Circular No. 151/2016/TT-BTC dated October 17, 2016 of the Ministry of Finance guiding operation mechanism for enterprises and employees in enterprises in national security and defense as stipulated under the Decree No. 93/2015/ND-CP dated October 15, 2015 of the Government on management organization and operation of enterprises in national defense and security

THE MINISTRY OF FINANCE

Circular No. 151/2016/TT-BTC dated October 17, 2016 of the Ministry of Finance guiding operation mechanism for enterprises and employees in enterprises in national security and defense as stipulated under the Decree No. 93/2015/ND-CP dated October 15, 2015 of the Government on management organization and operation of enterprises in national defense and security

Pursuant to the Law on enterprises dated November 26, 2014;

Pursuant to the Law on management and using the State capital to invest in production and business at enterprises dated November 26, 2014;

Pursuant to the Decree No. 215/2013/ND-CP dated December 23, 2013 of the Government defining the functions, tasks, powers and organizational structure of the Ministry of Finance;

Pursuant to the Decree No. 93/2015/ND-CP dated October 15, 2015 of the Government on management organization and operation of enterprises in national defense and security;

At the proposal of the Director of Corporate Finance Department;

The Minister of Finance promulgates the Circular guiding operation mechanism for enterprises and employees in enterprises in national security and defense as stipulated under the Decree No. 93/2015/ND-CP dated October 15, 2015 of the Government on management organization and operation of enterprises in national defense and security.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of adjustment

This Circular guides on operation mechanism for enterprises and employees working in enterprises in national security and defense as stipulated under Article 6 of the Decree No. 93/2015/ND-CP dated October 15, 2015 of the Government on management organization and operation of enterprises in national defense and security (hereinafter referred to as the Decree No. 93/2015/ND-CP).

Article 2. Scope of application

This Circular applies for enterprises in enterprises in national security and defense; and employees in enterprises in national security and defense; organizations and individuals related to management organization, operation, supervision and inspection of enterprises in national security and defense.

Chapter II

SPECIFIC PROVISIONS

Section 1

REGULATIONS ON OPERATION MECHANISM FOR ENTERPRISES AND EMPLOYEES WORKING AT ENTERPRISES IN NATIONAL SECURITY AND DEFENSE

Article 3. Operation mechanism for enterprises in national security and defense

In the course of operation, in addition to state regulations on enterprise investment and establishment, general regulations on promotion and investment support according to the law, enterprises in national security and defense are entitled to enjoy some of the following financial policies:

1. To be exempted from land rentals, land use charges and land use tax for land area that is used for national defense and security tasks according to the law on land and other documents.

a) Enterprises in national security and defense shall report on the total area that is allocated, the area that is leased and used, of which include the land that is used to serve for national defense and security (confirmed by the Ministry of National Defense and Ministry of Public Security) and send to the local tax department.

Based on the report that is confirmed by competent agencies prepared by enterprises, tax department shall notify to enterprises the area that is exempted from land use rentals, land use and the area that has to pay land rentals, land use charge and land use tax. Dossiers, procedures on exemption and reduction of land use rentals, land use charges and land use tax shall be implemented according to the law on land.

If there is any fluctuation or any change on the land area that is used for national defense and security, enterprises in national defense and security shall notify to tax department for adjustment after being confirmed by competent agencies.

b) For the land area that is used for business, enterprises in national defense and security shall fulfill financial obligations for the land as stipulated by current regulations.

2. To be accounted some of expenses into business production expenses and shall be deducted when determining taxable income as stipulated under enterprise law (if not being supported by state budget or being supported but not sufficiently) includes:

a) Expenses for paying wages, paying for social insurance for employees during the time of preparing for retirement;

b) Payment for costumes for professional army men, defense workers and employees, non-commissioned officers, public security workers. The Ministry of National Defense and Ministry of Public Security shall decide the rate of spending.

c) Payment for discharge from the army, work cessation according to current regime;

d) Payment for national defense and security tasks to serve for national defense and security including payment for social policies, training and teaching minority people for less than 6 months; poverty reduction as stipulated by the Ministry of National Defense and Ministry of Public Security.

3. To be allocated capital for maintenance, repair operation of national defense and security, and support wages for full-time workers directly working to produce products to serve for national defense and security in case that production is ceased.

- Conditions to be enjoyed expenditures for maintenance, repair operation of national defense and security, and support wages for full-time workers directly working to produce products to serve for national defense and security in case that production is ceased according to the yearly plan allocated by competent agencies that enterprises in national defense and security are incapable of paying off expenses.

- Supporting wages for workers directly working to produce products to serve for national defense and security in case that production is ceased if actual wages of workers are lower than that of current level of wage and minimum wage as stipulated by the law.

- Dossier for supporting expenditures for maintenance, repair operation of national defense and security, and support wages for full-time workers in case that production is ceased include:

Application of enterprises on supporting expenditures on maintenance, repair operation of national defense and security, and support wages for full-time workers in case that production is ceased according to the yearly plan approved by Ministry of National Defense and Ministry of Public Security. Decision issued by competent agencies on allocating targets of business production, repair of defense products in the year; Decision issued by competent agencies on approving the number of production lines (for newly lines), time of ceasing production in the year.

4. To support bonus & welfare funds:

Enterprises in national security and defense shall distribute bonus & welfare funds to employees as stipulated under Article 31 of the Decree No. 91/2015/ND-CP dated October 13, 2015 of the Government on investment of state capital in enterprises and management and use of capital and assets at enterprises.

Annually, enterprises in national security and defense shall use after-tax profits after deducting investment development fund and make deductions for bonus & welfare funds. If after-tax profits after deducting investment development fund is not sufficient to make deductions for bonus & welfare funds as stipulated by the law (according to classification of enterprises A, B, C), the shortage of fund that shall be supported by the State but maximum support level shall not exceed 2 months of wages in the year (excluding wages for the time that business production is ceased as stipulated under Clause 3 of this Article).

5. The State shall support expenses for kindergarten, education for areas that public system is not available.

a) Conditions to be supported:

Education establishments under the management of enterprises in national security and defense that classes are not as available as public system must be confirmed by the Department of Education and training;

b) Contents and expenditures:

- To support principal investment expenditures to build schools, purchase desks, chairs and equipment but it should not exceed 200,000,000 VND/class (for establishments that have not been equipped). If classrooms, equipment are damaged and need to be fixed, the expenditure shall not exceed 30,000,000 VND/class/year.

- To support for wages, social insurance, health insurance and other regimes for teachers, nursery teachers as stipulated by current regulations for enterprises (including teachers, nursery teachers working in production team as stipulated by current laws in remote areas).

6. To be supported for health for special areas specifically:

a) Conditions for supporting:

Enterprises in national defense and security located in extremely difficult areas and far away from health centers as stipulated by the law that need to maintain polyclinics and approved by the Ministry of National Defense and the Ministry of Public Security.

b) Content and expenditure rate:

- Expenditure to buy facilities but the maximum expenditure should not exceed 300,000,000 dong/1 polyclinic with under 10 beds; 400,000,000 dong//1 polyclinic with 10 to 20 beds; and 500,000,000 dong/1 polyclinic with 20 beds or over.

- Frequent expenditure for operating polyclinic:

+ To support expenditures for wages, social insurance, health insurance according to level and other allowances for health employees, based on the actual expenditure of previous years to determine for the following year (including health employees working in production team as stipulated by current laws of the State in remote areas).

+ Expenditures to buy medicines for units locating in remote areas according to actual expenditures but it should not exceed 70,000,000 dong/year for polyclinic with fewer than 10 beds; 80,000,000 dong/year for polyclinic with 10 to 20 beds; 100,000,000 dong/year for polyclinic with 20 beds or more.

- Frequent expenditures for newly established polyclinic: support rate shall be based on the estimate of frequent expenditure for health activities of enterprises approved by competent agencies.

The determination of frequent expenditure for activities of polyclinics may use references from other polyclinics with the same type in the area that enterprises in national defense and security are located.

Article 4. Regime, policy of employees in national security and defense

1. Wage of professional army men and defense workers, employees and non-commissioned officers shall be determined according to their respective training degrees, working titles and positions and professional titles; it is also based on results of business production of enterprises according to current regulations on management of employees, wages and bonuses for employees working one-member limited liability company owned by the State and other guidelines issued by the Ministry of National Defense and Ministry of Public Security.

2. When performing tasks on national security and defense, if getting wounded or die, meeting conditions as required they shall be considered and confirmed to be as people with meritorious service; if employees have a labor accident, they will be considered to enjoy regime on labor at work as stipulated by the law on labors and other guidelines of the Ministry of National Defense and Ministry of Public Security.

Section 2

ESTABLISHMENT OF ESTIMATIONS AND SETTLEMENT OF THE BUDGET

Article 5. Estimate the budget and support enterprise in national security and defense

1. Annually, the Ministry of National Defense and Ministry of Public Security shall calculate in advance estimate as stipulated by the law on the state budget, enterprises in national security and defense shall establish detailed estimates on each content as stipulated under this Circular and report to competent agencies under the management of the Ministry of National Defense and Ministry of Public Security for appraisal and shall be summarized in the estimate of Ministry of National Defense and Ministry of Public Security.

2. Annually, the Ministry of Finance shall consider and report to the Government and submit to the National Assembly based on report on summarization of estimate to support enterprises in national security and defense in accordance with the law on the state budget.

3. Based on state budget estimate approved by the Prime Minister and notification of the Ministry of Finance, the Ministry of National Defense and Ministry of Public Security shall allocate the budget to each enterprise in national security and defense as stipulated under this Circular, and send to the Ministry of Finance for appraisal as a basis for allocating according to current regulations; the Ministry of National Defense and Ministry of Public Security shall allocate the budget to enterprises by withdrawing estimates.

For items for spending on supporting bonus & welfare fund: annually, enterprises in national security and defense shall finalize and judge the efficiency of operation and classification of enterprise according to current regulations. Based on results of classification, enterprises shall establish two bonus & welfare funds. If the remaining source of profit for two bonus & welfare funds is insufficient, enterprises shall propose to the Ministry of National Defense and Ministry of Public Security for appraisal. Based on proposals of enterprises, the Ministry of National Defense and Ministry of Public Security shall appraise and request the Ministry of Finance to consider on supporting two bonus & welfare funds. The Ministry of Finance shall appraise and allocate directly to the Ministry of National Defense and Ministry of Public Security by cash transfer at the proposal of the Ministry of National Defense and Ministry of Public Security.

Article 6. Settlement of budget

1. At the end of fiscal year, enterprises in national security and defense shall draw up financial statements as stipulated by current regulations, of which report on use of budget that is supported by the state budget.

2. Annually, the Ministry of National Defense and Ministry of Public Security shall examine on use of budget and settlement of budget according to the state regulations and regulations under this Circular (Ministry of Finance, Ministry of Investment and Planning shall cooperate when being requested).

If enterprises fail to spend the budget as stipulated, financial departments shall deal with items that are wrongly spent. Persons that decide on spending the budget incorrectly shall compensate and depending on the degree of violations shall be handled as stipulated by the law.

Chapter III

IMPLEMENTATION PROVISIONS

Article 7. Effect

1. This Circular annuls the Joint – Circular No. 141/2012/TTLT-BTC-BQP-BCA dated August 22, 2012 of the Ministry of Finance – Ministry of National Defense – Ministry of Public Security guiding financial supports for enterprises that directly serve national defense and security provided in the Government’s Decree No. 104/2010/ND-CP of October 11, 2010 and shall be applied from the 2016 budget year.

2. In addition to compliance to regulations as stipulated under this Circular, enterprises in enterprises in national security and defense shall also comply with regulations on financial management mechanism of one-member limited liability company owned by the State, other guidelines issued by the Ministry of Finance and other documents.

In the course of implementation, any arising problems should be promptly reported to the Ministry of Finance for research and amendment./.

For the Minister

The Deputy Minister

Tran Van Hieu