Circular No. 44/TC-CĐKT guiding accounting for the collection and management of funds from renting state-owned housing

CIRCULAR

OF THE MINISTRY OF FINANCE

Guidelines for accounting for rental income and management of funds from renting state-owned housing
thuộc sở hữu Nhà nước

Based on Decision No. 118/TTg dated November 27, 1992 "On rental prices for housing and inclusion of housing rent in salaries", Decision No. 33/TTg dated February 5, 1993 on "transferring management of state-owned housing funds to a business operation model" by the Government, Circulars guiding the Ministry of Finance - Construction No. 06-LBTT dated February 10, 1993; No. 08-LBTT dated February 10, 1993, Circular of the Ministry of Finance No. 09-TC/TT dated February 10, 1993 and Circular No. 736-CĐTC dated April 29, 1993 of the Ministry of Finance regarding tax treatment of land for state-owned housing rentals, the Ministry of Finance provides guidelines for accounting for rental income and management of funds from renting state-owned housing for administrative and service units, state-owned enterprises, and housing trading companies as follows:

1. Accounting for rental income and management of funds from renting state-owned housing managed by administrative and service units.

a) Accounting for rental income and real estate tax payable to the budget.

Based on the consolidated report on rental revenue plans, exempted revenue, and receivable revenue of state-owned housing funds (Appendix No. 2 of Joint Circular No. 08-LBTT) approved by the competent authority:

Reflect total rental revenue and revenue payable to the budget, record:

Debit Account 62 - Receivables and Payables (622)

Credit Account 64 - Settlement with the State Budget (462)

Reflect exempted revenue for specified groups (recorded in red).

Debit Account 62 - Receivables and Payables (622)

Credit Account 64 - Settlement with the State Budget (642)

Based on the actual real estate tax payable from the state-owned rental housing fund that is deducted from total rental revenue paid to the state budget, record:

Debit Account 64 (642) - Other Items (details of rental revenue)

Credit Account 64 (641) - Taxes (details of real estate tax)

b) Accounting for rental payments, depositing at the Treasury, and settlement with the State Budget.

In cases where rental payments are collected directly from tenants, reflect the rental revenue received by the unit, record:

Debit Account 50 - Cash or Debit Account 69 - Settlement with Employees

Credit Account 62 - Receivables and Payables (622)

In cases where collection is entrusted through the tenant's workplace.

The agency pays the rent on behalf of employees renting houses from other agencies.

Debit Account 62 (622) - Receivables and Payables (details of each individual's rent payable to the agency collecting on behalf)

Credit Account 51 - Bank Deposits (or Treasury)

The agency receives rental payments collected by another agency on its behalf, record:

Debit Account 51 - Treasury Deposits (511)

Credit Account 62 (622) - Receivables and Payables (details for each individual of the agency collecting rent on behalf)

When depositing cash rental revenue into a Treasury account, record:

Debit Account 51- Treasury Deposits (511)

Credit Account - 50 Cash

Upon receipt of the Treasury notice deducting rental payments or land rental payments to the state budget, record:

Debit Account 64 - Settlement with the State Budget (details 641, 642)

Credit Account 51 - Treasury Deposits (511).

c) Accounting for receipt and use of maintenance and management funding for state-owned housing provided by the state budget.

When the unit receives the approved limit of maintenance and management funding, debit Account 08 "Maintenance Funding Limit".

When the unit receives maintenance and management funding through the Treasury, record:

Debit Account 50 - Cash

or debit Account 60 - Settlement with Suppliers (if withdrawing payment limit with suppliers).

or Debit Account 51 - Treasury Deposits (511)

Credit Account 84 - Funding Sources (841).

Simultaneously credit Account 08 "Maintenance Funding Limit" for the amount of funding allocated and utilized.

Actual expenses incurred for major repairs, regular maintenance, and house management, record:

Debit Account 38 - Administrative and Service Expenses

Credit Accounts 21, 50, 51, 69...

Upon annual settlement approval, based on the actual expenses for these activities, if the funding source is sufficient to cover the expenses, transfer the entire amount of actual expenses recorded:

Debit Account 84 - Funding Sources (84.1)

Credit Account 38 - Expenses Covered by Funding.

If the maintenance and management funding for state-owned housing is insufficient to cover actual expenses, only transfer the amount covered by current funding sources as above, and record the remaining balance on Account 38, which will be covered by next year's funding.

2. Accounting for rental income and management of funds from renting state-owned housing managed by state-owned enterprises.

a) Accounting for actual rental revenue receivable.

Based on the consolidated report on rental revenue plans, exempted revenue, and receivable revenue of state-owned housing funds (Appendix No. 2 of Joint Circular No. 08/LBTT) approved by the competent authority:

Reflect total rental revenue, record:

Debit Account 62 - Receivables and Payables (622)

Credit Account 84 - Funding Sources (842)

Reflect exempted revenue for specified groups (recorded in red).

Debit Account 62 - Receivables and Payables (622)

Credit Account - Funding Sources (842)

b) Accounting for basic depreciation and real estate tax payable to the budget, rental revenue retained by the unit.

Reflect the amount of basic depreciation payable to the budget (60% of total rental revenue minus (-) exempted revenue for specified groups), record:

Debit Account 84 - Funding Sources (842)

Credit Account 64 - Settlement with the State Budget (647)

Simultaneously reflect the value of depreciation of state-owned housing along with general housing depreciation managed by the unit according to the current fixed asset depreciation system:

Debit Account 80 - Fixed Capital Sources (801)

Credit Account 11 - Depreciation of Fixed Assets

Reflect the actual real estate tax payable to the budget of the state-owned rental housing fund, record:

Debit Account 84 - Funding Sources (842)

Credit Account - 64 Settlement with the State Budget (644)

Rental revenue remaining after deducting basic depreciation and real estate tax payable, the unit retains for expenditures related to maintaining and managing state-owned rental housing, reflected in the credit balance of Account 84 (842).

In cases where land tax is paid and a loss occurs, based on the actual loss due to land tax payment approved by the competent authority to offset against basic depreciation payable to the state budget, record in red:

Debit Account 84 - Funding Sources (842)

Credit Account - 64 Settlement with the State Budget (647).

c) Accounting for rental payments, and settlement with the State Budget for real estate tax and basic depreciation.

Reflect the rental revenue received by the unit, record:

Debit Account 50 - Cash or Debit Account 69 - Settlement with Employees

Credit Account 62 - Receivables and Payables (622)

When depositing rental income from housing into a bank account, record:

Debit Account 51 - Bank Deposits

Credit Account 50 - Cash

Upon receiving the bank's notice of deduction for basic depreciation or land tax paid into the state budget, record:

Debit Account 64 - Settlement with the State Budget (details 644, 647)

Credit Account 51 - Bank Deposits

or Credit Account 50 - Cash (if the state budget is paid in cash).

d) Accounting uses the maintenance and management funds for rented housing left to the unit.

Actual expenses incurred for major repairs, regular repairs, and management of rented housing, record:

Debit Account 38 - Expenditure from Maintenance Funds

Credit Accounts 30, 31, 21, 22, 69, etc...

When the annual settlement is approved, based on the actual expenditure for the aforementioned activities, and if the maintenance fund is sufficient to cover the costs, transfer the entire actual expenditure, record:

Debit Account 84 - Funding Sources (842)

Credit Account 38 - Expenditure from Maintenance Funds.

In cases where the maintenance and management funds are insufficient to cover the actual expenditures, only transfer the actual expenditures covered by existing funds as above, leaving the remaining balance on Account 38 to be offset by next year's funds.

3- Accounting for the collection and management of rental income from state-owned housing managed by the Housing Business Company.

a) Accounting totals the gross revenue and revenue subject to housing tax.

Based on the consolidated revenue plan report for rental housing, exempted revenue, and revenue due from state-owned housing funds (model annex number 2 of the Joint Circular No. 08/LBTT) approved by the competent authority:

Reflect total rental revenue, record:

Debit Account 61 - Settlement with Purchasers

Credit Account 40 - Consumption and Results.

Reflects exempted rental revenue for specified groups (recorded in red):

Debit Account 61 - Settlement with Purchasers

Credit Account 40 - Consumption and Results

b) Accounting records the housing fund allocated by the state for management and business operations, basic depreciation, land tax payable to the state budget, and rental income retained by the unit.

Reflects state-owned rental housing allocated for management and business operations.

If it is new and unused housing, record:

Debit Account 10 - Fixed Assets (101)

Credit Account 80 - Fixed Capital (801)

If it is used housing, record:

Debit Account 10 - Fixed Assets (101) (original cost)

Credit Account 80 - Fixed Capital (801) (remaining value)

Credit Account 11 - Depreciation of Fixed Assets (accumulated depreciation).

(For units currently using housing that has already been recorded as fixed assets, there is no need to make the above journal entry).

Reflects the amount of basic depreciation payable to the state budget (60% of total rental housing revenue minus (-) exempted revenue for specified groups), record:

Debit Account 40 - Consumption and Results

Credit Account 64 - Settlement with the State Budget (647)

Simultaneously reflects the depreciation value of state-owned housing together with the general depreciation value of housing according to the current fixed asset depreciation system.

Debit Account 80 - Fixed Capital (801)

Credit Account 11 - Depreciation of Fixed Assets

Reflect the actual real estate tax payable to the budget of the state-owned rental housing fund, record:

Debit Account 40 - Consumption and Results

Credit Account 64 - Settlement with the State Budget (644)

Based on the approved budget for major repairs, regular repairs, and management expenses for rented housing, record:

Debit Account 40 - Consumption and Results

Credit Account 84 - Funding Sources (842)

The difference (if any) between the actual total revenue received and the basic depreciation, land tax payable, and the approved budget for maintenance and management expenses for rented housing is the profit of the unit, record:

Debit Account 40 - Consumption and Results

Credit Account 70 - Income (701)

In cases where land tax results in a loss, based on the actual loss due to land tax approved by the competent authority, deduct it from the state budget's basic depreciation, record in red:

Debit Account 40 - Consumption and Results

Credit Account 64 - Settlement with the State Budget (647)

C) Accounting for collecting housing rent and paying basic depreciation and land tax

In cases where rental payments are collected directly from tenants, reflect the rental revenue received by the unit, record:

Debit Account 50 - Cash

or Debit Account 69 - Settlement with Employees

Credit Account 61 - Settlement with Purchasers

In cases where payment is entrusted through the agency where the tenant works.

Reflects the amount of entrusted housing rent collected by another agency, record:

Debit Account 62 - (622) - Receivables and Payables (detail agency collecting housing rent).

Credit Account 61 - Settlement with Purchasers.

When receiving rent collected by another agency, record:

Debit Account 50 - Cash

or Debit Account 51 - Bank Deposits

Credit Account 62 (622) - Receivables and Payables (detail agency collecting housing rent).

When depositing rental income in cash into the unit's account at the National Treasury, record:

Debit Account 51- Bank Deposits (514 - Detail National Treasury deposits)

Credit Account 50 - Cash.

When paying basic depreciation and land tax into the state budget, record:

Debit Account 64 - Settlement with the State Budget (details 644, 647)

Credit Account 51 - Bank Deposits (514)

or Credit Account 62 - Receivables and Payables (622) (if agencies collect rent and pay directly to the state budget on behalf of the unit).

d) Accounting uses the maintenance and management funds for rented housing left to the unit.

Actual expenses incurred for major repairs, regular maintenance, and house management, record:

Debit Account 38 - Expenditure from Maintenance Funds

Credit Accounts 21, 22, 50, 51, 69...

When the annual settlement is approved, based on the actual expenditure for the aforementioned activities, and if the maintenance fund is sufficient to cover the costs, transfer the entire actual expenditure, record:

Debit Account 84 - Maintenance Fund (842)

Credit Account 38 - Expenditure from Maintenance Funds.

In cases where the maintenance and management funds are insufficient to cover the actual expenditures, only transfer the actual expenditures covered by existing funds as above, leaving the remaining balance on Account 38 to be offset by next year's funds.

4- Implementation Organization

This Circular shall take effect from the date of issuance.

For housing fees of employees belonging to previous months (from November 1992 to April 1993), actually paid and collected by the unit in which month of 1993, record in that month./.