Joint Circular No. 37/2014/TTLT-BNNPTNT-BTC-BKHĐT guides the implementation of Decision No. 131/2009/QĐ-TTg on preferential policies, incentives for investment, and management of rural clean water supply works. This document stipulates preferential policies regarding land, tax, financial support from the state budget, capital mobilization, and management models for water supply works.
Scope of application
Enterprises, public service units, cooperatives, business groups, and private individuals (water supply units), relevant agencies, organizations, and individuals participate in activities related to investment, management, and operation of rural clean water supply works.
Key points
- Water supply units are exempted from land rental fees for constructing centralized rural clean water supply works.
- Preferential corporate income tax according to legal provisions at the time of occurrence.
- The state budget supports between 45% and 90% of the total project budget for new investments, renovation, and upgrading of centralized rural clean water supply works.
- Water supply units can borrow preferential credit from the Vietnam Development Bank and local development funds.
- Support for the price of rural clean water for daily use is the difference between the actual selling price of clean water and the calculated full cost pricing scheme.
🌐 Social impact of this document
- Positive impact: Supporting enterprises and water supply units to invest in building centralized rural clean water supply works, reducing financial burdens for these units.
- Negative impact: May increase financial pressure on the state budget if the use of support funds is not effectively managed.
❓ Frequently asked questions
How are water supply units granted preferential land policies?
Centralized rural clean water supply works are exempted from land rental fees. Land is rented for constructing water supply works, pipelines, and supporting facilities for managing and operating the water supply system.
What are the preferential corporate income tax policies?
Preferential corporate income tax is implemented according to legal provisions on corporate income tax at the time of occurrence.
What percentage does the state budget support for rural clean water supply works?
The state budget supports between 45% and 90% of the total project budget for new investments, renovation, and upgrading of centralized rural clean water supply works depending on the region.
From where can water supply units obtain preferential credit?
Water supply units can borrow preferential credit from the Vietnam Development Bank and local development funds.
How is the price of rural clean water for daily use supported?
Support for the price of rural clean water for daily use is the difference between the actual selling price of clean water and the calculated full cost pricing scheme.
Full text
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MINISTRY OF AGRICULTURE AND RURAL DEVELOPMENT - MINISTRY OF FINANCE -MINISTRY OF PLANNING AND INVESTMENTNumber: 37/2014/TTLT-BNNPTNT-BTC-BKHĐT LEGAL |
SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom - Happiness |
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Hanoi, October 31, 2014 GUIDELINES FOR IMPLEMENTATION OF DECISION NO. 131/2009/QD-TTg |
DATED NOVEMBER 2, 2009 OF THE GOVERNMENT PRIME MINISTER |
JOINT CIRCULAR
ON CERTAIN INCENTIVE POLICIES TO ENCOURAGE INVESTMENT AND MANAGEMENT OF RURAL CLEAN WATER INFRASTRUCTURE
Pursuant to Decree No. 117/2007/ND-CP dated July 11, 2007 of the Government on production, supply, and consumption of clean water; Decree No. 124/2011/ND-CP dated December 28, 2011 of the Government amending and supplementing certain articles of Decree No. 117/2007/ND-CP;
Pursuant to Decree No. 46/2014/ND-CP dated May 15, 2014 of the Government on regulations for land rent and water surface rent;
BASED ON THE DECREE NO. 199/2013/NĐ-CP OF NOVEMBER 26, 2013 OF THE GOVERNMENT PROVIDING FOR THE FUNCTIONS, TASKS, POWERS, AND ORGANIZATIONAL STRUCTURE OF THE MINISTRY OF AGRICULTURE AND RURAL DEVELOPMENT;
Pursuant to Decree No. 215/2013/NĐ-CP dated December 23, 2013 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;
Pursuant to Decree No. 116/2008/NĐ-CP dated November 14, 2008 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Planning and Investment;
Pursuant to Decree No. 218/2013/ND-CP dated December 26, 2013 of the Government detailing and guiding implementation of certain provisions of the Law on Corporate Income Tax;
Pursuant to Decision No. 131/2009/QD-TTg dated November 2, 2009 of the Government Prime Minister on certain incentive policies to encourage investment and management of rural clean water infrastructure;
The Ministers of Agriculture and Rural Development, Finance, and Planning and Investment hereby issue this Joint Circular guiding the implementation of Decision No. 131/2009/QD-TTg dated November 2, 2009 of the Government Prime Minister on certain incentive policies to encourage investment and management of rural clean water infrastructure.
Article 1. This Circular provides detailed guidance on incentive policies, support, encouragement, and attraction of investment in construction of centralized rural clean water infrastructure (including new construction or renovation and upgrading) and management and operation of centralized rural clean water infrastructure serving community life and other purposes in rural areas.
Article 2. Small-scale decentralized water supply facilities at household level (such as dug wells, drilled wells, jars, water tanks...) are not within the scope of regulation of this Circular.
PART I
GENERAL PROVISIONS
Article 1. Scope of Regulation
1. Enterprises, public service organizations, cooperatives, cooperative groups, and private individuals (hereinafter referred to collectively as water supply units) shall undertake all or part of the activities related to investment in construction, technology transfer, management and operation, production, business, and services for rural clean water supply.
2. Relevant agencies, organizations, and individuals shall participate in investment, management, and operation of rural clean water supply infrastructure.
Article 2. Applicability
Article 3. Incentive and support policies for rural clean water supply
1. Land incentives.
2. Corporate income tax incentives.
3. Support from the state budget and capital mobilization.
4. Support for clean water consumption prices.
INCENTIVE AND SUPPORT POLICIES IN RURAL CLEAN WATER SUPPLY ACTIVITIES
Article 4. Land incentives
Chapter II
1. Centralized rural clean water supply infrastructure serving rural communities shall be exempted from land rental fees by the State.
a) Land for construction of water supply facilities includes: land for construction of water extraction and treatment facilities; land for construction of pipelines and facilities on the water distribution network, and supporting facilities for management and operation of the water supply system (administrative buildings, management and control centers, workshops, storage areas for materials and equipment);
b) Provinces shall allocate land funds for construction of centralized rural clean water supply infrastructure in their annual land use plans according to approved water supply planning.
2. For land leased for construction of rural clean water supply infrastructure, the following conditions must be met:
a) The value of land use rights shall not be included in the asset value of the investment project;
b) The right to convert, transfer, gift, lease land use rights shall not be granted;
c) Land use rights shall not be pledged or guaranteed for loans;
d) Land use rights shall not be contributed as capital for joint production and business ventures.
3. Procedures and documentation for land leasing shall be carried out in accordance with Circular No. 30/2014/TT-BTNMT dated June 2, 2014 of the Ministry of Natural Resources and Environment on land allocation, land leasing, change of land use purpose, land recovery, and any subsequent amendments and supplements (if applicable).
4. Procedures for exemption and reduction of land rental fees and land use fees shall be carried out in accordance with Circular No. 156/2013/TT-BTC dated November 6, 2013 of the Ministry of Finance guiding implementation of certain provisions of the Law on Tax Administration, the Law Amending and Supplementing Certain Provisions of the Law on Tax Administration, Decree No. 83/2013/NĐ-CP dated July 22, 2013 of the Government, and any subsequent amendments and supplements (if applicable).
3. The procedure and documentation for leasing land shall be carried out in accordance with the guidance provided in Circular No. 30/2014/TT-BTNMT dated June 2, 2014, issued by the Ministry of Natural Resources and Environment on land transfer, land lease, land use purpose change, land recovery, and any subsequent amendments and supplements (if any).
4. The procedure for exemption and reduction of land lease fees and land use fees shall be carried out in accordance with the guidance provided in Circular No. 156/2013/TT-BTC dated November 6, 2013, issued by the Ministry of Finance guiding the implementation of certain provisions of the Law on Tax Administration, the Law Amending and Supplementing Certain Provisions of the Law on Tax Administration, Decree No. 83/2013/NĐ-CP dated July 22, 2013, issued by the Government, and any subsequent amendments and supplements (if any).
Article 5. Tax Incentives
Corporate income tax incentives shall be implemented in accordance with the provisions of the Corporate Income Tax Law at the time of occurrence.
Article 6. Support from the State Budget
1. New construction projects, renovation, and upgrading of centralized rural clean water supply facilities according to approved plans by competent authorities shall be supported by the state budget (central budget, local budget, and international aid) at the following levels:
a) Not exceeding 90% of the total project budget approved by the competent authority for particularly difficult communes, ethnic minority areas, mountainous regions, coastal lowlands, and islands, border communes, as stipulated by the Prime Minister. In cases where the Prime Minister has decided that the state budget will support public-private partnership projects for clean water supply, the funding sources and investment support levels shall be carried out in accordance with the Prime Minister's Decisions.
b) Not exceeding 75% of the total project budget approved by the competent authority for other rural areas.
c) Not exceeding 60% of the total project budget approved by the competent authority for plain regions and coastal areas.
d) Not exceeding 45% of the total project budget approved by the competent authority for townships and market towns.
2. The People's Committee of the province shall decide on specific support levels for each region within its jurisdiction based on actual conditions, without exceeding the support levels specified in Clause 1 of this Article, and shall publicly announce the prioritized projects to be supported through mass media within thirty days.
3. For the portion of funds supported from the state budget or derived from the state budget for the construction, renovation, and upgrading of centralized rural clean water supply facilities in areas not classified as economically and socially difficult, if it is possible to accurately calculate costs, such funds must be repaid to the budget through basic depreciation of fixed assets. Determination of depreciation must comply with Circular No. 45/2013/TT-BTC dated April 25, 2013, issued by the Ministry of Finance, guiding the management, use, and depreciation of fixed assets, and Circular No. 54/2013/TT-BTC dated May 4, 2013, issued by the Ministry of Finance, regulating the management, use, and operation of centralized rural clean water supply facilities.
Article 7. Capital Mobilization
Investment units constructing water supply facilities in rural areas (including renovation projects):
1. Shall be eligible to borrow preferential credit from the Vietnam Development Bank if they meet the conditions stipulated in Government Decree No. 75/2011/NĐ-CP dated August 30, 2011, on state investment and export credit, and related guiding documents and amendments; they may also borrow capital from the local development fund in accordance with Government Decree No. 138/2007/NĐ-CP dated August 28, 2007, on the organization and operation of local development funds, and Government Decree No. 37/2013/NĐ-CP dated April 22, 2013, amending certain provisions of Government Decree No. 138/2007/NĐ-CP.
2. Shall be given priority to borrow from the source of funds provided by international organizations to Vietnam on preferential terms.
3. Shall be eligible to receive non-repayable grants from international organizations (if available).
4. Shall be permitted to raise capital through share contributions for joint-stock companies, contributions from employees within the unit, and community; and to mobilize other lawful sources of capital through cooperation, joint ventures, and associations with domestic and foreign enterprises, economic organizations, financial institutions, and individuals in accordance with the Enterprise Law and relevant laws.
Water supply units shall be responsible for strictly managing capital sources, investing efficiently, and fulfilling commitments agreed upon when raising capital.
Article 8. Support for rural clean water prices
1. Level of support: is the difference between the lower selling price of clean water compared to the correctly calculated clean water pricing scheme according to the guidelines set out in Decree No. 117/2007/NĐ-CP dated July 11, 2007 of the Government on the production, supply, and consumption of clean water; Decree No. 124/2011/NĐ-CP dated December 28, 2011 of the Government amending and supplementing certain articles of Decree No. 117 and Circular Joint No. 75/2012/TTLT-BTC-BXD-BNNPTNT dated May 15, 2012 of the Ministry of Finance, Ministry of Construction, and Ministry of Agriculture and Rural Development guiding principles, methods for determining and decision-making authority for clean water consumption prices in cities, industrial zones, and rural areas and any subsequent amendments and supplements (if any).
2. Conditions and procedures for granting support:
a) Water supply units prepare plans to request support at the same time as preparing annual budget planning plans of the locality and submit them to the Department of Finance for review.
b) The Department of Finance reviews and records it in the budget according to the categories and items prescribed by the Law on State Budget, and submits it to the Provincial People's Committee for approval by the Provincial People's Committee to the same-level People's Council for approval.
3. Time of price support
a) After the local budget plan has been approved by the Provincial People's Council (including the portion of support for rural clean water prices for daily use), the financial agency provides price support to water supply units according to the classification of the locality.
b) Price support is implemented twice a year:
The first time before the third quarter of each year, providing 70% of the approved support price plan.
The second time in the first quarter of the following year, providing the remaining amount after settlement.
4. Supporting price documents and procedures: Implemented according to the provisions of the law on finance.
Chapter III
MANAGEMENT MODEL, EXPLOITATION OF RURAL CLEAN WATER ENGINEERING PROJECTS
Article 9. Selection of management model
Depending on specific conditions regarding the scale of the project, water source, treatment technology, and distribution, as well as economic and social characteristics of each locality, the following organizational models for water supply units may be applied:
1. Private sector.
2. Cooperative.
3. Public service institution: Rural Clean Water and Environmental Sanitation Center, Water Supply Management Board.
4. Enterprise: Joint Stock Company, Limited Liability Company, State-owned Enterprise with One Member, Waterworks Management and Operation Company, Partnership Company, and private enterprises operating under the Law on Enterprises.
Article 10. Procedures for participating in investment and management of rural clean water supply activities
1. Each year, the Department of Planning and Investment takes the lead and coordinates with the Department of Agriculture and Rural Development to compile a list of rural clean water supply projects that need investment or change in management model according to the planning on the administrative area, report to the Provincial People's Committee for approval, publicly announce or publish on mass media to call for organizations and individuals to participate in investment or management operation.
a) In cases where only one organization or individual registers to participate in investment or management, exploitation of new water supply facilities or renovation and upgrading according to the project list approved by the competent authority, the tender designation procedures shall be carried out according to the current regulations of the law on bidding.
b) For other cases, they shall be handled according to the current regulations of the law on bidding.
2. For water supply facilities that already have organizations or individuals providing water services but require investment, renovation, upgrading, or changing the management model to meet better service needs, the following measures shall be taken:
a) In cases of investment in renovation and upgrading:
Organizations or individuals currently managing the facility well, having the necessary conditions to be the main investor, will be assigned to be the main investor to implement the project.
In cases of investment in renovation and upgrading and changing the management model, the competent authority will decide to select organizations or individuals who have the necessary conditions to be the main investor and manage the exploitation of the project.
b) In cases requiring a change in the management model to ensure more effective management, organizations or individuals with the ability to manage and provide clean water supply services should be selected to participate. Participating organizations or individuals must have a restructuring plan for production and management of clean water supply, sign agreements with the competent authorities on new management requirements to ensure the exploitation and supply of rural clean water. The competent authority will select new organizations or individuals to manage according to points a and b of Clause 1 of Article 10.
3. Special cases: If there are no organizations or individuals participating in investment, the state will invest. The investment decision will determine the selection of agencies or organizations capable of being the main investor according to the provisions of the law.
Article 11. Handling of assets
1. For assets and projects invested from the state budget or with origins from the state budget, when there is a need to transfer projects, lease the right to exploit projects, transfer, or liquidate projects, they shall be implemented according to Articles 23, 24, 25, 26, and 30 of Circular No. 54/2013/TT-BTC dated May 4, 2013 of the Ministry of Finance on the management, use, and exploitation of centralized rural clean water supply projects.
2. For assets and projects formed from sources other than state budget funds or without origins from the state budget, when transferring ownership, selling, or reorganizing into other types of water supply units, they shall be implemented according to the provisions of the enterprise and its owner according to the Law on Enterprises and related laws.
Chapter IV
IMPLEMENTATION
Article 12. Responsibilities of the Provincial People's Committee
1. Issuing mechanisms, policies, and incentives for investment in accordance with its authority.
2. Directing and organizing the establishment and review of overall and detailed planning for rural clean water supply. Preparing specific investment lists for each locality to attract organizations and individuals to invest and manage the operation of rural clean water supply projects; having appropriate support mechanisms for particularly difficult areas.
3. Implementing state management over activities in the field of rural clean water, assigning specific tasks to specialized agencies and lower-level People's Committees.
4. Annually preparing plans and implementing support for training human resources to meet the needs of rural clean water supply, prioritizing implementation in difficult and particularly difficult localities.
5. Directing departments, sectors, and agencies at the provincial level to implement measures according to the provisions of this Circular in their respective functions, tasks, and powers.
Article 13. Responsibilities of the Department of Agriculture and Rural Development
1. Advising the Provincial People's Committee on state management over activities related to rural clean water supply within the province.
2. Organizing the establishment and review of overall and detailed planning for rural clean water supply; preparing investment lists for each locality. Attracting economic components to invest in clean water projects serving rural areas, especially remote and particularly difficult areas.
3. Taking the lead and coordinating with relevant agencies to submit special incentive mechanisms to the Provincial People's Committee (if applicable). Promoting and disseminating national and local preferential policies for rural clean water supply activities.
4. Reviewing and inspecting the operations of clean water supply units; summarizing experiences from management models and proposing measures to ensure effective and sustainable operations of clean water supply units.
5. Developing training plans and technical guidance for the operation and management of clean water projects for organizations and individuals managing such projects within the province.
6. Coordinating with the Department of Planning and Investment to examine and compile annual funding needs for socialized clean water supply projects in rural areas in line with approved planning and submit them to the competent authority for decision.
Article 14. Responsibilities of the Department of Finance
1. Taking the lead and coordinating with the Department of Agriculture and Rural Development to examine and approve pricing schemes for rural clean water consumption that align with the framework set by the Ministry of Finance and local realities.
2. Taking the lead and coordinating with relevant departments to allocate funds for rural clean water supply projects.
3. Based on actual conditions, the Department of Finance provides specific guidelines for supporting documentation and procedures, and final accounting for price support in compliance with current national regulations.
4. Examining and compiling price support needs for inclusion in the budget plan for approval by the competent authority.
5. Guiding economic components to organize financial management in clean water supply units.
Article 15. Responsibilities of the Department of Planning and Investment
1. Taking the lead and coordinating with the Department of Agriculture and Rural Development to prepare investment lists for clean water supply projects and projects requiring management model conversion for submission to the Provincial People's Committee for approval and investment attraction.
2. Guiding sectors and levels to participate in rural clean water supply activities through various methods (such as agreements, bidding, and procurement).
3. Coordinating with the Department of Finance and the Department of Agriculture and Rural Development in allocating rural clean water funds; organizing the integration of these projects with other programs with similar objectives.
4. Taking the lead and coordinating with the Department of Agriculture and Rural Development to examine investment support levels for clean water projects within the province and submitting them to the Provincial People's Committee for decision.
Article 16. Responsibilities of organizations and individuals
Organizations and individuals with investment and management needs for rural clean water supply projects shall be responsible for:
1. Studying the rural water supply planning, the list of investment projects for centralized water supply facilities and facilities that need to change their management and operation models which have been approved by competent authorities within their jurisdiction to register participation.
2. Investigating, surveying to establish investment projects or management plans for rural clean water extraction and supply activities to submit to competent authorities for approval.
3. Implement procedures to request land lease, capital support, and tax exemptions.
4. For operating water supply units facing difficulties with capital, propose measures to address these issues and submit them to competent authorities for approval.
Article 17. Effective Date
1. This Circular takes effect from December 15, 2014.
2. During implementation, if there are difficulties or obstacles, they should be promptly reported to the Ministry of Agriculture and Rural Development, the Ministry of Finance, and the Ministry of Planning and Investment for consideration and resolution./.
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DEPUTY MINISTER |
DEPUTY MINISTER |
DEPUTY MINISTER |
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