Decision No. 166/1999/QD-BTC On Issuing the Regulations on Management, Use, and Depreciation of Fixed Assets

Pursuant to …;

Regarding the issuance of the Regulations on Management, Use, and Depreciation of Fixed Assets

__________________________

THE MINISTER OF FINANCE

Pursuant to Decree No. 15/CP dated March 2, 1993 of the Government stipulating tasks, powers, and responsibilities for state management by Ministries and ministerial-level agencies;

Pursuant to Decree No. 178/CP dated October 28, 1994 of the Government stipulating the tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Decree No. 59/CP dated October 3, 1996 of the Government promulgating the Financial Management and Business Accounting Regulations for State-Owned Enterprises;

Pursuant to Decree No. 27/1999/NĐ-CP dated April 20, 1999 of the Government amending and supplementing the Financial Management and Business Accounting Regulations for State-Owned Enterprises;

Pursuant to Decree No. 30/1998/NĐ-CP dated May 13, 1998 of the Government detailing the implementation of the Law on Corporate Income Tax;

To strengthen the management, use, and depreciation of fixed assets in enterprises; to create conditions for enterprises to accurately calculate and fully allocate the depreciation of fixed assets into business expenses; to replace and modernize machinery and equipment in accordance with advanced technology and modern techniques suitable for the business requirements of enterprises and the economy;

At the request of the Director of the Financial Policy Department;

Pursuant to …;:

Article 1: Issued together with this Decision is the "Regulations on Management, Use, and Depreciation of Fixed Assets".

These regulations apply to all state-owned enterprises. Enterprises belonging to other economic sectors are only required to comply with provisions related to determining costs for tax purposes; other provisions are encouraged to be applied.

Article 2: This Decision shall take effect from January 1, 2000.

This Decision replaces Decision No. 1062 TC/QĐ/CSTC dated November 14, 1996 of the Minister of Finance on the issuance of the Regulations on Management, Use, and Depreciation of Fixed Assets. Any other regulations on the management, use, and depreciation of fixed assets that conflict with this Decision are hereby abolished.

Article 3: The Director of the Financial Policy Department, the Head of the Ministry's Office, the Director of the Enterprise Finance Department, the Director General of the General Department of Taxation, and the Heads of units under and directly subordinate to the Ministry of Finance within their respective functions and authorities are responsible for organizing the implementation, guiding the application, and supervising the enforcement of this Decision.

The Board of Directors, General Managers, and Directors of enterprises are responsible for implementing this Decision.

REGULATIONS

MANAGEMENT, USE, AND DEPRECIATION OF FIXED ASSETS
(Issued together with Decision No. 166/1999/QĐ-BTC dated December 30, 1999 of the Minister of Finance)

PART 1

GENERAL PROVISIONS

Article 1: Objectives and Scope of Application:

These regulations apply to state-owned enterprises, including: Holding companies, member enterprises of holding companies, and independent enterprises;

For enterprises belonging to other economic sectors such as limited liability companies, joint-stock companies, joint ventures, private enterprises, foreign-invested enterprises, etc., they are only required to comply with provisions related to determining costs for tax purposes; other provisions in these regulations are encouraged to be applied;

Enterprises shall manage, use, and allocate depreciation to each fixed asset under their management and use.

Article 2: Terms used in these regulations are understood as follows:

1. Tangible Fixed Assets: These are major means of production with material form (each individual asset with an independent structure or a system consisting of multiple parts of assets interconnected to perform one or several specific functions) having high value and long-term usage, participating in many business cycles while maintaining their original physical form such as buildings, structures, machinery, equipment, etc.;

2. Intangible Fixed Assets: These are fixed assets without material form, representing a quantity of value invested directly related to many business cycles of the enterprise such as: establishment costs; land use costs; costs for patents, inventions, copyrights, etc.;

3. Financial Lease Fixed Assets: Financial lease fixed assets are those fixed assets leased by the enterprise from a financial leasing company if the lease contract satisfies at least one of the following four conditions:

a. At the end of the lease period according to the contract, the lessee has the right to transfer ownership of the leased asset or continue leasing it upon mutual agreement of both parties;

b. The lease contract specifies that at the end of the lease period, the lessee has the option to purchase the leased asset at a nominal price lower than its actual market value at the time of repurchase;

c. The lease term for a type of asset is at least 60% of the time required to depreciate the leased asset;

d. The total lease payment for a type of asset specified in the lease contract must be at least equivalent to the market price of the asset at the time of signing the contract.

Any lease contract for fixed assets that does not satisfy any of the above four conditions is considered operational lease fixed assets.

4. Original Cost of Fixed Assets: This is the total actual cost incurred to acquire fixed assets until they are put into normal operation, including the actual purchase price of the fixed assets; transportation, loading and unloading costs, installation and testing costs; interest on loans for investment in fixed assets before delivery and use; taxes and registration fees (if applicable), etc.

5. Useful Life of Fixed Assets: This is the period during which the enterprise plans to use the fixed assets in business operations under normal conditions, consistent with the economic and technical parameters of the fixed assets and other factors related to the operation of the fixed assets.

6. Wear and Tear of Fixed Assets: This is the gradual reduction in the utility value and value of fixed assets due to participation in business operations, natural wear and tear, technological progress, etc., during the operation of the fixed assets.

7. Depreciation of Fixed Assets: This is the systematic calculation and allocation of the original cost of fixed assets into business expenses over the useful life of the fixed assets.

8. Accumulated Depreciation of Fixed Assets: This is the total amount of depreciation allocated into business expenses through various business periods of the fixed assets up to the date of determination.

9. Book Value of Fixed Assets: This is the remaining value of fixed assets reflected in accounting records, determined by the difference between the original cost of fixed assets and the accumulated depreciation of fixed assets up to the date of determination.

10. Repair of fixed assets: refers to maintenance, upkeep, and repair activities aimed at restoring the normal operational capacity of fixed assets that have been damaged during their operation.

11. Upgrade of fixed assets: refers to activities aimed at extending the useful life, increasing productivity, and enhancing the functionality of fixed assets through renovation, construction, installation, and supplementary equipment.

Article 3: Each year, enterprises are entitled to independently determine the usage period of fixed assets in accordance with Article 15 of this Regulation, in line with the business conditions of the enterprise.

PART 2

PROVISIONS ON THE MANAGEMENT AND USE OF FIXED ASSETS

Article 4: Standards and identification of fixed assets:

1. Standards and identification of tangible fixed assets:

Any means of labor that constitutes an independent physical asset, or a system consisting of multiple individual parts interconnected to perform one or several specific functions, such that the absence of any part renders the entire system non-operational, shall be considered a fixed asset if it meets both of the following criteria simultaneously:

a. It has a usage period of one year or more;

b. Its value is five million dong or more;

In cases where a system consists of multiple individual parts interconnected, each part having different usage periods, and the absence of any part does not prevent the system from performing its primary function, but management requirements necessitate separate management of each part, then each part shall be considered an independent tangible fixed asset (for example, seats, frames, and engines in an aircraft).

For working animals and/or those producing products, each individual animal shall be considered a tangible fixed asset.

For perennial orchards, each plot of land shall be considered a tangible fixed asset.

2. Standards and identification of intangible fixed assets:

Any actual expenses incurred by the enterprise that meet both conditions stipulated in Clause 1 of this Article, without forming tangible fixed assets, shall be considered intangible fixed assets. If these expenses do not simultaneously meet both criteria, they shall be directly recorded or gradually allocated to the enterprise's operating costs.

Article 5: Determination of the original cost of fixed assets:

1. Determination of the original cost of tangible fixed assets:

a. Purchased fixed assets:

The original cost of purchased fixed assets (including new and used purchases) includes: the actual amount paid; interest on borrowed funds for fixed assets before they are put into use; transportation and handling costs; repair and refurbishment costs prior to use; installation, trial run costs, taxes, and stamp duties (if applicable)...

b. Constructed fixed assets:

The original cost of constructed fixed assets (both self-built and outsourced) includes the final settlement price of the construction project according to the current regulations on investment and construction management, related costs, and stamp duties (if applicable).

For working animals and/or those producing products, and perennial orchards, the original cost is the total actual expenses incurred from the formation until the utilization of the animals and orchards, in accordance with the current regulations on investment and construction management, related costs, and stamp duties (if applicable).

c. Fixed assets received or transferred...

The original cost of fixed assets received or transferred... includes: the remaining book value of the fixed assets in the transferring units, or the actual valuation by the handover committee; refurbishment costs; repair costs; transportation, handling, installation, trial run costs, and stamp duties (if applicable) that the receiving party must incur before putting the fixed assets into use.

Specifically, the original cost of fixed assets transferred between affiliated units within the enterprise reflects the book value of the transferring unit consistent with the asset's file. The receiving unit determines the original cost, accumulated depreciation, and remaining book value based on the original cost, accumulated depreciation, remaining book value, and file of the fixed asset, and records them in the books. Costs related to the transfer of fixed assets between affiliated units are not added to the original cost of the fixed assets but are recorded as operating expenses for the period.

d. Fixed assets received as gifts, donations, joint venture contributions, returned contributions, or discovered surplus...

The original cost of fixed assets received as gifts, donations, joint venture contributions, returned contributions, or discovered surplus includes: the actual valuation by the handover committee; refurbishment and repair costs; transportation, handling, installation, trial run costs, and stamp duties (if applicable) that the receiving party must incur before putting the assets into use.

2. Determination of the original cost of intangible fixed assets:

a. Land acquisition costs: include all actual expenses directly related to land acquisition, including: payment for land use rights, compensation for land clearance, leveling, and stamp duties (if applicable) (excluding costs for constructing buildings on the land).

If the enterprise pays annual or periodic rent for land, these costs are gradually allocated to operating expenses over the periods and are not included in the original cost of fixed assets.

b. Establishment costs: include actual expenses directly related to preparing for the establishment of the enterprise and agreed upon by the founders as part of their capital contribution, recorded in the charter capital of the enterprise, including: research, exploration, and project development costs for establishing the enterprise; project approval costs; meeting costs for establishment...

c. Research and development costs: are all actual expenses incurred by the enterprise to carry out research, exploration, and long-term investment planning works aimed at bringing long-term benefits to the enterprise.

d. Costs related to patents, inventions, copyrights, purchase of copyrights, technology transfer... are all actual expenses incurred by the enterprise for research projects (including expenses for trial production, testing, and state acceptance work) that have been granted patents, inventions, copyrights by the State, or expenses for purchasing copyrights, trademarks; expenses for receiving technology transfers from organizations and individuals... which serve the direct business operations of the enterprise.

e. Business advantage costs: are the additional amounts paid by the enterprise beyond the actual value of assets (fixed assets, current assets...) when acquiring or merging with another enterprise (additional amount paid = purchase price - actual value of assets). This advantage is formed by business location advantages, reputation and customer trust, workforce skills, management and organizational capabilities...

3. Determining the original cost of leased fixed assets: The original cost of leased fixed assets reflected in the lessee's accounts as if they were the owner of the asset includes: actual purchase price; transportation and handling costs; repair and refurbishment costs before putting the fixed asset into use; installation, test run, tax, and initial registration fee (if applicable)...

The difference between the lease payments for fixed assets and the original cost of those fixed assets is recorded as operating expenses over the term of the financial lease contract.

Article 6: Expenses incurred by the enterprise to upgrade fixed assets are reflected as an increase in the original cost of those fixed assets and cannot be recorded as operating expenses for the period.

Fixed asset repair costs are considered as expenses and are directly recorded or gradually allocated to operating expenses for the period.

For certain special industries where fixed asset repair costs occur unevenly between periods and years, if the enterprise wishes to pre-record fixed asset repair costs as operating expenses, it must prepare a plan for pre-recording fixed asset repair costs and submit it to the Ministry of Finance for review and decision; after receiving written comments from the Ministry of Finance, the enterprise must inform the directly managing tax authority.

The enterprise must settle the actual repair costs incurred with the pre-recorded repair costs; if the actual repair costs exceed the pre-recorded amount, the difference is directly recorded or gradually allocated to the period's expenses; if the actual repair costs are less than the pre-recorded amount, the difference is recorded as other income.

Enterprises in special industries applying the method of allocating fixed asset repair costs to subsequent business periods must also prepare a plan for allocating fixed asset repair costs and inform the directly managing tax authority.

Article 7: All fixed assets in the enterprise must have separate files (the file includes the asset handover record, purchase contract, invoice, and other relevant documents), managed, used, and depreciated according to the provisions of this Regulation. Fixed assets must be classified, statistically recorded, numbered, and have individual cards, tracked in detail according to each fixed asset item and reflected in the fixed asset tracking ledger.

The enterprise must manage and use fixed assets that have been fully depreciated but still participate in business activities as regular fixed assets.

At the end of each fiscal year, the enterprise must conduct an inventory of fixed assets; any cases of surplus or shortage of fixed assets must be documented, the causes identified, and appropriate measures taken.

Article 8: Classification of fixed assets in the enterprise:

Based on the nature of fixed assets in the enterprise, the enterprise classifies fixed assets according to the following criteria:

1. Fixed assets for business purposes: are those fixed assets used by the enterprise for its business purposes.

a. Intangible fixed assets: establishment costs, collection and development costs, franchise rights, exploitation rights, invention patents, trademarks...

b. Tangible fixed assets: the enterprise classifies them as follows:

Type 1: Buildings and structures: are fixed assets of the enterprise formed through construction such as office buildings, warehouses, fences, water towers, parking lots, decorative structures for buildings, roads, bridges, railways, docks...

Type 2: Machinery and equipment: are all types of machinery and equipment used in the enterprise's business activities such as specialized machines, work equipment, production lines, single machines...

Type 3: Transportation equipment and transmission devices: include various types of transportation equipment such as rail, waterway, road, air, pipeline transport, and transmission devices like communication systems, electrical systems, water pipelines, conveyor belts...

Type 4: Management equipment and tools: are equipment and tools used in the enterprise's business management activities such as computers for management, electronic devices, measuring and quality inspection equipment, dehumidifiers, dust extractors, pest control equipment...

Type 5: Long-lived plantations, working animals, and/or product-producing animals: include long-lived plantations such as coffee gardens, tea gardens, rubber plantations, fruit orchards, grasslands, greenery plots...; working animals and/or product-producing animals such as elephant herds, horse herds, buffalo herds, cattle herds...

Type 6: Other fixed assets: includes all other fixed assets not listed in the above five types such as paintings, artworks...

2. Fixed assets for welfare, public services, security, and defense purposes: are fixed assets managed and used by enterprises for welfare, public services, security, and defense purposes within the enterprise. These fixed assets are also classified according to the provisions of Clause 1 of this Article.

3. Fixed assets held in custody, safekeeping, or storage on behalf of the State: are fixed assets held in custody, safekeeping, or storage by enterprises for other units or on behalf of the State in accordance with the regulations of competent state agencies.

Depending on the management requirements of each enterprise, enterprises may classify their fixed assets in more detail within each group as appropriate.

Article 9: The monitoring, management, utilization, and depreciation of fixed assets must comply with the principle of valuation based on original cost, accumulated depreciation, and remaining value on accounting records of fixed assets:

Remaining value on accounting records = Original cost of fixed assets - Accumulated depreciation of fixed assets

in the fixed asset accounting book = fixed asset - acquisition cost of the asset

of fixed fixed assets

The original cost of fixed assets in enterprises can only be changed in the following cases:

1. Revaluation of the value of fixed assets;

2. Upgrading of fixed assets;

3. Removal of one or several parts of fixed assets:

When changing the original cost of fixed assets, the enterprise must prepare a record clearly stating the grounds for the change and re-determine the original cost indicators, remaining value on accounting records, accumulated depreciation of fixed assets, and proceed with accounting in accordance with current regulations.

Article 10: According to financial regulations, enterprises have the right to:

- Transfer fixed assets between subsidiaries to serve business purposes more effectively;

- Proactively sell fixed assets to recover capital for more effective business purposes;

- Proactively dispose of obsolete fixed assets that cannot be sold or are damaged beyond repair;

- Lease out idle fixed assets temporarily but must ensure monitoring and management of these fixed assets. Enterprises and lessees of fixed assets must prepare a lease agreement specifying the type of fixed asset, lease period, rental payment, and responsibilities of the parties involved...

- Use fixed assets as collateral or mortgage... but still must ensure monitoring and management of these fixed assets.

When transferring fixed assets, both parties must prepare a record regarding the condition of the fixed assets, responsibilities of the parties, and measures to handle any damage or loss of fixed assets.

During the period of pledging, mortgaging, leasing (operational leasing)... of fixed assets, enterprises must calculate and allocate depreciation of these fixed assets into operating expenses for the period.

When liquidating or selling fixed assets, enterprises must establish a committee to determine the recovery value during liquidation, the selling price of fixed assets, organize the liquidation and sale of fixed assets in accordance with current regulations.

All activities related to leasing, pledging, mortgaging, transferring... of fixed assets must comply strictly with the provisions of the Civil Code and current financial management regulations for enterprises.

Article 11: For leased operational fixed assets, enterprises are responsible for managing and using them in accordance with the lease contract provisions. Enterprises do not allocate depreciation for these fixed assets, lease costs are accounted for as operating expenses for the period.

Article 12: For financially leased fixed assets, enterprises must monitor, manage, use, and allocate depreciation as if they were owned fixed assets and must fulfill all obligations committed in the lease contract.

The lessor, as the investor, must monitor, manage, and comply with the provisions of the lease contract.

Article 13: Tools of labor that are not fixed assets (tools of labor that do not meet the value criteria but have a usage period of one year or more - called small tools of labor) enterprises must monitor, manage, and use them like fixed assets and gradually allocate their values into operating expenses over time appropriately.

For small tools of labor that have fully allocated their values but are still usable, enterprises must monitor, manage, and use them like normal small tools of labor but do not allocate their values into operating expenses.

Article 14: For state-owned enterprises engaged in public services, all activities related to leasing, pledging, mortgaging, selling, liquidating... of fixed assets must comply strictly with financial management regulations for state-owned enterprises engaged in public services.

PART 3

PROVISIONS ON DEPRECIATION

AND THE USE OF FUNDS ALLOCATED FOR DEPRECIATION OF FIXED ASSETS

Article 15: Determining the useful life of tangible fixed assets:

1. Based on the following criteria to determine the useful life of fixed assets:

- Technical lifespan of fixed assets according to design;

- Condition of fixed assets (time of use of fixed assets, generation of fixed assets, actual condition of fixed assets...);

- Economic lifespan of fixed assets;

Specifically, for new fixed assets that have not been used yet, or used fixed assets whose actual value is still at 90% or more (compared to the selling price of new fixed assets of the same type or equivalent fixed assets on the market); the enterprise must base on the usage period framework of fixed assets stipulated in Appendix 1 issued together with this Regulation to determine the appropriate usage period for the fixed asset.

Specifically, for new fixed assets (unused) and used fixed assets with actual value remaining at 90% or more (compared to the selling price of new fixed assets of the same type or equivalent fixed assets on the market), enterprises must base on the framework of the useful life of fixed assets stipulated in Appendix 1 issued together with this Regulation to determine the useful life of fixed assets appropriately.

If an enterprise wishes to determine the useful life of fixed assets other than the useful life framework prescribed in Appendix I attached hereto, the enterprise must provide clear explanations for the bases to determine the useful life of such fixed assets for the Ministry of Finance to consider and decide.

Specifically, for enterprises borrowing capital for expansion investment, deepening investment, and whose business results do not incur losses, they are permitted to determine the useful life of fixed assets formed from borrowed capital according to the period stipulated in the loan agreement, but this period shall not be reduced by more than 30% compared to the minimum useful life of such fixed assets prescribed in Appendix I.

In cases where there are factors affecting (such as upgrading or dismantling one or several parts of fixed assets...) leading to extending or shortening the previously determined useful life of fixed assets, the enterprise shall re-determine the useful life of fixed assets according to the provisions above at the time of completing the transaction, while also establishing a record clearly stating the bases for changing the useful life.

Article 16: Determining the useful life of intangible fixed assets:

Enterprises shall independently determine the useful life of intangible fixed assets within a range of 5 to 40 years.

Article 17: Determining the useful life of fixed assets in certain special cases:

- For foreign investment projects under the Build-Operate-Transfer (BOT) model, the useful life of fixed assets shall be determined according to the remaining operational period of the project.

- For joint venture contracts (BCC) involving foreign parties, after the expiration of the contract term, the foreign party transfers the fixed assets without compensation to the Vietnamese State, then the useful life of transferred fixed assets shall be determined according to the remaining operational period of the project.

Article 18: Method of depreciation of fixed assets:

1. Fixed assets in enterprises are depreciated using the straight-line method, as follows:

- Based on the provisions of this regime, enterprises determine the useful life of fixed assets;

- Determine the average annual depreciation rate for fixed assets according to the formula below:

Average annual depreciation rate = Original cost of fixed asset / Useful life of fixed asset

average annually =

of fixed assets Usage time

The average annual depreciation rate may be rounded off to the nearest whole number according to the following rules:

- The first decimal place with a value of 5 or higher rounds up the unit digit by one (for example: VND 950,713.5 rounds up to VND 950,714).

- The first decimal place with a value of 4 or lower retains the unit digit unchanged (for example: VND 950,713.4 rounds down to VND 950,713).

If enterprises depreciate monthly, the total annual depreciation amount is divided by 12 months.

2. In cases where the useful life or original cost of fixed assets changes, enterprises must re-determine the average annual depreciation rate of fixed assets by dividing the remaining book value by the newly determined useful life or remaining useful life (calculated as the difference between the registered useful life minus the already used period) of the fixed assets.

3. The depreciation rate for the last year of the useful life of fixed assets is determined as the difference between the original cost of fixed assets and the accumulated depreciation already performed on such fixed assets.

Article 19: Increases or decreases in the original cost of fixed assets are reflected at the time of increasing or decreasing fixed assets in the month.

Depreciation or cessation of depreciation of fixed assets is carried out on a full-month basis. Fixed assets that increase, decrease, or cease participating in business activities (stored according to state regulations, awaiting liquidation, etc.) in the month are subject to depreciation or cessation of depreciation from the first day of the following month.

Article 20:

1. All fixed assets of enterprises related to business operations must be depreciated, and the depreciation rate of fixed assets is recorded as business expenses for the period.

2. Fixed assets not participating in business operations do not need to be depreciated, including:

- Fixed assets not in use or not yet needed, with a decision by the Board of Directors (for enterprises with a Board of Directors) or the establishment authority (for enterprises without a Board of Directors) allowing the enterprise to store, preserve, or allocate to another enterprise.

- Fixed assets belonging to state reserves entrusted to the enterprise for management or custody.

- Fixed assets serving welfare activities within the enterprise such as kindergartens, clubs, traditional houses, dining halls, etc.

- Fixed assets serving common social needs, not for the enterprise's business activities, such as dikes, bridges, roads, etc., which the state entrusts to the enterprise for management.

- Other fixed assets not participating in business operations.

Enterprises manage and monitor these fixed assets as if they were used in business operations and calculate their wear and tear rates (if applicable); the annual wear and tear rate is determined by dividing the original cost by the useful life of the fixed asset as prescribed in Clause 1, Article 18 of this regime.

If these fixed assets participate in business operations, during the period they are involved in business operations, enterprises shall calculate and record depreciation as business expenses. Depreciation costs are allocated according to the source of fixed assets.

Article 21: Enterprises are not allowed to calculate and record depreciation for fixed assets that have been fully depreciated but are still used in business operations.

For fixed assets that have not been fully depreciated but are damaged, enterprises must identify the cause, assign responsibility for compensation, seek damages, and handle losses according to current regulations.

For fixed assets awaiting liquidation decisions, from the time when such fixed assets cease to participate in business operations, the enterprise shall cease depreciation according to the provisions of this regime.

Article 22: The Council for Transfer, Liquidation Council, Sale Council... of fixed assets within enterprises shall be established by the enterprise and shall include mandatory members such as the General Director of the enterprise, the Chief Accountant or Head of the Finance and Accounting Department of the enterprise, a technical expert knowledgeable about the type of fixed asset (inside or outside the enterprise), a representative of the transferring party (if any), and other members determined by the enterprise. In special cases or as provided by the current financial management system, the enterprise may invite representatives of the directly managing financial authority and the economic-technical management authority (if any) to participate in these Councils.

Article 23The use of depreciation of fixed assets by enterprises and the mobilization of depreciation funds of member units within the Corporation must comply with the current state's financial management regulations and the financial charter of the Corporation.

PART 4

IMPLEMENTATION

"d) Within no more than one working day from the date of receiving the dossier submitted for administrative procedures by the specialized agency assigned by the Provincial People's Committee, the Chairman of the Provincial People's Committee shall issue a notification of the result of the inspection of plant-based food exports or a certificate at the request of the importing country."Units under the Ministry of Finance, within their respective functions and responsibilities, are responsible for implementing, organizing, and guiding enterprises to properly follow this Regime.

Article 25: This Regime takes effect from January 1, 2000.