Circular No. 151/2016/TT-BTC guides the operational mechanism for defense and security enterprises and workers at such enterprises as stipulated in Decree No. 93/2015/NĐ-CP dated October 15, 2015 of the Government on the organization of management and operation of defense and security enterprises.

CIRCULAR

Guidelines for the operational mechanism for enterprises and workers at defense and security enterprises as stipulated in Decree No. 93/2015/NĐ-CP dated October 15, 2015 of the Government on organizational management and operation of defense and security enterprises
doanh nghiệp quốc phòng, an ninh quy định tại Nghị định số 93/2015/NĐ-CP ngày 15/10/2015 của Chính phủ về tổ chức quản lý và hoạt động của doanh nghiệp quốc phòng, an ninh
doanh nghiệp quốc phòng, an ninh
of the Government on organizational management and operation of defense and security enterprises

Based on the Enterprise Law dated November 26, 2014;

Pursuant to the Law on Management and Use of State Capital for Investment in Business Operations dated November 26, 2014;

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

Pursuant to Decree No. 93/2015/NĐ-CP dated October 15, 2015 of the Government on organizational management and operation of defense and security enterprises;

The Minister of Finance hereby issues this Circular amending and supplementing certain Articles of Circular No. 133/2015/TT-BTC dated August 31, 2015, issued by the Minister of Finance guiding the financial management mechanism for the Vietnam Chamber of Commerce and Industry (hereinafter referred to as Circular No. 133/2015/TT-BTC).

The Minister of Finance hereby promulgates this Circular guiding the operational mechanism for enterprises and workers at defense and security enterprises as stipulated in Decree No. 93/2015/NĐ-CP dated October 15, 2015 of the Government on organizational management and operation of defense and security enterprises.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular guides the operational mechanism for enterprises and workers at defense and security enterprises as stipulated in Article 6 of Decree No. 93/2015/NĐ-CP dated October 15, 2015 of the Government on organizational management and operation of defense and security enterprises (hereinafter referred to as Decree No. 93/2015/NĐ-CP).

Article 2. Applicability

This Circular applies to defense and security enterprises; Workers at defense and security enterprises; Organizations and individuals related to the organization of management, operation, and inspection and supervision of defense and security enterprises.

Chapter II

SPECIFIC PROVISIONS

Section 1

REGULATIONS ON THE OPERATIONAL MECHANISM FOR ENTERPRISES AND WORKERS AT DEFENSE AND SECURITY ENTERPRISES

Article 3. Operational mechanism for defense and security enterprises

During the course of operation, in addition to the provisions of the State on investment establishment of enterprises and general provisions on encouragement and support for investment under the law, defense and security enterprises also enjoy certain financial support policies as follows:

1. Exemption from land rental fees, land use fees, and land use tax for the area of land allocated and used to serve defense and security missions according to the provisions of the Land Law and implementing regulations.

a) Defense and security enterprises report the total area of land allocated by the State, the area of land leased and used by the enterprise, including the area of land necessary for direct use in serving defense and security missions (confirmed by the Ministry of National Defense and the Ministry of Public Security) to the local tax authority.

Based on the report of the enterprise with confirmation from the competent authority, the tax authority notifies the enterprise of the area of land exempted from land rental fees, land use fees, and the area of land subject to payment of land rental fees and land use fees. Procedures for exemption from land rental fees, land use fees, and land use tax shall be carried out in accordance with the current implementing regulations of the Land Law.

In case there is a change or alteration in the area of land used for defense and security missions, after confirmation by the competent authority, the defense and security enterprise shall notify the tax authority to adjust accordingly.

b) For the area of land used for business purposes, defense and security enterprises fulfill their financial obligations regarding land according to the current laws.

2. Allow the inclusion of certain special expenses in production and business costs and deduction when determining taxable income according to the Corporate Income Tax Law (in cases where the state budget does not provide support or provides insufficient support), including:

a) Wages paid and social insurance contributions for workers during retirement preparation periods.

b) Costs for providing military uniforms to officers, professional soldiers, defense workers, and police non-commissioned officers. The level of expenditure is regulated by the Ministry of National Defense and the Ministry of Public Security.

c) Payment of discharge allowances, separation allowances, demobilization allowances, and termination allowances according to current regulations.

d) Expenses for national defense and security work, including expenses for supporting social policy work, propaganda, and mobilizing the masses such as training and vocational education for ethnic laborers for up to six months; poverty alleviation, resettlement, and settlement according to the regulations of the Ministry of National Defense and the Ministry of Public Security.

3. The State provides funding for the maintenance, repair, and operation of defense and security production lines and supports wages for workers within the establishment directly involved in producing products that serve defense and security missions during temporary production stoppages if the enterprise cannot cover the costs.

- Conditions for receiving funding support for the maintenance, repair, and operation of production lines and wage support for the minimum number of workers (establishment workers directly involved) on production lines producing products for defense and security missions during planned temporary stoppages when the defense and security enterprise cannot cover the costs.

- Wage support for workers directly on production lines producing products for defense and security missions during temporary stoppages, provided that the actual wage received by the worker is lower than the current wage grade (skilled worker) and the minimum wage prescribed by the State.

- Documents requesting funding support for the maintenance, repair, and operation of production lines and wage support for workers within the establishment on temporarily idle production lines include:

A request from the enterprise directly serving defense and security missions for funding support for the maintenance, repair, and operation of production lines and wage support for workers within the establishment on temporarily idle production lines according to the plan approved by the Ministry of National Defense and the Ministry of Public Security; the decision of the competent authority assigning production targets and repairs of defense and security products for the year; the decision approving the number of production lines (for new production lines) and the duration of temporary stoppages in the year by the competent authority.

4. Support for two reward and welfare funds:

National defence and security enterprises implement the establishment of incentive and welfare funds for employees in accordance with Article 31 of Decree No. 91/2015/NĐ-CP dated October 13, 2015 of the Government on state capital investment in enterprises and management and use of capital and assets in enterprises.

Annually, national defence and security enterprises use post-tax profits after setting aside development funds and establishing two incentive and welfare funds and a managerial reward fund for enterprise managers and supervisors; if the remaining post-tax profit after setting aside the development fund is insufficient to establish the two incentive and welfare funds at the prescribed levels (based on the classification results of enterprises A, B, C), the shortfall in the fund will be supported by the State but not exceeding the maximum support level of two months' salary implemented during the year (excluding wages for temporary production stoppage periods as stipulated in Clause 3 of this Article).

5. Be supported by the State for nursery and education expenses in areas without public educational facilities:

a) Conditions for support:

Educational facilities under the management of national defence and security enterprises located in areas without public educational facilities must be confirmed by the Department of Education and Training of the locality where the national defence and security enterprise is headquartered.

b) Content and level of financial support:

- Support for initial investment costs for building classrooms, purchasing desks, chairs, and teaching materials up to VND 200,000,000/classroom (for facilities that have not been equipped). In cases where classrooms and teaching materials are damaged and need repair and replenishment, the support level shall not exceed VND 30,000,000/classroom/year.

- Support for ensuring salaries, social insurance, health insurance, and other prescribed benefits for teachers and childcare workers according to current State regulations applicable to the area where the enterprise operates (including teachers and childcare workers working in production teams in remote and far-flung areas as prescribed by current State regulations).

6. Be supported by the State for medical expenses in places where special conditions require maintaining a clinic, specifically:

a) Conditions for support:

National defence and security enterprises located in particularly difficult areas, far from healthcare facilities as prescribed by the State, must maintain a clinic and obtain approval from the Ministry of National Defence and the Ministry of Public Security.

b) Content and level of financial support:

- Investment and equipment costs for the first time with a maximum amount not exceeding VND 300,000,000 for a clinic with fewer than 10 beds; VND 400,000,000 for a clinic with 10 to fewer than 20 beds; and VND 500,000,000 for a clinic with 20 beds or more.

- Regular operating expenses for clinics in operation:

+ Support for ensuring salaries, social insurance, health insurance, and allowances for medical staff based on the actual expenditure of the previous year of the unit to determine the support level for the following year (including medical staff working in production teams in remote and far-flung areas as prescribed by current State regulations).

+ Expenses for purchasing medicines for civilian medical care for units stationed in areas far from district-level medical centers, based on actual spending but not exceeding VND 70,000,000/year for clinics with fewer than 10 beds, VND 80,000,000/year for clinics with 10 to fewer than 20 beds, and VND 100,000,000/year for clinics with 20 beds or more.

- Regular operating expenses for newly established clinics: the support level is based on the approved regular operating budget for medical activities of the enterprise by the competent authority. The determination of the regular operating support level for clinics can refer to and apply the regular operating expenses of similar-sized medical facilities in the area where the national defence and security enterprise operates.

Article 4. The regime and policies for workers in defense and security enterprises:

1. Wages for workers who are officers, professional soldiers, defense workers, and civil servants shall be calculated in accordance with the regulations on the regime and policies stipulated by laws concerning officers and professional soldiers, non-commissioned officers, and based on the business results of the enterprise according to current regulations on labor management, wages, and bonuses for workers employed in state-owned joint-stock companies with a single shareholder, and guidance documents issued by the Ministry of National Defense and the Ministry of Public Security.

2. When performing defense and security tasks, if workers are injured or killed and meet the conditions and criteria, they will be considered and recognized as persons with meritorious service under the provisions of the law on persons with meritorious service; workers who suffer work-related accidents will be entitled to work injury benefits according to the provisions of the Labor Law and guidance documents issued by the Ministry of National Defense and the Ministry of Public Security.

Section 2

ESTABLISHING BUDGETS, ISSUING FUNDS AND SETTLING ACCOUNTS FOR SUPPORT EXPENSES

Article 5. Establishing budgets and issuing support funds for defense and security enterprises

1. Annually, at the same time as the Ministry of National Defense and the Ministry of Public Security establish budgets in accordance with the State Budget Law, defense and security enterprises eligible for financial support shall prepare detailed budgets for each content specified in this Circular and report to the competent agencies under the Ministry of National Defense and the Ministry of Public Security for review and consolidation into the budget of the Ministry of National Defense and the Ministry of Public Security.

2. Annually, the Ministry of Finance shall base its consideration and consolidation of the total budget support report for defense and security enterprises submitted by the Ministry of National Defense and the Ministry of Public Security to report to the Government for submission to the National Assembly for decision in accordance with the State Budget Law.

3. Based on the annual state budget expenditure plan approved by the Prime Minister and the notification from the Ministry of Finance, the Ministry of National Defense and the Ministry of Public Security shall allocate detailed support funding tasks for each defense and security enterprise according to the contents specified in this Circular, send to the Ministry of Finance for review as the basis for issuance according to current regulations; the Ministry of National Defense and the Ministry of Public Security shall issue funds to enterprises through budget withdrawals according to regulations. The Prime Minister approves and the Ministry of Finance; the Ministry of National Defense, the Ministry of Public Security shall implement detailed allocation of support funding for each defense and security enterprise according to the contents specified in this Circular, and submit to the Ministry of Finance for review as the basis for disbursing funds in accordance with current regulations; the Ministry of National Defense and the Ministry of Public Security shall disburse funds to enterprises in the form of budget withdrawal according to the provisions.

Specifically, for the support fund for two reward and welfare funds: Annually, defense and security enterprises must complete financial settlement, evaluate operational effectiveness, and classify enterprises according to current regulations. Based on the classification results, the Ministry of National Defense and the Ministry of Public Security will set up the two reward and welfare funds. In cases where remaining profits are insufficient to cover the required contributions to the two funds, the enterprise must submit a written request to the Ministry of National Defense and the Ministry of Public Security for review and then submit a written request to the Ministry of Finance for support from the state budget. On the basis of the review and direct issuance of funds to defense and security enterprises by the Ministry of Finance according to the payment orders proposed by the Ministry of National Defense and the Ministry of Public Security.

Article 6. Settlement and finalization of expenses

1. At the end of the fiscal year, defense and security enterprises receiving support funds must prepare financial reports in accordance with current regulations, including a report on the settlement of the use of state budget support funds.

2. Annually, the Ministry of National Defense and the Ministry of Public Security conduct regular and spot checks on the use of support funds and the settlement of the use of support funds according to the prescribed state regulations and the provisions of this Circular (the Ministry of Finance and the Ministry of Planning and Investment will participate when requested).

If enterprises violate the prescribed expenditure regulations or exceed the prescribed expenditure limits, the finance agency will handle the settlement of expenditures that were not in accordance with the regulations. The person responsible for the incorrect expenditure must compensate and, depending on the severity of the violation, may face disciplinary actions as stipulated by law.

Chapter III

IMPLEMENTING PROVISIONS

Article 7. Effective Date

1. This Circular abolishes Circular Joint No. 141/2012/TTLT-BTC-BQP-BCA dated August 22, 2012, issued by the Ministry of Finance, the Ministry of National Defense, and the Ministry of Public Security, guiding the financial support mechanism for enterprises directly serving national defense and security under Decree No. 104/2010/NĐ-CP dated October 11, 2010, of the Government, and applies from the 2016 fiscal year onwards.

2. In addition to implementing the provisions of this Circular, defense and security enterprises must also comply with the financial management regulations of state-owned joint-stock companies with a single shareholder, guidance documents issued by the Ministry of Finance, and other related laws. During implementation, if there are difficulties, they should promptly reflect them to the Ministry of Finance for research, supplementation, and amendment.

During implementation, if there are difficulties, they should promptly reflect them to the Ministry of Finance for research, supplementation, and amendment./.