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 of units under the Ministry of Public Security

JOINT CIRCULAR

Guidelines for Implementing Tax Policies and State Budget Revenue

for Production and Business Activities of Goods and Services of Units under the Ministry of Public Security

Based on current Tax Laws and the State Budget Law;

Based on the State Enterprise Law dated December 10, 2003;

Based on Decree No. 10/2004/NĐ-CP dated January 7, 2004 of the Government on Management and Use of State Budget and Assets for Certain Activities in the National Defense and Security Sectors;

Based on Decree No. 31/2005/NĐ-CP dated March 11, 2005 of the Government on Production and Supply of Public Utility Products and Services;

To be consistent with the specific 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 implementing tax policies for units under the Ministry of Public Security engaged 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 engaged in production and business activities of goods and services, including state-owned companies (including security companies as stipulated 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 public service units utilizing facilities, equipment, and labor for production and supply of public utility products and services and other products, goods, and services.

II. TAX DECLARATION, PAYMENT, AND SETTLEMENT

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

Shall declare and 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 tax authorities according to the guidance provided in current documents issued by the Ministry of Finance implementing Tax Laws, Tax Ordinances, and current State Budget Revenue Laws.

2. For security companies and public service units with income supplying public utility products and services serving 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 areas necessary for direct national defense and security purposes as stipulated in Clause 1, Article 13 of Decree No. 31/2005/NĐ-CP of the Government. In cases where security companies use part of the land allocated by competent authorities for direct national defense and security purposes for other production and business activities, they must declare and pay land rental fees, land use fees, and land use tax for the area used for such activities according to current laws.

Settle taxes with tax authorities according to current documents issued by the Ministry of Finance implementing Tax Laws, Tax Ordinances, and current State Budget Revenue Laws.

b) Declare and pay corporate income tax: Once every quarter during the planning period, security companies that generate income from production and supply of public utility products and services and other production and business activities shall self-assess the corporate income tax payable and deposit it into the account of the Ministry of Public Security opened at the State Treasury in 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 settlements made by security companies, the Ministry of Public Security will determine the official payments of each security company and deposit the tax payable into the State Budget.

III. IMPLEMENTATION

1. In the first quarter of each year, the Ministry of Public Security compiles a list of security companies and public service units with income supplying public utility products and services serving security and sends it to the Ministry of Finance (General Department of Taxation) to inform provincial and municipal tax bureaus for knowledge and management of taxes 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 declarations, payments, 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 (excluding corporate income tax of security companies and public service units with income supplying public utility products and services serving security) according to Tax Laws, Tax Ordinances, and current State Budget Revenue Laws and settle taxes according to current regulations and guidance provided in this Circular.

This Circular shall take effect fifteen days after its publication in the Official Gazette.

Any difficulties or issues encountered during implementation should be promptly reported to the Ministry of Finance and the Ministry of Public Security for research and resolution./.