Circular No. 188/2010/TT-BTC stipulates criteria for classifying revenue sources and dividing revenue items between budgets of different levels of local government.

CIRCULAR

Regulations on criteria for分级收入和各级地方政府之间的收入分配

地方政府预算

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Pursuant to the State Budget Law number 01/2002/QH11 dated December 16, 2002;

Pursuant to Decree No. 60/2003/NĐ-CP dated June 6, 2003, promulgated by the Government detailing and guiding the implementation of the Law on State Budget;

Pursuant to Decree No. 118/2008/NĐ-CP dated November 27, 2008, of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

为了统一管理国家预算收入，财政部规定了分级收入的准则以及各级地方政府预算之间的收入分配如下：

第一条. 分级收入和各级地方政府预算之间收入分配的应用范围及对象

包括国家预算税收、费用和收费；国家经济活动产生的收入；组织和个人的捐款；援助款项；以及其他由各级地方政府在其管辖范围内获得的收入，根据《国家预算法》第三十条第二款、第三十二条第一款和第三款的规定。

第二条. 各级地方政府预算之间分级收入和收入分配的原则

1. 将收入与支出任务和每个地方政府的管理能力挂钩，确保各级政府能够自主实施经济发展和社会事务的任务，保障国防、安全和公共秩序；鼓励各级政府加强收入管理，防止收入流失；限制将规模较小的收入分配给多个级别；限制对每项收入以及各行政单位之间使用不同的分配比例。

2. 各级政府预算之间收入分配的比例（百分比）不得超过上级规定的各项收入分配比例。特别地，乡、镇和省辖市预算可以享受《国家预算法》第三十四条第一款规定的某些收入的最低分配比例。

3. 确保按照本通知第四条规定的各级地方政府预算之间的分级收入和收入分配准则，以服务于收入管理、检查和监督工作。

4. 确保公平、公开、透明，并在地方区域内平衡发展各级预算，以便主动完成分配的任务，同时确保在地方范围内集中管理各级预算。

第三条. 各级地方政府预算之间分级收入和收入分配的决定权

根据本通知第四条规定的分级收入和收入分配准则，省级人民政府应向省级人民代表大会提交关于地方预算中享有100%收入的规定（根据《国家预算法》第三十二条第一款）、地方按比例分享的收入（根据《国家预算法》第三十条第二款规定）以及从中央预算补充的地方收入（根据《国家预算法》第三十二条第三款规定）的决定。

Article 4. Criteria for分级收入来源和地方各级预算之间的分配

1. The Provincial People's Committee bases on the list of local budget revenue items according to Clause 2, Article 30; Clause 1, Clause 3, Article 32 of the State Budget Law to submit to the Provincial People's Council for decision on the classification of revenue sources and the allocation of revenue items among local budget levels according to the following criteria:

- The chapter code, economic sector (item), economic content (sub-item) of the State Budget Classification as stipulated in Decision No. 33/2008/QD-BTC dated June 2, 2008 of the Minister of Finance on the issuance of the State Budget Classification system and supplementary, amended State Budget Classification documents.

Example: For the classification and allocation of the local budget levels' revenue from the value-added tax of Vietnam Paper Corporation (a centrally-managed state-owned enterprise), use the central chapter code (128), corresponding sector code (078), item (1700) sub-item domestic production and business VAT (1701) or imported goods VAT (1702).

- The collection agency code is used based on the code of the unit related to the budget of the collection agency and determined specifically in each case, as follows:

+ For revenue items managed by the Tax Authority (or Customs): According to the code of the unit related to the budget of the Tax Authority (or Customs) directly managing such revenue. Note that for higher-level units, use the consolidated code of the higher-level unit, not the code of the office of the higher-level unit.

Example: For the classification and allocation of the local budget levels' revenue from the value-added tax of centrally-managed state-owned enterprises collected by the provincial Tax Bureau, use the code of the unit related to the budget of the provincial Tax Bureau.

+ For administrative penalty revenue (excluding administrative penalty revenue managed by the Tax Authority or Customs): According to the code of the unit related to the budget of the Department of Finance or the Financial Office. Note that for the Department of Finance, use the consolidated code of the Department of Finance, not the code of the Department of Finance's office.

Example: For the classification and allocation of the local budget levels' revenue from administrative penalties managed by the provincial Department of Finance, use the code of the unit related to the budget of the provincial Department of Finance.

+ For revenue transferred from other sources, financial reserve fund revenue, surplus revenue, aid revenue, asset liquidation revenue, price difference revenue, exchange rate difference revenue, recovery of state budget revenue and expenditure according to the National Audit Office's conclusion (after finalizing the state budget), etc.: According to the code of the unit related to the budget of the finance authority at the corresponding level. Note that for the Department of Finance, use the consolidated code of the Department of Finance, not the code of the Department of Finance's office.

Example: For revenue transferred from the provincial budget, use the code of the unit related to the budget of the provincial Department of Finance.

+ For revenue collected by a delegated collection agency (including delegation to communes): According to the code of the unit related to the budget of the delegating collection agency.

Example: For the classification and allocation of the local budget levels' revenue from individual business value-added tax where the county Tax Bureau delegates commune management, use the code of the unit related to the budget of the county Tax Bureau.

+ For revenue directly managed by communes: According to the code of the unit related to the budget of the commune.

Example: For the classification and allocation of the local budget levels' revenue from fees and charges directly managed by the commune, use the code of the unit related to the budget of the commune.

+ For revenue transferred between budget levels: According to the budget organization code (Provincial Budget Organization Code, County Budget Organization Code) of the receiving level. Specifically, for revenue transferred between commune budget levels: According to the code of the unit related to the budget of the commune.

Example: For supplementary balancing revenue transferred from the central budget to the provincial budget, use the provincial budget organization code.

- The territorial code (province, district, commune) generating the revenue as stipulated in Decision No. 124/2004/QD-TTg dated July 8, 2004 of the Prime Minister on the issuance of the list and codes of administrative units and related supplementary, amended documents: Use the lowest administrative level territorial code allocated the state budget revenue.
Example: For the classification and allocation of the local budget levels' revenue (provincial, district, commune) from non-state-owned enterprises' value-added tax managed by the Tax Bureau, use the commune administrative territorial code.

2. To facilitate the management of state budget revenue through the State Budget Management Information System and the State Treasury, the Provincial People's Committee does not submit to the same-level People's Council proposals for the classification of revenue sources and the allocation of revenue items among local budget levels using criteria other than those mentioned above. For example:

- Classifying and allocating value-added tax revenue both by percentage (%) and absolute value: Adjust the budgets of various levels according to the percentage (%) of value-added tax for individual businesses under 50 million VND managed by the commune, while when the commune's value-added tax revenue exceeds 50 million VND, transfer the entire excess to the provincial budget.

- Classifying and allocating land use fee revenue among budget levels according to the criterion: The distribution ratio of projects with lower land use fee revenue differs from projects with higher land use fee revenue.

Article 5. Responsibilities of the Provincial People's Committee and relevant agencies and units

1. The Department of Finance shall take the lead and coordinate with lower-level People's Committees and related units to develop plans for classifying revenue sources and allocating revenue items among local government budgets at various levels in accordance with this Circular, and report to the Provincial People's Committee.

2. The Provincial People's Committee shall examine the plans for classifying revenue sources and allocating revenue items among local government budgets at various levels within its jurisdiction and submit them to the same-level People's Council for decision-making as the basis for preparing the budget estimates from 2011, the first year of the stable budget period as stipulated by the State Budget Law.

Article 6. Reporting System

Within no more than five days after the Provincial People's Council decides on the classification of revenue sources and allocation of revenue items among local government budgets at various levels within its jurisdiction, the Provincial People's Committee shall be responsible for reporting to the Ministry of Finance for consolidation and reporting.

Article 7. Implementation Provisions

1. This Circular shall take effect 45 days from the date of issuance and shall apply from the 2011 fiscal year.

2. In the course of implementation, if there are any difficulties, the provincial and centrally-administered municipal agencies and units are requested to reflect these issues to the Ministry of Finance for research, guidance, and supplementation.