Circular No. 124/2016/TT-BTC guides the management of funds obtained from leasing, lease-purchase, and selling state-owned housing; payment of rent differences for official housing; and management of funds obtained from leasing official housing as stipulated in Decree No. 99/2015/NĐ-CP dated October 20, 2015 of the Government detailing and guiding the implementation of certain provisions of the Law on Housing.

CIRCULAR

GUIDELINES ON THE MANAGEMENT OF FUNDS RECEIVED FROM LEASING, PURCHASE LEASING, AND SALE OF STATE-OWNED HOUSING; PAYMENT OF DIFFERENTIAL RENT FOR PUBLIC SERVICE HOUSING; AND MANAGEMENT OF FUNDS RECEIVED FROM LEASING PUBLIC SERVICE HOUSING AS PROVIDED IN DECREE NO. 99/2015/NĐ-CP OF OCTOBER 20, 2015 OF THE GOVERNMENT PROVIDING DETAILED REGULATIONS AND GUIDANCE ON IMPLEMENTATION OF CERTAIN PROVISIONS OF THE HOUSING LAW

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

Pursuant to Decree No. 99/2015/NĐ-CP dated October 20, 2015 of the Government providing detailed regulations and guidance on implementation of certain provisions of the Housing Law;

Pursuant to Decree No. 215/2013/NĐ-CP dated December 23, 2013, promulgated by the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

At the proposal of the Director of the State Asset Management Agency,

The Minister of Finance issues this Circular guiding on the management of funds received from leasing, purchase leasing, and sale of state-owned housing; payment of differential rent for public service housing; and management of funds received from leasing public service housing as provided in Decree No. 99/2015/NĐ-CP dated October 20, 2015 of the Government providing detailed regulations and guidance on implementation of certain provisions of the Housing Law.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

1. This Circular guides certain contents prescribed in Decree No. 99/2015/NĐ-CP dated October 20, 2015 of the Government providing detailed regulations and guidance on implementation of certain provisions of the Housing Law regarding:

a) Management of funds received from leasing, purchase leasing, and sale of state-owned housing. For funds received from selling old houses managed by the Ministry of National Defense, it shall be implemented according to the provisions of Clause 2, Article 44 of Decree No. 99/2015/NĐ-CP;

b) Payment of differential rent for public service housing and management of funds received from leasing public service housing.

2. Tax obligations and other financial obligations when the owner sells, transfers the purchase contract, lease-purchase contract, gifts, exchanges, or contributes housing as capital shall be carried out in accordance with the laws on tax and other relevant laws.

Article 2. Applicability

1. The agency representing the owner of state-owned housing as stipulated in Clause 1 and Clause 2, Article 39 of Decree No. 99/2015/NĐ-CP.

2. The agency managing state-owned housing as stipulated in Clause 3, Article 39 of Decree No. 99/2015/NĐ-CP.

3. The unit managing and operating state-owned housing with functions and capabilities in managing and operating housing as stipulated in Clause 4, Article 39 of Decree No. 99/2015/NĐ-CP; including:

a) Public service units;

b) Enterprises;

c) Other units or organizations managing and operating housing as prescribed by the laws on housing.

(Hereinafter referred to as the unit managing and operating housing).

4. Other related agencies, units, and individuals.

Chapter II

MANAGEMENT OF FUNDS RECEIVED FROM LEASING, PURCHASE LEASING, AND SALE OF STATE-OWNED HOUSING

Article 3. Management of funds received from leasing, purchase leasing, and sale of state-owned housing

1. The unit managing and operating housing is responsible for collecting and remitting funds received from leasing, purchase leasing, and sale of state-owned housing or guiding tenants, purchasers, and buyers of housing to directly deposit such funds into a temporary account opened at the State Treasury by the housing management agency before the end of each month.

2. The holder of the temporary account, which is the housing management agency as stipulated in Clause 2, Article 2 of this Circular, is responsible for paying the expenses specified in Articles 4 and 5 of this Circular according to the budget approved by the competent authority to the unit managing and operating housing.

3. Annually, the unit managing and operating housing is responsible for preparing the budget, finalizing accounts of revenues and expenditures, and submitting them for approval in accordance with the laws on the state budget.

Article 4. Costs in the case where the housing management and operation unit is a public service institution

1. Management costs include:

1.1. Recurrent expenses: Recurrent expenses for activities according to the functions and tasks assigned by the competent authority, including:

a) Wages, salaries, and allowances;

b) Social insurance, health insurance contributions, and other contributions as prescribed;

c) Public service payment expenses: electricity, water, environmental sanitation, and other services;

d) Office supplies purchase expenses: office equipment, filing cabinets, desks and chairs, office supplies serving the unit's operations;

đ) Regular maintenance expenses for fixed assets;

e) Depreciation expenses for fixed assets (if applicable);

g) Other expenses as prescribed by law (if applicable).

1.2. Non-recurrent expenses (if applicable), including:

a) Equipment purchase expenses;

b) Other expenses as prescribed by law (if applicable).

2. Legitimate expenses (if applicable), including:

a) Taxes payable as prescribed by law;

b) Fees and charges;

c) Other legitimate expenses as prescribed by law (if applicable).

3. The expenses specified in Clause 1 and Clause 2 of this Article shall be covered from the rental income from state-owned housing; except in cases where these expenses have been allocated in the annual budget estimate of the public service institution managing the housing.

Article 5. Costs in the case where the housing management and operation unit is a business enterprise

1. Content of expenditure:

a) Employee management costs;

b) Management material costs;

c) Office supplies costs;

d) Fixed asset depreciation costs;

đ) Taxes, fees, and charges;

e) Reserve costs;

g) External service costs;

h) Cost audit expenses;

i) Other monetary costs.

2. The expenses specified in Clause 1 of this Article shall be covered from the rental income from state-owned housing as prescribed.

Article 6. Costs and preparation of budgets and final accounts for expenses of the Council determining the price of old state-owned housing

1. Expenses include:

a) Meeting organization expenses;

b) Overtime work expenses related to the Council's determination of the price of old state-owned housing;

c) Survey price work expenses (if applicable);

d) Office supply and document printing expenses, storage costs;

đ) Other expenses directly related to the determination of the price of state-owned housing.

2. Budgets and final accounts for expenses of the Council determining the price of old state-owned housing shall be prepared by the Department of Construction in accordance with the State budget law;

3. The expenses specified in Clause 1 of this Article shall be covered from the rental and sale income from state-owned housing as approved by the competent authority; except in cases where these expenses have been allocated in the annual budget estimate of the Department of Construction;

4. The provisions set out in Clause 1, Clause 2, and Clause 3 of this Article also apply in cases where the competent state authority permits the establishment of a Council to determine the lease and sale prices of state-owned housing.

Article 7. Funding Levels

1. For expenses that have standard rates, standards, or unit prices prescribed by the competent state authority, they shall be implemented according to current regulations.

2. For public service payment expenses settled based on actual invoices or determined based on the volume of work required and the agreed quota in the service contract.

3. For expenses not falling under the cases specified in Clause 1 and Clause 2 of this Article, the head of the agency shall examine and decide but must ensure compliance with the current financial management system of the State and bear responsibility for their decision.

4. The provisions set out in Clause 1, Clause 2, and Clause 3 of this Article shall be used to prepare budgets as the basis for selecting units participating in housing management and operation in accordance with laws on housing and bidding laws.

Article 8. Accounting for Costs

The management and operation unit of state-owned housing shall be responsible for separately accounting for costs related to leasing, lease-purchase, and selling state-owned housing.

Article 9. Preparation of Budget Estimates for Leasing, Lease-Purchase, and Sale Activities of State-Owned Housing

1. The management and operation unit of housing shall prepare budget estimates for leasing, lease-purchase, and sale activities of state-owned housing and management and operation costs within the scope of its assigned tasks, and report to the housing management authority.

2. The housing management authority shall examine the budget estimates prepared by the management and operation unit of housing and send them to:

a) The representative body of the owner (for ministries, sectors, and central agencies) to consolidate into the budget estimate of the ministry or sector.

b) The Department of Finance (for localities) to review, consolidate, and report to the representative body of the owner for examination and approval in accordance with the laws on the state budget.

3. The representative body of the owner shall perform:

a) Examine and consolidate together with the budget estimates of subordinate units under its management, and submit to the Ministry of Finance (for ministries, sectors, and central agencies).

b) Transfer to the Departments of Finance of provinces and centrally-administered cities (for localities) for review as the basis for consolidation into the annual budget estimate of the locality.

4. The preparation of budget estimates for leasing, lease-purchase, and sale activities of state-owned housing, and management and operation activities of state-owned housing shall be carried out in accordance with the laws on the state budget.

Article 10. Settlement of Revenue and Expenditure for Leasing, Lease-Purchase, and Sale Activities of State-Owned Housing and Management and Operation of State-Owned Housing

1. The management and operation unit of housing shall organize the settlement of revenue and expenditure for leasing, lease-purchase, and sale activities of state-owned housing and management and operation costs within the scope of its assigned tasks, and report to the housing management authority.

2. The housing management authority shall examine the settlement reports prepared by the management and operation unit of housing and send them to:

a) The representative body of the owner (for ministries, sectors, and central agencies) to consolidate into the settlement of the ministry or sector.

b) Send to the Departments of Finance of provinces and centrally-administered cities (for localities) for review and consolidation, and report to the representative body of the owner.

3. The representative body of the owner shall perform:

a) Examine and consolidate together with the settlements of subordinate units under its management, and submit to the Ministry of Finance (for ministries, sectors, and central agencies).

b) Transfer to the Departments of Finance of provinces and centrally-administered cities (for localities) for review as the basis for consolidation into the annual revenue and expenditure settlement of the locality.

4. The approval of the settlement of revenue and expenditure for leasing, lease-purchase, and sale activities of state-owned housing and management and operation activities of state-owned housing shall be carried out in accordance with the laws on the state budget.

Article 11. Use of Proceeds from Leasing, Lease-Purchase, and Sale of State-Owned Housing

1. Proceeds from leasing state-owned housing shall be used:

a) For maintenance of state-owned housing currently being leased.

b) To pay management and operation costs of state-owned housing currently being leased in accordance with Articles 4 and 5 of this Circular.

2. Proceeds from lease-purchase and sale of state-owned housing, after deducting costs for organizing lease-purchase and sale activities, shall be remitted to the state budget at the current budget level in accordance with point b, Clause 1, Article 44 of Decree No. 99/2015/NĐ-CP.

3. Annually, the expenditures specified in points a and b of Clause 1 and Clause 2 of this Article shall be settled, and the remaining amount shall be remitted to the state budget at the current budget level in accordance with the laws on the state budget.

Chapter III

PAYMENT OF DIFFERENCES IN HOUSING RENT FOR PUBLIC SERVICE AND MANAGEMENT OF PROCEEDS FROM LEASING PUBLIC HOUSING

Article 12. Payment for the difference in rent for official housing

In cases where commercial housing is rented to serve as official housing as stipulated in Article 25 and point b, Clause 2, Article 51 of Decree No. 99/2015/NĐ-CP, if the rent for commercial housing exceeds the amount that the tenant must pay, the tenant shall only pay rent not exceeding 10% of their current salary at the time of renting official housing; the procedure for settling the remaining difference shall be carried out as follows:

Based on the decision regarding the rental of commercial housing to serve as official housing by the competent authority as stipulated in Clause 2, Article 25 of Decree No. 99/2015/NĐ-CP, the personnel management agency that meets the criteria for renting official housing shall issue a document to the official housing management agency to determine the amount of rent for official housing that must be paid and to identify the difference between the rent for commercial housing serving as official housing and the amount the tenant must pay, and the state budget funds allocated to cover this difference according to regulations to build and include it in the annual expenditure budget of the unit. Based on the approved budget estimate, the personnel management agency renting official housing shall make monthly payments for this difference in accordance with the state's salary payment schedule and settle this amount together with the unit's general settlement.

Article 13. Management of income from renting official housing

1. The income from renting official housing shall be deposited into a temporary account opened at the State Treasury by the housing management agency before the 30th of each month.

2. The income from renting official housing shall be handled in accordance with the provisions of Article 11 of this Circular.

Chapter IV

IMPLEMENTATION

Article 14. Effective Date

1. This Circular takes effect from September 19, 2016.

2. In cases where the legal normative documents cited for application in this Circular are amended, supplemented, or replaced, they shall be implemented according to those amended, supplemented, or replacement documents.

Article 15. Implementation Organization

1. Housing management agencies under state ownership as stipulated in Clause 1, Clause 2, and Clause 3 of Article 2 of this Circular; People's Committees of provinces and centrally-administered cities; and other related agencies and units are responsible for organizing the implementation of the provisions of this Circular.

National Financial Supervisory Commission;