competent state authorities to invest in constructing solid waste treatment facilities.

b. They have an investment project for constructing the entire or part of the facility that is consistent with local land use planning and has been approved by the competent authority..

c. They use technology capable of thoroughly treating solid waste and having high economic and technical efficiency.

d. They comply fully with laws on construction and environmental protection.

e. They conform to the scale criteria and standards for solid waste treatment facilities as prescribed by the Prime Minister.

2. Preferential policies and financial support for solid waste treatment facilities

2.1 Preferential policies regarding land use fees, land rental fees, and land clearance costs

a) Organizations and individuals investing in constructing solid waste treatment facilities that satisfy all conditions prescribed in Clause 1 of this Section shall be exempt from land use fees and land rental fees in cases where the State grants land with land use fees or leases land.

Procedures, formalities, and approval authority for exemption from land use fees shall be carried out in accordance with Decree No. 198/2004/NĐ-CP dated December 3, 2004 of the Government on land use fees, Circular No. 117/2004/TT-BTC dated December 7, 2004, and Circular No. 70/2006/TT-BTC dated August 2, 2006 of the Ministry of Finance guiding the implementation of Decree No. 198/2004/NĐ-CP.

Procedures, formalities, and approval authority for exemption from land rental fees shall be carried out in accordance with Decree No. 142/2005/NĐ-CP dated December 30, 2005 of the Government on land rental fees and water surface fees, Circular No. 120/2005/TT-BTC dated December 30, 2005, and Circular No. 141/2007/TT-BTC dated November 30, 2007 of the Ministry of Finance guiding the implementation of Decree No. 142/2005/NĐ-CP.

b) Organizations and individuals investing in constructing solid waste treatment facilities that satisfy all conditions prescribed in Clause 1 of this Section shall be considered by the State for support in compensation and resettlement costs as follows:

- Vietnamese organizations and individuals investing in constructing solid waste treatment facilities shall bear the responsibility for paying compensation and resettlement costs (if any) according to the law on compensation, support, and resettlement and such costs shall be recorded as part of the project's investment capital.

Provincial People's Committees shall base their decisions on the scale, importance, and local budget capacity of the solid waste treatment facility to consider and decide on partial or full support for the compensation and resettlement costs that the investor must pay for land clearance.

- Foreign organizations or overseas Vietnamese individuals investing in constructing solid waste treatment facilities are not required to pay compensation and resettlement costs according to the law on compensation and support for resettlement; if such costs have already been paid, they shall be recorded as part of the project's investment capital.

2.2 Financial support from the state budget

a. Support from the state budget

Based on the local budget capacity, provincial People's Committees shall consider and submit to the People's Council at the same level to allocate funds from the local budget to construct transportation systems, power supply systems, communication systems, and water supply and drainage systems up to the perimeter fence of the facility.

b. Investment support from Official Development Assistance (ODA) sources

Solid waste treatment facilities shall be prioritized to attract ODA funding and shall apply financial mechanisms similar to those for household waste treatment projects and urban solid waste treatment projects as stipulated in Circular No. 108/2003/TT-BTC dated November 7, 2003 and Circular No. 08/2008/TT-BTC dated January 20, 2008 of the Ministry of Finance guiding financial mechanisms for environmental sanitation projects using ODA funding.

2.3 Investment support through preferential credit

Organizations and individuals investing in constructing solid waste treatment facilities shall be supported in credit through forms of investment loans, post-investment interest rate subsidies, and investment loan guarantees from the Vietnam Development Bank, the Vietnam Environmental Protection Fund, or the local environmental protection fund (if available) if they meet the conditions for each form of support. if there are sufficient conditions for each form of support. Investment support shall be carried out in accordance with current laws and the charter of the lending organization..

2.4 Tax preferences

a) Preferences for import taxes

- Equipment imported to form fixed assets of solid waste treatment facilities shall be exempt from import taxes.

- Raw materials and materials imported for the production of solid waste treatment facilities shall be exempted from import tax for a period of five years, starting from the date when the solid waste treatment facility begins operation.

- The procedures and documents for tax exemption shall be carried out in accordance with the regulations on export tax and import tax.

b) Corporate income tax incentives

Solid waste treatment facilities that meet the conditions shall be exempted from corporate income tax and enjoy preferential corporate income tax rates in accordance with the current laws on corporate income tax.

2.5 Support for research and development of recycling, reuse, and solid waste treatment technology

Organizations and individuals investing in the construction of solid waste treatment facilities shall be supported by the state budget for research and development costs of recycling, reuse, and solid waste treatment technology through scientific and technological programs and projects.

The maximum level of support shall not exceed 30% of the total cost of implementing research projects to create new technologies conducted by the facility or jointly with scientific agencies.

The procedures, selection process, and the authority responsible for selecting research and development projects for recycling, reuse, and solid waste treatment technology supported by the state budget shall be implemented according to the guidelines set forth in Circular Joint No. 2341/2000/TTLT/BKHCNMT-BTC dated November 28, 2000, guiding the implementation of Decree No. 119/1999/NĐ-CP dated September 18, 1999, of the Government regarding certain policies and financial mechanisms to encourage enterprises to invest in scientific and technological activities.

The contents of expenditures for scientific research, the establishment, decision-making, allocation, and settlement of state budget funds supporting this activity shall be implemented according to the guidelines set forth in Circular Joint No. 25/2003/TTLT-BKHCN-BTC dated August 25, 2003, supplementing some provisions of Circular Joint No. 2341/2000/TTLT-BKHCNMT-BTC dated November 28, 2000.

2.6 Training support

- Training costs for sending employees to study (paid by the solid waste treatment facility) shall be considered reasonable expenses in accordance with the law.

- In cases where necessary, based on training plans to standardize basic knowledge for employees at solid waste treatment facilities, People's Committees at all levels may consider providing financial support for these subjects according to Decree No. 69/2008/NĐ-CP dated May 30, 2008, on policies to encourage socialization in education, vocational training, healthcare, culture, sports, environment activities, and related guidance documents, depending on the local budget capacity.

III. INCENTIVE AND FINANCIAL SUPPORT POLICIES FOR SOLID WASTE COLLECTION AND TRANSPORT FACILITIES

1. Conditions for enjoying preferential policies and financial support

Organizations and individuals investing in transfer stations, purchasing equipment, specialized vehicles, and other means serving solid waste collection and transport shall enjoy incentive and financial support as guided in Clause 2 of Section II of this Circular if they meet the following conditions:

a. Being permitted by competent state authorities to collect and transport solid waste.

b. Having investment projects for solid waste collection and transport activities that comply with local land use planning and have been approved by competent authorities.

c. Adhering fully to environmental protection laws and labor laws.

d. Meeting the scale and standards for solid waste collection and transport facilities as prescribed by the Prime Minister.

2. Incentive and Financial Support Policies for Solid Waste Collection and Transport Facilities

2.1. Organizations and individuals constructing transfer stations for solid waste shall be exempted from land use fees, land rental fees, and supported with compensation costs for land clearance and resettlement according to the guidelines set forth in Point 2.1, Clause 2 of Section II of this Circular.

2.2. Organizations and individuals engaged in solid waste collection and transport activities shall enjoy credit incentives according to the guidelines set forth in Point 2.3, Clause 2 of Section II of this Circular.

2.3. Tax Incentives

a) Import Tax Incentives

- Equipment imported to form fixed assets of investment projects for transfer stations, collection, and transportation of solid waste shall be exempted from import tax.

- Procedures and documents for tax exemption shall be carried out in accordance with the regulations on export tax and import tax. export tax, import tax.

b) Corporate Income Tax Incentives

Solid waste collection and transport facilities that meet the conditions shall be entitled to exemptions and reductions in corporate income tax and preferential corporate income tax rates in accordance with the current laws on corporate income tax..

2.4 State Budget Support Policies

Solid waste collection and transport facilities for household waste, in addition to revenue from sanitation fees as prescribed, shall be supported by the local budget to cover the costs of collection and transport based on service contracts. The content of the service contract value shall be established according to Decision No. 256/2006/QĐ-TTg dated November 9, 2006, issued by the Prime Minister on tendering, ordering, and implementing production and supply of public goods and services and the approved budget estimate or through the results of service tenders.

3. Cooperatives and business households implementing the collection, transportation, and treatment of household solid waste in rural residential areas and craft villages without such services shall be charged sanitation fees as prescribed and supported by the local budget to cover the costs of collection and transport based on service contracts. The content of the service contract value shall be established according to the guidelines set forth in Point 2.4, Clause 2 of this Section.

V. IMPLEMENTATION

This Circular shall take effect fifteen days after its publication in the Official Gazette.

Any difficulties encountered during implementation should be reported to the Ministry of Finance for research and guidance. /./