Joint Circular No. 85/2005/TTLT-BTC-BCA guiding the implementation of tax policies and state budget revenues for the production and business activities of goods and services by units under the Ministry of Public Security.

JOINT CIRCULAR

Guidelines for implementing tax policies and state budget revenue from the production and business activities of goods and services of units under the Ministry of Public Security.

Pursuant to current Tax Laws, Ordinances, and the State Budget Law;

Pursuant to the State Enterprise Law dated December 10, 2003;

Pursuant to Decree No. 10/2004/NĐ-CP dated January 7, 2004 of the Government on management and use of the state budget and assets for certain activities in the fields of national defense and security;;

Pursuant to Decree No. 31/2005/NĐ-CP dated March 11, 2005 of the Government on production and supply of public utility products and services;

In order to be consistent with the specific characteristics of the production and business activities of units under the Ministry of Public Security, the Ministry of Finance and the Ministry of Public Security provide detailed guidelines for the implementation of tax policies for units under the Ministry of Public Security that engage in production and business activities of goods and services as follows:

I. APPLICABLE OBJECTS

The taxpayers subject to this Circular are units under the Ministry of Public Security that engage in production and business activities of goods and services, including: State-owned enterprises (including security companies as defined in Article 7 of Decree No. 31/2005/NĐ-CP dated March 11, 2005 of the Government on production and supply of public utility products and services); administrative and service units utilizing material and technical facilities and labor that engage in production and supply of public utility products and other goods and services.

II. TAX DECLARATION, PAYMENT, AND SETTLEMENT

1. Production and business units under the Ministry of Public Security (excluding security companies; service units with income supplying public utility products and services for security as decided by the Ministry of Public Security for each period):

Shall declare, pay all taxes and other revenues (such as business registration tax, value-added tax, special consumption tax, corporate income tax, fees, and charges...) into the state budget and settle taxes with the tax authority according to the guidance provided in current documents issued by the Ministry of Finance for the implementation of Tax Laws, Ordinances, and regulations on fees, charges, and state budget revenue.

2. For security companies and service units with income supplying public utility products and services for security:

Tax declaration, payment, and settlement shall be carried out as follows:

a. Register, declare, and pay all taxes and other revenues (except corporate income tax) from production and supply of public utility products and services and other production and business activities into the state budget; security companies are exempted from land rental fees, land use fees, and land use tax for the area necessary for direct use in national defense and security operations as stipulated in Clause 1, Article 13 of Decree No. 31/2005/NĐ-CP of the Government. If a security company uses part of the land allocated by competent authorities for direct use in national defense and security operations for other production and business activities, it must declare and pay land rental fees, land use fees, and land use tax for the portion used for such activities according to current laws.

Settle taxes with the tax authority according to the guidance provided in current documents issued by the Ministry of Finance for the implementation of Tax Laws, Ordinances, and regulations on fees, charges, and state budget revenue.

b. Declare and pay corporate income tax: Once every quarter during the planning period, security companies generating income from production and supply of public utility products and services and income from other production and business activities shall self-assess the amount of corporate income tax payable and remit it to the account of the Ministry of Public Security opened at the State Treasury of Hanoi City. At year-end, security companies shall settle corporate income tax from production and supply of public utility products and services and corporate income tax from other production and business activities with the Ministry of Public Security according to the prescribed regulations. Based on the settlement of security companies, the Ministry of Public Security shall determine the official payment amount for each security company and remit the tax payable into the state budget.  

III. IMPLEMENTATION

1. Each year in the first quarter, the Ministry of Public Security compiles a list of security companies and service units with income supplying public utility products and services for security and sends it to the Ministry of Finance (General Department of Taxation) to notify provincial and municipal tax bureaus for knowledge and tax management within their jurisdiction.

2. The Ministry of Public Security is responsible for coordinating with the Ministry of Finance (General Department of Taxation) to regularly monitor, inspect, and urge security companies to comply with tax declaration, payment, and settlement of corporate income tax generated from production and supply of public utility products and services as stipulated in the Corporate Income Tax Law and current regulations.

3. Provincial and municipal tax bureaus are responsible for guiding, monitoring, inspecting, and urging production and business units under the Ministry of Public Security to register, declare, and pay all taxes and other revenues into the state budget (except corporate income tax of security companies and service units with income supplying public utility products and services for security) according to the provisions of Tax Laws, Ordinances, and regulations on fees, charges, and state budget revenue and settle taxes according to current regulations and the guidance provided in this Circular.

This Circular takes effect 15 days after its publication in the Official Gazette.

During implementation, if there are difficulties or obstacles, units are requested to promptly report to the Ministry of Finance and the Ministry of Public Security for research and resolution.