Circular No. 137/2009/TT-BTC guiding the implementation of certain provisions of Decision No. 33/2009/QĐ-TTg dated March 2, 2009 of the Prime Minister on mechanisms and financial policies for border economic zones.

CIRCULAR

Guidelines for implementing certain provisions of Decision No. 33/2009/QĐ-TTg dated March 2, 2009 of the Prime Minister on financial mechanisms and policies for border economic zones

Issuing financial mechanisms and policies for border economic zones

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Pursuant to Decree No. 29/2008/NĐ-CP dated March 14, 2008 of the Government on industrial zones, export processing zones, and economic zones;

Pursuant to Decision No. 33/2009/QĐ-TTg dated March 2, 2009 of the Prime Minister on financial mechanisms and policies for border economic zones;

Pursuant to the 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;

The Ministry of Finance issues guidelines for implementing certain provisions of Decision No. 33/2009/QĐ-TTg dated March 2, 2009 of the Prime Minister on financial mechanisms and policies for border economic zones (hereinafter referred to as Decision No. 33/2009/QĐ-TTg) as follows:

Article 1. List of goods subject to pre-export value-added tax refund inspection

1. The list of goods subject to pre-export value-added tax refund inspection applies to goods and services from other functional areas within border economic zones and goods and services from domestic Vietnam brought into duty-free zones within border economic zones that are subject to a zero percent value-added tax rate, as listed in Appendix I of this Circular.

2. Provincial People's Committees with border economic zones and duty-free zones within border economic zones (hereinafter referred to as border economic zones) under the scope of Decision No. 33/2009/QĐ-TTg shall be responsible for:

a) Directing the organization and implementation of management and value-added tax refunds for goods listed in Clause 1 of this Article in accordance with the laws on taxes.

b) Submitting written proposals to the Ministry of Finance regarding amendments and supplements to the list of goods from domestic areas brought into consumption in border economic zones for pre-export value-added tax refund inspection as stipulated in Clause 1 of this Article to align with the actual conditions in border economic zones.

Article 2. Collection of fees and charges

1. For works and services with collection of fees and charges that the Management Board of the border economic zone is authorized to implement: The Management Board of the border economic zone collects, remits, manages, and uses the collected fees and charges according to regulations set forth in documents issued by competent authorities for each specific fee or charge.

2. For works and services authorized to implement with collection of fees and charges included in the detailed list of fees and charges promulgated together with Decree No. 24/2006/NĐ-CP dated March 6, 2006 of the Government amending and supplementing some articles of Decree No. 57/2002/NĐ-CP dated June 3, 2002 of the Government detailing the implementation of the Law on Fees and Charges but without guidance documents or with guidance documents not suitable for the actual conditions in border economic zones, the Management Board of the border economic zone shall develop a proposal for collection (including the collection rate and management and use of collected fees and charges according to the guidance provided in Circular No. 63/2002/TT-BTC dated July 24, 2002 and Circular No. 45/2006/TT-BTC dated May 25, 2006 amending and supplementing Circular No. 63/2002/TT-BTC dated July 24, 2002 of the Ministry of Finance guiding the implementation of legal provisions on fees and charges) and submit it to the competent authority for consideration and issuance for implementation.

Article 3. Collection of fees for the use of technical-social infrastructure works and other public service facilities in border economic zones

1. Fees for the use of technical-social infrastructure works and other public service facilities in border economic zones are revenue aimed at compensating for maintenance costs, ensuring operational conditions, or reconstructing these technical-social infrastructure works and public service facilities.

2. Investors with projects for production and business activities in border economic zones and who use technical-social infrastructure works and other public service facilities in border economic zones are the entities required to pay fees for the use of technical-social infrastructure works and other public service facilities in border economic zones.

3. The collection rate for fees for the use of technical-social infrastructure works and other public service facilities in border economic zones is calculated as a percentage of one of the following indicators:

a) Total export turnover;

b) Total production and service turnover;

c) Total lease payment for land already equipped with infrastructure.

4. The collection rate for fees for the use of technical-social infrastructure works and other public service facilities in border economic zones stipulated in Clause 3 of this Article shall be determined by:

a) Enterprises investing in technical-social infrastructure within border economic zones for works they have invested in;

b) The Management Board of the border economic zone for common technical-social infrastructure works within border economic zones not invested in by enterprises investing in technical-social infrastructure.

5. Enterprises investing in technical-social infrastructure within border economic zones may collect fees for the use of infrastructure and other public service facilities for works they have invested in to compensate for maintenance costs, ensure operational conditions, and reconstruct these technical-social infrastructure works and public service facilities. The Management Board of the border economic zone collects fees for the use of common technical-social infrastructure works within border economic zones (not invested in by enterprises investing in technical-social infrastructure) to compensate for maintenance costs and ensure operational conditions of these technical-social infrastructure works.

6. The unit collecting fees for the use of social infrastructure and charges for the use of other public works, service facilities, and public utilities within the border economic zone shall manage and utilize the entire amount collected to cover costs in accordance with the guidance provided in Clause 5 of this Article and fulfill tax obligations in accordance with the provisions of the law. When collecting fees for the use of social infrastructure and charges for the use of other public works, service facilities, and public utilities, the business entity investing in social infrastructure and the Management Board of the border economic zone must issue and deliver invoices to the payer; separately account for and manage and utilize the entire amount collected in accordance with the provisions of the law. Invoices issued by the business entity investing in social infrastructure and the Management Board of the border economic zone to the payer for the collection of fees for the use of social infrastructure and charges for the use of other public works, service facilities, and public utilities are valid documents that can be recorded as production and business expenses and deducted from value-added tax when determining tax liabilities in accordance with the provisions of the law.

Article 4. Effective date

1. This Circular shall take effect 45 days from the date of signature.

2. Financial policies not specified in this Circular shall be implemented in accordance with current guiding documents in each respective field (List of guiding documents on tax, fee, charge, land lease payment, land use fee policies related to the implementation of Decision No. 33/2009/QĐ-TTg - Appendix II).

3. During the implementation process, if there are any difficulties, the relevant organizations and individuals are requested to promptly reflect them to the Ministry of Finance for appropriate amendments and supplements.