Circular 45/2014/TT-BTC compulsory contributions to fund for prevention and control of tobacco harms

CIRCULAR

Guiding the collection and payment of compulsory contributions, financial management regime and accounting regime for the fund for prevention and control of tobacco harms

Pursuant to the Law on Prevention and Control of Tobacco Harms dated June 18, 2012;

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

Pursuant to the Prime Minister’s Decision No. 47/2013/QD-TTg dated July 29, 2013, on the establishment and approval of the organization and operation charter of the fund for prevention and control of tobacco harms;

At the request of the Director of the Tax Policy Department;

The Minister of Finance promulgates the Circular guiding the collection and payment of compulsory contributions, financial management regime and accounting regime for the fund for prevention and control of tobacco harms.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

This Circular prescribes:

1. Bases for calculating and managing the collection and payment of compulsory contributions to the fund for prevention and control of tobacco harms (hereinafter referred to as the Fund);

2. Management of funding sources, voluntary contributions from domestic and foreign agencies, organizations and individuals and other lawful revenues;

3. Financial management of the Fund's operations;

4. Financial management of the Fund's management and administration;

5. Accounting and statistical regimes.

Article 2. Subjects of application

This Circular applies to:

1. The Fund for prevention and control of tobacco harms;

2. Tobacco manufacturers and importers; organizations and individuals engaged in tobacco import activities;

3. Organizations and individuals receiving sponsorship from the Fund;

4. Organizations and individuals sponsoring the Fund;

5. Tax offices, customs offices and the State Treasury of localities where tobacco manufacturers and importers in charge of declaration and payment of excise tax on domestically manufactured or imported tobacco provide information and check the status of declaration and payment of compulsory contributions of tobacco manufacturers and importers (hereinafter referred to as compulsory contributions).

Article 3. State management of the Fund

1. On an annual basis, the Fund must balance financial resources and operational needs, formulate financial revenue and expenditure plans and financial settlement. The Fund's activities shall not be covered by the State budget, except for the financial sources specified in Chapter II and Chapter III of this Circular.

2. The Fund may transfer revenues from compulsory contributions specified in Chapter II of this Circular and funding sources in the previous year to the next year to use for the Fund's activities in accordance with this Circular.

3. On an annual basis, the Fund shall formulate a plan on activities as prescribed in Article 4 of the organization and operation charter of the Fund, revenue plan and financial expenditure plan as prescribed in Article 25 of the organization and operation charter of the Fund, accompanied by detailed explanations, and submit them to the Ministry of Health and the Ministry of Finance.

The time limit for submission hereof in the planning year is before July 20 of the preceding year.

4. At the end of the operating year, the Fund must formulate financial statements and reports on operations. The Fund's annual financial statements shall be formulated by the Fund's accounting department with comments from the Administrative Committee before they are submitted to be passed by the Council and approved by the Chairperson of the Council. The time limit for submission hereof is before March 31 every year. The Fund Director shall be responsible for the accuracy and truthfulness of the statements.

5. The Fund's operations must be independently audited annually and the Fund shall submit audit reports to the Ministry of Health and the Ministry of Finance at the same time as the financial statements.

6. The Fund must implement the principles of publicity and transparency in financial management such as regulations on publicity and transparency of the state budget.

Chapter II

BASES FOR CALCULATING AND MANAGING THE COLLECTION AND PAYMENT OF COMPULSORY CONTRIBUTIONS

Article 4. Bases for calculating compulsory contributions to the Fund

The bases for calculating compulsory contributions for tobacco manufacturers and importers are the excise tax-liable prices of tobacco and compulsory contribution percentage.

Compulsory contribution = Compulsory contribution percentage x excise tax-liable price.

Of which:

- Compulsory contribution percentage (%) shall be implemented according to the roadmap: 1% from May 1, 2013; 1.5% from May 1, 2016; 2% from May 1, 2019.

- The excise tax-liable prices of tobacco shall comply with the law provisions on excise tax.

Article 5. Dossiers, time limit and places for submission of compulsory contribution declaration dossiers

1. A compulsory contribution declaration dossier shall comprise:

a) For domestically manufactured tobacco (including tobacco purchased for export but sold domestically):

- A compulsory contribution declaration, made according to the Form No. 01/DGBB enclosed with this Circular;

- A copy of the excise tax declaration of the same period.

b) For imported tobacco

- A compulsory contribution declaration, made according to the Form No. 02/DGBB enclosed with this Circular;

- A copy of the customs declaration registered in accordance with the law provisions on customs.

Copies of documents specified in this Clause must be certified as true copies by the tobacco manufacturer and importer.

2. The time limit for submission of compulsory contribution declaration dossiers:

Compulsory contributions must be declared together with excise tax, and be declared and assessed by the0 tobacco manufacturer or importer.

Specifically:

a) For imported tobacco, a compulsory contribution declaration dossier shall be made each time when the compulsory contribution obligation arises and the time limit for submission hereof to the Fund shall be after the customs declaration is registered and before the goods is cleared and released;

b) For domestically manufactured tobacco, compulsory contributions shall be declared on a monthly basis and submitted no later than the twentieth day of the month following the month in which the compulsory contribution obligation arises;

c) For tobacco purchased for export but sold domestically, a compulsory contribution declaration dossier shall be made each time when the compulsory contribution obligation arises and submitted no later than the tenth day from the date the compulsory contribution obligation arises. The date on which the compulsory contribution obligation arises is the date on which the tobacco purchased for export are sold domestically;

d) In the case where a compulsory contribution declaration dossier of a tobacco manufacturer or importer does not comply with regulations, the Fund shall send the tobacco manufacturer or importer a written notice requesting for completing the dossier, and the time limit for supplementing and resubmitting the compulsory contribution declaration dossier is 07 days from the issuing date of the Fund's notice.

3. Places for submission of compulsory contribution declaration dossiers:

a) A compulsory contribution declaration dossier according to the submission time limit specified in Clause 2 of this Article shall be submitted directly or by post or courier services to the headquarter of the Fund for prevention and control of tobacco harms. In cases of submission by post or courier services, the date of submitting the compulsory contribution declaration dossier shall be determined as the date on which the Fund receives the compulsory contribution declaration dossier, which is confirmed on the delivery note of the courier service provider.

b) Address of the Fund:

The Fund for prevention and control of tobacco harms - the Ministry of Health

No. 138A Giang Vo - Hanoi

Phone/fax: 04.62733379

4. Domestically manufactured tobacco that a manufacturer sells or entrusts to an export business establishment for export under an economic contract shall not be subject to declaration or payment of compulsory contributions.

Article 6. Time limit and account for payment of compulsory contributions

Tobacco manufacturers and importers must pay compulsory contributions into the Fund's account at the same time as paying excise tax. Specifically as follows:

1. For imported tobacco, importers must take responsibility and pay compulsory contributions before the goods is cleared or released. Customs offices shall coordinate with the Fund in accordance with Article 8 of this Circular.

2. For domestically manufactured tobacco and tobacco purchased for export but sold domestically, the time limit for payment of compulsory contributions is the last day of the time limit for submission of compulsory contribution declaration dossiers as prescribed in Clause 2, Article 5 of this Circular.

3. The Fund’s account for payment of compulsory contributions:

Account name: FUND FOR PREVENTION AND CONTROL OF TOBACCO HARMS

Account number: 212-10-00-058986-8

Opened at: Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV), Tay Ho branch.

The bank’s address: No. 47 Phan Dinh Phung, Hanoi

Article 7. Accounting for compulsory contributions

Tobacco manufacturers and importers may account compulsory contributions as deductible expenses when determining income subject to enterprise income tax if they have documents for payment of compulsory contributions according to regulations.

Article 8. Inspection and guidance on payment of compulsory contributions of tobacco manufacturers and importers

1. The Fund for prevention and control of tobacco harms shall assume the prime responsibility for inspecting the collection and payment of compulsory contributions of tobacco manufacturers and importers; tax offices, customs offices and the State Treasury shall coordinate upon the Fund’s request. Tax offices and customs offices shall coordinate with the Fund in providing information on tax bases of relevant tobacco manufacturers and importers, and excise tax amounts paid to serve for monitoring and inspecting the declaration and payment of compulsory contributions.

2. After the tax and customs examination and inspection, if the excise tax-liable prices are not in accordance with the law provisions on excise tax and must be adjusted, tax offices or customs offices shall notify the Fund.

3. For imported tobacco or tobacco purchased domestically for export but sold domestically, after the conclusion of tax and customs examination and inspection, if the excise tax-liable prices that serve as bases for calculating compulsory contributions must be adjusted, importers or domestic sellers shall adjust the payable amounts of compulsory contributions no later than the tenth day from the date on which the inspection and examination conclusion is received.

For domestically manufactured tobacco, after the conclusion of tax examination and inspection, if the excise tax-liable prices that serve as bases for calculating compulsory contributions must be adjusted, tobacco manufactures shall adjust the payable amounts of compulsory contributions in the month or quarter following the month or quarter in which the inspection and examination conclusion is received.

4. Since May 1, 2013, all violations related to compulsory contributions shall be handled in accordance with the law on sanctioning of administrative violations in the field of health.

5. The Fund shall be responsible for notifying tobacco manufacturers and importers of places for receipt of compulsory contribution declaration dossiers and the Fund's account to pay compulsory contributions.

Chapter III

MANAGEMENT OF OTHER FINANCIAL RESOURCES

Article 9. Other financial sources

1. The Fund may receive voluntary contributions, donations, sponsorships, and aid from domestic organizations and individuals, international organizations, foreign organizations and individuals in accordance with the law provisions, and other lawful revenues specified at Point c, Clause 1, Article 30 of the Law on Prevention and Control of Tobacco Harms.

2. The Fund may proactively mobilize and receive other financial sources in accordance with the Fund's regulations and the State’s relevant regulations.

Article 10. Management of funding sources from international organizations, foreign organizations and individuals and other lawful revenues

1. The receipt, management and use of aid from official development assistance sources shall be carried out in accordance with the Regulation on management and utilization of official development assistance issued together with the Government’s Decree No. 38/2013/ND-CP dated April 23, 2013, on management and utilization of official development assistance (ODA) and concessional loans from donors, and relevant amending, supplementing or guiding legal documents.

2. The reception, management and utilization of foreign non-governmental aid shall be carried out in accordance with the Regulation on management and utilization of foreign non-governmental aid issued together with the Government’s Decree No. 93/2009/ND-CP October 22, 2009, and relevant amending, supplementing or guiding legal documents.

3. The reception, management and utilization of other lawful revenues (if any) shall be carried out in accordance with relevant current regulations.

Chapter IV

FINANCIAL MANAGEMENT OF THE FUND'S OPERATIONS

Article 11. Support tasks of the Fund

The Fund shall support activities of prevention and control of tobacco harms in accordance with Article 29 of the Law on Prevention and Control of Tobacco Harms. The support contents are specified as follows:

1. With regard to communication on tobacco harms and the prevention and control of tobacco harms suitable to each target group:

a) Costs for editing and producing documentaries, seminars, advertisements, films, or royalties for writing articles about tobacco harms and prevention and control of tobacco harms for publishing on mass media, including newspapers, radio stations, television stations including e-publications;

b) Costs for radio and television broadcasting of news, documentaries, seminars, advertisements, and films about tobacco harms and prevention and control of tobacco harms; and costs for publishing on mass media;

c) Costs for construction, production or import and distribution of publications, communication products, and documents serving communication activities;

d) Expenses for dissemination of policies and laws on prevention and control of tobacco harms;

dd) Expenses for organization of activities to respond to national no-tobacco week;

e) Expenses for supporting activities of mobile propaganda teams during propaganda campaigns in communities and units:

- Expenses for fuel or vehicle rental, documentary photos and other activities;

- Expenses for supporting participants in mobile propaganda teams.

2. With regard to building and developing pilot models of tobacco smoke-free communities, agencies and organizations; developing and widely expanding effective models:

a) Expense for supporting pilot models of tobacco smoke-free communities, agencies and organizations:

- Expenses for information, education, and behavior change communication activities; prevention and control of tobacco harms; dissemination of laws and other issues related to the prevention and control of tobacco harms in communities, agencies and organizations, including:

+ Organizing sessions, media education classes, and topical talks appropriate to professional activities on prevention and control of tobacco harms;

+ Supporting communication activities in communities, agencies and organizations, including communication materials, broadcasting (building, editing, broadcasting), renewing or repairing posters and slogans.

- Expenses for supporting the integration of activities related to prevention and control of tobacco harms into socio-economic development programs of ministries, branches and localities; mass movements, sports, cultural and arts activities, and other social activities of agencies and units;

- Expenses for organizing conferences for preliminary review, review, training to deploy work tasks, and seminars for exchanging professional expertise on prevention and control of tobacco harms;

- Expenses for training and re-training courses to improve professional expertise for officials in charge of prevention and control of tobacco harms at establishments;

- Remunerations for collaborators participating in behavior change propaganda and campaigning.

b)  Expenses for research and evaluation before and after intervention of models;

c) Costs for construction, production, duplication and distribution of pilot model guidance documents;

d) Expenses for supporting replication of pilot models that have been implemented well in previous periods;

dd) Expenses for organizing re-training courses, seminars, and domestic and international conferences to exchange experiences on building tobacco smoke-free unit models;

e) Expenses for organizing conferences to review, praise and commend units and individuals that have outstanding performance;

g) Expenses for building a system to monitor and supervise the implementation of a tobacco smoke-free environment;

h) Expenses for training in inspection and supervision of a tobacco smoke-free environment;

i) Expenses for organizing monitoring and supervision of the implementation of a tobacco smoke-free environment.

3. With regard to organizing community-based campaigns and initiatives on prevention and control of tobacco harms; providing consultancy on organization of separate smoking areas in public places:

a) Expenses for organizing research and innovation contests on prevention and control of tobacco harms, including:

- Expenses for compiling exam questions and answers;

- Expenses for advertising contents on newspapers, radio and television;

- Expenses for marking exams, supporting competition judges, and announcing exam results;

- Remunerations for members of the Organizing Committee;

- Payment of prizes;

- Expenses for organizing awards;

- Expenses for summing up and reporting contest results.

b) Meeting expenses;

c) Costs for hiring experts to build, guide and advise on organizing designated areas for smokers in public locations.

4. With regard to organizing tobacco use cessation:

a) Expenses for supporting research to evaluate the effectiveness of tobacco use cessation methods, and researching on tobacco use cessation methods suitable to Vietnam's economic and social conditions;

b) Expenses for developing and disseminating communication materials and instructional materials on tobacco use cessation;

c) Expenses for implementing and applying tobacco use cessation methods;

d) Expenses for supporting medical establishments in setting up tobacco use cessation and counselling units;

dd) Expenses for supporting tobacco use cessation support activities such as telephone counselling or online counselling or offline counselling;

e) Expenses for organizing conferences, seminars to summarize and exchange experience and effective methods of tobacco use cessation;

g) Expenses for organizing training courses for health workers and community health workers on tobacco harms and tobacco use cessation methods;

h) Costs for establishing and maintaining a data management system on tobacco use cessation services.

5. With regard to building and deploying pilot models of community-based tobacco use cessation, and developing and widely expanding effective models:

a) Expenses for deploying pilot models of community-based tobacco use cessation;

b) Expenses for research, development, evaluation, monitoring and replication of community-based tobacco use cessation models.

6. With regard to conducting research to produce evidence for the prevention and control of tobacco harms, including activities:

a) Expenses for research, development of solutions to prevent and control tobacco harms, and production, duplication and publication of research and evidence for the prevention and control of tobacco harms;

b) Expenses for investigation, survey, synthesis, and copyright payment of information, data, and documents serving the development of solutions to prevent and control tobacco harms in accordance with the Law on Prevention and Control of tobacco harms.

7. With regard to developing, supporting and raising capacity for the network of collaborators on prevention and control of tobacco harms, including activities:

a) Remunerations for articles and presentations;

b) Expenses for organizing training and re-training courses to raise capacity for the network of collaborators working on prevention and control of tobacco harms;

c) Remunerations for collaborators on prevention and control of tobacco harms in provinces and cities.

8. With regard to developing contents and introducing education about tobacco harms and prevention and control of tobacco harms into the educational programs suitable to each educational level:

a) Costs for developing, producing and distributing teaching materials on prevention and control of tobacco harms;

b) Expenses for training teachers in high schools and lecturers at medical and pharmaceutical universities on prevention and control of tobacco harms;

c) Expenses for piloting teaching materials on prevention and control of tobacco harms into the curriculum in high schools and medical and pharmaceutical universities;

d) Expenses for evaluating the effectiveness of teaching the prevention and control of tobacco harms in high schools, medical and pharmaceutical universities;

dd) Expenses for replicating the inclusion of contents related to prevention and control of tobacco harms into the curriculum in high schools and medical and pharmaceutical universities;

e) Expenses for building distance education programs on prevention and control of tobacco harms through television and Voice of Vietnam radio.

9. With regard to applying measures to help tobacco growers, tobacco material processors and tobacco manufacturing workers change their occupations, including:

- Expenses for research and evaluation of occupational change solutions for tobacco growers;

- Expenses for short-term vocational training, support for job consulting and introduction at job centers.

10. Expenses for international cooperation activities on prevention and control of tobacco harms;

11. Expenses for monitoring, synthesizing and evaluating the performance of prevention and control of tobacco harms;

12. Other expenses related to the support tasks of the Fund for prevention and control of tobacco harms in accordance with the law provisions.

The contents of support expenses specified in this Article include expenses for outbound and inbound delegations, payments for consultants, expenses for organization of domestic and international training, conferences and seminars, and expenses for investigations and surveys, and working-trip allowance.

Article 12. Conditions for receiving support from the Fund

Conditions for receiving support from the Fund shall be carried out in accordance with Article 22 of the organization and operation charter of the Fund, specifically as follows:

1. Organizations and individuals shall propose to the Fund to carry out activities on prevention and control of tobacco harms in Vietnam in accordance with Article 11 of this Circular.

2. Submitting dossiers requesting support for activities on prevention and control of tobacco harms in accordance with the Fund's regulations.

3. Satisfying requirements on capacity to request for support. The criteria, order and procedures for commenting and evaluating organizations and individuals that satisfy requirements on capacity to request for support shall be decided by the Fund Management Council, specifically on the following principles:

a) With regard to organizations, they must have an establishment decision or a written approval for operations by a competent authority, clearly stating the functions and tasks related to activities requested for support;

b) With regard to individuals, they must have degrees, certificates, and professional experience related to activities requested for support.

4. Direct or indirect sponsorship from tobacco manufacturers and traders shall not be accepted. Organizations and individuals receiving support must make a written commitment to the Fund.

Article 13. Levels and procedures for approval of financial support

The levels and procedures for approval of financial support for tobacco harm prevention and control activities shall be carried out in accordance with Article 23 of the Fund's organization and operation charter, specifically as follows:

1. The levels of financial support for each activity supported by the Fund shall be decided by the Fund Director based on the plan on activities and funding allocation approved by the Council, suitable to the nature, scale and content of activities requested for support specified in Article 11 of this Circular and the funding sources of the Fund.

2. The expenditure levels for each activity shall be carried out in accordance with the Fund's operating expenditure regulation decided by the Fund Director based on the agreement of the Fund Management Council. The expenditure levels shall be built based on the actual conditions but must ensure the economical, efficient and synchronous basis among partners receiving support.

a. For expenditure contents similar to the expenditure contents prescribed by the State, the expenditure levels must comply with the State's regulations;

b. For specific expenditure contents not prescribed in the current expenditure regime, the Fund Director shall decide on the expenditure levels based on the agreement of the Fund Management Council. The expenditure levels shall be built based on the actual conditions but must ensure the economical, efficient and synchronous basis among partners receiving support, or in cases where the expenditure levels prescribed by the State have not been adjusted promptly compared to the actual conditions, the expenditure levels shall be built based on the actual conditions and agreement with support recipients but must not exceed 02 times the expenditure levels prescribed by the State. These adjusted expenditure levels shall be finally decided by the Fund Director on based on the agreement of the Fund Management Council and supplemented to the Fund's operating expenditure regulation.

3. Procedures and dossiers requesting for support shall be carried out in accordance with the Fund's regulation on operations issued by the Fund Director.

4. The commitment to support and utilization of financial support shall be made through a contract signed between the Fund Director and organizations or individuals, made according to the form issued by the Fund Director.

5. The Fund Director shall decide on the financial support levels within the competence approved by the Chairperson of the Council; If the financial support levels are beyond the Fund Director’s competence, the Chairperson of the Council shall decide on the financial support levels based on the proposal of the Fund Director.

Article 14. Monitoring and inspection of financial support utilization

1. Financial support must be provided to proper subjects and purposes, and must be disbursed according to the implementation progress of the support proposal.

2. The Fund shall carry out periodic and ad-hoc inspections of activities supported by the Fund during the implementation process to ensure compliance with the terms committed in the contract.

3. Monitoring, inspection and handling of violations by organizations and individuals using the Fund's financial support shall be carried out in accordance with the Fund's regulation on operations and relevant applicable laws.

4. During the implementation process, the Fund's Executive Director may adjust the support levels and disbursement schedule according to the actual situation to ensure the effectiveness of the support proposal, and must be responsible for his/her decision.

Article 15. Responsibilities of organizations and individuals receiving support from the Fund

1. Complying with the terms stated in signed support contracts;

2. Utilizing financial support for proper purposes and in accordance with the Fund's standards; periodically reporting on the utilization of financial support in accordance with the Fund's regulations;

3. Performing settlement directly with the Fund in accordance with the Fund's regulations;

4. Being suspended from support, canceled support contracts and requested to be handled by competent authorities in accordance with the law provisions and the Fund's regulations in the following cases:

a) Violation against the provisions of support contracts;

b) Detection of fraud or misuse of financial support compared to the original commitment;

c) Individuals have committed a criminal offense or other legal dispute affecting the implementation progress of financial support;

5. Organizations and individuals receiving support from the Fund shall comply with the Fund's periodic and ad-hoc inspection and supervision.

Chapter V

FINANCIAL MANAGEMENT OF THE FUND'S MANAGEMENT AND ADMINISTRATION

Article 16. Salaries and bonuses

1. Salaries and allowances for employees shall be paid based on their productivity, quality, work efficiency and the law provisions on salaries and wages.

2. Employees may enjoy a salary regime with an increased adjustment coefficient, but their total annual income must not exceed 03 times the salary fund for each level and position in the year as prescribed by the State for public non-business units.

3. The Fund’s Director shall organize the development and promulgation of salary regulations in accordance with the law provisions and Clauses 1 and 2 of this Article.

Article 17. Rights and obligations of employees

1. Employees have the following rights:

a) Enjoying benefits under labor contracts, employment contracts and in accordance with the law provisions;

b) Implementing social insurance, health insurance, and unemployment insurance policies in accordance with the law provisions;

c) Upon the working duration at the Fund, participating in work, study, visit and survey domestically and abroad when necessary as assigned by the Fund’s Director and in accordance with the law provisions.

2. Employees have the following obligations:

a) Fully complying with agreements in labor contracts signed with employers;

b) Abiding by the Fund's internal regulations and labor discipline and applicable laws.

Article 18. Commendation and handling of violations

1. Organizations and individuals that have outstanding achievements and make great contributions to the Fund shall be commended by the Fund or requested to be commended by competent authorities in accordance with the law provisions on emulation and commendation, and the Fund's regulations;

2. Handling of violations:

a) The Fund’s cadres, public employees, and workers that violate the Fund's regulations, depending on the severity of violations, shall be handled in accordance with the law provisions and the Fund's regulations;

b) Organizations and individuals receiving support from the Fund that violate the provisions of support contracts shall be suspended from support, canceled support contracts and requested to be handled by competent authorities in accordance with the law provisions and the Fund’s regulations. In the case where the financial support is used for improper purposes, they must return such amount to the Fund.

Article 19. Expenditures of the Fund

1. Expenses for activities specified in Article 11 of this Circular.

2. Costs for administrative management to run the Fund's operations, including:

a) Personal payments: salaries, wages, allowances; salary-based contributions, bonuses, collective benefits and other payments to individuals as prescribed;

b) Payments for public services; rentals; expenses for office supplies; expenses for communications; expenses for conferences; domestic work-trip allowances; expenses for outbound and inbound delegations; expenses for uniforms; expenses for regular repairs of fixed property to serve the Fund's operations;

c) Office rentals, costs for purchase of property, equipment, vehicles, and supplies to serve the Fund's operations;

d) Annual dues paid to international organizations;

dd) Other expenses serving the management and administration of the Fund in accordance with the law provisions.

3. Expenditure management regime:

a) Based on the annual management expenditure estimate approved by the Chairperson of the Fund Management Council and lawful revenues, the Fund may apply autonomy regulations on payroll and finance in accordance with the organization and operations charter of the Fund and specific regulations in this Circular.

b) The Fund’s Director shall develop operating expenditure regulations for the Fund's support activities and internal expenditure regulations for administrative management expenses as guided in this Circular, submit them to the Fund Management Council for approval as a basis for implementation, decide on expenditure and be responsible before the law.

c) The Fund must not account for the following expenses:

- Expenses that have been covered by other funding sources;

- Damages that have been compensated by a third party;

- Expenses that do not have enough legal invoices and documents in accordance with the law provisions.

Article 20. Establishment and utilization of commendation funds and welfare funds

1. The Fund may establish a commendation fund and a welfare fund from the difference in annual financial income and expenditure of the Fund. For the 02 (two) commendation fund and welfare fund, the maximum deduction level shall not more than 03 (three) months of average salaries and wages made during the year.

2. The utilization of funds is specified as follows:

a) The commendation fund shall be utilized for year-end or periodic commendation for cadres, public employees, and workers of the Fund in accordance with Clause 1, Article 34 of the Fund Charter; commendation for individuals and units outside the Fund that have relationships and make great contribution to the Fund's operations. The commendation levels shall be decided by the Chairperson of the Fund Council.

b) The welfare fund shall be utilized to invest in construction or repair of the Fund's welfare works, and to pay for sports, cultural and public welfare activities of cadres, public employees, and workers of the Fund; pay regular and unexpected hardship allowances for cadres, public employees, and workers of the Fund; contribute to social welfare funds and spend on other welfare activities. The utilization of the welfare fund must be recorded in the Fund's internal expenditure regulations based on the proposal of the Fund's Trade Union Executive Committee.

Article 21. Management, procurement and use of property

1. Investment, procurement, management and use of fixed property serving the Fund's operations shall be carried out in accordance with the Law on management and use of state property and guiding documents.

2. The Fund may liquidate and sell poor-quality property, damaged property that cannot be restored, technically-outdated property, property that no longer need to be used or are used ineffectively. Upon the liquidation or sale of property, the Fund must value the property and organize an auction in accordance with the law provisions.

The amount of money obtained from the difference due to liquidation or sale of property with the remaining value of the property on accounting books and liquidation or sale costs (if any) shall be kept for use in regenerating property, investing in building facilities, and renovating equipment.

3. In cases of loss of the Fund's property, the Fund must clearly determine the cause and handle:

a) If the property is lost due to the fault of a collective or individual, such collective or individual must compensate in accordance with the law provisions.

b) If the property has been insured in accordance with the law provisions, it shall be handled under the insurance contract.

4. The Fund must conduct an inventory of property in accordance with applicable regulations.

Chapter VI

ACCOUNTING AND STATISTICAL REGIMES

Article 22. Accounting regimes

1. The Fund is an independent accounting organization. The Fund must organize accounting work and apparatus, appoint a chief accountant or arrange a person in charge of accounting in accordance with current regulations.

2. The Fund's financial performance results are the difference between financial revenues and expenditures during the year, determined by the total income minus total expenses incurred during the year.

3. The Fund's fiscal year begins on January 1 and ends at the end of December 31 of that calendar year.

4. The Fund must organize and carry out accounting work in accordance with the Law on Accounting and its guiding documents.

The Fund shall perform accounting according to the public administrative accounting regime promulgated together with the Minister of Finance’s Decision No. 19/2006/QD-BTC dated March 30, 2006; the Ministry of Finance’s Circular No. 185/2010/TT-BTC dated November 15, 2010, amending and supplementing the public administrative accounting regime and documents amending and supplementing the public administrative accounting regime of the Minister of Finance, for implementing the Fund's accounting work.

5. The Fund shall be subject to financial and accounting inspection by the Ministry of Health, the Ministry of Finance and other competent authorities in accordance with applicable regulations.

The Fund shall be subject to accounting inspection in accordance with the Law on Accounting and its guiding documents.

Article 23. Statistical regimes

The Fund shall carry out statistical work in accordance with the Law on Statistics and its guiding documents.

Chapter VII

ORGANIZATION OF IMPLEMENTATION

Article 24. Effect

This Circular takes effect from May 31, 2014.

Tobacco manufacturers and importers shall declare, assess and pay compulsory contributions by themselves for domestically manufactured tobacco sold and imported from May 1, 2013 as guided in Chapter II of the Circular within 30 days from the effective date of this Circular, and shall not be sanctioned for administrative violations in the health field for late payment of compulsory contributions arising during the period from May 1, 2013 to the effective date of this Circular.

During the course of implementation, if relevant documents mentioned in this Circular are amended, supplemented or replaced, the newly amended, supplemented or replaced documents shall prevail.

Article 25. Responsibilities for implementation

Any problems arising during the course of implementation shall be promptly reported to the Ministry of Finance for consideration./.

For the Minister

The Deputy Minister

VU THI MAI

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