Circular No. 253-TC/TCT regarding procedures for declaring and paying taxes for state-owned enterprises

LETTER

OF THE MINISTRY OF FINANCE NUMBER 253TC/TCT DATED MARCH 1, 1991 ON PROCEDURES FOR TAX REGISTRATION AND PAYMENT FOR STATE OWNED ENTERPRISES

Respected:

- Provincial Finance Departments

- Tax Departments

In recent times, many Tax Departments have inquired about the implementation of tax registration and procedures for tax declaration and payment for state-owned economic sectors. The Ministry of Finance hereby provides additional guidance as follows:

1. Declaration of tax registration.

Article 10 of the Business Tax Law and Article 10 of the Special Consumption Tax Law stipulate that state-owned establishments have the responsibility to declare tax registration with the tax authority. The Ministry of Finance has issued Circular 58TC/TCT dated December 1, 1990 and Circular 11-TC/TCT dated January 3, 1991 to guide the implementation. According to reports from some localities, up to now, there are still some establishments in certain state-owned economic sectors that have not declared tax registration, it should be noted that these units have exceeded two months without registering according to the deadline set by the Ministry of Finance, violating the Law on Tax, they need to be strictly examined and dealt with, and may be fined up to 500,000 dong according to point Ia of Article 19 of the Business Tax Law.

2. Declaration and payment of business tax and special consumption tax.

According to the provisions of Article 10 and Article 11 of the Business Tax Law and Article 10 and Article 11 of the Special Consumption Tax Law regarding the procedures for declaring and paying business tax and special consumption tax, depending on the characteristics of the business situation and the amount of tax generated by each type of establishment, the local tax authority will determine the tax payment system on a daily, every three days, five days, ten days, fifteen days, or monthly basis.

- Based on the regulations of the local tax authority, at the tax payment deadline, the establishment unit relies on actual business turnover and the amount of tax payable, proactively prepare cash payment vouchers or bank transfer payment vouchers (printed by the tax authority) without the signature of the tax authority, and submit them to the State Treasury. In case there is no payment voucher, they can use a mandate to pay taxes into the budget promptly and within the specified time limit;

- At the latest by the fifth day of the following month, the business establishment must declare its business turnover for the entire month, the provisional tax paid during the month including the tax paid in the previous month carried over, the tax paid this month, and the outstanding tax. The tax officer managing the establishment will review the provisional tax payments through regular management, urge the timely submission of provisional tax declarations, check the tax declaration form submitted by the establishment, sign to confirm, and then hand it over to the accounting department to establish the tax base, issue a notice of the tax due for the month and any outstanding tax. Upon receiving this notice, the business establishment immediately proceeds with the procedure to pay the outstanding tax into the State Treasury.

- At the end of the quarter and year when finalizing the production and business operations situation, they must also finalize the tax payment situation with the state budget.

Business units directly under organizations operating on a full-industry accounting basis, and units dependent on independent accounting companies and enterprises operating in business areas must register their tax with the local tax authority where they operate, and pay business tax-special consumption tax according to the above regulations.

3. Declaration and payment of profit tax.

- For business organizations that can fully collect revenue-expenses each month and determine taxable profits, they must declare according to the prescribed model and within the specified time limit of the tax authority. After verification, the tax authority will calculate the tax and notify the provisional tax amount.

- For business organizations that cannot fully collect expenses incurred each month, they must still declare provisional profit tax based on actual revenue, with expenses temporarily calculated according to the expense ratio of the final settlement period before, after verification, the tax authority will notify the provisional tax amount.

- For business establishments allowed by the tax authority to pay monthly according to a plan due to specific circumstances such as construction, shipbuilding, or due to large scale and wide scope of operations, at the tax payment deadline, the establishment proactively prepares cash payment vouchers or bank transfer payment vouchers (printed by the tax authority) without the signature of the tax authority and submits them to the state budget. In case there is no payment voucher, they can temporarily pay using a mandate to ensure compliance with the deadline. At the end of the quarter and year, they will settle the tax payable to the state budget.

These provisions apply from March 1, 1991, all previous provisions contrary to these are abolished.

Any difficulties encountered during implementation should be reported promptly to the Ministry of Finance for study and resolution.