Circular No. 39 TC/KBNN GUIDING THE ORGANIZATION AND IMPLEMENTATION OF TAX COLLECTION THROUGH THE STATE TREASURY SYSTEM

CIRCULAR

Guidelines for organizing tax collection through the State Treasury system

Through the State Treasury system

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To ensure the effective implementation of annual state budget revenue tasks according to the plan approved by the National Assembly, to implement Directive No. 132/TTg dated March 27, 1993 of the Government Prime Minister on strengthening management of state budget revenues and expenditures to quickly concentrate all sources of revenue into the state budget, expanding the method of taxpayers directly paying taxes into the State Treasury, initially in cities, towns, and places with large state budget revenues; the Ministry of Finance stipulates the responsibilities for organizing tax collection through the State Treasury system as follows:

I. TAXPAYERS PAYING TAXES DIRECTLY AT THE STATE TREASURY.

1\. Economic organizations and private households (hereinafter referred to as enterprises) with fixed business locations, having monthly tax and state budget payment amounts in cash that are substantial by the deadline announced by the tax authority must directly pay at the collection points of the State Treasury within their jurisdiction.

2\. For enterprises with small tax payments or located in remote areas and mobile traders, there is no necessity to pay directly at the State Treasury; the tax authority will arrange staff to collect and deposit into the State Treasury at the end of the day or every three days.

3\. Customs duties and export/import taxes collected by customs authorities must be fully and promptly paid into the state budget.

4\. Agricultural taxes in regions where the State Treasury and tax authorities have already agreed upon will continue to be directly collected and deposited into the State Treasury by the tax authority.

5\. Fees and charges currently remain under the authority of relevant agencies of the Ministry of Finance to collect and deposit fully into the State Treasury as prescribed. Specifically, for stamp duty, the State Treasury will arrange a payment desk at the stamp duty office of the Tax Bureau.

6\. Enterprises maintaining accounts at banks who pay taxes by bank transfer shall still record such payments into the account opened at the State Treasury.

+ Enterprises may open dedicated collection accounts at the State Treasury for tax payments and other state budget contributions.

+ Enterprises holding bank drafts issued by the State Bank within their validity period can use them to pay taxes and other state budget contributions.

7\. Enterprises with centralized accounting across the entire industry shall pay taxes and other state budget contributions at the Central State Treasury (except for turnover taxes which are paid locally where the enterprise is headquartered).

8\. Construction units operating outside their home jurisdictions shall pay turnover taxes at the State Treasury where they are working. The tax authority is responsible for checking, determining the amount of turnover taxes due, guiding, urging, and inspecting the units to pay taxes according to current regulations.

II. RESPONSIBILITIES OF THE COLLECTION AUTHORITIES.

1\. Tax Authority:

1.1- Monthly, quarterly, and annually, the Tax Authority sends the State Treasury at the same level the state budget revenue collection plans broken down by economic sector and collection area so that the State Treasury can proactively arrange tax collection accordingly.

Monthly plans are sent on the 25th of the previous month, quarterly plans on the 20th of the last month of the quarter, and annual plans on the 15th of December of the previous year.

1.2- Determine the tax and state budget contributions of taxpayers. Write notices clearly stating the payment deadlines and send them directly to taxpayers three days before the payment deadline.

Tax payment schedules for taxpayers are divided by location and spread evenly throughout the month's working days, avoiding concentration at the end of the month to prevent overcrowding or underutilization of collection points.

1.3- Guide tax accountants and taxpayers in preparing payment vouchers for the state budget, ensuring clear, accurate, and complete information as required.

1.4- Monitor, urge, and inspect taxpayers to ensure timely and full payment of taxes and state budget contributions, without missing any revenue sources or taxpayers.

2\. Customs Authority:

2.1- The Customs Authority is responsible for determining the amount of export and import taxes including informal trade taxes payable by entities, issuing notices, and guiding taxpayers in preparing payment vouchers according to the current state budget classification. Taxpayers must directly pay (in cash) or transfer into the dedicated collection account of the Customs Authority at the State Treasury (by bank transfer) according to the detailed accounts for formal and informal trade taxes.

2.2- Daily during afternoon working hours, prepare vouchers to transfer the remaining balance from the dedicated collection account to the state budget. If the Customs Authority does not handle the state budget payment procedures, the State Treasury is authorized to prepare vouchers to transfer the entire balance from the dedicated collection account into the state budget.

2.3- Other revenues collected directly by the Customs Authority (fees, fines, etc.) must be paid into the state budget immediately or periodically (after coordination with the State Treasury).

2.4- For state budget revenues in foreign currency, the Customs Authority guides taxpayers to deposit into the foreign currency deposit account of the State Treasury at the commercial bank (or foreign exchange department of the state-owned commercial bank) within their jurisdiction.

3\. State Treasury:

3.1- Based on the collection plans received from the tax authority, the State Treasury proactively arranges personnel and means to ensure the collection of all tax payments from taxpayers according to the schedule. On high-volume collection days, the State Treasury collaborates with the tax authority to arrange personnel at necessary collection points, including overtime, holidays, and Sundays, while ensuring the safety of the collection points.

3.2- All revenues of the State budget deposited into the State Treasury must be fully and promptly recorded into the State budget. The amount collected on the same day must ensure absolute safety and be transported to the warehouse on the same day according to the prescribed regulations. For dedicated collection accounts of Customs, they shall be implemented according to the provisions stated in Point 2.2, Section II above.

3.3- The State Treasury shall stipulate daily or periodic cash reserves for tax authorities and Customs (funds directly collected by these agencies), supervise and urge units to fully and timely deposit into the State Treasury.

III. COLLECTION DOCUMENTS AND INFORMATION REPORTING REGIME:

a) Collection Documents:

1/ Samples of collection documents for the State budget (tax receipts, fine receipts, fee receipts, cash payment vouchers to the State budget, transfer payment vouchers...) issued by the Ministry of Finance and uniformly used nationwide. Enterprises must use the correct type of valid collection document issued by the Ministry of Finance when paying into the State budget.

2/ All collection documents must be fully filled out with the correct chapter, type, item, sub-item, and section codes according to the current State budget index. The State Treasury has the right to refuse illegal, invalid documents that do not contain all required elements.

3/ The circulation of documents between banking institutions and the State Treasury - Taxation shall be carried out according to Circular No. 68-TT/BTC dated August 9, 1993 of the Ministry of Finance and the State Bank. The circulation of documents between Taxation - State Treasury - Customs shall be carried out according to the current regulations.

b) Information Reporting Regime:

1/ After recording into the State budget revenue account, the State Treasury shall send a receipt back to the Taxation agency and Customs agency within no more than one working day. In cases where mobile collection units are far from their main office, the receipt shall be sent within no more than two working days.

2/ The monthly closing of accounting books of Taxation and State Treasury at each level is currently regulated as follows:

- At Districts, Counties, and Municipalities directly handling tax collection, close the accounting books two days before the end of the month.

At Provinces and Cities: consolidate data and close the books one day before the end of the month.

For December each year, all books shall be closed on the 31st, absolutely not to be carried over to January 1 of the following year.

3/ On the 5th, 12th, and 25th of each month, Taxation and State Treasury shall reconcile figures, requiring them to match by chapter, type, item, sub-item, and amount. If discrepancies are found, the responsible agency must adjust and notify related units to unify the figures.

4/ Monthly, Customs agencies shall reconcile figures and obtain confirmation from the same-level State Treasury to report to the Ministry of Finance as the basis for determining actual State budget collections of the Customs agency.

5/ The Taxation and State Treasury system shall implement regular reporting regimes according to the regulations of each sector.

IV. ORGANIZATIONAL MEASURES FOR IMPLEMENTATION

a) Collection Organization:

1- Tax agencies may organize direct collection based on the capacity of the State Treasury to coordinate with the same-level State Treasury to classify areas and determine specific (in writing) the number of payers and set specific tax rates for direct payment at the State Treasury, facilitating the organization and arrangement of collection points for the State Treasury, notifying taxpayers, and organizing the urging of full and timely payments into the State budget.

Identify small taxpayers with low tax liabilities (as specified in Point 1.2, Section I above) for direct collection by Tax agencies. Tax agencies arrange collection desks at People's Committees, market management boards, port terminals, etc., for taxpayers to pay directly, limiting tax officers' visits to individual taxpayers, coordinating with the State Treasury to clearly define cash reserve limits for each officer, avoiding excessive retention beyond the prescribed limits.

2/ During concentrated collection periods at the end of months, quarters, and years, Tax agencies shall arrange staff to cooperate with the State Treasury at necessary collection points to ensure collection progress and plans. At mobile collection points, staff shall cooperate with the State Treasury during point protection and money transportation.

3/ State Treasury units shall arrange collection desks at their headquarters and large, regular revenue sources, ensuring convenience and safety for taxpayers.

4/ The State Treasury, after coordinating with Tax agencies to determine and arrange collection points, shall report to local authorities to facilitate and ensure safety for taxpayers and collectors.

5/ The arrangement of collection points by the State Treasury must meet the following basic requirements:

- Convenience for taxpayers.

- Safety for collectors and taxpayers.

- Fixed collection points should be located where there is a large and regular volume of collections.

- Mobile collection points should handle sporadic collections at different times (such as agricultural taxes).

Determining collection points is based on:

- Number of taxpayers.

- Current staffing and funds that can be mobilized to the maximum during peak collection periods but still ensure the ongoing tasks of the State Treasury.

- Level of convenience and ability to arrange collection desks for collectors and taxpayers, security capabilities.

Fixed collection points outside the State Treasury premises also perform other State Treasury tasks.

6/ People's Committees and financial agencies at all levels have the responsibility and measures to create favorable conditions for the State Treasury and Tax agencies to effectively collect the State budget.

b) Staffing:

The staffing for tax collection work of the State Treasury System shall first be arranged within the existing staff currently performing the tasks of the State Treasury. If there is a shortage, additional staff will be recruited through the reallocation of tax collection officers from the Tax Departments and Tax Branches, subject to mutual agreement between the General Department of Taxation and the State Treasury Management Bureau. Based on the volume and nature of the work and staffing requirements, the State Treasury Bureau is responsible for compiling and submitting to the Ministry and the Government for supplementation according to the increased workload.

c) Expenses and reward/punishment system:

1/ Costs for organizing tax collection activities of the State Treasury, including rental fees for premises, provision of material infrastructure, working equipment, money transportation means, security costs, counting and transporting money costs, overtime training costs, shall be funded from the central budget according to the plan in a separate item within the regular operating expenses of the State Treasury.

Annually, when allocating funds to the Financial Administration and Administrative Affairs Units, these units shall coordinate with the State Treasury Bureau to allocate a portion of the joint tax collection fund to reward units and individuals within the State Treasury System who have achieved results in the tax collection process, equivalent to 0.1% of the total cash and Treasury bill revenue collected through the State Treasury. The allocation of the reward fund will be centralized through the State Treasury Bureau for distribution to subordinate State Treasury units.

2/ For staff performing tax collection duties outside regular hours, holidays, and Sundays, they shall receive overtime allowances as stipulated, and team leaders responsible for tax collection tables shall receive responsibility allowances as provided in Point 3, Section II of Circular No. 17/LDTBXH-TT dated June 2, 1993 issued by the Ministry of Labor, War Invalids and Social Affairs.

3/ Units and individuals from the Tax, Customs, and State Treasury sectors, as well as related levels and sectors, who achieve results in tax collection work shall be rewarded according to current regulations. Individuals and units violating discipline in tax collection work shall be punished according to the degree of violation and current disciplinary procedures.

V. IMPLEMENTATION

This Circular shall take effect from the date of signature, and all previous documents that conflict with this document shall cease to be enforceable.

Based on the above provisions, the General Department of Taxation, the State Treasury Management Bureau, the Organization and Cadre Department, the State Budget Department, the Administrative Affairs Department, and related units shall be responsible for coordinating and guiding specific implementation./.