Joint Circular No. 60-TT/LB guiding the implementation of Decision No. 247-CT dated July 2, 1992 of the Chairman of the Council of Ministers on certain regulations for organizations directly engaged in economic activities to build the Party's budget.

JOINT CIRCULAR

OF THE JOINT MINISTRY OF FINANCE - PARTY FINANCE AND MANAGEMENT BOARD CENTRAL COMMITTEE NO. 60-TT/LB OCTOBER 16, 1992 GUIDING THE IMPLEMENTATION OF THE DECISION NO. 247-CT OF THE CHAIRMAN OF THE STATE COUNCIL ON SOME REGULATIONS FOR ORGANIZATIONS ENGAGED IN DIRECT ECONOMIC ACTIVITIES TO BUILD THE PARTY BUDGET

Implementing Decision No. 247-CT dated July 2, 1992 of the Chairman of the State Council on some regulations for organizations engaged in direct economic activities to build the Party budget, the Ministry of Finance and the Central Committee's Party Finance and Management Board guide the implementation as follows:

 The scope and applicable entities for the salary system, bonuses, and responsibility regime for members of the Board of Directors, General Directors, and Directors of companies under Articles 1 and 2 of Decree No. 207/2004/NĐ-CP are specified as follows:

1. Companies and production and service enterprises operating independently under economic accounts (hereinafter referred to as production and business establishments) owned by the Party, established by the Central Committee's Party Finance and Management Board or the Party Finance and Management Boards of provincial and municipal party committees (referred to hereafter as Party financial bodies) to directly build the Party budget, shall be treated equally before the law like other economic sectors, operate in production and business activities within the framework prescribed by the State, pay all taxes according to the law, and be subject to inspection and supervision by relevant State and Party authorities.

2. All existing production and business establishments of the Party must re-register in accordance with Decision No. 196-CT dated June 5, 1992 of the Chairman of the State Council, Circular No. 40-TC/TCT-CS dated August 22, 1992 of the Ministry of Finance, and the business registration guidance issued by the Central Committee's Party Finance and Management Board in document No. 376-SX/TCQT dated August 13, 1992.

II. PAYING TAXES AND REFUNDING TAXES.

Article 3. Decision No. 247-CT of the Chairman of the State Council stipulates: "From 1992 to 1996, the State will subsidize the Party budget with an amount equivalent to the taxes paid by the aforementioned economic organizations into the State budget according to the law, to invest in expanding production and business operations of these economic organizations and supplement part of the Party's operational expenses." The specific guidance for implementation is as follows:

1. Tax payment obligation of production and business establishments. Production and business establishments of the Party must comply with the tax laws regarding declaration and registration of business operations, timely and fully paying all types of taxes due into the State Treasury where the establishment operates.

2. Procedures and formalities for tax payment, accounting, and refunding of paid taxes (excluding special consumption tax, export tax, and import tax).

a) Based on the declaration and collection procedures for each type of tax as prescribed in tax laws, legal regulations, and circulars guiding the Ministry of Finance, the tax authority has the responsibility to guide, inspect, and urge production and business establishments to declare and pay taxes fully and on time into the State budget. When collecting taxes, the tax authority must issue a tax receipt to the taxpayer clearly stating the amount and type of tax paid (issued by the Ministry of Finance).

b) The State Treasury, based on the amount and type of tax paid by each production and business establishment, shall record it accurately in the corresponding chapters, sections, and sub-items of the State Budget General Ledger, as follows:

- For the tax paid by production and business establishments located in the area but directly managed by the Central Committee's Party Finance and Management Board, it shall be recorded in Chapter 85A under the corresponding section, item, and sub-item, and Item 47 "other revenues of the central budget," the State Treasury shall record this tax amount in Account 741 and retain 100% in the "central budget sub-account" for the Ministry of Finance to refund the tax paid to the Central Committee's Party Finance and Management Board.

- For the tax paid by production and business establishments located in the area but directly managed by the Party Finance and Management Boards of provincial or municipal party committees, it shall be recorded in Chapter 85B under the corresponding section, item, and sub-item, and Item 47 "other revenues of local budgets," simultaneously, the State Treasury shall record this tax amount in Account 741 and retain 100% for the local budget for the Department of Finance to refund the tax paid to the Party Finance and Management Boards of provincial or municipal party committees.

c) Refunding of paid taxes shall be carried out quarterly as follows:

- After each quarter, the Central Committee's Party Finance and Management Board shall compile tax receipts from production and business establishments under its management that have been paid into the State budget, confirmed by the tax authority and the local State Treasury, and send them to the Ministry of Finance (Department 1 and National Budget Department). After reviewing these tax receipts, the Ministry of Finance will refund the paid taxes to the Central Committee's Party Finance and Management Board.

- After each quarter, the Party Finance and Management Boards of provincial or municipal party committees shall compile tax receipts from production and business establishments under their management that have been paid into the State budget, confirmed by the tax authority and the local State Treasury, and send them to the Department of Finance and Price Control (National Budget Management Section). After reviewing these receipts, the Ministry of Finance will refund the paid taxes to the Party Finance and Management Boards of provincial or municipal party committees.

3. Procedures and formalities for tax payment, accounting, and examination of refunds for special consumption tax, export tax, and import tax paid.

a) Production and business establishments directly building the Party budget mentioned in Point 1, Section 1 of this Circular, if they engage in import and export activities, must pay export tax and import tax if they produce goods subject to special consumption tax, according to the provisions of tax laws and implementing guidelines. When collecting taxes, the tax collection authority must issue a tax receipt to the taxpayer clearly stating the amount and type of tax paid (issued by the Ministry of Finance).

b) The State Treasury, based on the export tax, import tax, and special consumption tax paid by all production and business establishments directly building the Party budget at the central and local levels, shall record it in the central budget revenue account.

c) Review and grant refunds of export tax, import tax, and special consumption tax. At the end of each quarter, based on the consolidated report from the Financial-Management Boards of provincial and municipal party committees regarding the amount of export tax, import tax, and special consumption tax paid, the Central Financial-Management Board will consolidate these amounts with those paid by central-affiliated units and submit them to the Ministry of Finance. After verification, the Ministry of Finance will promptly process the transfer to the Central Financial-Management Board. The Central Financial-Management Board will allocate this tax amount for investment in production and business development purposes.

III. STATE BUDGET SUPPORT TO CREATE THE MATERIAL BASIS FOR PRODUCTION AND BUSINESS

Article 4 of Decision No. 247-CT stipulates that "In cases of genuine necessity, the State Planning Committee and the Ministry of Finance shall consider and resolve requests for assistance to organizations directly engaged in economic activities to provide part of the capital for basic construction projects, equipment purchases, and working capital within the capacity of the state budget and include it in the state budget support provided to the Party's budget."

Specifically, when there is a genuine need for new investment capital, Party financial agencies must prepare detailed economic and technical justifications and submit them for approval by authorized Party bodies. Based on this, the Ministry of Finance and the State Planning Committee will present the matter.

IV. USE AND MANAGEMENT

The refunded tax for the Party's budget is considered state budget support funds for the Party's budget to expand production and business operations of economic organizations and to supplement part of the operating expenses of the Party. The refunded tax will be distributed as follows:

- Use the majority of the tax for expanding production and business operations of economic organizations. This capital must be managed like state budget funds. Production and business establishments must have approved project plans before using this capital.

- The remaining tax will be used to supplement the operating expenses of the Party and outside the annual budget already allocated to the Party's budget.

All transferred refundable tax, planned and emergency state budget support funds, as well as self-supplemented capital from economic organizations must be strictly managed, used according to regulations, and recorded in the accounting books of each unit. They must comply with the state capital management system, quarterly and annually, production and business establishments must report and settle accounts according to current regulations. The Central Financial-Management Board will consolidate the budget settlement reports and submit them to the Politburo and simultaneously send them to the Ministry of Finance. Quarterly and annually, the Provincial and Municipal Party Committee Financial-Management Boards will report and settle accounts with the Provincial and Municipal Party Standing Committees and simultaneously send them to the Department of Finance and Price Control, following the same content as submitted to the Central Financial-Management Board.

V. IMPLEMENTATION

1. Tax payment and tax refund are separate activities related to budget revenue collection and budget disbursement. State financial agencies and tax authorities at all levels are responsible for guiding and inspecting production and business establishments to complete all procedures: business registration, tax registration, and tax payment to local tax authorities. Implement bookkeeping according to the Accounting and Statistics Law and be subject to management and inspection by tax authorities and other relevant state agencies.

2. The Central Party Financial-Management Board and provincial and municipal party committees are responsible for managing, directing, and inspecting production and business establishments in fulfilling their tax obligations, completing procedures for tax refunds, and distributing refunded taxes for effective and purposeful use.

3. The total tax collected from Party-affiliated economic organizations is included in the annual tax revenue plan results of the national tax system.

4. This Circular takes effect from October 1, 1992, and replaces Circular No. 02-TT/LB dated November 19, 1990, issued jointly by the Ministry of Finance and the Central Party Financial-Management Board.

During implementation, if difficulties arise, they should be reported promptly to the Ministry of Finance and the Central Party Financial-Management Board for research and resolution.