Circular No. 47/2017/TT-BTC guides the provision of financial support from the state budget for public higher education institutions and vocational training institutions piloting the reform of their operational mechanisms pursuant to Resolution No. 77/NQ-CP dated October 24, 2014 of the Government.

CIRCULAR

GUIDELINES FOR SUPPORTING OPERATING EXPENSES FROM THE STATE BUDGET FOR PUBLIC UNIVERSITIES AND VOCATIONAL EDUCATION INSTITUTIONS IMPLEMENTING PILOT REFORMS OF MANAGEMENT MECHANISMS PURSUANT TO RESOLUTION NO. 77/NQ-CP OF THE GOVERNMENT ON OCTOBER 24, 2014

Pursuant to Decree No. 163/2016/NĐ-CP dated December 21, 2016, issued by the Government, detailing the implementation of certain provisions of the State Budget Law;

Pursuant to Decree No. 215/2013/NĐ-CP dated December 23, 2013, promulgated by the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Resolution No. 77/NQ-CP of the Government dated October 24, 2014 on pilot reforms of management mechanisms for public universities during the period from 2014 to 2017, Resolution No. 59/NQ-CP of the Government dated July 7, 2016 on the regular meeting of the Government in June 2016, and Resolution No. 40/NQ-CP of the Government dated May 10, 2017 on the regular meeting of the Government in April 2017;

At the proposal of the Director of the Administrative and Public Service Financial Department;

The Minister of Finance issues this Circular guiding the provision of financial support from the state budget for public universities and vocational education institutions implementing pilot reforms of management mechanisms pursuant to Resolution No. 77/NQ-CP of the Government dated October 24, 2014.

Article 1. Scope of Regulation and Applicability

Article 1. Scope of Regulation: This Circular stipulates the provision of financial support from the state budget for public universities and vocational education institutions implementing pilot reforms of management mechanisms pursuant to Resolution No. 77/NQ-CP of the Government (hereinafter referred to as Resolution No. 77/NQ-CP).

Article 2. Applicability: Public universities and vocational education institutions (hereinafter referred to as educational institutions) approved by the Prime Minister to implement pilot reforms of management mechanisms pursuant to Resolution No. 77/NQ-CP.

Article 3. Implementation Period: From January 1, 2016 until the end of the period for implementing pilot reforms of management mechanisms pursuant to Resolution No. 77/NQ-CP.

For educational institutions approved by the Prime Minister to implement pilot reforms of management mechanisms after January 1, 2016, the implementation period shall be from the date of approval until the end of the period for implementing pilot reforms of management mechanisms pursuant to Resolution No. 77/NQ-CP.

Article 4. State Budget Funds for Supporting Educational Institutions

Clause 1. Educational institutions shall declare and pay corporate income tax according to current laws on tax administration for income from service activities, short-term training courses, and interest income from bank deposits.

The state budget shall provide funds to support educational institutions corresponding to the amount of corporate income tax they have actually paid into the state budget as mentioned above.

Clause 2. Based on the actual corporate income tax paid as stipulated in Clause 1 of this Article (the tax amount settled in the previous year with confirmation by the competent tax authority according to the law on taxes), educational institutions shall report to their supervisory authorities (Ministries, central agencies, or provincial People's Committees) to compile and submit to the Ministry of Finance, or directly report to the Ministry of Finance (for educational institutions operating without a supervisory authority) before May 15 each year requesting financial support for educational institutions.

The Ministry of Finance shall process according to its authority or report to the competent authority to decide on providing financial support from the state budget for educational institutions in accordance with current regulations on budget decentralization (supplementing the state budget for the current year for Ministries, central agencies, and localities to provide for subordinate educational institutions) or directly provide support to educational institutions operating without a supervisory authority.

Article 3. Management and utilization of state budget funds allocated

Clause 1. The state budget funds allocated to educational institutions as stipulated in Article 2 are the sources of state budget funds allocated for non-recurring tasks (funds for urgent tasks assigned by competent authorities) of educational institutions.

Clause 2. Educational institutions shall use the allocated state budget funds to supplement the Development Investment Fund for public services or establish a student support fund. Specific expenditure items, amounts (absolute figures or percentages) used for each item shall be decided by the educational institutions and specified in their internal expenditure regulations, ensuring alignment with the actual activities of the institution, including:

- Investment in development of facilities: construction of physical infrastructure, purchase of equipment and work tools; enhancement of operational capacity; expenditure on application of scientific and technological progress; training to improve professional skills for staff within educational institutions; joint venture capital contributions with domestic and foreign organizations and individuals (for units assigned capital according to regulations) to organize appropriate service activities in line with their assigned functions and tasks, and other expenditures (if any).

- Establishment of a Student Support Fund: scholarships and other forms of financial aid, rewards, regular or emergency support for students as prescribed by the educational institutions; direct expenditures for students (scientific research; extracurricular activities, movement activities...) and other expenditures to support students.

Clause 3. The management, utilization, and settlement of allocated state budget funds shall be carried out in accordance with the State Budget Law and current laws.

Article 4. Organization of Implementation

Clause 1. This Circular takes effect from July 1, 2017 and applies from the tax period of 2016.

Clause 2. During implementation, if there are any difficulties, they should be reported to the Ministry of Finance for study and resolution./.