Joint Circular No. 4/LB-TT guiding the implementation of profit distribution and establishment of enterprise funds for transportation enterprises pursuant to Decision No. 146-HĐBT dated August 25, 1982 of the Council of Ministers.

CIRCULAR

JOINT MINISTRY OF FINANCE - TRANSPORTATION DECREE NO. 4-LB/TT
MARCH 2, 1983 GUIDELINES FOR IMPLEMENTING THE DISTRIBUTION SYSTEM
OF PROFITS AND ESTABLISHING ENTERPRISE FUNDS FOR TRANSPORT, LOADING AND UNLOADING, AND TRANSPORT AGENCY ENTERPRISES UNDER THE TRANSPORT INDUSTRY ACCORDING TO RESOLUTION NO. 146-HĐBT OF AUGUST 25, 1982
OF THE COUNCIL OF MINISTERS

BASED ON DECISION NO. 146-HĐBT OF AUGUST 25, 1982 OF THE STATE COUNCIL ON AMENDING AND COMPLEMENTING DECISION NO. 25-CP OF JANUARY 21, 1981 OF THE COUNCIL OF MINISTERS, THE MINISTRY OF FINANCE HAS ISSUED CIRCULAR NO. 21-TC/CNA OF SEPTEMBER 1, 1982 PROVIDING GENERAL GUIDELINES FOR COST ACCOUNTING, DETERMINING STATE REVENUE LEVELS, IMPLEMENTING THE PROFIT DISTRIBUTION SYSTEM, AND ESTABLISHING ENTERPRISE FUNDS IN PRODUCTION AND BUSINESS SECTORS. FOR TRANSPORT, LOADING AND UNLOADING, AND TRANSPORT AGENCY ENTERPRISES OPERATING UNDER ECONOMIC ACCOUNTING SYSTEMS IN THE TRANSPORT INDUSTRY, THE JOINT MINISTRY OF FINANCE - TRANSPORTATION ADDITIONALLY GUIDES THE FOLLOWING POINTS.

A. DETERMINING THE PLANNED COMPONENTS OF ENTERPRISES

TRANSPORT, LOADING AND UNLOADING, AND TRANSPORT AGENCY ENTERPRISES.

DUE TO THE ECONOMIC AND TECHNICAL CHARACTERISTICS OF TRANSPORT, LOADING AND UNLOADING, AND TRANSPORT AGENCY ENTERPRISES, MATERIALS, FUELS, AND PARTS USED BY THESE ENTERPRISES, WHETHER SUPPLIED BY THE STATE ACCORDING TO PLANS OR SELF-EXTRACTED FROM OTHER ORGANIZATIONS AND ENTERPRISES, ARE ALL UNDER STATE UNIFIED MANAGEMENT. THEREFORE, FOR THESE ENTERPRISES, THERE ARE ONLY PRIMARY AND SECONDARY PRODUCTION PLANS, WITHOUT ANY ADDITIONAL MATERIALS SEARCH PLANS.

B. PLANNING INDICATORS

THREE KEY LEGISLATIVE PLANNING INDICATORS SERVING AS THE BASIS FOR CALCULATING CONTRIBUTIONS AND REDUCTIONS FOR THE TWO INCENTIVE AND WELFARE FUNDS MENTIONED IN DECISION NO. 146-HĐBT OF AUGUST 25, 1982 OF THE STATE COUNCIL AND CIRCULAR NO. 21-TC/CNA OF SEPTEMBER 1, 1982 OF THE MINISTRY OF FINANCE ARE APPLIED TO TRANSPORT, LOADING AND UNLOADING, AND TRANSPORT AGENCY ENTERPRISES IN THE TRANSPORT INDUSTRY AS FOLLOWS.

I. QUANTITY OF GOODS TRANSPORTED

1. FOR DOMESTIC GOODS AND PASSENGER TRANSPORT ENTERPRISES, LOADING AND UNLOADING, AND SHIPPING AGENCIES, THIS IS THE ACTUAL REVENUE REALIZED (TRANSPORTATION FEES COLLECTED IN THE YEAR).

2. FOR FOREIGN GOODS TRANSPORT ENTERPRISES, THIS INDICATOR IS THE PURITY OF FOREIGN CURRENCY REALIZED (FOR THE YEAR 1982, IT WILL BE CALCULATED AS IN 1981).

II. QUALITY STANDARDS FOR MAJOR PRODUCTS
AS PRESCRIBED.

1. FOR TRANSPORT ENTERPRISES:

a) DOMESTIC GOODS TRANSPORT IS SAFE CARGO VOLUME FOR EACH MAJOR ITEM CALCULATED IN TONS WITH THE PRINCIPLE THAT ITEMS EXCEEDING THE PLAN CANNOT OFFSET SHORTAGES IN OTHER ITEMS.

Example:

THE RATIO OF PLAN COMPLETION REGARDING THE QUALITY STANDARDS FOR MAJOR PRODUCTS WILL BE AS FOLLOWS:

120 + 120 + 120 + 280 + 190 + 90

= 96,8%

100 + 120 + 130 + 300 + 200 + 100

b) FOR PASSENGER TRANSPORT ENTERPRISES, THIS IS THE SAFE PASSENGER VOLUME TRANSPORTED ON MAJOR ROUTES CALCULATED IN PASSENGER UNITS WITH THE PRINCIPLE THAT ROUTES EXCEEDING THE PLAN CANNOT OFFSET SHORTAGES IN OTHER ROUTES.

THE DETERMINATION METHOD IS SIMILAR TO THE EXAMPLE IN SECTION a.

c) FOR ENTERPRISES THAT BOTH TRANSPORT GOODS AND PASSENGERS, THIS INDICATOR IS THE AVERAGE OF GOODS AND PASSENGERS.

2. FOR AGENCY ENTERPRISES:

THIS IS THE VOLUME OF MAJOR GOODS AGENTED CALCULATED IN TONS.

3. FOR LOADING AND UNLOADING ENTERPRISES:

THIS IS THE VOLUME OF MAJOR GOODS LOADED AND UNLOADED CALCULATED IN TONS.

III. PROFIT AND GOVERNMENT BUDGET CONTRIBUTIONS

APPLY AS PER CIRCULAR NO. 21-TC/CNA OF SEPTEMBER 1, 1982 OF THE MINISTRY OF FINANCE.

C. DISTRIBUTION OF PROFITS AND ESTABLISHMENT OF ENTERPRISE FUNDS
1. CASE OF COMPLETING THE PLAN:

IF AN ENTERPRISE COMPLETES THE LEGISLATIVE INDICATORS OF THE NATIONAL PLAN, IN ADDITION TO ESTABLISHING THE DEVELOPMENT FUND ACCORDING TO CURRENT REGULATIONS, THE RATE OF ESTABLISHING INCENTIVE AND WELFARE FUNDS SHALL BE IMPLEMENTED AS FOLLOWS:

- TRANSPORT AND LOADING AND UNLOADING ENTERPRISES SHALL ESTABLISH 24% OF THE TOTAL WAGE PAYROLL FOR THE ENTIRE YEAR OF PRODUCTION AND BUSINESS PERSONNEL TO FORM THE INCENTIVE AND WELFARE FUNDS (THE TOTAL WAGE PAYROLL MUST EXCLUDE ILLEGAL EXPENSES SUCH AS WAGES FOR DEFECTIVE PRODUCTS, WAGES FOR UNAUTHORIZED WORK STOPPAGE, AND EXPENSES CONTRARY TO WAGE POLICY).

- TRANSPORT AGENCY ENTERPRISES SHALL ESTABLISH 20% OF THE TOTAL WAGE PAYROLL FOR THE ENTIRE YEAR.

THE DISTRIBUTION RATIO BETWEEN THE INCENTIVE AND WELFARE FUNDS IS 70% FOR THE INCENTIVE FUND AND 30% FOR THE WELFARE FUND.

2. CASE OF NOT COMPLETING THE PLAN:

IF AN ENTERPRISE DOES NOT COMPLETE ANY OF THE THREE LEGISLATIVE INDICATORS MENTIONED IN SECTION B, FOR EACH PERCENTAGE (%) NOT COMPLETED ABOUT ONE INDICATOR, 2% OF THE AMOUNT DRAWN ACCORDING TO THE BASIC DRAWING RATE OF EACH INCENTIVE AND WELFARE FUND MUST BE SUBTRACTED.

3. REDUCTION DUE TO VIOLATION OF REGULATIONS:

IN ADDITION TO REDUCING THE THREE LEGISLATIVE INDICATORS MENTIONED ABOVE, IF AN ENTERPRISE VIOLATES ANY OF THE PROVISIONS BELOW, DEPENDING ON THE GRAVITY OF THE VIOLATION, EACH VIOLATION WILL RESULT IN A REDUCTION OF 2 TO 5% OF THE AMOUNT DRAWN FOR EACH FUND:

- FAILING TO ENSURE SAFE TRANSPORTATION, CAUSING LOSS, DAMAGE, OR BREAKAGE OF GOODS, RESULTING IN DAMAGE TO STATE ASSETS, MATERIALS, AND CAPITAL.

IN CASE OF SEVERE LOSS OF GOODS, THE PLAN COMPLETION WILL NOT BE ACKNOWLEDGED.

- VIOLATING ECONOMIC CONTRACT REGULATIONS, STATISTICAL REPORTS, PRICE POLICIES, AND DISCIPLINE IN TAX COLLECTION AND CUSTOMER SERVICE RULES.

- ALLOWING DEATHS DUE TO MANAGEMENT SHORTCOMINGS OR LACK OF RESPONSIBILITY.

4. CASE OF EXCEEDING THE PROFIT PLAN:

IF AN ENTERPRISE EXCEEDS THE PROFIT PLAN, 60% OF THE EXCESS PROFIT SHALL BE DRAWN INTO ENTERPRISE FUNDS FOR TRANSPORT AND LOADING AND UNLOADING ENTERPRISES, AND 50% FOR TRANSPORT AGENCY ENTERPRISES. THE REMAINING PORTION SHALL BE SUBMITTED TO THE STATE BUDGET.

WHEN DETERMINING THE ACTUAL PROFIT, UNFAIR INCREASES IN PROFIT MUST BE EXCLUDED, AND ONLY FAIR INCREASES DUE TO ENTERPRISE EFFORTS SHALL BE COUNTED.

IF THE PLAN FOR PROFIT SUBMISSION IS MET OR EXCEEDED BUT NOT FOR OTHER BUDGET SUBMISSIONS, THE PLAN PROFIT SUBMISSION MUST BE USED TO COVER THE SHORTFALL IN OTHER BUDGET SUBMISSIONS. THE REMAINING PROFIT AFTER THE COVERING PROCESS IS THE AMOUNT CONSIDERED FOR EXCESS PROFIT SUBMISSION.

Nếu hoàn thành hoặc vượt mức kế hoạch nộp lợi nhuận nhưng không hoàn thành kế hoạch nộp các khoản khác vào ngân sách thì phải lấy lợi nhuận nộp kế hoạch bù cho số hụt kế hoạch về các khoản khác phải nộp ngân sách. Số lợi nhuận còn lại sau khi bù trừ mới là số để xét duyệt thực hiện nộp vượt kế hoạch lợi nhuận.

If the profit contribution plan is not completed but other contributions to the State budget exceed the plan, the excess contributions cannot be used to offset the shortfall in profit contribution.

In cases where actual profits do not meet the plan but the actual profit contribution to the State budget reaches or exceeds the plan, such cases shall not be recognized as completing or exceeding the profit contribution plan because in these cases, other sources of funds have been utilized for State budget contributions.

5. In the case of enterprises generating profits through borrowing foreign currency from banks to import primary materials for producing export goods:

- The enterprise must comply with the State's regulations on exports, imports, bank credit, and foreign exchange management. All revenues and expenditures must be clearly recorded and converted into Vietnamese Dong according to the official exchange rate set by the State (the enterprise may not allocate enterprise funds using foreign currency).

- The portion of profit generated by borrowing foreign currency from the bank for production shall be separately accounted for, and after fulfilling all current tax obligations to the State and repaying the borrowed foreign currency loan and interest, sixty percent (60%) can be allocated to establish an enterprise fund. This profit will be distributed to the enterprise fund as follows:

- Sixty percent (60%) for the incentive fund,

- Twenty percent (20%) for the welfare fund,

- Twenty percent (20%) for the production development fund.

The remaining profit must be fully submitted to the State budget.

6. Limitation on the incentive and welfare funds:

If the total amount of the incentive and welfare funds extracted from the main and auxiliary production sources throughout the year exceeds six (6) months' average actual salary of the enterprise's production and business workers, then the excess over six months' salary (from the seventh month onwards) shall be distributed as follows:

- Fifty percent (50%) to the State budget,

- Twenty percent (20%) to higher authorities to establish a centralized financial reserve fund for the Ministry and the association of enterprises,

- Thirty percent (30%) to supplement the enterprise funds, in the following proportions:

60% to the award fund,

20% to the welfare fund,

Twenty percent (20%) for the production development fund.

Any remaining profit that the enterprise does not need to replenish working capital at the planned level or investment capital for basic construction projects according to the approved plan must be fully submitted to the State budget.

If the enterprise fails to complete its plan and the deduction from the incentive and welfare funds is excessive, failing to reach an average of sixty (60) dong per person for both funds combined, the State budget will provide subsidies to make up this average. The allocation of sixty (60) dong between the incentive and welfare funds is determined by the enterprise director.

This Circular takes effect from the date of signature and applies to the distribution of profits and allocation of enterprise funds for transportation, loading and unloading, and transport agency enterprises starting from 1982. Previous regulations inconsistent with this Circular are abolished.