Decision No. 64/2009/QD-TTg On the issuance of financial management mechanisms and staffing for the Tax Sector in 2009 and 2010

Article 1. Scope of Application

Issuing financial management mechanisms and staffing applicable to the Tax Sector under the Ministry of Finance during a two-year period from 2009 to the end of 2010.

Article 2. Purpose and Requirements

The implementation of financial management mechanisms and staffing for the Tax Sector must ensure the following objectives and requirements:

1. Effectively perform the state management function over domestic revenue; complete the tax collection tasks assigned by the State for the State budget.

2. Reform the staffing and operating expense management mechanism of the Tax Sector; promote the reorganization and establishment of a clean, strong, and highly professional workforce; utilize allocated funds in conjunction with the results and effectiveness of State budget revenue collection activities; grant autonomy and responsibility to unit heads in organizing work, labor utilization, and financial resource allocation.

3. Actively manage allocated funds, practice thrift, and combat waste; focus on modernizing information technology and equipping advanced technology to enhance efficiency and modernize management technology to effectively fulfill assigned functions and tasks, meet international integration conditions; strengthen training and supplement income for civil servants.

4. Implement transparency and democracy in accordance with the provisions of the law, ensuring the legitimate rights of civil servants in the Tax Sector.

Article 3. On Staffing

1. Staffing for the Tax Sector shall be determined within the total staffing quota granted by the competent state authority to the Ministry of Finance. The Minister of Finance shall allocate staffing quotas for the Tax Sector in accordance with its assigned functions and tasks based on the initiative to organize, restructure, and utilize labor in line with the national policy of reducing staffing.

2. In cases where additional units are established or merged at provincial and centrally-administered city levels or new functions and tasks are added according to the decision of the competent authority, resulting in increased or reduced staffing, the Minister of Finance shall coordinate with the Minister of Home Affairs to report to the Prime Minister for decision.

3. In addition to the allocated staffing, the Tax Sector may enter into service contracts and labor contracts in accordance with the law.

Article 4. Operating Expenses Guarantee

1. The operating expenses guarantee for the Tax Sector shall be determined at 1.8% of the annual revenue budget approved by the National Assembly that the Tax Sector organizes and implements, including regular expenditures and construction investment.

2. Information technology application and industry modernization costs shall ensure a minimum level of 18% of total regular expenditures; construction investment costs shall ensure a minimum level of 10% of the annual expenditure budget approved by the Tax Sector.

3. The budget for operating expenses guarantee for the Tax Sector shall be consolidated in the annual expenditure budget of the Ministry of Finance, submitted to the National Assembly for approval.

4. In cases where the annual revenue collected by the Tax Sector increases or decreases compared to the revenue budget assigned by the National Assembly, the Ministry of Finance shall report to the Government for a report to the Standing Committee of the National Assembly for decision in accordance with Article 59 of the State Budget Law.

5. When the State changes policies or systems, the Tax Sector shall cover any additional costs incurred under the new policies or systems. In cases where objective factors lead to insufficient allocated funds to maintain the minimum operational cost of the machinery, the Minister of Finance shall report to the Prime Minister for review and adjustment as appropriate.

Article 5. Other sources of funding

In addition to the funding level assigned as stipulated in Article 4 of this Decision, the Tax Sector shall also utilize the following sources of funding annually:

1. State budget funds allocated for implementing the following tasks:

a) Implementing national-level and ministry-level scientific research projects.

b) Training and enhancing the capacity of civil servants according to the State's program.

c) Implementing national target programs, other programs, and projects of the Government outside the regular duties of the Tax Sector.

d) Reducing staff establishment in accordance with the regulations set by the State.

2. Other legitimate sources of funding as provided by law.

Article 6. Contents of expenditure

1. Regular expenditure contents:

The regular expenditure of the Tax Sector (including expenditure for the regular activities of subordinate public institutions under the General Department of Taxation) includes the following contents:

a) Personal payment expenses (including salary increases, payment for outsourced work and external labor contracts as prescribed in Clause 3, Article 3 of this Decision). Based on the staffing assigned by the Ministry of Finance and the budgeted funding, the average salary level of the entire sector shall not exceed 1.8 times the salary regime for civil servants and officials stipulated by the State (salary grade, position, and various allowances, excluding night shift and overtime allowances).

b) Administrative management expenses and expenses to ensure professional business operations, including:

- Expenses for public services, office supplies, information communication, meetings, travel expenses, rental fees, and other expenses as prescribed.

- Expenses for tax payer support and publicity.

- Training and professional enhancement expenses for civil servants according to the Tax Sector’s program and plan.

- Stamp duty expenses, tax collection agency expenses, uniforms.

- Expenses for cooperation in work to fulfill the Tax Sector's tasks.

- Expenses to compensate taxpayers for losses of money and property as prescribed by law.

- Expenses for inspection and control to prevent tax evasion and violations of tax laws.

- Expenses for regular maintenance and major repairs of assets, equipment, facilities, and office premises serving professional work.

- Expenses for information technology application and modernization of the sector according to approved plans.

- Other regular activity expenses.

c) Implementing programs and projects according to the common tasks of the entire Finance Sector, including those serving the specialized tasks of the Tax Sector such as: Infrastructure Communication Project for the Finance Sector, Finance Sector Database Project, Information Technology Training Center and Disaster Prevention Project, Deep Specialized IT Training Program for the Finance Sector, and other Programs and Projects. The Minister of Finance decides on the budget management for implementing these tasks.

d) The Tax Sector may proactively use the funding for ensuring regular operations in line with actual needs within the allocated budget. Unspent regular operation funding at year-end can be carried over to the next year for continued use.

2. Investment construction expenditure contents:

a) Tax Sector projects and works according to plans already approved by competent authorities.

b) In cases of necessity, the Minister of Finance has the authority to reallocate part of the construction investment capital after allocating it for projects and works as specified in Point a, Clause 2, Article 6 above to invest in other projects and works that have completed necessary procedures but lack funding to serve the common tasks of the Finance Sector, including the Tax Sector.

Management and use of construction investment capital shall be carried out in accordance with current regulations.

3. Annual allocated funding for the Tax Sector that is not fully utilized shall be managed according to current regulations.

Article 7. Utilization of saved funds

Annually, the saved funds from regular expenditures shall be used for the following purposes:

1. In cases where it is necessary to accelerate the progress of construction of physical infrastructure and modernization of the tax sector while the investment capital for basic construction has not yet met the requirements, the Tax Sector may use the saved regular expenditure funds to allocate for construction projects and modernization of the sector.

2. Establish a reserve fund for income stabilization to cover: expenses to ensure income stability for Tax Sector officials due to objective reasons reducing their income; support for Tax Sector officials facing particularly difficult circumstances, suffering from serious illnesses, or other special cases. The Minister of Finance shall specify the level of establishment of the Income Stabilization Reserve Fund appropriately.

3. Supplement the average income of Tax Sector officials up to a maximum of 0.2 times the state-prescribed salary level (grade, rank, position, and allowances, excluding night shift and overtime allowances).

4. Allocate rewards for organizations and individuals within and outside the Tax Sector who have made contributions to tax activities; allocate collective welfare expenses.

The maximum amount allocated for rewards and welfare within the Tax Sector shall not exceed three months' salary, wages, and actual income realized in the year.

5. Provide additional assistance beyond general policy for those voluntarily retiring during the process of labor organization and restructuring; allocate support for subordinate units under the General Department of Taxation.

6. Allocate support for trade union activities within the Tax Sector.

7. Any remaining funds after allocation for the above purposes shall be transferred to the next year for continued use.

Article 8. Implementation organization

1. Assign the Minister of Finance:

a) To issue standards, norms, and expenditure regulations suitable for the specific operations of the Tax Sector based on applying state-prescribed standards, norms, and regulations within the scope of allocated funds.

b) To guide the implementation of this Decision. Direct the Tax Sector to organize and implement; periodically inspect the financial management and staffing system of the Tax Sector to ensure compliance with objectives and requirements.

c) By the third quarter of 2010, organize a summary and evaluation of the results of implementing this Decision, and on that basis report to the Prime Minister for the Standing Committee of the National Assembly to consider the financial management mechanism and staffing for the Tax Sector for the subsequent phase.

2. Assign the Minister of Planning and Investment:

To be responsible for balancing and allocating investment capital for the Tax Sector in the annual budget estimate, to be decided by the National Assembly.

3. This Decision takes effect from June 5, 2009, and applies to the fiscal years 2009 and 2010.

Operating funds delegated to the Tax Sector (including all funds) from 2008 and earlier, which have not been utilized or settled, shall continue to be used to serve specialized tasks, construction investment, and strengthening of material bases, development of the sector. The Minister of Finance shall specify the detailed use of these funds to ensure practicality and effectiveness.

From January 1, 2009, Decision No. 107/2005/QĐ-TTg dated May 16, 2005, of the Prime Minister regarding the pilot implementation of staffing and operating funds for the General Department of Taxation for the period 2005-2007 ceases to be effective.

4. The Ministers of Finance, Home Affairs, Planning and Investment, and heads of relevant agencies are responsible for implementing this Decision./.