Circular No. 58/2006/TT-BTC guiding the implementation of Decision No. 394/QD-TTg dated March 13, 2006 of the Prime Minister on encouraging investment in building new and expanding slaughterhouses, meat preservation and processing facilities for livestock and poultry, and concentrated and industrial poultry farming.

CIRCULAR

Guidelines for Implementing Decision No. 394/QD-TTg dated March 13, 2006

of the Prime Minister on Encouraging Investment in New Construction and Expansion of Slaughterhouses, Preservation and Processing Facilities for Livestock and Poultry, and Concentrated and Industrialized Poultry Breeding Farms

Pursuant to Decision No. 394/QD-TTg dated March 13, 2006 of the Prime Minister on Encouraging Investment in New Construction and Expansion of Slaughterhouses, Preservation and Processing Facilities for Livestock and Poultry, and Concentrated and Industrialized Poultry Breeding Farms, the Ministry of Finance issues guidelines for implementing policies encouraging investment in new construction and expansion of slaughterhouses, preservation and processing facilities for livestock and poultry, and concentrated and industrialized poultry breeding farms for organizations and individuals as follows:

concentrated poultry farming facilities, industrial

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Pursuant to Decision No. 394/QD-TTg dated March 13, 2006 of the Government Prime Minister encouraging investment in building new, expanding slaughterhouses, storage and processing facilities for livestock and poultry, and concentrated, industrial poultry farming facilities. The Ministry of Finance guides the implementation of policies to encourage investment in building new, expanding slaughterhouses, storage and processing facilities for livestock and poultry, and concentrated, industrial poultry farming facilities for organizations and individuals as follows:

I. APPLICABLE OBJECTS

The objects entitled to enjoy the encouragement policies stipulated in Article 1 of Decision No. 394/QD-TTg dated March 13, 2006 of the Prime Minister are domestic organizations and individuals investing in new construction and expansion of slaughterhouses, preservation and processing facilities for livestock and poultry, and concentrated and industrialized poultry breeding farms, in accordance with local planning and meeting the required scale and capacity as prescribed by the Ministry of Agriculture and Rural Development, ensuring animal health hygiene, food safety, and environmental hygiene as prescribed by law.

II. SUPPORT POLICIES

1. Preferential policies regarding various types of taxes and land:

II. SUPPORT POLICIES

1. Preferential policies on taxes and land:

a) Organizations and individuals specified in Part I of this Circular shall apply preferential policies on taxes and land in accordance with current laws on encouraging investment. Specifically, regarding import tax exemptions, apart from general exemptions, these organizations and individuals are exempted from import taxes as prescribed in Points 6, 7, 9, 15, and 16 of Section 1, Part D of Circular No. 113/2005/TT-BTC dated December 15, 2005 of the Ministry of Finance guiding the implementation of export and import taxes.

b) For slaughterhouses, preservation and processing facilities for livestock and poultry, and concentrated and industrialized poultry breeding farms that must be relocated to designated locations to ensure animal health hygiene and environmental hygiene, in addition to the support provided under this Circular, they also benefit from support for the use of land transfer funds, sale proceeds of factories and other structures when relocating according to Circular No. 66/2005/TT-BTC dated August 18, 2005 of the Ministry of Finance guiding the implementation of Decision No. 74/2005/QD-TTg dated April 6, 2005 of the Prime Minister.

- The level of loan capital eligible for interest rate support is the actual loan capital within the limit according to the credit contract between financial institutions and borrowing organizations and individuals. Interest rate support will only be considered for credit contracts signed before December 31, 2007 with the purpose of borrowing funds for new construction, expansion of slaughterhouses, storage and processing facilities for livestock and poultry, and concentrated, industrial poultry farming facilities.

- The loan period eligible for interest rate support is the actual loan period for investing in new construction, expansion of slaughterhouses, storage and processing facilities for livestock and poultry, and concentrated, industrial poultry farming facilities but not exceeding two years from the date the organization or individual receives the first loan installment.

2. Support for interest rates on commercial loans:

a) Principles for determining the level of interest rate support:

- The amount of loan eligible for interest rate support is the actual amount of loan within the term stipulated in the credit contract between financial institutions and borrowing organizations and individuals. Interest rate support will only be considered for credit contracts signed before December 31, 2007, with the purpose of obtaining loans for new construction and expansion of slaughterhouses, preservation and processing facilities for livestock and poultry, and concentrated and industrialized poultry breeding farms.

Total product of the loan amount and the actual number of days of loan occurrence

Loan interest rate (calculated monthly)

Interest rate support ratio

- For centrally-managed projects, the interest rate support ratio for investors is 40% of the commercial loan interest rate.

- For locally-managed projects, the interest rate support ratio is decided by the People's Committees of provinces and centrally-administered cities but not less than 40% of the commercial loan interest rate.

c) Documents for interest rate support application:

- Every six months, organizations and individuals submit applications for interest rate support for commercial loans for new construction and expansion of slaughterhouses, preservation and processing facilities for livestock and poultry, and concentrated and industrialized poultry breeding farms to the Ministry of Finance (for centrally-managed projects) or local finance authorities (for locally-managed projects) for consideration and support in accordance with Point 2, Part II of this Circular.

- Documents for interest rate support review include:

+ Application for interest rate support issued by the organization or individual.

+ Summary of the product of each loan contract.

+ Copy of the credit agreement and promissory note for tracking loan repayment (notarized); or list of confirmed debts by the lending financial institution.

+ Confirmation from a commercial bank regarding the interest paid for the project according to the credit agreement and loan promissory note.

- Within seven working days from receiving the application for interest rate support from organizations and individuals, the finance authority reviews and approves the application and forwards it to the competent authority for decision-making. In case the application is incomplete, the finance authority must notify the organization or individual in writing within three working days to complete the application as required.

+ Based on the application for interest rate support submitted by organizations, the Ministry of Finance (Enterprise Financial Department) conducts an assessment and decides to provide interest rate support for commercial loans to economic organizations under ministries and central agencies.

+ When allocating the budget to units and organizations, record it under the corresponding Chapter, Type, Clause of the current State Budget Classification, Item 134 Sub-item 11 - Other Support Expenses.

3. Procedures for interest rate support and accounting:

On the basis of the application files for interest rate support submitted by organizations and individuals, the Department of Finance shall conduct an assessment and submit to the People's Committee of the province for a decision on interest rate support for commercial loan capital for organizations and individuals. In cases where the People's Committee of the province delegates authority to the People's Committee of the district, the Financial Office shall conduct an assessment and submit to the People's Committee of the district for a decision on interest rate support for commercial loan capital for organizations and individuals.

The accounting of the interest rate support funds shall be carried out as follows:

+ For organizations and enterprises receiving financial support, the accounting shall be recorded under the corresponding Chapter, Type, and Clause of the State Budget Classification currently in effect, Item 134 - Sub-item 11 - Other Support Expenses.

+ For individuals receiving financial support, the accounting shall be recorded under Chapter 160, Type, and Clause of the State Budget Classification currently in effect, Item 134 Sub-item 11 - Other Support Expenses.

b) For project sponsors:

Upon receipt of interest rate support funds, the project sponsor shall account for a reduction in investment costs or production and business expenses in the corresponding period relative to the interest rate support for commercial loan capital for investment as follows:

- For unfinished investment assets, the project sponsor shall account for a reduction in investment costs.

- For completed investment assets that have been put into use and recorded as increased assets, the project sponsor shall account for a reduction in production and business expenses in the corresponding period.

4. Regarding the source of interest rate support funds:

The central budget supports interest rates for loans for project sponsors under central management from the annual budget estimate for interest rate subsidies.

Local budgets support interest rates for loans for project sponsors managed by localities from the annual local budget.

III. IMPLEMENTATION

1. This Circular takes effect fifteen days after its publication in the Official Gazette.

2. Ministries, central agencies, and People's Committees of provinces and centrally-administered cities are responsible for directing and organizing inspections to ensure that interest rate support funds are used for their intended purposes and effectively.

3. During the implementation process, if there are any difficulties, ministries, sectors, and localities are requested to promptly report to the Ministry of Finance for research and resolution./.