Circular No. 17/TC/TQD guiding the implementation of Directive No. 21/CT dated January 19, 1990, of the Chairman of the Council of Ministers, on strengthening discipline in the collection and payment of State budget revenues in state-owned economic units.

CIRCULAR

DIRECTIVE NO. 17/TC/TQD OF THE MINISTRY OF FINANCE ON MARCH 17, 1990 GUIDING THE IMPLEMENTATION OF DIRECTIVE NO. 21/CT OF THE CHAIRMAN OF THE STATE COUNCIL ON STRENGTHENING DISCIPLINE IN PAYING NATIONAL TREASURY FUNDS BY STATE OWNED ECONOMIC UNITS;

In order to implement Directive No. 21/CT dated January 19, 1990 of the Chairman of the State Council on strengthening discipline in paying national treasury funds by state owned economic units, the Ministry of Finance hereby provides detailed guidance as follows:

1. All state-owned economic units (including export-import organizations) in all sectors of the national economy, armed forces, and Party and mass organizations shall be responsible for registering production and business activities and timely and fully remitting all revenues such as state-owned income, profits, basic depreciation, and price differences (if any)... into the National Treasury according to current regulations.

2. For units that do not strictly comply with the discipline of remitting national treasury funds, penalties for late payment will be imposed at a rate (%) based on the total amount of late payment.

a) Rate of late payment penalty:

The rate of late payment penalty must be higher than the interest rate for non-term and term deposits (announced by the State Bank) by 1% at the same time period.

Example: Unit A delays in remitting the National Treasury an amount of 10 million dong. The interest rates for non-term and term deposits announced by the State Bank at the time are: Non-term 4%; Term 3 months 6%.

If the delay is less than 3 months, the daily fine payable is:

If the delay exceeds 3 months, the daily fine payable is:

For import trading organizations, if more than 10 days from the date of unloading the first consignment at the port, the unit has not completed the payment of proceeds from imported goods sales, it will be subject to a late payment penalty of 0.2% per day of the amount delayed, as stipulated in Circular No. 53/TCĐN dated November 11, 1989 of the Ministry of Finance guiding the implementation of Decision No. 288/CT dated October 16, 1989 of the Chairman of the State Council on payment and lending for import and export transactions under protocol agreements for socialist areas.

b) Time of determination of late payment:

For state-owned income: it is the day following the day the unit receives money from sales, wages, and freight charges.

For profit and basic depreciation paid into the treasury:

Units with plans to pay profits and basic depreciation must register with the financial authority the amount to be paid and the payment date each month but must ensure that this is done before the fifth day of the following month. If the payment is overdue beyond the registered date, a late payment penalty will be imposed.

In the case where an enterprise is not assigned a plan to pay profits into the treasury but actually generates profits, the late payment date is the day following the day the accounting report as prescribed in Article 25 of Decision No. 25/HĐBT dated March 18, 1989 of the Chairman of the State Council on issuing the charter of state accounting organization should have been submitted; specifically:

+ It is the 41st day after the end of the reporting quarter.

+ It is the 61st day after the end of the reporting year.

Other payments to the treasury: it is the day following the due date for payment to the National Treasury according to current regulations.

c) The late payment penalty amount that units cannot include in cost or circulation fees must be recorded as deductions from two funds: reward fund and welfare fund (each fund 50% of the penalty amount).

3. Responsibilities of agencies in strengthening the discipline of paying national treasury funds:

a) Provincial Finance Departments (State-owned Income Collection Branches) shall strengthen, urge, and inspect the compliance with the discipline of remitting national treasury funds by state-owned economic units (central, provincial, district level) within their jurisdiction, having the authority to issue collection orders and penalty orders based on clearly determined amounts: the amount to be paid into the treasury, the time of late payment, the ability of the unit to execute the collection order and penalty order: account balance at the bank, cash reserve balance, welfare fund balance, and reward fund balance...

In places where there is a State-owned Income Collection Branch, collection orders, penalty orders, and all documents processing treasury payment operations shall bear the seal of the State-owned Income Collection Branch; in places where a State-owned Income Collection Branch has not been established, they shall bear the seal of the Provincial Finance Department.

b) The bank where the unit conducts transactions, upon receiving the collection order and penalty order from the authorized financial agency, must immediately deduct the amount from the unit's deposit account and remit it to the National Treasury (as stipulated in Circular No. 09/TT-LB dated February 27, 1990 of the Joint Ministry of Finance - State Bank of Vietnam on temporarily regulating the opening of accounts for settlement relations and cash between the banking system and the State Treasury) and simultaneously inform the issuing agency of the collection and penalty orders.

If the bank delays in executing the collection order and penalty order, it must bear the penalty as stipulated in point 2 above calculated on the total amount of the unit's late payment and the penalty amount.

c) State-owned economic units shall create favorable conditions for financial agencies to carry out accounting and treasury payment inspection work, and strictly comply with collection orders and penalty orders for late payment of treasury funds. In cases where units suffer losses due to objective reasons and are unable to fulfill the current treasury payment obligations, they must complete all procedures as stipulated in Circular No. 29/TT-TC-TQD dated July 9, 1988 guiding the implementation of Decision No. 188/CT dated June 21, 1988 of the Chairman of the State Council. Only when there is an official decision from the competent financial authorities, can the unit retain the amount to be paid into the treasury without being penalized according to this circular.

State-owned economic units that conceal revenue and evade the obligation to pay national treasury funds, when discovered, the competent financial agency shall issue an order to collect the entire concealed revenue and impose a late payment penalty. This circular takes effect from the date of signature.