Circular No. 84/2002/TT-BTC guiding financial policies to encourage the development of rural industries

CIRCULAR

Guidelines on financial matters to encourage the development of rural industries

occupations in rural areas

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Implementing Decision No. 132/2000/QĐ-TTg dated November 24, 2000 of the Prime Minister on certain policies to encourage the development of rural industries, Resolution No. 05/2001/NQ-CP dated May 24, 2001 of the Government on supplementing some measures for economic plan management in 2001, the Ministry of Finance provides guidelines on financial matters to encourage the development of rural industries as follows:

This technical regulation sets out technical requirements, testing methods, sampling procedures; management requirements; responsibilities of organizations and individuals producing, trading, and importing cigarettes.

1. Object and scope of application:

- Households and individuals permanently residing in rural areas who engage in production and business activities;

- Cooperative groups, cooperatives, private enterprises, joint-stock companies, limited liability companies, and partnership companies engaged in production and business activities with their main offices located in rural areas.

The organizations and individuals mentioned above (hereinafter referred to collectively as rural industry bases) produce goods or provide services belonging to the industries specified in Section 1, Article 1 of Decision No. 132/2000/QĐ-TTg dated November 24, 2000 of the Prime Minister.

2. State support:

II. SPECIFIC PROVISIONS

The State supports capital investment in infrastructure (roads, electricity, water, environment), warehouses for residential areas with rural industries, and costs for training and promoting trade for rural industry bases to maintain and develop traditional craft villages and rural industries, thereby addressing employment and increasing income for workers.

Regarding infrastructure:.

The State supports capital investment in rural roads and infrastructure in craft villages according to Circular No. 79/2001/TT-BTC dated September 28, 2001 of the Ministry of Finance on guiding financial mechanisms to implement rural road projects, aquaculture infrastructure, and craft village infrastructure in rural areas.

Land:

Rural industry bases enjoy the following land policy benefits:² 2.1. They benefit from preferential rental prices at the lowest rate stipulated in Article 2 of Decision No. 1357/QĐ-BTC dated December 30, 1995 of the Minister of Finance on setting a framework for land rental fees for domestic organizations leased by the State: 0.5% of the price of 1 square meter of land issued by the People's Committee of provinces and centrally-administered cities pursuant to Decree No. 87/CP dated August 17, 1994 of the Government on setting a framework for various types of land prices.

2.2. Rural industry bases that have been permitted by local authorities with jurisdiction to change the purpose of land use from agricultural land, aquaculture land, or salt-making land to production and business purposes shall not be required to switch to leasing land but may continue to use the land and fulfill their obligations to the state budget within the prescribed period for such land types according to Article 26 of Decree No. 04/2000/NĐ-CP dated February 11, 2000 of the Government detailing the implementation of the Law Amending and Supplementing Certain Provisions of the Land Law. After the prescribed period, they must comply with the current regulations on land leasing according to the intended use.

2.3. In cases where rural industry bases relocate their production premises out of residential areas, they will be exempt from land rental fees for three years from the date of completion of construction of new production facilities, or they will benefit from preferential exemptions or reductions in land rental fees according to Clause 5, Section III, Part I of Circular No. 35/2001/TT-BTC dated May 25, 2001 on guiding the payment of land rental fees, contribution of land for joint ventures by value, and land use rights of domestic organizations, households, and individuals (if applicable).

2.4. Revenue from land rental contracts of rural industry bases shall be retained in the local budget in accordance with the provisions of the State Budget Law. Each year, provinces and centrally-administered cities are responsible for prioritizing and allocating funds to invest in infrastructure for residential areas with craft villages and rural industries in their locality.

3. Regarding preferential credit investment:

Rural industry bases with effective investment projects can obtain credit investment loans, post-investment interest subsidies, and investment credit guarantees from the Development Support Fund according to Decree No. 43/1999/NĐ-CP dated June 29, 1999 of the Government on state investment credit development and other current regulations.

4. Regarding tax and fee preferences:

- Rural industry bases benefit from tax preferences as stipulated in Decree No. 51/1999/NĐ-CP dated July 8, 1999 of the Government detailing the implementation of the Law on Encouraging Domestic Investment (Amended) No. 03/1998/QH10, Decree No. 35/2002/NĐ-CP dated March 29, 2002 amending and supplementing Appendix A, B, and C issued together with Decree No. 51/1999/NĐ-CP dated July 8, 1999 of the Government; Circular No. 22/2001/TT-BTC dated April 3, 2001 of the Ministry of Finance amending Circular No. 146/1999/TT-BTC dated December 17, 1999 guiding the implementation of tax exemptions and reductions for entities benefiting from investment incentives under Decree No. 51/1999/NĐ-CP and other current laws.

- If rural industry bases are permitted to exploit natural resources for production and processing, they will be exempted or granted reduced resource taxes according to Article 12 of Decree No. 68/1998/NĐ-CP dated September 3, 1998 of the Government detailing the implementation of the Resource Tax Ordinance (Amended). Procedures and formalities for granting tax exemptions and reductions for natural resources are carried out according to Circular No. 153/1998/TT-BTC dated November 26, 1998 of the Ministry of Finance guiding the implementation of Decree No. 68/1998/NĐ-CP dated September 3, 1998 of the Government detailing the implementation of the Resource Tax Ordinance (Amended).

- Artisans are exempt from various taxes arising from their activities in teaching crafts, such as corporate income tax (high-income individual income tax).

- Rural industry bases shall pay fees and charges according to the Law on Fees and Charges No. 38/2001/UBTVQH dated August 28, 2001 of the Standing Committee of the National Assembly, Decree No. 57/2002/NĐ-CP dated June 2, 2002 of the Government detailing the implementation of the Law on Fees and Charges, and other current guiding documents.

5. Regarding trade promotion and product sales:

The State shall use the Export Support Fund to support a portion of the costs for Rural Craft Industry Bases to carry out market development activities and promote trade to sell their products as follows:

5.1 Rural Craft Industry Bases shall be granted a 50% reduction in the cost of renting booth space to participate in domestic trade fairs and product exhibitions.

Trade fair and exhibition businesses shall be responsible for reducing by 50% the cost of renting booths for Rural Craft Industry Bases. The Export Support Fund shall pay this discount amount to the trade fair and exhibition business.

Upon completion of the trade fair or exhibition, the trade fair and exhibition business shall prepare a proposal requesting the Export Support Fund to settle the booth rental discount for Rural Craft Industry Bases. The application includes:

+ A letter requesting from the trade fair and exhibition business;

+ The lease contract and the settlement record between the lessor and lessee;

+ A list of Rural Craft Industry Bases that have rented booths to participate in the trade fair or exhibition.

5.2 Rural Craft Industry Bases shall benefit from the State's support mechanisms for market development activities and trade promotion as stipulated in Circular No. 61/2001/TT-BTC dated August 1, 2001 issued by the Ministry of Finance and other current regulations.

When receiving State support funds, Rural Craft Industry Bases shall record the reduction in business expenses.

5.3 Rural Craft Industry Bases shall enjoy preferential policies as prescribed in Decision No. 195/1999/QĐ-TTg dated September 27, 1999 issued by the Prime Minister regarding export activities and other current legal documents.

5.4 Rural Craft Industry Bases shall be rewarded when achieving export turnover as decided by the Minister of Finance pursuant to Decision No. 65/2001/QĐ-BTC dated June 29, 2001 on rewarding export turnover for rice, coffee, pork, canned vegetables in 2001 and Decision No. 63/2002/QĐ-BTC dated May 21, 2002 on rewarding export turnover for certain goods as directed by the Prime Minister and other current legal provisions.

The aforementioned reward amounts shall be recorded as business income by Rural Craft Industry Bases.

6. Vocational training support for workers:

- State vocational training institutions shall prioritize allocating training quotas for Rural Craft Industry Bases within the annual budget plan provided by the State.

- Village artisans shall cooperate with State training institutions to organize training classes or independently organize suitable training classes for the production industry of Rural Craft Industry Bases and be exempted from various taxes in the process of passing on skills. Training class organization costs shall be covered by the following sources:

+ Tuition fees collected from students or contributions made by employers based on mutual agreement;

+ Support from county, provincial, and city vocational training centers (if available);

+ Support from domestic and foreign organizations and individuals;

If these sources are insufficient to cover the training costs, the shortfall shall be recorded as business expenses by the institution.

- For training classes conducted through work-study programs, the training costs shall be included in the production and business expenses of Rural Craft Industry Bases.

III. IMPLEMENTATION

1. Ministries, agencies equivalent to ministries, government agencies, People's Committees at all levels, Provincial Departments of Finance and Prices, Provincial Tax Bureaus under the central government, and Development Support Funds shall be responsible for guiding and implementing this circular and other regulatory legal documents related to policies encouraging and providing preferential treatment to Rural Craft Industry Bases.

2. This circular shall take effect fifteen days from the date of signature. During implementation, if there are any difficulties, they should be promptly reported to the Ministry of Finance for research and guidance on resolution.