JOINT CIRCULAR No. 18-TT-LB GUIDING THE WITHHOLDING AND PAYMENT OF 10% OF THE PROFITS OF THE RAILWAY TRANSPORT INDUSTRY TO LOCAL BUDGETS IN ACCORDANCE WITH RESOLUTION No. 138-HĐBT OF NOVEMBER 19, 1983 OF THE STATE COUNCIL

CIRCULAR

JOINT MINISTRY OF FINANCE - TRANSPORT DECREE NO. 18-TT/LB DATED APRIL 3, 1984 GUIDING THE WITHHOLDING AND PAYMENT OF 10% OF PROFITS FROM THE RAILWAY TRANSPORT SECTOR TO LOCAL BUDGETS ACCORDING TO RESOLUTION NO. 138-HĐBT DATED NOVEMBER 19, 1983 OF THE STATE COUNCIL

Pursuant to Article 7, Section II of Resolution No. 138-HĐBT dated November 19, 1983 of the State Council on improving the budget decentralization system for localities, the Joint Ministry of Finance - Transport guides the adjustment of 10% of the profits paid to the state budget of the railway transport sector to local budgets as follows:

1- All provinces and cities through which railways pass shall benefit from the revenue derived from withholding and paying 10% of the profits of the railway transport sector into the budget.

2- The rate of withholding from the profits paid to the state budget of the railway transport sector for distribution to localities is set at 10% of the total annual profits required to be paid to the state budget of the railway transport sector.

Annually, the Railway Administration, together with the Ministry of Finance, bases on the number of workers and wage fund plans of railway transport units located in the provinces and cities (including stations, depots of locomotive, car, bridge, signaling, and onboard operations departments) to determine and distribute the amount withheld at 10% of the profits paid into the state budget as mentioned above to the localities.

The rate of withholding from the profits paid into the state budget of the railway transport sector into the local budget of each province and city equals the amount withheld at 10% of the profits paid into the state budget of the railway transport sector multiplied by the wage fund plan of railway transport staff located in the province or city and divided by the approved wage fund plan of the entire railway transport sector.

3- Based on the annual plan already determined and notified to each locality and based on the financial target implementation situation of the railway transport sector, quarterly, the Railway Administration transfers into the local budget the amount withheld and paid according to the aforementioned regulations and reports to the Joint Ministries in its final settlement.

The railway transport sector accounts for the profit withholding required to be paid into the local budget as part of the profit payment targets.

Accounting for the profit withholding paid into the local budget is conducted like accounting for profit withholding paid into the central budget, but in the asset summary tables and report form No. 10-VTBX/TC (profit, loss, and payments with the budget), there must be a detailed line item regarding profit withholding paid into the local budget.

After the settlement is approved, any surplus or deficit in the amount transferred into the local budget will be adjusted in the following year's plan.

Other activities of the railway sector such as industrial enterprises, construction units, and service companies, which are independent economic accounting units, still apply the profit withholding and distribution system to local budgets as for other central enterprises located in localities.

Withholding the welfare fund of railway enterprises for the local budget is applied according to the general regime guided by the Ministry of Finance.

This Circular takes effect from January 1, 1984.

During the implementation process, if there are any difficulties or obstacles, please report to the Joint Ministries for prompt resolution.