Circular No. 135/2008/TT-BTC guiding the Government Decree No. 69/2008/NĐ-CP dated May 30, 2008 on policies to encourage socialization in activities within the fields of education, vocational training, healthcare, culture, sports, and environment.

   CIRCULAR

Guidelines for Decree No. 69/2008/NĐ-CP dated May 30, 2008 of the Government on policies to encourage socialization in activities in the fields of education, vocational training, healthcare, culture, sports, and environment.

Pursuant to Decree No. 69/2008/NĐ-CP dated May 30, 2008 of the Government on policies to encourage socialization in activities in the fields of education, vocational training, healthcare, culture, sports, and environment;

Pursuant to Decision No. 1466/QĐ-TTg dated October 10, 2008 of the Prime Minister promulgating the detailed list of types, scale criteria, and standards of entities implementing socialization in the fields of education-training, vocational training, healthcare, culture, sports, and environment.

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The Ministry of Finance hereby provides guidance as follows:

I. Scope and subjects regulated in Article 1 of Decree No. 69/2008/NĐ-CP dated May 30, 2008 (hereinafter referred to as Decree No. 69/2008/NĐ-CP) shall be implemented as follows:

Socialization fields include: Education-training, vocational training; healthcare; culture; physical culture and sports; environment.

a) Non-state-owned entities that are granted permits by competent authorities to operate in socialization fields, including:

2. Applicability:

- Non-state-owned entities established and operating in accordance with Decree No. 69/2008/NĐ-CP of the Government, including private and non-public institutions (or private schools for education-training and vocational training), operating in socialization fields.

2. Scope of application:

- Non-state-owned entities established and operating in accordance with Decree No. 53/2006/NĐ-CP dated May 25, 2006 of the Government on policies to encourage the development of non-state-owned service-providing entities; Decree No. 73/1999/NĐ-CP dated August 19, 1999 of the Government on policies to encourage socialization in activities in the fields of education, healthcare, culture, and sports.

b) Organizations and individuals operating under the Enterprise Law with investment projects, joint ventures, or joint operations to establish independent accounting entities operating in socialization fields and meeting the conditions for operation as prescribed by competent state authorities.

c) Public service entities contributing capital, raising funds, engaging in joint ventures, or joint operations in accordance with the law to establish independent accounting entities or enterprises operating in socialization fields as decided by competent state authorities.

3. For foreign-invested projects in socialization fields: The application of preferential policies stipulated in Decree No. 69/2008/NĐ-CP shall be implemented according to separate decisions of the Prime Minister based on proposals from the Ministry of Planning and Investment and relevant specialized ministries.

(Hereinafter referred to as socialization implementation entities).

II. Conditions for enjoying policies to encourage socialization development as stipulated in Article 2 of Decree No. 69/2008/NĐ-CP are specifically guided as follows:

Socialization implementation entities in the fields of education-training, vocational training; healthcare; culture; physical culture and sports; environment must belong to the list of types and meet the scale and standard criteria issued together with Decision No. 1466/QĐ-TTg dated October 10, 2008 of the Prime Minister to enjoy the policies to encourage socialization development stipulated in Decree No. 69/2008/NĐ-CP.

III. Principles for implementing policies to encourage socialization as stipulated in Article 4 of Decree No. 69/2008/NĐ-CP are specifically guided as follows:

1. Socialization implementation entities established and permitted to operate must comply with planning and meet the conditions for enjoying policies to encourage socialization development as stipulated in Section II of this Circular.

2. Socialization implementation entities operate on the principle of self-financing.

3. The State grants land or leases land that has been completed with land clearance to socialization implementation entities in accordance with planning and land use plans; provides financial support for compensation and land clearance costs for investment projects in socialization fields that have independently carried out compensation and land clearance work since the effective date of Decree No. 69/2008/NĐ-CP.

4. The State and society treat socialization implementation entities equally in activities and products/services as public entities. Socialization implementation entities can participate in public services funded by the State, contracted orders; bid for contracts and projects using domestic and foreign funds in accordance with their functions and tasks as prescribed by law.

5. Socialization implementation entities can engage in joint ventures or joint operations with organizations both domestically and internationally in accordance with the law, aiming to raise capital, human resources, and technology, thereby improving product and service quality.

6. Assets of socialization implementation entities include individual and collective assets, assets of public service entities participating in capital contributions when established, and assets formed during the course of operation; among which, assets donated or provided without charge during the operation of socialization implementation entities cannot be divided among individuals but must be used collectively for the benefit of the entity and the community.

7. In cases where socialization implementation entities cease operations and dissolve, they must follow the dissolution procedures and asset and financial settlement processes as prescribed by law on enterprise dissolution.

IV. Leasing houses and constructing facilities as stipulated in Article 5 of Decree No. 69/2008/NĐ-CP are specifically guided as follows:

1. Socialization implementation entities are prioritized to lease houses and infrastructure to provide products and services in socialization fields in accordance with local and national planning.

a) Based on existing housing and infrastructure funds, provincial and centrally-administered city People's Committees create favorable conditions and encourage relevant agencies to invest in and upgrade state-managed housing and infrastructure funds to transfer them to socialization implementation entities for long-term leasing at preferential rates.

1. Socialization bases shall be prioritized for leasing houses and infrastructure to provide products and services in the field of socialization in accordance with local and state planning and plans.

a) Based on the existing housing and infrastructure fund, the People's Committee of the provincial level and centrally governed city shall create conditions and encourage relevant agencies to invest in renovating and upgrading the housing and infrastructure under state management, to transfer them to socialization bases for long-term lease at preferential prices.

b) Based on the planning and socio-economic development plans of the locality, the People's Committee of the province or centrally governed city shall consider and decide on the construction of new houses and infrastructure for socialized entities to lease long-term at preferential rates.

2. The preferential rental price for socialized entities shall be determined specifically as follows:

The maximum preferential rental rate does not include land rental fees, compensation costs for land clearance (if applicable), and interest from the business entity managing the houses and infrastructure according to the approved project. The specific rental rates for houses and infrastructure for socialized entities shall be set by the People's Committee of the province or centrally governed city in accordance with local conditions, specifically:

a) For existing houses and infrastructure, the rental price shall be determined based on a reassessment of assets in accordance with current asset management regulations.

b) For newly constructed houses and infrastructure, the rental price shall be determined based on the construction cost (including taxes of the construction unit), excluding land rental fees, compensation costs for land clearance, and interest from the business entity managing the houses and infrastructure.

The People's Committee of the province or centrally governed city shall base on specific circumstances and the budget capacity of the locality to issue regulations on partial or full support for interest payments for agencies, units, and organizations with the function of operating houses and infrastructure for socialized entities to lease. This interest rate is equivalent to the annual loan interest rate of the Development Bank within the locality and the value of repairs and new constructions for socialized entities to lease.

The basis for supporting interest payments for agencies, units, and organizations with the function of operating houses and infrastructure shall be decided by the People's Committee of the province or centrally governed city.

3. The documents and procedures for socialized entities to enjoy preferential rental rates for state-owned houses and infrastructure shall be guided by the People's Committee of the province or centrally governed city.

4. The People's Committee of the province or centrally governed city shall create favorable conditions regarding administrative procedures, issue construction permits, and related procedures to enable socialized entities to invest in constructing and repairing physical facilities according to the plan.

5. In cases where socialized entities construct houses and physical facilities within new urban projects that have already been equipped with infrastructure, they must pay construction costs. The People's Committee of the province or centrally governed city shall base on the budget capacity of the locality to issue regulations on partial support for infrastructure construction costs for socialized entities.

The documents and procedures for socialized entities to be considered for support in infrastructure construction costs shall be guided by the People's Committee of the province or centrally governed city.

V. Allocation and leasing of land as stipulated in Article 6 of Decree No. 69/2008/NĐ-CP shall be guided as follows:

1. Socialized entities shall be considered and decided by the People's Committee of the province or centrally governed city to allocate land or lease land that has completed land clearance for the construction of socialized projects through the following forms: allocating land without collecting land use fees; leasing land and exempting land rental fees; allocating land with collection of land use fees but exempting land use fees during the period granted by the State for land allocation or leasing according to the law.

Specifically, for urban land and residential land, the People's Committee of the province or centrally governed city shall base on specific circumstances and the budget capacity of the locality to issue detailed regulations on allocating land with collection of land use fees and leasing land with collection of land rental fees for socialized entities; simultaneously, it shall regulate the implementation of exemptions and reductions in land use fees and land rental fees according to the law.

If the investor has prepaid compensation and resettlement funds for socialized projects according to the approved plan (from the date Decree No. 69/2008/NĐ-CP takes effect), the pre-invested compensation and resettlement funds for the area of land serving social activities will be refunded by the state budget. The People's Committee of the province or centrally governed city shall specify and publicize the procedures and time for refunding compensation and resettlement funds to investors of socialized projects.

2. If socialized entities wish to implement the method of allocating land with collection of land use fees or leasing land with payment for the entire lease period in one lump sum to carry out investment projects (not implementing the exemption and reduction of land use fees); the People's Committee of the province or centrally governed city shall consider and decide according to its authority or submit to the competent authority to decide on land allocation or leasing to the investor of socialized projects according to the current regulations on land use fee collection or leasing land with payment for the entire lease period in one lump sum.

In this case, socialized entities can deduct pre-paid land compensation and support costs (if any) from the land use fees and land rental fees payable; they can include the value of land use rights and land rental rights in the value of the project's assets and have the rights and obligations of economic organizations allocated land with collection of land use fees or leased land with payment for the entire lease period in one lump sum according to current land laws.

3. If public or semi-public institutions convert to socialized entities and meet the conditions for enjoying policies encouraging socialization as stipulated in Section II of this Circular, they shall be decided by the People's Committee of the province or centrally governed city to continue using the land area currently in use through the methods of allocating land without collection of land use fees, or allocating land with collection of land use fees but exempting land use fees, or leasing land according to the guidance provided in Points 1 and 2 of Section V of this Circular.

The procedures for land allocation, leasing, and issuance of land use right certificates shall be carried out in accordance with current land laws. Land that is not put into use or used for purposes other than intended must be returned to the state.

4. The basis for socialization must use land in accordance with its intended purpose and in compliance with planning regulations; if land is used for purposes other than those intended, the basis for socialization will have its land reclaimed according to the laws on land, and at the same time must pay the state budget the full amount of land rent waived according to the land price at the time of reclamation for the period of improper use, and must also pay the state budget the benefits that the basis for socialization has enjoyed according to Decree No. 69/2008/NĐ-CP.

5. The basis for socialization, when granted land without payment of land use fees, granted land but exempted from land use fees, or leased land but exempted from land rental fees, must perform rights and obligations as prescribed by the Land Law; it shall not include the value of the land use right currently being used in the value of the project's assets and shall not use land as collateral for borrowing.

6. The basis for socialization may not transfer land that has been granted by the State for the implementation of socialization projects. In cases where competent authorities decide to allow the transfer of the basis for socialization, it must ensure that the transfer does not change the intended use of the land for social activities. In such cases, the People's Committee of the province or centrally governed city shall reclaim the land previously granted to the original investor and grant or lease the land to the new investor according to current laws on land.

VI. Regarding corporate income tax, Article 8 of Decree No. 69/2008/NĐ-CP shall be implemented as follows:

1. The basis for socialization earning income from social activities shall apply a corporate income tax rate of 10% throughout the period of operation.

2. For the basis for socialization engaging in various types of business operations, it must separately account for income from social activities to be eligible for the corporate income tax rate as guided in Point 1 of Section VI hereof. If the basis for socialization earns income from activities outside the scope of social activities specified in Point 1 of Section I of this Circular, it must fulfill tax obligations according to the law. The method of calculating corporate income tax shall be carried out according to the Corporate Income Tax Law and the guiding documents for the implementation of the Corporate Income Tax Law.

3. The basis for socialization must declare and pay taxes in accordance with the provisions of the tax law, and issue invoices for revenues from social activities in accordance with the law on invoice management and use. Violations will be handled according to the current tax law sanctions.

4. New bases for socialization established from the date Decree No. 69/2008/NĐ-CP takes effect shall be exempt from corporate income tax for four years from the year they first earn taxable income and shall have their corporate income tax reduced by 50% for the next five years.

New bases for socialization established from the date Decree No. 69/2008/NĐ-CP takes effect in investment priority areas as specified in Appendix II issued together with Decree No. 108/2006/NĐ-CP dated September 22, 2006 of the Government, and new bases for socialization established from January 1, 2009 in areas listed in the directory of corporate income tax incentives issued together with Decree No. 124/2008/NĐ-CP dated December 11, 2008 of the Government detailing and guiding the implementation of certain provisions of the Corporate Income Tax Law, shall apply a corporate income tax rate of 10% throughout the period of operation, be exempt from corporate income tax for four years from the year they first earn taxable income, and have their tax reduced by 50% for nine subsequent years.

5. Bases for socialization established before the effective date of Decree No. 69/2008/NĐ-CP shall enjoy corporate income tax incentives for the remaining period starting from the 2008 tax year as follows:

+ If the period of enjoying incentives as stipulated previously still remains, then continue to enjoy incentives based on the principle that the remaining incentive period equals the number of years the enterprise enjoys tax exemption and reduction as guided in this Circular minus the number of years the basis has already enjoyed tax exemption and reduction under previous regulatory documents as follows:

- By the end of the 2007 tax period, if the basis is currently in the tax exemption period, the remaining tax exemption period equals the number of years of tax exemption as stipulated in this Circular minus the number of years the basis has already enjoyed tax exemption up to the end of the 2007 tax period, and at the same time enjoys the entire period of tax reduction as guided in this Circular.

- By the end of the 2007 tax period, if the basis has just completed the tax exemption period, it shall enjoy the entire period of tax reduction as guided in this Circular.

- By the end of the 2007 tax period, if the basis is currently in the tax reduction period, the remaining tax reduction period equals the number of years of tax reduction as stipulated in this Circular minus the number of years the basis has already enjoyed tax reduction up to the end of the 2007 tax period.

+ By the end of the 2007 tax period, if the basis has completed both the tax exemption and tax reduction periods, it does not qualify for tax exemption and reduction as guided in this Circular.

The tax exemption and reduction period stipulated in Clause 4 of this Section shall be calculated continuously from the first year the basis earns taxable income from social activities and enjoys tax incentives; in cases where the basis does not earn taxable income within the first three years, starting from the first year of revenue from the investment project, the tax exemption and reduction period shall be calculated from the fourth year.

The start date for tax exemption and reduction for new bases for socialization established before January 1, 2009, shall be determined as follows:

- If there was no revenue by the end of the 2008 tax period, the tax exemption and reduction period shall be calculated from the first year of earning taxable income; if there is no taxable income within the first three years following the first year of revenue, the tax exemption and reduction period shall be calculated from the fourth year.

- As of the end of the tax period in 2008, if there has been revenue but not for three consecutive years since the first year of revenue, the period of tax exemption and reduction shall be counted from the first year with taxable income; in cases where there is no taxable income within the first three years following the first year of revenue, the period of tax exemption and reduction shall be counted from the fourth year.

- As of the end of the tax period in 2008, if there has been revenue for three or more consecutive years, the period of tax exemption and reduction shall be counted from the tax year 2009.

VII. Regarding preferential credit policies under Article 9 of Decree No. 69/2008/NĐ-CP, it is guided as follows:

Socialized entities falling within the scope, objects, and conditions stipulated in Section I and Section II of this Circular are eligible to borrow investment credit or receive post-investment support according to State investment credit regulations (Decree No. 151/2006/NĐ-CP dated December 20, 2006, and Decree No. 106/2008/NĐ-CP dated September 19, 2008, amending and supplementing certain articles of Decree No. 151/2006/NĐ-CP on State investment credit and export credit, and guidance documents issued by the Ministry of Finance).

VIII. Regarding capital mobilization policies under Article 10 of Decree No. 69/2008/NĐ-CP, it is guided as follows:

1. Socialized entities are permitted to mobilize capital from economic organizations and individuals for the development of material facilities and are responsible for using and repaying the mobilized capital according to agreements. Interest payments on borrowed capital are recorded as expenses of socialized entities.

a) Socialized entities are permitted to mobilize capital in the form of share contributions, equity contributions from employees within the unit, and other lawful sources through cooperation and collaboration with enterprises, economic organizations, financial institutions, and individuals both domestically and internationally to invest in building material facilities. Dividends and profits distributed in the form of share contributions and joint ventures are taken from the post-tax profit of socialized entities.

b) The interest rate on borrowed capital and dividends from share contributions, joint ventures, and collaborations are agreed upon by socialized entities with contributing organizations in accordance with the law and must be recorded in the agreement or capital mobilization contract.

2. Responsibilities for using and repaying mobilized capital:

Capital mobilization must be carefully calculated and considered for economic efficiency. Mobilized capital must be used for the purposes agreed upon with participating organizations and individuals. Mobilized capital must be strictly managed and invested effectively. Socialized entities must repay principal and interest according to their commitments when mobilizing capital.

The Chairman of the Board of Directors (or School Council) or the Head (for socialized entities without a Board of Directors) is responsible for approving the capital mobilization plan. If the capital mobilization plan is ineffective, leading to asset losses or losses, the Chairman of the Board of Directors (or School Council) and the Head of the socialized entity will bear responsibility according to the law.

IX. Handling assets on land when converting activities as prescribed in Article 13 of Decree No. 69/2008/NĐ-CP, it is implemented as follows:

1. Handling assets on land when public and semi-public entities are authorized by competent authorities to convert to non-public entities (or enterprises) as follows:

a) When there is a decision from the competent authority allowing public and semi-public entities to convert their operational form to non-public entities (or enterprises), the unit must conduct a comprehensive inventory of all assets. Reassess the value of assets according to the law at the time of inventory; prepare an asset disposal plan to report to the immediate superior management agency for consolidation and reporting to the Ministry of Finance (for assets under central management), or report to the People's Committee of the provincial city directly under the Central Government (for assets under local management).

The asset disposal plan must fully report the quantity and value of current assets; the need for asset usage; the quantity of assets sold to non-public entities (or enterprises); assets leased to non-public entities (or enterprises); assets transferred or returned to the state.

b) The method of reassessing the value of assets is as follows:

- For newly purchased or newly installed and put into use assets, which have a period from the date of purchase, installation, and use to the date the unit is approved to convert to a non-public entity (or enterprise) less than one year (12 months), the reassessed value is based on the actual purchase price on the invoice accepted by the competent authority for payment, the installation and construction cost according to the approved project settlement, or the completion settlement of individual project components (for ongoing projects).

- For assets that have been used for a long time, which have a period from the date of purchase, installation, and use to the date the unit is approved to convert to a non-public entity (or enterprise) of one year (12 months) or more, when reassessing, the value of the asset must be re-determined according to the price at the time of the assessment decision; the determination of the asset value is based on the remaining quality of each asset and the actual new purchase price of that asset at the time and location of the assessment.

+ The remaining quality percentage of each asset is determined based on the asset, its usage period, and the period already used to determine it. Specifically, for houses and architectural structures, it is carried out according to the provisions in Part II of the Joint Circular of the Ministry of Construction, Ministry of Finance, and Price Control Agency of the Government No. 13/LB-TT dated August 18, 1994.

+ The purchase price of the asset is the market price of similar or equivalent assets at the time of assessment.

The new construction price of houses and construction projects is calculated as follows:

Unit price per² The construction price shall be applied according to the standard unit price table for construction projects approved for settlement of accounts for similar types of projects at the time and location of assessment, in accordance with the guidance of the construction management authority.

- The remaining total value of all assets to be assessed is the sum of the remaining values of each individual asset.

2. In cases where state-owned assets are sold to non-state public institutions (or enterprises) pursuant to the decision of the competent authority, such sales shall be carried out as follows:

a) Based on the re-evaluated value of the assets conducted by organizations with the function of valuing state assets, and reports from higher-level management agencies (if any), the Heads of Ministries, mass organizations under the central government decide to sell state assets to non-state public institutions after obtaining written opinions from the Ministry of Finance (for assets under central management). The Chairperson of the People's Committee of provinces and centrally-administered cities decides to sell state assets to non-state public institutions upon the proposal of the Director of the Department of Finance (for assets under local management).

b) Procedures for selling state assets are as follows:

- Establishing the State Asset Sale Council:

The Heads of Ministries, mass organizations under the central government, or the Chairperson of the People's Committee of provinces and centrally-administered cities decide to establish the State Asset Sale and Liquidation Council for non-state public institutions. The Head of the direct superior agency serves as the Chairman of the Council along with the following members:

+ Representatives of the Department of Finance (for assets under local management).

+ The Head and representatives of the accounting and finance department of the asset management agency.

+ Representatives of the departments or offices directly managing the assets.

+ Experts knowledgeable about the characteristics and technical features of the assets being sold.

- Organizing the sale of state assets to non-state public institutions.

After completing the sale of state assets to non-state public institutions (or enterprises), the direct asset management agency and the supervising agency may reduce the recorded assets and their values in the accounting books according to the quantity and value recorded at the time of sale or liquidation.

c) All proceeds from the sale of state assets, after deducting expenses related to the sale process in accordance with current financial expenditure regulations, shall be handled in accordance with the provisions of the law.

3. In cases where state-owned assets leased to non-state public institutions (or enterprises) are organized as follows:

- All state-owned assets leased to non-state public institutions (or enterprises) are managed under the state asset management system. State-managed assets leased to non-state public institutions are transferred to state organizations with the function of leasing state assets, or the same-level financial agency (in places without state leasing organizations) for management and leasing to non-state public institutions.

- Non-state public institutions (or enterprises) enter into lease contracts with state organizations with the function of leasing state assets, or the same-level financial agency (in places without state leasing organizations). Annual lease payments are made according to the signed contract, and the handling of lease revenues is carried out in accordance with the law.

- Lease prices are determined based on the re-evaluated value by organizations with the function of valuing state assets at the time of transfer, taking into account the remaining useful life of each type of asset to determine the lease price, and decided by the People's Committee of provinces and centrally-administered cities (for assets managed by local institutions); decided by the Ministry of Finance (for assets managed by units under central ministries and sectors, based on proposals from the relevant ministries and sectors).

State-owned assets leased to non-state public institutions (or enterprises), if the lease period expires according to the signed contract and the institution no longer needs to lease, or during the validity of the lease contract, if the assets are misused, such as transferring or assigning to another entity for lease without the consent of the leasing contract agency, then the leasing contract agency shall recover the assets without compensation. If during the usage period, the assets become irreparably damaged or have exceeded their usable lifespan, the non-state public institution (or enterprise) must submit a written request to the asset management agency to sell or liquidate the assets in accordance with current regulations.

4. Procedures and steps for converting public institutions, semi-public institutions to non-state public institutions (or enterprises) in each field shall follow the guidelines provided by the ministries managing those fields.

X. Sources of income for entities implementing socialization as stipulated in Article 14 of Decree No. 69/2008/ND-CP are guided as follows:

1. On the basis of the income sources specified in Decree No. 69/2008/ND-CP, entities implementing socialization shall actively manage and utilize income sources, ensuring the implementation of social policies for beneficiaries as prescribed by the State.

2. For fees, charges, income from other goods and service activities, and interest income from joint ventures and cooperation activities; interest from bank deposits and bonds of non-state public institutions, strict monitoring and recording in accounting books in accordance with the law must be ensured.

3. Entities implementing socialization may independently determine the level of income and must publicly disclose the income levels based on ensuring necessary operating costs and accumulating funds for development investment.

4. For budgetary funds allocated by the state budget (if any), entities implementing socialization must separately track and settle accounts in accordance with the State Budget Law and guiding documents, specifically:

- Funds for implementing tasks ordered by the State.

- Support funds for scientific and technological research projects.

- Funds for national target programs.

- Funds for labor training programs.

- Grants and interest subsidies.

- Other funds.

5. Income from grants, sponsorships, gifts, and donations must be monitored and disclosed in accordance with the operational regulations of the entity implementing socialization.

XI. The distribution of financial results of entities implementing socialization as stipulated in Article 15 of Decree No. 69/2008/ND-CP shall be implemented as follows:

1. Based on the annual financial results, the income of the entity implementing socialization, after covering all expenses, paying interest on loans, and fully remitting taxes to the state budget as prescribed by law, shall be distributed to establish funds and distribute profits to capital contributors.

2. The contents and levels of expenditures shall be determined and the entity implementing socialization shall bear responsibility for them, but they must ensure compliance with the State's regulations on legitimate expenditure items to serve as the basis for determining corporate income tax for non-state entities. All expenditure items must be fully recorded and reflected in the accounting books of the entity implementing socialization.

3. The establishment of funds, the level of income paid to employees, and the distribution of profits to capital contributors shall be decided by the Board of Directors (or School Council) or the Head (for entities without a Board of Directors) of the entity implementing socialization in accordance with the organizational and operational charter of the entity.

XII. The responsibilities of entities implementing socialization as stipulated in Article 16 of Decree No. 69/2008/ND-CP shall be implemented as follows:

1. Entities implementing socialization must register with the tax authority when operating. They must prepare periodic quarterly and annual reports on their professional activities and submit them to the sectoral management agency (the agency issuing the operating permit). Financial activity reports must be submitted to the sectoral management agency and the same-level financial agency.

2. Entities implementing socialization must comply with their operational charters and ensure the conditions regarding expertise, professional qualifications, human resources, and physical infrastructure as prescribed by law to provide society with products and services that meet the required standards and quality.

3. Annually, entities implementing socialization must disclose their operations and financial activities. The Board of Directors (or School Council) or the Head (for entities without a Board of Directors) of the entity implementing socialization must disclose information according to the operational charter of the non-state entity. In particular, the following must be disclosed:

- Disclosure of fee and charge rates.

- Disclosure of support levels and the amount of state budget support provided to entities implementing socialization.

- Disclosure of contributions made to the state budget by entities implementing socialization.

4. Entities implementing socialization established by organizations or individuals must register their professional activities with the competent state management agency at the local level and operate in accordance with the law. They must also register their activities with the tax authority to serve as the basis for tax incentives or corporate income tax calculation.

5. Entities implementing socialization have the responsibility to organize accounting and statistical work, conduct annual audits, and publicly disclose audit results in accordance with the law.

XIII. The state management tasks concerning entities implementing socialization as stipulated in Articles 17 and 18 of Decree No. 69/2008/ND-CP shall be implemented as follows:

1. Ministries and sectors shall cooperate with the Ministry of Natural Resources and Environment, relevant ministries, and provincial People's Committees under the central government to develop land use plans and programs by sector and region. Provincial People's Committees under the central government shall be responsible for developing, managing, and publicly disclosing land use plans before December 31, 2008, for areas designated for socialization.

2. Ministries and sectors, provincial People's Committees under the central government shall assign tasks to specialized agencies under their jurisdiction to allocate staff to monitor and manage entities implementing socialization to assist ministers and chairpersons of provincial People's Committees under the central government in state management of such entities.

Specialized agencies under the jurisdiction of each sector shall prepare comprehensive reports on the operation of entities implementing socialization quarterly and annually and submit them to the Chairperson of the provincial People's Committee under the central government and the relevant ministries.

Each year, on January 1, provincial People's Committees under the central government shall prepare reports on the implementation of policies encouraging socialization in their respective regions and send them to relevant ministries for consolidation. By February each year, relevant ministries shall report on the implementation of socialization within their jurisdiction, consolidate the situation of socialization across the entire sector, and send it to the Ministry of Finance for consolidation and reporting to the Prime Minister.

Sectoral management agencies for entities implementing socialization shall be responsible for compiling reports on the operation of such entities and submitting them to the General Statistics Office (if the entity was established by the central government) or the local Statistics Office (if the entity was established by the locality).

3. Central and local specialized state management agencies shall cooperate with related agencies to strengthen supervision and inspection of product and service quality, and handle violations by entities implementing socialization during their operations.

4. Entities implementing socialization that commit serious violations must cease operations. The entity that issued the operating license for the entity implementing socialization shall decide to suspend its operations.

Agencies making decisions to suspend or dissolve entities implementing socialization shall be responsible under the law for their decisions.

5. Provincial People's Committees under the central government shall be responsible for:

a) Developing training and human resource utilization plans to meet the requirements of socialization tasks.

b) Assign tasks to land development organizations or local state units to carry out land clearance work before transferring land or leasing land according to planning for socialization purposes.

Land development organizations or local state units assigned this task by the provincial or centrally governed city shall be responsible for compensation, support, and resettlement for land serving socialization activities. The compensation, support, and resettlement costs for land serving socialization activities shall be guaranteed by the State budget.

The central budget shall implement a targeted support mechanism for local budgets that have difficulties and must receive additional balance from the central budget to fulfill the task of compensation, land clearance, and resettlement for land serving socialization activities. The level of support is 70% for mountainous provinces; 50% for other provinces. The People's Committee of the province shall report to the Provincial People's Council to decide on the use of land revenue, lottery revenue retained, and local budget sources to ensure the remaining funding.

Annually, based on guiding documents to build socio-economic development plans and annual state budget estimates, and the actual situation of the locality, the People's Committee of the province or centrally governed city shall approve plans for compensation, land clearance, and resettlement for land serving socialization activities. Among them, the total expected funding, and the amount of central government support according to regulations shall be sent to the Ministry of Finance and the Ministry of Planning and Investment for consolidation and reporting to the Prime Minister for consideration and decision by the National Assembly in the annual central budget allocation plan.

For provinces and centrally governed cities with a ratio of revenue remitted to the central budget, they should arrange funds from their local budget to fulfill the task of compensation and resettlement for land serving socialization activities.

c) Direct and assign relevant agencies to conduct bidding for projects for entities implementing socialization in accordance with the guidance of the Ministry of Planning and Investment.

d) Publicize the procedures and processes for land transfer and lease to entities implementing socialization.

đ) When formulating or adjusting provincial or centrally governed city land use plans, it is necessary to ensure the allocation of land for socialization activities; when formulating urban development plans and industrial park development decisions, land must be allocated according to the plan for investment and construction to develop socialization entities.

e) Carry out supervision and inspection tasks regarding the management and use of land by socialization entities in accordance with objectives and effectiveness; handle violations in accordance with the provisions of the law.

f) Based on specific guidance of this Circular and other guiding documents of specialized ministries as stipulated in Clause 10, Article 17 of Decree No. 69/2008/NĐ-CP on the specific preferential regime for land transfer, land lease, and infrastructure investment support for socialization projects... in accordance with the scale, form of operation, type of socialization entity; in line with the development requirements of each field in the locality and allocate funding for implementation of preferential policies and support for socialization entities into the annual local budget estimate.

- For the policies and regulations issued by the provincial or centrally governed city People's Committees to provide preferential treatment as specified in Section IV; Section V and Section VII of this Circular, the provincial or centrally governed city People's Committees need to report and seek opinions from the People's Councils before issuance.

g) Direct tax authorities at the local level to issue tax identification numbers for socialization entities, report on income tax incentives for socialization entities in accordance with Decree No. 69/2008/NĐ-CP as stipulated.

XIV. Implementation organization:

1. This Circular takes effect 15 days from the date of publication in the Official Gazette. Previous regulations on incentive policies for socialization in education and training, vocational training; health; culture; sports; environment contrary to this Circular are abolished.

2. Non-state entities established under Decree No. 73/1999/NĐ-CP dated August 19, 1999; Decree No. 53/2006/NĐ-CP dated May 25, 2006 of the Government, which meet the conditions to enjoy incentive policies for socialization development as stipulated in this Circular, shall register with the competent authority for operation and the tax authority to enjoy preferential policies as guided in this Circular.

Non-state entities established under Decree No. 73/1999/NĐ-CP dated August 19, 1999; Decree No. 53/2006/NĐ-CP dated May 25, 2006 of the Government, which do not meet the conditions to enjoy incentive policies for socialization development as stipulated in this Circular, shall cease to enjoy socialization preferential policies from the date Decree No. 69/2008/NĐ-CP takes effect.

Organizations and individuals operating under the Law on Enterprises currently having independent projects operating in the fields of socialization within the prescribed list.

3. During the implementation process, if any issues arise, please report to the Ministries, sectors, and provincial People's Committees to the Ministry of Finance for timely resolution./.