|
THE MINISTRY
OF FINANCE
-------
|
SOCIALIST
REPUBLIC OF VIET NAM
Independence - Freedom – Happiness
----------
|
|
No: 27/1999/TT-BTC
|
Hanoi, March 11,
1999
|
CIRCULAR
GUIDING THE
REGIME OF FINANCIAL MANAGEMENT AT THE GROUPS OF AIRPORTS (STATE ENTERPRISES
ENGAGED IN PUBLIC UTILITY ACTIVITIES)
Pursuant
to Decree No. 56/CP of October 2, 1996 of the Government on State enterprises
engaged in public utility activities;
Pursuant to Decision No. 113/1998/QD-TTg of July 6, 1998 of the Prime Minister
on the conversion of the groups of airports in the North, the Center and the
South from non business units having revenues into State enterprises engaged in
public utility activities and Decision No. 258/1998/QD-TTg of December 31, 1998
of the Prime Minister amending and supplementing Decision No. 113/1998/QD-TTg
of July 6, 1998 of the Prime Minister;
Pursuant to Circular No. 06/TC/TCDN of February 24, 1997 of the Ministry of
Finance guiding the implementation of the regime of financial management at the
State enterprises engaged in public utility activities;
In order to conform with the characteristics of the activities in the field of
management and exploitation of the infrastructures at the airports, the
Ministry of Finance provides the following guidance on the regime of financial
management at the groups of airports:
I.
GENERAL PROVISIONS
- Groups of airports are State enterprises
engaged in public utility activities with the task of managing and exploiting
airports aimed at supplying air services and public utility services according
to the State policies and the plans assigned by the State and the prices set by
the State. They carry out the financial regime stipulated in Circular No.
06/TC/TCDN of February 24, 1997 of the Ministry of Finance "Guiding the
regime of financial management at State enterprises engaged in public utility
activities" and specific stipulations in this Circular.
- Apart from the task of operating in public
utility, the groups of airports are authorized to organize additional business
activities as prescribed in the Status of Operation and in conformity with
their capabilities and the needs of the market under the following conditions:
+ Having got the written agreement of the
Vietnam Civil Aviation Administration.
+ Not affecting the realization of the public
utility tasks that the State has assigned to them.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
+ To account the additional business separately.
+ To discharge the obligation of paying tax on
the additional businesses as prescribed by law.
II.
CONCRETE STIPULATIONS
A. FINANCIAL RESULTS AND HOW TO HANDLE THEM
1.
Turnover: The turnover of the groups of airports includes the
turnover from public utility activities, turnover from production and business
activities (if any) and other activities.
1.1. Turnover from public utility activities:
Turnover from public utility activities of the
groups of airports includes:
a/ Turnover from the supply of services at the
airports:
- Income from ground technical and commercial
services,
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
- Income from the use of air parking grounds,
- Income from passenger service,
- Income from rent of desks to fill passengers’ procedures,
- Income from concession of exploitation right,
- Income from the renting of specialized
equipment,
- Income from security scanning,
- Income from providing supplementary services
in transit flight operations,
- Income from the renting of ground space at the
air terminal,
- Income from car parks,
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
- Income from renting advertisement space,
- Other incomes.
b/ Collection of charges and fees (if any)
c/ Income from allowances and price subsidies of
the State (if any) and other incomes
The contents and level of collection of incomes
from public utility activities of the groups of airports shall follow
Inter-Ministerial Circular No. 171/1998/TTLT/BVG-CAAV of February 7, 1998 of
the Government Pricing Commission and the Vietnam Civil Aviation Administration
and the concrete stipulations of the Vietnam Civil Aviation Administration.
1.2. Turnover from business activities and other
activities: to conform with the stipulations for State enterprises engaged in
business activities.
2.
Expenditures: The expenditures of the groups of airports include the
expenditures on public utility activities, business activities and other
activities.
2.1. Expenditures on public utility activities:
The expenditures on public utility activities of the groups of airports
include:
- Expenditures on wages and allowances,
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
- Expenditures on raw materials and materials,
fuel and motor power,
- Purchases of labor tools,
- Expenditures on depreciation of fixed assets,
- Major repair of fixed assets,
- Expenditures on regular maintenance and
repairs of fixed assets,
- Expenditures on training and application of
specialized science and techniques,
- Expenditures on management of operational
assurance,
- Expenditures on flights for equipment run-in,
- Expenditures on land rent,
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
2.2. The expenditures on business operations and
other activities shall comply with the stipulations for State enterprises on
business operation.
3. Management of financial collection and
expenditure of groups of airports
- The groups of airports are allowed to use
incomes to make up for expenditures, including: income from public utility
activities used to offset expenditures on public utility activities, the taxes
to be paid as prescribed by law (excluding enterprise income tax). Particularly
for the collection of charges and fees, they are allowed to follow State
prescriptions for the management of charges and fees. The income from business
activities and other activities shall be used to offset the total cost of the
products, the services already consumed and other expenditures, taxes and other
levies to be paid to the State as prescribed by law (excluding enterprise
income tax). The production and business activities must be recorded in the
books of accounts, where the incomes, expenditures and the financial result of
these activities must be recorded separately, and it is not allowed to use the
financial result of public utility activities to offset the losses (if any) of
the production and business activities.
- The vouchers shall be issued solely by the
Ministry of Finance (the General Tax Department). If specific vouchers are
used, the groups of airports must register with the tax management agency
before using them
4. Handling financial results:
4.1. For the groups of airports which are State
enterprise engaged in public utility activities, the difference between incomes
and expenditures shall be handled as follows:
a/ To pay the enterprise income tax as
prescribed by law.
b/ To make up for the fines for violations of
the discipline on budgetary remittances, administrative violations, violations
of contracts, fines over overdue debts and not yet subtracted valid
expenditures when determining the taxable profits.
c/ To offset losses that are not yet subtracted
from the pre-tax profits.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
+ Investment and development fund: minimum
deduction is 50%.
+ Financial reserve fund: deduction of 10%. The
balance of this fund must not exceed 25% of the prescribed capital.
+ Deduction for the two funds, reward and
welfare, shall not exceed three months of real wages if the remittance to the
Budget in the reporting year is higher than that in the previous year, and two
months of real wages if the Budget remittance of the reporting year is equal to
or lower than that of the previous year.
After deduction of the amounts prescribed in
Clauses a, b, c and d in the investment and development fund and the financial
reserve fund, if the profit contributed to the reward and welfare funds is not
used up, the remainder shall be wholly carried over into the investment and
development fund. If this is not enough to set up the reward and welfare funds
equal to two months of real wages the groups of airports shall be subsidized by
the State for the deficient amount.
4.2. For the groups of airports whose income is
not enough to offset the expenditures or whose profits are not enough to set up
the reward and welfare funds equal to two months of real wages, the following
solution shall be adopted:
4.2.1. After using 50% of the profit from
business operations and other activities to make up for the shortage, if the
enterprise is still making losses, the State shall provide support by:
- Providing enough allowance to make up for the
remaining losses
- Providing two months of real wages for the
reward and welfare funds.
4.2.2. 80% of the remaining profit from business
operations and other activities shall be remitted to the investment and
development fund and 20% to the financial reserve fund.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
Each year, basing themselves on the stipulations
and guidance of the financial agencies, the groups of airports shall have to
make reports on:
- The production and business plan including
public utility activities and other business activities according to the
prescribed regime of the State.
- Making the financial income and expenditures
estimates (including the plan of allowances and price subsidies (if any).
These reports shall be sent to the Vietnam Civil
Aviation Administration, the Ministry of Finance and the tax agency. After
reaching a written agreement with the Ministry of Finance, the Vietnam Civil
Aviation Administration shall ratify and assign the yearly plan to the groups
of airports and shall at the same time guide the units carry out the draft
financial income and expenditures plan and ensure the plan of financial
collection and remittance to the State budget.
C. INSPECTION OF FINANCIAL REPORT AND PUBLIC
ACCOUNTING OF FINANCE
1. Making the financial report.
Every quarter and annually, the groups of
airports have to make the financial reports as currently prescribed. The
General Director of the group of airports is answerable to the State and law
for the accurancy, truthfulness of the financial reports.
- The quarterly and annual financial reports
shall be sent to the Vietnam Civil Aviation Administration, the local tax
agency, the agency managing State capital and properties at the enterprise, the
statistical agency according to the contents and form prescribed in Decision
No. 1141/TC/QD-CDKT of November 1st, 1995 of the Minister of Finance on the
accountancy regime at State enterprises.
2. Inspecting the financial report.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
- The Vietnam Civil Aviation Administration
together with the agency managing capital and properties of the Sate at the
enterprise, shall have to organize the inspection and ratification of the
annual financial reports of the groups of airports of the regions.
- The financial agency shall have to inspect the
observance of the financial and accountancy regimes and the discipline in the
collection and remittances to the Budget as well as the accurancy and
truthfulness of the financial reports.
- Violations of the accountancy regime, the
financial collection and expenditure regime, the regime of collection and
remittance to the Budget, the regime of setting up and use of the funds of the
enterprise shall be administratively or economically sanctioned as prescribed
by law.
3. Public announcement of annual financial report.
- Basing itself on the annual financial report
ratified by the competent authority the group of airports shall publicly
announce a number of financial norms at the conference of the personnel of the
enterprise.
- The contents of the norms to be publicly
announced shall comply with Circular No. 06-TC/TCDN of February 24, 1997 of the
Ministry of Finance.
III.
IMPLEMENTATION PROVISIONS
1. Apart from the stipulations in this Circular,
the groups of airports of the various regions shall also have to implement
other stipulations of law regarding State enterprises.
2. This Circular takes effect as from January
1st, 1999. All earlier stipulations on financial management at the groups of
airports which are contrary to this Circular are now annulled.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
THE MINISTRY OF
FINANCE
Tran Van Ta