Circular No. 54/2019/TT-BTC guides the management and use of state budget funds to support small and medium-sized enterprises (SMEs) for consulting services within the network of consultants.

CIRCULAR

GUIDELINES FOR THE MANAGEMENT AND USE OF STATE BUDGET FUNDS TO SUPPORT SMALL AND MEDIUM-SIZED ENTERPRISES (SMEs) UTILIZING ADVISORY SERVICES THROUGH THE ADVISOR NETWORK

Pursuant to the State Budget Law dated June 25, 2015;

Pursuant to the Law on Supporting Small and Medium-sized Enterprises dated June 12, 2017;

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

Pursuant to Decree No. 87/2017/NĐ-CP dated July 26, 2017, issued by the Government, stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Decree No. 39/2018/NĐ-CP dated March 11, 2018 of the Government detailing certain provisions of the Law on Supporting Small and Medium-sized Enterprises;

The Minister of Finance hereby issues this Circular amending and supplementing certain Articles of Circular No. 133/2015/TT-BTC dated August 31, 2015, issued by the Minister of Finance guiding the financial management mechanism for the Vietnam Chamber of Commerce and Industry (hereinafter referred to as Circular No. 133/2015/TT-BTC).

The Minister of Finance issues this Circular guiding the management and use of state budget funds to support small and medium-sized enterprises (SMEs) utilizing advisory services through the advisor network.

Article 1. Scope of Regulation

1. This Circular guides the preparation of budgets, management, use, and settlement of accounts for state budget funds to support SMEs utilizing advisory services through the advisor network (hereinafter referred to as advisory support for SMEs) as stipulated in Article 13 of Decree No. 39/2018/NĐ-CP dated March 11, 2018 of the Government detailing certain provisions of the Law on Supporting Small and Medium-sized Enterprises (hereinafter referred to as Decree No. 39/2018/NĐ-CP).

2. This Circular does not apply to:

a) Advisory services regarding administrative procedures as prescribed by specialized laws. The determination of advisory services regarding administrative procedures as prescribed by specialized laws shall be carried out in accordance with the guidance of the Ministry of Planning and Investment.

b) Advisory services regarding the procedures, formalities, and registration documents for establishing a business; procedures, formalities, and registration documents for obtaining certification of eligibility to operate regulated businesses (if applicable) for individual households converting to businesses.

c) Advisory services regarding the initial licensing procedures for SMEs transitioning from individual households continuing to operate regulated businesses that have changed in scale.

d) Advisory services regarding tax administrative procedures and accounting regulations for SMEs transitioning from individual households within three years from the date of issuance of the first Business Registration Certificate.

e) Support advisory services for innovative start-up SMEs and SMEs participating in industry clusters and value chains as provided for in Clause 1, Point b and Clause 2, Point d of Article 21; Clause 2, Point b of Clause 3, Points b and d of Clause 4 of Article 24 of Decree No. 39/2018/NĐ-CP.

- Regulations on support advisory services for innovative start-up SMEs and SMEs participating in industry clusters and value chains using state budget funds shall be implemented according to the SME Support Program developed and submitted by the agency responsible for the SME Support Program for approval by the competent authority.

Article 2. Applicability

1. Enterprises established, organized, and operating in accordance with the Enterprise Law, meeting the criteria for SMEs as stipulated in Article 6 of Decree No. 39/2018/NĐ-CP.

2. Ministries, ministerial-level agencies, People's Committees of provinces and centrally-administered cities (hereinafter referred to as provincial People's Committees);

3. Agencies and organizations supporting SMEs (units under ministries, ministerial-level agencies with an advisor network, or units under provincial People's Committees assigned tasks to implement SME support activities within their sectoral management functions; hereinafter collectively referred to as support units).

In cases where there are multiple agencies and organizations supporting SMEs within the same ministry, ministerial-level agency, or provincial People's Committee, there must be a lead unit (the unit assigned to take charge of SME development support work, compiling budgets, and consolidating settlement accounts for advisory support funds for SMEs). Among them, the lead unit under ministries, ministerial-level agencies is one of the units tasked with organizing the operation of the advisor network.

4. Individuals and organizations participating in the advisor network.

5. Organizations and individuals related to the management and use of state budget funds for advisory support for SMEs.

Article 3. Organization and operation of advisory support for SMEs

The provisions on the organization and operation of advisory support for SMEs (including: the organization and activities of the advisory network; the advisory support process for SMEs from selecting advisors, receiving applications for advisory support, issuing decisions to approve advisory support; handling violations; reporting, monitoring, evaluation systems, and other regulations in organizing advisory support for SMEs) shall be implemented in accordance with Circular No. 06/2019/TT-BKHĐT dated March 29, 2019 of the Ministry of Planning and Investment guiding the charter of the organization and operation of the advisory network, providing advisory support for SMEs through the advisory network and any subsequent amendments and supplements (if any).

Article 4. Principles for allocation, management, and utilization of state budget funds for advisory support for SMEs

1. Allocation principles:

a) Central budget: allocate funds for advisory support for SMEs in the annual regular expenditure budget of units supporting SMEs under ministries and ministerial-level agencies.

b) Local budget: allocate funds for advisory support for SMEs in the annual regular expenditure budget of units supporting SMEs under provincial People's Committees.

2. State budget funds for advisory support for SMEs must be budgeted, managed, and utilized for their intended purposes, for the correct beneficiaries, within prescribed limits, and in accordance with this Circular.

3. State budget funds for advisory support for SMEs are provided through units supporting SMEs. Units supporting SMEs may not use state budget funds for advisory support for SMEs to cover administrative expenses, construction investment, or other expenditures outside of advisory support for SMEs.

4. Units supporting SMEs are responsible under the law for managing and utilizing funds in accordance with regulations; the truthfulness, accuracy, and completeness of related documents concerning fund usage; accounting, settlement, and archiving of documents in accordance with prescribed regulations.

Article 5. Budgeting, Allocation, and Transfer of State Budget Funds for Advisory Support for SMEs

The preparation, allocation, and transfer of state budget funds for advisory support for SMEs shall be carried out in accordance with current financial and budgetary laws and specific provisions in this Circular.

1. Preparation and consolidation of budgets:

a) At the time of preparing the annual state budget, based on the Ministry of Finance’s guidelines for building and preparing the state budget, the Ministry of Planning and Investment’s guidance on formulating plans for advisory support for SMEs, the results of evaluating the implementation of the previous year, and the provisions of this Circular, units supporting SMEs shall prepare plans and budgets for implementing advisory support tasks for SMEs in the planning year, and submit them to the central unit for consolidation.

b) Ministries, ministerial-level agencies, and provincial People's Committees shall submit consolidated plans and state budget proposals for advisory support for SMEs (according to Appendix 1 attached to this Circular) to the Ministry of Planning and Investment (before July 20) for national consolidation; simultaneously, they shall consolidate these into their own annual budget plans to be submitted to the competent authority in accordance with the State Budget Law and its guiding documents.

- Central budget: Based on the proposals of ministries and ministerial-level agencies and the verified total amount of central budget funds for advisory support for SMEs, the Ministry of Planning and Investment shall lead in developing a detailed plan for allocating central budget funds for advisory support for SMEs to ministries and ministerial-level agencies (according to Appendix 2 of this Circular), and submit it to the Ministry of Finance for review and consolidation into the budget plans of ministries and ministerial-level agencies to be submitted to the Government for decision by the National Assembly.

- Local budget: Based on the local budget balance capacity each year, the Department of Finance shall cooperate with the central unit to develop a detailed plan for allocating local budget funds for advisory support for SMEs to units supporting SMEs under provincial People's Committees; consolidate these into the local budget revenue and expenditure plan to be submitted to the competent authority in accordance with the State Budget Law and its guiding documents.

Article 16. Settlement of State Budget Funds for Support

+ Funds for implementing requirements for information security at different levels in the operations of state agencies and organizations funded by the state budget;

Based on the approved central budget for advisory support for SMEs, ministries and ministerial-level agencies shall allocate and transfer budget funds to units supporting SMEs in accordance with the State Budget Law and its guiding documents, ensuring consistency with the advisory support plans for SMEs announced by the Ministry of Planning and Investment.

b) Local government budget:

Based on the approved local budget for advisory support for SMEs, provincial People's Committees shall allocate and transfer budget funds to units supporting SMEs under provincial People's Committees in accordance with the State Budget Law and its guiding documents, ensuring consistency with the advisory support plans for SMEs on their respective territories approved annually by the provincial People's Committees.

Article 6. Level of support from the state budget

1. Small and Medium-sized Enterprises (SMEs) using advisory services within the network of advisors supported by the state budget shall be supported at the level prescribed in Clause 3, Article 13 of Decree No. 39/2018/ND-CP.

In cases where SMEs have used advisory services within the network of advisors and received state budget support during the year but the value of such support has not exceeded the level prescribed in Clause 3, Article 13 of Decree No. 39/2018/ND-CP, SMEs are only entitled to support for the remaining amount and must report this clearly in the application submitted to the supporting unit for review and approval of advisory support.

2. The supporting unit for SMEs is responsible for determining and clearly stating the ratio and amount of state budget support in the decision approving advisory support for SMEs.

3. During the implementation of the advisory service contract, if there is an adjustment in the value of the advisory service contract (without changing the purpose or basic contents of the advisory service contract) that is lower than the amount of state budget support recorded in the decision approving advisory support, or leads to the amount of state budget support exceeding the prescribed ratio, SMEs must report to the supporting unit for SMEs to re-determine the amount of state budget support according to the adjusted reduced value of the advisory service contract, ensuring compliance with the support ratio prescribed in Clause 3, Article 13 of Decree No. 39/2018/ND-CP.

Article 7. Payment of state budget support funds

1. The supporting unit for SMEs which issues the decision approving advisory support for SMEs is responsible for paying the state budget support funds to SMEs.

2. Based on the decision approving advisory support for SMEs and after the advisory service contract between SMEs and advisors has been completed, accepted, settled, and SMEs have fully paid the advisory fees to the advisors, the supporting unit for SMEs will pay the state budget support funds to SMEs through the State Treasury's drawdown process. The State Treasury will implement expenditure control in accordance with current regulations.

SMEs are responsible for the accuracy, truthfulness, and completeness of the legal basis of the advisory service contract and related documents. Advisors are responsible for cooperating with the supporting unit for SMEs in verifying the accuracy, truthfulness, and completeness of the legal basis of the advisory service contract and related documents when requested.

3. The supporting unit for SMEs bases on the implementation of activities organizing advisory support for SMEs and the number of SMEs receiving advisory support arising in the period to carry out periodic monthly or quarterly payments of state budget support funds to SMEs. (Example: The supporting unit for SMEs stipulates the payment of state budget advisory support funds to SMEs on a monthly basis. In March 2019, at this unit, 10 SMEs received advisory support, then the payment was made in one batch for these 10 SMEs.)

Article 8. Settlement of state budget support funds for advisory services for SMEs

1. The settlement of funds for advisory support for SMEs shall be carried out in accordance with the provisions of the State Budget Law and guiding documents of the Law, as well as legal regulations on the accounting system of the state budget.

2. The supporting unit for SMEs is responsible for settling state budget support funds for advisory services for SMEs, preparing a settlement report on advisory support funds for SMEs (in accordance with Appendix 3 attached to this Circular), and submitting it to the main unit for consolidation within the scope of ministries, agencies equivalent to ministries, provincial People's Committees (in accordance with Appendix 4 attached to this Circular).

Article 9. Implementation Provisions

1. This Circular takes effect from October 10, 2019.

2. During the implementation, if there are difficulties, please promptly reflect them to the Ministry of Finance for research and resolution.

SUMMARY OF THE PLAN AND BUDGET ESTIMATE FOR STATE BUDGET SUPPORT FUNDS FOR ADVISORY SERVICES FOR SMEs IN...

PART A - REPORT ON THE SITUATION OF SUPPORT AND ADVICE FOR SMEs IN YEAR ... AND PLAN FOR SUPPORT AND ADVICE FOR SMEs IN YEAR ...

... (In accordance with Model Appendix 5 issued together with Circular No. 06/2019/TT-BKHDT dated March 29, 2019 of the Ministry of Planning and Investment)

PART B - SUMMARY OF ESTIMATED STATE BUDGET SUPPORT FOR ADVICE TO SMEs IN YEAR ...

Note: (*) Determined according to Clause 3, Article 13 of Decree No. 39/2018/NĐ-CP; in cases where the same type of enterprise receives different levels of support, the average level shall be calculated

SUMMARY OF ESTIMATED CENTRAL GOVERNMENT BUDGET SUPPORT FOR ADVICE TO SMEs IN YEAR ...

Note: (*) Determined according to Clause 3, Article 13 of Decree No. 39/2018/NĐ-CP; in cases where the same type of enterprise receives different levels of support, the average level shall be calculated

FINAL ACCOUNT REPORT ON STATE BUDGET SUPPORT FOR ADVICE TO SMEs

Note:

(*1) Clearly indicate the symbol and date of issuance of the decision

(*2) Registration number of CV according to the announcement of the Ministry, Government-Level Agency participating in the CV network

(*3) Accurately record the name of the individual consultant or consulting organization ensuring consistency with the registration number announced by the Ministry, Government-Level Agency

(*4) Clearly indicate the name of the Ministry, Government-Level Agency with the CV network that the CV participates in

SUMMARY OF FINAL ACCOUNTS ON STATE BUDGET SUPPORT FOR ADVICE TO SMEs IN YEAR ...