Circular No. 73/2000/TT-BTC guiding the preparation of the State budget estimate for 2001

CIRCULAR

Guidelines for preparing the state budget estimate for 2001

 

Implementing Directive No. 13/2000/CT-TTg dated July 17, 2000 of the Prime Minister on the development plan for economic and social activities and the state budget estimate for 2001; the Ministry of Finance guides the work of evaluating the implementation of the state budget in 2000 and preparing the state budget estimate for 2001 as follows:

ORGANIZATION OF MANAGEMENT AND EVALUATION OF THE IMPLEMENTATION OF THE STATE BUDGET IN 2000:

I. Organization of management of the state budget for the last six months of 2000:

The results of implementing economic and social tasks and the state budget in the first half of 2000 show that: The situation of economic and social activities has shown positive changes, many important economic development indicators have increased compared to the same period last year. Many major industrial products have been consumed well, inventory goods have decreased. State budget revenue (domestic revenue) reached 50.9% of the annual estimate, increasing by 3.7% compared to the same period in 1999.

However, the achievements obtained are still not solid, market prices continue to decline, especially agricultural product prices affecting consumption and circulation of goods. State budget revenue in some areas is lower than the same period last year and has not kept up with the recovery speed of the economy. The implementation of the budget estimate by some Ministries and localities is slow, the volume of construction projects under the 2000 plan is low, direct investment from foreign countries continues to decrease, some target programs are implemented very slowly; state budget expenditure only reached 43.7% of the annual estimate; among which construction investment only reached 37.4%. The implementation of the policy of socializing education, healthcare, culture, and sports sectors is slow.

Given the above situation, it is required that Ministries and localities base their actions on the economic and social development goals and state budget revenue and expenditure estimates assigned by the Government for the whole year, in the last six months of 2000, continue to implement measures proposed at the beginning of the year, focusing on implementing the following main measures:

1. On state budget revenue:

Strengthen guidance on production and business operations and product sales, especially agricultural products and export goods, to create a solid foundation for completing and exceeding the state budget revenue collection task for 2000.

Focus on tapping all sources of revenue, without leaving any uncollected, and avoid revenue loss. Focus on sources of revenue that can be tapped to increase revenue, such as land tax, fees and charges, income tax, the non-state commercial and service sector, etc., while settling the final tax settlement and inspection work of 1999, collecting immediately the outstanding amounts carried over from previous years according to the tax settlement.

Guide enterprises in accounting record keeping, invoice usage, and invoice management to prevent errors and combat fake invoices. Gradually increase the tax declaration rate, open accounting books for taxpayers who declare taxes directly. Link inspections with guiding enterprises to perform accounting work well and properly fill out tax declarations. Assist and urge enterprises to comply with tax declaration regulations stipulated by the Law.

Continue to implement the policy of publicizing procedures: declaration, notification of tax rates to be paid, tax exemptions and refunds, so that all taxpayers are aware, creating convenience for taxpayers to monitor each other and supervise tax administrators. Timely implement tax refund work according to the Law, ensuring speed and not causing inconvenience to taxpayers.

Vigorously carry out inspection and audit work on compliance with tax laws. Focus on tax exemptions and reductions, VAT deductions and refunds, compliance with invoice and bookkeeping systems of taxpayers, particularly emphasizing the private sector and foreign-invested enterprises.

2. On state budget expenditure:

The management of the state budget for the last six months of 2000 focuses on implementing the following measures:

Accelerate the progress of construction projects, complete early procedures to have grounds for payment and advance payments for completed works according to regulations, ensuring sufficient funds for projects that meet the necessary procedures. Review construction projects listed in the budget but lacking conditions for implementation or deemed ineffective, stop them and reallocate to projects with sufficient conditions; do not allow capital to wait for projects. Promptly resolve difficulties and obstacles to accelerate the disbursement of ODA funds (such as land clearance, simplifying administrative procedures, allocating sufficient counterpart funds...).

Accelerate the progress of implementation and timely allocate funds for target programs arranged in the annual budget, particularly the project to plant five million hectares of new forests, poverty reduction program, and socio-economic development program for extremely difficult mountainous and remote areas. Local People's Committees must ensure full and timely transfer of funds to the State Treasury for payment.

To ensure state budget management according to the approved budget and maintain the deficit level decided by the National Assembly, central and local budgets may only use reserves to address newly emerging important tasks not previously allocated funds and to cope with natural disasters, famine relief, etc. Ministries and localities should proactively manage expenditures according to the state budget estimates assigned by the Government; no additional allocations outside the budget for units at both central and provincial levels.

Localities must base their budget expenditure management on their ability to collect state budget revenue:

For localities with state budget revenue exceeding the estimate, priority should be given to supplementing capital for local economic and social infrastructure projects, concrete road channelization programs, projects completed in 2000, supporting production and business development, improving crop and livestock breeds, repaying loans for economic and social infrastructure investment, and village-level construction projects; increasing financial reserve funds; no additional management administrative expenses; purchasing and repairing equipment that is not truly essential.

With regard to localities, some revenue items may fall short of the budget estimate, it is necessary to exploit and strive to increase revenues from sources that have the potential for growth to ensure the achievement of the annual revenue target assigned; at the same time, proactively rearrange expenditure tasks to be consistent with the local government budget revenue on the basis of ensuring funding for important economic and social development tasks such as investment in agricultural and rural development, education and training, science and technology, and social security,...

II. Evaluation of the implementation of the state budget in 2000 as the basis for building the revenue and expenditure estimates for 2001:

1. On revenue:

Based on the situation in the first six months of the year, evaluate the results of revenue collection in 2000 based on the implementation of measures to complete and exceed the assigned budget targets as stipulated in Decision No. 91/1999/QD-BTC dated December 29, 1999 of the Minister of Finance; focusing on analyzing the following issues:

Clearly determine the amount of tax carried over from 1999; the amount collected in 2000; the outstanding balance, specifying the reasons and measures for handling. On this basis, determine the amount generated in 2000; the amount collected in the year and the forecast of the amount generated in 2000 to be carried over to 2001.

The value-added tax refunds due to arise in 2000; the amount refunded to enterprises in 2000; the forecast of the amount due to be refunded in 2000 to be carried over to 2001.

Analyze the factors affecting the revenue results in 2000: the implementation compared to the plan for key product output indicators, production and consumption, cost, selling price...

Analyze the impact of additional and amended policies on revenue sources in the area.

1.1. State-owned enterprise sector:

Grasp the business operation situation of enterprises, assess the financial asset and debt situation, fluctuations in fixed asset original value, number of employees, wages, sales revenue, production costs, economic and technical standards, production and consumption of main products, realized profits, and payments to the budget.

Analyze and evaluate the results of organizing and managing revenue collection and the implementation of tax management procedures. Difficulties and advantages in 2000, potential for development in 2001 and subsequent years.

1.2. Non-state commercial and service sector:

a) Management of revenue from taxpayers subject to the deduction method for VAT:

Evaluate the implementation of tax calculation and declaration, payment of taxes by units.

Fluctuations in the number of managed taxpayers in 2000 compared to 1999.

b) Management of revenue from taxpayers subject to the direct method for VAT:

Through tax registration and code issuance work, assess the level of management of household revenue: the number of households that have declared and registered taxes and received tax codes compared to the actual number of operating households; the number of households that have obtained business registration.

The level of management of turnover compared to actual turnover: The situation of declaration, adjustment of turnover, value-added, taxable income, and tax of taxpayers; the level of adjustment of turnover, VAT, and tax for each group of goods.

1.3. Foreign-invested enterprise sector:

Total number of enterprises licensed, expired licenses, dissolved enterprises, valid licenses; including: enterprises already in operation, enterprises under construction, enterprises not yet implemented.

Total number of workers, total wage fund, sales revenue, costs, and business efficiency.

Evaluate and analyze revenue from contractors and subcontractors in the area, especially oil contractors.

1.4. Tax on agricultural land use:

Based on the land use tax records, evaluate the additional area brought into the tax record up to the deadline for taxation; the results of tax arrears collection, rice prices for taxation... compared to the state budget estimate.

For the state-owned enterprise sector, separate these indicators into a part and detail the enterprises with significant revenue.

1.5. Property tax, land rental fees:

Aggregate the area of land established for revenue management compared to the land fund under management.

Analyze clearly according to the following indicators:

Number of enterprises, area of land in use.

Number of enterprises, area of land, and land rental fees recorded in the tax ledger.

Number of enterprises, area of land, and land rental fees that cannot be collected; requiring a clear analysis of the reasons (due to non-signing of land lease contracts, due to units not fully utilizing the area, and other reasons).

1.6. Revenue from land allocation and house sale:

Evaluate the situation of arrears in land use right fees. Analyze cases of deliberate delay and propose solutions.

Evaluate the impact of policies aimed at accelerating the issuance of ownership certificates for houses and land use rights, such as: reduced prices for apartment-style residential buildings, support for land allocation fees for revolutionary veterans, reduced housing fees based on years of service for civil servants, making actual housing prices lower.

1.7. Fees and charges revenue on the territory:

Evaluate the results of tax code issuance for units with fee and charge revenue and the strengthening of fee and charge revenue management and collection.

The situation of fee and charge revenue collection by central, provincial, district, commune, and ward organizations with fee and charge revenue: amount collected, amount allowed to retain, amount paid to the budget.

2. On expenditure:

2.1. On basic construction expenditure: Focus on reviewing and classifying all projects and works in the 2000 investment plan of ministries, sectors, and localities; evaluate the volume of work completed in the first six months of the year, the amount of capital settled in the first six months of the year for each project and work; on this basis, handle capital according to the principle:

Prioritize capital for projects and works investing in agriculture and rural economy development (irrigation, dyke), disaster prevention, research, improvement, and seed production.

Allocate capital for Group A projects, counterpart funds for ODA projects, and projects completed in 2000.

Firmly postpone and cut projects and works lacking investment procedures; those projects found to be ineffective or not truly necessary.

2.2. Regarding expenditure on infrastructure construction projects for economic and social developmentFor social welfare projects, housing funds development, agricultural and rural development investments, and forest regeneration expenditures from local budgets derived from land use rights transfer revenues, land lease payments, state-owned housing sales proceeds, lottery revenues, agricultural land use taxes, and forest resource taxes; localities need to specifically assess their ability to collect each revenue item to appropriately manage expenditures; if actual collections fall short of budget estimates, corresponding expenditure reductions must be made, and expenditures should only be made when actual revenues are available to avoid unfunded liabilities.

2.3. Regarding programs and targets: Based on the allocated budget and implementation progress, the national program target management agencies and localities need to evaluate the workload completed for the entire year 2000 (based on the total budget amount assigned by the Government and the list of national program targets announced, assessing the distribution, integration, and allocation of program targets); the workload and expenses incurred from the start of the program targets until the end of 2000, to thereby propose specific mechanisms that are appropriate and have a basis for preparing the 2001 program implementation budget. Classify important national program targets to continue retaining them; the remaining program targets should be transferred to the regular expenditure of ministries and localities.

2.4. Regarding regular expenditures: Based on the annual budget allocation and retained revenue sources, and the progress of tasks, assess the feasibility for the entire year to closely align with the actual situation of ministries, localities, and units. The assessment of annual expenditures needs to clearly analyze expenditures from allocated budgets and retained revenue sources according to regulations, including detailed analysis of salary-related expenditures (including additional salaries), salary-like allowances, mandatory deductions from salaries (social insurance, health insurance, trade union fees, etc.), regular business expenditures, and non-recurring or non-regular expenditures (purchases, repairs, etc.) to serve as a basis for planning in 2001.

BUILDING THE 2001 STATE BUDGET REVENUE AND EXPENDITURE PROJECTIONS:

I. Objectives and requirements for building the 2001 state budget revenue and expenditure projections:

1. Requirements:

Building the 2001 state budget revenue and expenditure projections must thoroughly implement the guiding thoughts of the 10th Central Conference (Eighth Term); the economic and social development goals and tasks for the 2001-2005 plan of sectors and localities.

Building the 2001 state budget must positively impact the creation of a stable environment for production and business operations, promoting economic development, generating stable and solid revenues, increasing savings, contributing significantly to further consolidate the country's capabilities and potential, creating momentum for future development.

Promote positive changes in the restructuring of the State Budget, thoroughly economize, combat waste, while improving organizational structures, reducing administrative staffing, Party and State agencies, and mass organizations, focusing on increasing investment in development, education and training, science and technology, ensuring funding for defense and security tasks, improving the salary system, raising the living standards of military personnel (army, police), benefits for those who contributed to the revolution, implementing poverty reduction programs, social assistance under the State Budget. Implement socialization in education, healthcare, culture, sports to mobilize additional resources for sector development.

Building the 2001 State Budget must comply with the provisions of the State Budget Law and guiding documents, properly fulfill the regulations on responsibilities, powers, budget discussion organization, content of budget projection reports, ensure correct bases and calculation methods according to model requirements and submission deadlines.

2.Objectives:

a) State budget revenue projections must be built based on production and business indicators, in accordance with current tax laws and collection systems, while also considering ongoing issues in implementing new tax laws; fully implement established mechanisms to encourage production and business development, increase exports, expand markets. Tax revenue projections for export and import must take into account factors related to the AFTA accession process and other international commitments of the State; anticipate price fluctuations, ensuring that tax revenue projections increase compared to the previous year, being solid and highly feasible.

Building the 2001 state budget revenue projections must ensure alignment with economic growth rates and price indices, actively tapping all revenue sources and combining measures to prevent revenue loss, smuggling, and commercial fraud; strive for the overall state budget revenue mobilization ratio nationwide in 2001 to reach 18-19% of GDP; the revenue increase rate on the local level in 2001 compared to 2000 should increase by at least 10%.

b) Regular expenditure projections need to be built at a necessary, reasonable, and frugal level; pilot financial self-sufficiency management mechanisms for certain public institutions with income according to the Prime Minister's decision to be issued.

Continue prioritizing education and training, science and technology, environmental protection as per the Second Plenum Resolution, cultural and information undertakings as per the Fifth Plenum Resolution, and rural agricultural development. Implement zero-budgeting from the state budget for enterprises, scientific research activities, healthcare, and training linked to production and business operations of holding companies; these entities must cover their own operational costs for public services (except in special cases as decided by the Prime Minister).

For program targets: Reorganize national program targets, transferring some program targets that are no longer national program targets into regular expenditure tasks of the local budget.

The budget for investment construction projects funded by the state budget in 2001 must be constructed in the direction of concentrating on building infrastructure structures that are not profitable or cannot recover capital, prioritizing funds for key national and local projects, counterpart funds for projects using ODA funds according to signed schedules, flood control water conservancy works, and the concrete lining program for irrigation channels within fields. Funds should be concentrated on ongoing projects to be completed and put into use in the year, allocating repayment of previously advanced funds, and effective ongoing projects from 2000, with the remaining funds allocated to new projects meeting the prescribed conditions.

State budgets at all levels must allocate a reserve fund ranging from 3 to 5% of total spending according to Decree No. 87/CP dated December 19, 1996 of the Government. Appropriations for the financial reserve fund should be at a necessary and reasonable level.

c) Balance of the state budget:

Tax and fee revenues must ensure regular expenditures at a reasonable, economical level, and guarantee repayment of due debts, continue to allocate funds to implement salary adjustments; set aside an appropriate proportion for accumulation to finance development investments.

State budget expenditures must correspond to the ability to borrow domestically and obtain concessional loans abroad. No issuance or commercial borrowing outside the country; limit short-term domestic borrowing with high interest rates to offset the state budget deficit. The deficit ratio shall not exceed 5% of GDP (excluding loan amounts for refinancing).

d) For the budgets of local authorities at all levels:

The work of establishing and deciding on the state budget for local authorities in 2001 in accordance with the State Budget Law; the 2001 budget is a stabilization period budget (2000-2002), local authorities at all levels organize the establishment of their own revenue and expenditure budgets based on determined sources of income.

The ratio of distribution of revenue sources between the central budget and local budgets is stabilized based on the ratio of distribution of revenue sources handed over by the Prime Minister in 2000.

Any supplementary amount from the central budget to balance the local budget (if any) is calculated to increase by 3% compared to the amount handed over in 2000 (excluding supplementary amounts with specific purposes, supplementary amounts to address difficulties in 2000, and funds to implement the new salary system).

Within the scope of the determined sources of income, establish the local budget expenditure plan ensuring the principle that total expenditures do not exceed the total local budget revenue received, prioritizing tasks such as development investment, concrete lining of irrigation channels within fields, education and training expenses, science and technology environment expenses, improvement of crop and livestock breeds, restructuring of crops and livestock, debt repayment (including communal debt), poverty reduction efforts; supporting housing improvement for individuals who were active in revolutionary activities before August 1945 according to Decision No. 20/2000/QĐ-TTg dated February 3, 2000 of the Prime Minister and Circular No. 63/2000/TT-BTC dated June 29, 2000 of the Ministry of Finance; thoroughly economize on administrative expenses, limit procurement and repair expenses for equipment.

Continue implementing mechanisms for allocating expenditures corresponding to certain objectives based on the entire or part of certain revenue items (agricultural land use tax for agricultural development, rent for land use, land use for infrastructure investment, etc.) as in the 2000 budget mechanism.

To encourage localities to strengthen revenue management, starting from 2001, implement a policy rewarding excess revenue from the state budget for localities exceeding the projected revenue from import-export taxes, special consumption taxes on domestic goods and imported goods (excluding VAT on imported goods) according to the State Budget Law. The Ministry of Finance will provide detailed guidance after receiving the Prime Minister's decision. Excess revenue rewards can be invested in building economic and social infrastructure in localities, supplementing and supporting capital for state-owned enterprises, and supplementing funds for important and urgent tasks arising in localities.

II. Main contents of the work of establishing the state budget revenue and expenditure plan for 2001:

1. On revenue:

1.1. State-owned enterprise sector: It is required to calculate specifically for each unit under the management area; when consolidating, separate the refundable tax portion; VAT at the import stage, separately for production units and business units.

1.1.1. Regarding Value Added Tax (VAT): Calculated according to the Law on VAT and guiding documents, paying attention to some new regulations such as Circular No. 05/2000/TT-BTC dated January 12, 2000 of the Ministry of Finance guiding the declaration and payment of tax for the electricity sector, Circular No. 10/2000/TT-BTC dated February 10, 2000 of the Ministry of Finance guiding the declaration and payment of VAT for goods sold by businesses operating through agents in other provinces and cities, Circular No. 49/2000/TT-BTC dated May 31, 2000 of the Ministry of Finance detailing the amendment and supplementation of some lists of goods and services subject to VAT and VAT rates for some goods and services and the amendment and supplementation of some provisions on VAT.

Some bases for calculating the value of goods and services sold subject to VAT and the value of goods and services purchased externally used for producing and selling goods and services subject to VAT when preparing the budget:

Business operations in 2000 and potential in 2001.

Based on the 2001 production and business plans of enterprises.

Based on the sales price in 2000 and the expected inflation factor in 2001.

Based on the economic and technical norms of each enterprise approved by the competent authority.

Based on the provisions regarding deductible expenses for calculating taxable income according to the Corporate Income Tax Law.

1.1.2. Regarding Special Consumption Tax: Calculated according to Circular No. 168/1998/TT-BTC dated December 21, 1998 of the Ministry of Finance guiding the implementation of Decree No. 84/1998/NĐ-CP dated December 12, 1998 of the Government detailing the implementation of the Law on Special Consumption Tax.

For canned beer, the tax calculation price is implemented according to Circular No. 1752/TC-TCT dated May 9, 2000 of the Ministry of Finance. The special consumption tax calculation price for canned beer is determined as follows:

Sales price (VND/liter) 3,000 (VND/liter)

The specific tax rate for excise tax = ___

(per liter) 1 Tax rate (65%)

1.1.3. Mineral resources tax: Calculated according to Circular No. 153/1998/TT-BTC dated November 26, 1998of the Ministry of Finance guiding the implementation of Decree No. 68/1998/NĐ-CPdated September 3, 1998 of the Government detailing the implementation of theMineral Resources Tax Ordinance (amended).

1.1.4. Corporate income tax: Calculated according to Circular No. 99/1998/TT-BTC dated July 14, 1998guiding the implementation of Decree No. 30/1998/NĐ-CP dated May 13, 1998 of theGovernment detailing the implementation of the Law on Corporate Income Tax.Circular No. 89/1999/TT-BTC dated July 16, 1999 of the Ministry of Finance guidingthe implementation of provisions on taxes applicable to various forms of foreigninvestment under the Law on Foreign Investment in Vietnam.

Requirements to ensure strict management and budgetary forecasting ofcorporate income tax for businesses with profits. Based on determining the totalcost factors of enterprises in 2000, forecast the increase and decrease factors ofcosts in 2001 to calculate corporate income tax. Specifically as follows:

Production and business costs for budget preparation are based on theaverage level of the second quarter of 2000, taking into account a 5% cost savings.

Regarding the additional corporate income tax:

Business establishments with high income must pay corporate income tax at arate of 32%, and if the remaining income exceeds 12% of the current value ofshareholders' equity at the year-end settlement time, that excess income must bepaid as additional corporate income tax at a rate of 25%.

1.2. Enterprises with foreign investment capital:

1.2.1. Value-added tax:

The method of calculating value-added tax using the deduction method issimilar to that applied to state-owned enterprises.

Value-added tax for foreign contractors and subcontractors who followVietnamese accounting systems shall be paid according to the deduction methodprescribed in the Law on Value-Added Tax. For foreign contractors andsubcontractors who do not follow Vietnamese accounting systems, value-added taxpaid according to the direct calculation method prescribed in Circular No.169/1998/TT-BTC dated December 22, 1998 and Circular No. 95/1999/TT-BTC datedAugust 6, 1999 of the Ministry of Finance.

1.2.2. Corporate income tax: Regarding the tax rate, calculated according to Article 38, Article 43 of theLaw on Foreign Investment in Vietnam and Clause 3, Article 10 of the Law onCorporate Income Tax.

Corporate income tax for foreign contractors and subcontractors whofollow Vietnamese accounting systems shall be calculated according to CircularNo. 99/1998/TT-BTC. For foreign contractors without sufficient basis to determinetaxable income and who do not follow Vietnamese accounting systems, thecorporate income tax shall be determined as a percentage of taxable revenue foreach type of business activity as prescribed in Circular No. 169/1998/TT-BTCdated December 22, 1998 and Circular No. 95/1999/TT-BTC dated August 6, 1999 ofthe Ministry of Finance.

1.2.3. For land, water, and sea surface rental fees:

Based on Decision No. 179/1998/QĐ-BTC dated February 24, 1998 of theMinister of Finance regarding the issuance of regulations on land, water, andseasurface rental fees applicable to foreign investment forms in Vietnam.

Based on decisions by competent authorities granting investment permitsregarding exemptions and reductions in land rental fees.

The time for calculating land rental fees is when the enterprise receivesland for use. If land has been used before it is handed over, the time forcalculating land rental fees starts from the date the enterprise uses the land.

1.2.4. Tax on the transfer of income by economic organizations andindividuals abroad:

During the period awaiting implementation of the amended andsupplemented Law on Foreign Investment, temporarily calculated as follows:

Determination of income transferred abroad is based on the provisions ofCircular No. 99/1998/TT-BTC dated July 14, 1998 of the Ministry of Finance.

The tax rate is recorded in the investment permit issued by thecompetent authority, after agreement in writing with the Ministry of Finance,there are three levels of tax rates for transferring profits abroad.

Registered capital up to 5 million USD, tax rate: 7%

Registered capital from above 5 million USD to below 10 million USD, taxp rate: 5%

Registered capital from above 10 million USD, tax rate: 3%

1.2.5. Tax on oil and gas production and exploration activities:

Based on the volume of payment, oil selling price. The amount of tax paidto the state budget is determined based on the ratio of tax paid to the statebudget on revenue according to the current system.

1.3. Tax on the non-state commercial and service sector:

1.3.1. Regarding households and business establishments:

For fixed business households: Review all business households, bringhouseholds not yet subject to business license tax under tax management. On thebasis of the number of business licenses and business license tax brackets,bring all households with fixed business locations under value-added tax andcorporate income tax.

For joint-stock companies, limited liability companies, privatecompanies, cooperatives, and production groups: Calculate in detail for eachenterprise, especially large enterprises.

1.3.2. Regarding taxes: Calculated as guided in Circular No. 84/1999/TT-BTC dated July 1, 1999 ofthe Ministry of Finance guiding the preparation of the State Budget for 2000.

1.4. Revenue from lottery activities: Calculated as guided in Circular No. 84/1999/TT-BTC dated July 1, 1999 ofthe Ministry of Finance guiding the preparation of the State Budget for 2000.

1.5. Stamp duty: According to Circular No. 28/2000/TT-BTC dated April 18, 2000 of theMinistry of Finance guiding the implementation of Decree No. 176/1999/NĐ-CP datedDecember 21, 1999 of the Government on stamp duty.

The basis for calculating stamp duty is the stamp duty valuation priceand the stamp duty rate (%).

The stamp duty valuation price is the market value of the propertysubject to stamp duty within the country at the time of stamp duty calculation.

The stamp duty rate (%) is as follows:

House, land: 1%.

Ship, boat: 1%. Special case for offshore fishing boats: 0.5%.

Car, motorcycle, hunting rifle, sports gun: 2%. Special case for themotorcycles registered and paying stamp duty in Vietnam for the second time ormore: 1%.

1.6. Land transfer tax: According to Decree No. 19/2000/NĐ-CP dated June 8, 2000 of theGovernment guiding the detailed implementation of the Law amending and supplementingcertain articles of the Law on Land Transfer Tax.

1.7. Fees and stamp duties:

Calculating revenue from all types of fees and stamp duties within theadministrative area, separately listing central, provincial city, district, andcommune-level fees and stamp duties.

Calculating in detail all types of fees and stamp duties with significantrevenue shares.

Prepare detailed budget estimates for each type of fee and charge: the amount of fees and charges collected; the amount retained for management costs and expenses incurred in performing assigned tasks; the amount to be remitted to the State Budget for calculating balanced revenue.

1.8. For export taxes, import taxes, value-added tax on imported goods, and special consumption taxes collected by Customs:

Based on the provisions of the Law on Export Tax, Import Tax (amended and supplemented), the Law on Special Consumption Tax, and the Law on Value Added Tax,... and the situation of import and export business, the Customs authority shall coordinate with relevant Ministries, sectors, and localities to prepare detailed budget estimates for collecting import taxes, export taxes, special consumption taxes, value-added tax on imported goods, and other revenues related to import and export activities.

1.9. For borrowings and foreign aid receipts: Based on signed agreements and commitments, and any amendments and supplements thereto, according to the progress of implementing projects, the detailed budget estimates for borrowings and foreign aid receipts must be prepared separately for each project, by each Ministry, sector, and locality, clearly distinguishing the purposes of use: investment development expenditure and regular expenditure.

2. On expenditure:

All Ministries, central agencies, and budgetary units at all levels preparing the state budget estimate for 2001 must stay within the scope of the announced review figures; based on the established expenditure standards and norms, taking into account the volume of assigned tasks, they must concentrate funds on important main tasks, thoroughly economize and prevent waste. When building the state budget expenditure estimate for 2001, each field, each Ministry, central agency, and locality must continue to implement the policy of socialization. Combine state resources and other mobilized resources of society according to the prescribed system to better fulfill the tasks of each field and unit. Specifically, for some key fields as follows:

2.1. For investment development expenditure:

2.1.1. Construction Investment Expenditure:

State budget capital will only be invested in infrastructure projects that cannot generate profit and cannot recover capital. The allocation of construction investment expenditure must ensure the following sequence: prioritize major national and local projects; water conservancy and disaster prevention projects; transitional projects to be completed and put into use in 2001; transitional projects with effective results from 2000; allocate sufficient counterpart funds for projects funded by ODA; allocate funds to implement the program of channel cementing; repay previously advanced funds; allocate funds for the quantity of construction investment carried out in 2000 without sources of settlement; allocate remaining funds for new effective and urgent projects, among which for Group C projects, it is necessary to ensure that more than 70% is allocated to transitional projects; newly started projects should be allocated funds to complete within no more than two years.

Projects allocated capital in 2001 must have complete investment construction procedures and be approved before October 2000.

For projects funded through loans returned from borrowed funds, the project owner must proactively arrange corresponding capital in accordance with the content of the signed agreement and domestic financial regulations to not affect the implementation schedule of the project.

Continue to allocate investment back to the oil and gas industry from the post-tax profit portion enjoyed by Vietnam from the Vietnam-Soviet Joint Venture Oil Company as stipulated by the Prime Minister.

Continue to implement the mechanism for allocating capital for economic and social infrastructure projects, welfare projects, housing fund development, agricultural and rural area investments, focusing on improving livestock and crop breeds; regenerating local government forest funds from sources such as land use rights transfer income, land rental fees, lottery proceeds, proceeds from the sale of state-owned housing, agricultural land use tax, forestry resource tax,... as in 2000.

Continue to implement the mechanism for allocating expenditures to carry out projects for developing economic and social infrastructure from water resource tax revenues of hydropower plants, and reinvesting in border economic zones as decided by the Prime Minister.

2.1.2. For production and business support expenditure:

Concentrate support on key products and industries; provide capital support to businesses with good performance, producing export goods, supporting market expansion and product sales, especially agricultural products.

Support the improvement and production of plant and animal seeds.

Support for public utility activities and enterprises where revenues do not cover costs can be supported according to the regulations of the Government.

2.1.3. Interest Subsidy Expenditure for State Investment Credit Development Loansshall be implemented according to Circular No. 43/2000/TT-BTC dated May 23, 2000, Circular No. 53/2000/TT-BTC dated June 6, 2000, and Circular No. 59/TC-TCNH dated September 27, 1996 of the Ministry of Finance.

2.1.4. For National Reserve Expenditure: Based on the assigned national reserve tasks, relevant sectors and units are responsible for evaluating and determining the level of reserves of their sector or unit as of December 31, 2000; forecast the level of replenishment of each type of goods and materials, and prepare the national reserve expenditure budget for the preservation of reserve goods of their sector or unit in 2001.

2.2. For price subsidy expenditure on policy items:

Price subsidy and freight subsidy expenditure for mountainous areas as specified in Decree No. 20/1998/NĐ-CP shall be calculated according to Inter-Ministerial Circular No. 11/1998/TT-LB/BTM-UBDTMN-BTC-BKHĐT dated July 31, 1998. For price subsidy expenditure on purchasing agricultural products for localities, it is necessary to summarize and adjust policies accordingly.

Price subsidy expenditure for seed preservation, press subsidy, publishing house subsidy, film subsidy,... shall be implemented according to current regulations. Ministries, localities, and units need to carefully calculate price subsidies based on clearly identifying quantities, cost prices, transportation costs, and specific subsidy rates for each item according to the prescribed regulations.

2.3. For administrative and public service expenditure:

Continue to allocate funds for educational training and scientific and technological environmental affairs according to Resolution of the Central Committee II; for the state budget nationwide: Allocate expenditures (including investment expenditures, recurrent expenditures, expenditures from grants and loans, additional salary expenditures, etc.) for education and training fields in 2001 at a level of 15%; for science, technology, and environment fields at 2% of total state budget expenditures, while adjusting the expenditure structure for science to ensure effectiveness and practicality. For cultural information fields, allocate expenditures according to Resolution of the Central Committee V.

Expenditures for economic undertakings need to focus on key areas; each industry and locality must study and adjust the expenditure structure to ensure high efficiency, contributing to promoting economic development.

Allocate health and physical culture and sports expenditures reasonably and economically, carefully review tasks and programs to ensure effective operations, and allocate sufficient funds to implement policies and systems already promulgated by competent authorities.

Administrative expenditures (state management, Party, mass organizations): Calculate expenditure standards accurately according to regulations, thoroughly economize on expenditures such as hospitality, conferences, outbound delegations, inbound delegations, etc.

For expenditures using borrowed funds and grants, detailed budgets must be prepared for each project and sufficient matching funds from Vietnam must be calculated according to commitments and prescribed regulations.

Operating expenses of scientific, medical, and training institutions under state-owned enterprises belonging to Ministries shall be accounted for as production and business costs according to Decree No. 27/1999/NĐ-CP dated April 20, 1999 of the Government; starting from 2001, no allocation from the state budget will be made (except in cases decided by the Prime Minister).

In 2001, some units with income will be converted to self-financing forms according to the Prime Minister's decision.

During the preparation of budget estimates for administrative and revenue-generating public institutions, full reports on expenditures funded from fees, charges, and other revenues retained for expenditure according to current regulations must be provided.

2.4. Regarding expenditures for implementing target programs:

For national target programs: Continue to allocate funds and implement management mechanisms as stipulated in Decision No. 38/2000/QĐ-TTg dated March 24, 2000 of the Prime Minister and Circular No. 41/2000/TT-BTC dated May 19, 2000 of the Ministry of Finance. For remaining target programs from 2001 onwards, they must be budgeted within the state budget of Ministries and localities.

III. Implementation:

1. Ministries and state agencies responsible for economic and social indicators must establish these indicators and promptly notify the Ministry of Finance, central ministries, and localities before the deadline for preparing the state budget as specified in guiding documents for the State Budget Law to serve as the basis for preparing the state budget for 2001.

2. Ministries managing national target programs and other target programs must, before September 2000, study and submit to competent authorities for decision: which national target programs will continue in 2001, and which target programs from 2001 will be transferred to the budgets of Ministries and localities for budget planning in 2000.

3. Ministries, central agencies, and People's Committees of provinces and centrally-administered cities must, based on this Circular and the check figures for the state budget revenue and expenditure forecast for 2001 announced by the Ministry of Finance, guide, announce check figures, organize discussions, and compile the state budget forecast for 2001 in accordance with the provisions of this Circular.

4. The Ministry of Finance will organize meetings with Ministries, central agencies, and localities to discuss the 2001 state budget plan during the period from mid-August to September 15, 2000 (specific meeting schedules will be announced later).

After the National Assembly approves the 2001 state budget plan, the Ministry of Finance will organize meetings with Ministries, central agencies, and localities regarding the 2001 state budget plan before submitting the draft budget allocation plan for 2001 to the Government and the Standing Committee of the National Assembly.

5. The General Customs Department, the General Taxation Department, and related Departments and Bureaus have the responsibility to provide detailed guidance on this Circular to subordinate units for implementation and to prepare and aggregate the state budget revenue and expenditure forecasts for their respective fields.

Regarding the format for preparing and reporting the 2001 state budget revenue and expenditure forecast:

For central ministries and agencies, organize guidance for subordinate units to prepare and report the state budget forecast; based on this, aggregate and report the 2001 state budget forecast of the ministry or agency to the Ministry of Finance according to the format and time frame specified in Circular No. 103/1998/TT-BTC dated July 18, 1998 of the Ministry of Finance.

For localities: To aggregate and submit the 2001 state budget revenue and expenditure forecast including all four levels of budget (central, provincial, district, commune) to the National Assembly, it is requested that the People's Committees of provinces and centrally-administered cities direct and guide lower-level local governments to fully prepare the state budget revenue and expenditure forecast according to the formats specified in Circular No. 103/1998/TT-BTC dated July 18, 1998 of the Ministry of Finance, and aggregate the 2001 state budget revenue and expenditure forecast of communes and equivalent levels according to the attached format to report to the Ministry of Finance. For the reporting formats of the 2001 state budget revenue and expenditure forecast issued together with Circular No. 103/1998/TT-BTC dated July 18, 1998 of the Ministry of Finance, it is requested to add columns for 1999 final accounts indicators (for Appendix 1: Tables 1, 2, 7; for Appendix 6: Tables 5, 6, 7, 17, 18) according to the attached appendices.

6. During the process of preparing the 2001 state budget, if new policies and systems are issued, the Ministry of Finance will issue supplementary guidance when implementing them; if there are any difficulties, please reflect them to the Ministry of Finance for timely resolution./.