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-BTC/TT OF THE MINISTRY OF FINANCE ON MARCH 17, 1990 GUIDING THE IMPLEMENTATION OF DIRECTIVE NO. 21/CT OF THE CHAIRMAN OF THE STATE COUNCIL OF MINISTERS ON JANUARY 19, 1990 REGARDING STRENGTHENING DISCIPLINE IN PAYING INTO THE STATE BUDGET BY STATE OWNED ECONOMIC UNITS;

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

1. All state-owned economic units (including all export-import organizations) belonging to 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 state budget according to current regulations.

2. Units that fail to strictly comply with the discipline of paying into the state budget will be subject to late payment penalties calculated as a percentage (%) of the total amount overdue.

a) Late payment penalty rate:

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

Example: Unit A delays payment of the state budget by 10 million dong. The interest rates for non-fixed-term and fixed-term savings deposits announced by the State Bank at the time are: Non-fixed term 4%; Fixed term 3 months 6%.

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

5% x 10 million dong

= 16,666,000 dong

30 days

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

7% x 10 million dong

= 23,333,000 dong

30 days

For import trading organizations, if more than 10 days have passed since the first cargo was unloaded at the port and the unit has not completed the payment for imported goods sales, it will be fined 0.2% per day of the overdue amount according to 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 of Ministers on payment and lending for import and export under protocol for the socialist region.

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 state budget:

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 submission before the fifth day of the following month. If the payment is overdue beyond the registration date, a late payment penalty will apply.

In cases where enterprises are not assigned a plan to pay profits into the state budget but actually generate profits, the late payment date is the day following the deadline for submitting the accounting report as stipulated in Article 25 of Decision No. 25/HĐBT dated March 18, 1989 of the Chairman of the State Council of Ministers promulgating the charter for state accounting organization; 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 into the state budget: it is the day following the deadline for payment into the state budget according to current regulations.

c) The late payment fines imposed on units may not be included in cost or circulation fees but must be deducted from two funds: reward and welfare (each fund 50% of the fine amount).

3. Responsibilities of agencies in strengthening the discipline of paying into the state budget:

a) Provincial Finance Departments (State Revenue Collection Branches) shall strengthen, urge, and inspect the compliance with the discipline of paying into the state budget by state-owned economic units (central, provincial, district level) within their jurisdiction, and have the authority to issue collection orders and penalty orders based on clearly determining: the amount to be paid into the state budget, the time of overdue payment, the ability of the unit to execute the collection order and penalty: the balance of the bank account, cash reserve, welfare fund, and reward fund...

In areas where there is a State Revenue Collection Branch, collection orders, penalty orders, and all other documents related to the processing of state budget payments shall bear the seal of the State Revenue Collection Branch; in areas where a State Revenue Collection Branch has not been established, they shall bear the seal of the Provincial Finance Department.

b) Banks where the unit conducts transactions, upon receiving collection orders and penalty orders from authorized financial authorities, must immediately deduct the amount from the unit's deposit and transfer it to the state budget (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 and cash transactions between the banking system and the state treasury) and simultaneously inform the issuing authority of the collection and penalty orders.

If a bank fails to implement the collection or penalty order promptly, it will be subject to the penalty provisions set out in point 2 above, calculated on the total amount the unit is overdue and the fine amount imposed on the unit.

c) State-owned economic units shall create favorable conditions for financial authorities to carry out accounting and state budget payment inspection work, and strictly comply with collection and penalty orders for late payment of the state budget. In cases where units suffer losses due to objective reasons and cannot fulfill the state budget payments according to current regulations, they must complete all procedures as prescribed in Circular No. 29/TT-TC-TQĐ dated July 9, 1988 guiding the implementation of Decision No. 188/CT dated June 21, 1988 of the Chairman of the State Council of Ministers. Only when there is an official decision from the competent financial authority, can the unit retain the amount to be paid into the state budget without being penalized according to this circular.

State-owned economic units that conceal revenue and evade state budget payment obligations, once discovered, will be ordered to pay the entire concealed revenue and be subject to late payment penalties. This circular takes effect from the date of signature.