Circular No. 135/2008/TT-BTC dated December 31, 2008 of the Ministry of Finance guiding the Government's Decree No. 69/2008/ND-CP dated May 30, 2008, on incentive policies for the socialization of educational, vocational training, health care, cultural, sports and environmental activities

 CIRCULAR

  GUIDING THE GOVERNMENT'S DECREE NO. 69/2008/ND-CP OF MAY 30, 2008, ON INCENTIVE POLICIES FOR THE SOCIALIZATION OF EDUCATIONAL, VOCATIONAL TRAINING, HEALTHCARE, CULTURAL, SPORTS AND ENVIRONMENTAL ACTIVITIES

Pursuant to the Government's Decree No. 69/2008/ND-CP of May 30, 2008, on incentive policies for the socialization of educational, vocational training, healthcare, cultural, sports and environmental activities;

Pursuant to the Prime Minister's Decision No. 1466/QD-TTg of October 10, 2008, promulgating the list of types, sizes and criteria for establishments engaged in the socialization of education-training, vocational training, healthcare, cultural, sports and environmental activities.
The Ministry of Finance guides the implementation as follows:

I. THE SCOPE OF REGULATION AND SUBJECTS OF APPLICATION DENNED IN ARTICLE 1, DECREE NO. 69/ 2008/ND-CPOF MAY 30, 2008 (BELOW REFERRED TO AS DECREE NO. 69/2008/ND-CP) ARE GUIDED AS FOLLOWS:

1. Scope of regulation:

Domains encouraged for socialization include education-training, vocational training; healthcare; culture; physical training and sports; and the environment.

2. Subjects of application:

a/ Non-state establishments licensed by competent agencies to operate in the domains encouraged for socialization, comprising:

- Non-state establishments set up and operating under Decree No. 69/2008/ND-CP, including people-founded and private establishments in the domains encouraged for socialization.

- Non-state establishments set up and operating under the Government's Decree No. 53/2006/ND-CP of May 25, 2006, on incentive policies for the development of non-state service providers; and the Government's Decree No. 73/1999/ND-CP of August 19, 1999, on incentive policies for the socialization of educational, healthcare, cultural and sports activities.

b/ Organizations and individuals operating under the Enterprise Law that have investment projects, or enter into joint ventures or partnerships to set up financially independent establishments operating in the domains encouraged for socialization and meet operation conditions prescribed by competent state agencies.

c/ State non-business establishments contributing or raising capital, or entering into joint ventures or partnerships according to law, to set up financially independent establishments or enterprises operating in the domains encouraged for socialization under decisions of competent state agencies.

(Below referred to as establishments for short)

3. The Prime Minister shall, on a case-by-case basis, decide on the application of incentive policies under Decree No. 69/2008/ND-CP to foreign-in vested projects operating in the domains encouraged for socialization at the proposal of the Ministry of Planning and Investment and concerned line ministries.

II. CONDITIONS FOR ENJOYING INCENTIVE POLICIES UNDER ARTICLE 2 OF DECREE NO. 69/2008/ND-CP ARE GUIDED AS FOLLOWS:

Establishments operating in the domains of education-training, vocational training; healthcare; culture; physical training and sports; and environment that satisfy the types, sizes and criteria specified on the list promulgated together with the Prime Minister's Decision No. 1466/QD-TTg of October 10, 2008, may enjoy incentive policies under Decree No. 69/2008/ND-CP.

III. PRINCIPLES FOR IMPLEMENTATION OF INCENTIVE POLICIES UNDER ARTICLE 4 OF DECREE NO. 69/2008/ND-CP ARE GUIDED AS FOLLOWS:

1. Licensed establishments must conform with planning and satisfy prescribed conditions for enjoying incentive policies under Section II of tills Circular.

2. Establishments shall operate on the principle of self-financing.

3. The State shall allot or lease land readied for construction to establishments in accordance with land use master plans and plans; and financially support ground clearance and compensation for investment projects in the domains encouraged for socialization that have themselves completed this work from the effective date of Decree No. 69/2008/ND-CP.

4. The State and society respect and equally treat establishments in their operation as well as their products and services like state establishments. Establishments may provide public services funded or ordered by the State: and bid for domestic-or foreign-funded contracts and projects according to their law-prescribed functions and tasks.

5. Establishments may enter into joint ventures or partnerships with domestic and foreign organizations according to law to raise capital and attract human resources and technologies for product and service quality improvement.

6. Assets of establishments include personal and collective assets, assets contributed by state non-business establishments and assets formed in the course of operation, of which assets as donations, gifts or non-refundable aid granted to establishments during their operation may not be divided among individuals and must only be used in the common interests of the establishments and community.

7. When establishments terminate operation or are dissolved, the order of and procedures for dissolution, asset disposal and financial settlement comply with the law on enterprise dissolution.

IV. HOUSE LEASE AND BUILDING OF MATERIAL FOUNDATIONS UNDER ARTICLE 5 OF DECREE NO. 69/ 2008/ND-CPARE GUIDED AS FOLLOWS:

1. Establishments are prioritized to rent houses and infrastructure to provide services in the domains encouraged for socialization in line with master plans and plans of localities and the State.

a/ Based on their existing housing and infrastructure funds, provincial-level People's Committees shall create conditions for and encourage concerned agencies to build or upgrade state-managed houses and infrastructure facilities for long-term lease to establishments at preferential rent rates.

b/ Based on local socio-economic development master plans and plans, provincial-level People's Committees shall consider and decide on building housing and infrastructure for long-term lease to establishments at preferential rent rates.

2. Preferential rents for establishments are determined as follows:

The most preferential rent rate does not include land rents, ground clearance compensations (if any) and profits earned by housing and infrastructure operators according to approved projects. The unit rent rate of houses and infrastructure applicable to establishments shall be set by provincial-level People's Committees suitable to local realities, specifically:

a/ Rents of existing houses and infrastructure shall be determined based on asset reevaluation under current regulations on asset management.

b/ Rents of new houses and infrastructure shall be determined based on construction prices (inclusive of taxes on constructors), excluding land rents, ground clearance compensations and profits earned by housing and infrastructure operators.

Provincial-level People's Committees shall, based on local conditions and budgets, promulgate regulations on partial or full support of interests for competent agencies, units and organizations that lease houses and infrastructure to establishments. The interest rate is equal to one-year lending interest rate set by local branches of the Bank for Investment and Development of Vietnam and the value of repair or building for lease to establishments.

Provincial-level People's Committees shall decide on the basis for interest support for agencies, units and organizations competent to deal in housing and infrastructure.

3. Dossiers of and procedures for enjoying preferential rents of state-owned houses and infrastructure comply with the guidance of provincial-level People's Committees.

4. Provincial-level People's Committees shall ensure convenient administrative procedures, construction licensing and other relevant procedures for establishments to build or repair material foundations according to planning.

5. When establishments build housing or material foundations in the locations of projects or new urban centers where infrastructure has been built and have to pay infrastructure construction costs, provincial-level People's Committees shall, based on local budgets, prescribe partial support of infrastructure construction costs for these establishments.

Dossiers of and procedures for provision of support of infrastructure construction costs for establishments comply with the guidance of provincial-level People's Committees.

V. LAND ALLOCATION AND LEASE UNDER ARTICLE 6 OF DECREE NO. 69/2008/ND-CP ARC GUIDED AS FOLLOWS:

1. Provincial-level People's Committees shall consider and decide to allocate or lease land with clear grounds to establishments to build works in the domains encouraged for socialization in the following forms: land allocation free of land use levy; rent-exempt land lease; and land use levy-exempt allocation of land subject to land use levy in the duration of land allocation or lease under law.

For urban and residential land, provincial-level People's Committees shall, depending on local realities and budgets, prescribe specific regimes on land allocation with land use levy collection and rent-based land lease to establishments; and prescribe regimes on exemption from and reduction of land use levy and rents according to law.

When an investor of a project in the domains encouraged for socialization has advanced funds to pay compensations and support resettlement under a scheme already approved by a competent authority (from the effective date of Decree No. 69/2008/ND-CP), the investor may receive refunds from the state budget for the land areas used for activities encouraged for socialization. Provincial-level People's Committees shall specify and publicize procedures and times for refunding compensations and resettlement supports to investors of projects in the domains encouraged for socialization.

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