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THE
MINISTRY OF FINANCE
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SOCIALIST
REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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No:
39/2003/TT-BTC
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Hanoi,
April 29, 2003
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CIRCULAR
GUIDING THE
FINANCIAL MECHANISM APPLICABLE TO ENTERPRISES OF PUBLIC PASSENGER
TRANSPORTATION BY BUSES IN URBAN CENTERS
Pursuant to the current tax laws;
Pursuant to the Government's Resolution No.13/2002/NQ-CP of November 19, 2002
on measures to check the rise in and proceed to gradually reduce traffic accidents
and congestion;
Pursuant to the Government's Decree No.56/CP of October 2, 1996 on State
enterprises engaged in public-utility activities;
In order to encourage and create conditions for enterprises operating in the
field of public passenger transportation by buses in urban centers, the Finance
Ministry hereby provides guidance as follows:
I. GENERAL PROVISIONS
1. Subject to the application of this Circular
are enterprises of all economic sectors, which are engaged in public passenger
transportation by buses in urban centers, including:
- State enterprises, including:
+ State enterprises engaged in public-utility
activities of public passenger transportation by buses.
+ State enterprises' sections engaged in
public-utility activities of public passenger transportation by buses.
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- Enterprises of other types participating in
public passenger transportation by buses such as transport cooperatives,
joint-venture companies, limited liability companies, joint-stock companies....
2. State enterprises and public-utility State
enterprises engaged in public passenger transportation by buses shall comply
with the provisions in Circular No.06/TC-TCDN of December 24, 1997 of the
Finance Ministry guiding the financial management regime for public-utility
State enterprises and the provisions in this Circular.
3. Passenger bus transportation enterprises
which organize other production and business activities shall have to account
separately revenues, expenditures, business results and fulfill the State
budget remittance obligations as prescribed.
4. Enterprises engaged in public passenger
transportation by buses are entitled to enjoy policies of preferences on land
rent, land road and bridge tolls, stop and parking yard fees under the current
regulations and decisions of competent agencies.
II. SPECIFIC PROVISIONS
A. INVESTMENT, MANAGEMENT AND USE OF CAPITAL,
ASSETS
1. State enterprises tasked to conduct public-utility
activities of public passenger transportation in urban centers shall have to
open books and record accounting books to accurately monitor all available
assets and capital according to the current book-keeping accounting and
statistical regimes for the performance of the task of public passenger
transportation by buses.
For State enterprises which have sections
engaged in public-utility activities of public passenger transportation by
buses, those sections must organize separate accounting.
2. State enterprises and enterprises of other
economic sectors, which invest their own assets for participation in activities
of public passenger transportation by buses in urban centers shall be entitled
to enjoy investment preferences under the (amended) Domestic Investment
Promotion Law No.03/1998/QH10 and be given post-investment interest rate
support under the guidance in the Finance Ministry's Circular No.51/2001/TT-BTC
of June 28, 2001 guiding the implementation of the Prime Minister's Decision
No.58/2001/QD-TTg of April 24, 2001 on post-investment interest rate support
(if enterprises borrow capital for investment).
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1. Turnover from public-utility activities of
public passenger transportation by buses in urban centers:
1.1. For public-utility State enterprises or
public-utility sections of State enterprises, their turnover shall include:
- Turnover from sale of bus tickets (single trip
tickets, route ticket, inter-route tickets).
- The States price subsidy.
1.2. For enterprises of other economic sectors,
their turnover shall include:
- Turnover from sale of bus tickets (single trip
tickets, route tickets).
- Value of public-utility product purchase
contract.
The bus ticket prices shall be set by the People's
Committees of the provinces or centrally-run cities.
2. Expenses for public-utility activities of
public passenger transportation by buses
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To suit the reality of activities of public
passenger transportation by buses, a number of expenses are prescribed as
follows:
a/ Expenses for wages and wage allowances:
+ Wages in the State enterprises shall be
determined as follows:
- The basic wage: To be determined according to
the Government's Decree No.26/CP of May 23, 1993 temporarily providing the new
wage regime in enterprises; Decree No.28/CP of March 28, 1997 on renovating
wages and incomes in the State enterprises; Decree No.03/2003/ND-CP of January
15, 2003 on adjustment of wages, social allowances and further renewal of wage
management mechanism, and the Labor, War Invalids and Social Affairs Ministry's
circulars guiding the above decrees.
- The allowances include the increase
coefficients of the minimum wage, hazardous allowances, travel allowances,
responsibility allowances, which shall be determined under the guidance of the
Ministry of Labor, War Invalids and Social Affairs.
The provincial/municipal Services of Labor, War
Invalids and Social Affairs shall have to guide enterprises in the
implementation thereof.
+ For enterprises of other economic sectors: To
comply with the State's regulations applicable to each type of enterprises and
to be entitled to apply the provisions on wages like the State enterprises in
the estimation of the costs of public-utility products.
b/ Fixed asset depreciation: Fixed assets being
mass transit buses shall be depreciated according to their actual use capacity
(by operating shifts), but the depreciation thereof must not exceed the level
prescribed in Decision No.166/1999/QD-BTC of December 30, 1999 of the Finance
Minister.
c/ Expenses for overhaul of fixed assets:
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d/ Enterprise management expenses shall include
the expenses for the boards administering and supervising the operation of
buses and the managerial apparatus of the enterprises.
e/ Other relevant expenses such as expenses for
purchase of prints (bus tickets), civil liability insurance premiums, passenger
insurance premiums and other expenses related to activities of public passenger
transportation by buses according to regulations.
3. Handling financial results:
3.1. Mass transit bus enterprises may use
turnover from public-utility activities of passenger bus transportation to
offset the expenses for public passenger bus transportation activities, taxes
and State budget remittance under the provisions of law (except the enterprise
income tax).
3.2. The public passenger bus transportation
activities in urban centers are not subject to value added tax.
3.3. The revenue-expenditure surplus (if any) of
mass transit bus enterprises shall be handled as follows:
a/ Payment of enterprise income tax as
prescribed by law.
b/ Deduction of valid expenses which are
deductible when determining the taxable incomes as provided for.
c/ The remaining profits shall be handled as
follows:
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- For enterprises of other economic sectors: To
distribute their incomes according to the State's current regulations
applicable to each type of enterprise.
C. ESTIMATION OF EXPENSES AND SETTLEMENT OF
PUBLIC-UTILITY
PRODUCTS
1. To estimate expenses for public passenger
transportation by buses:
1.1. Basing themselves on the specialized
techno-economic norms promulgated by the Ministry of Communications and
Transport, the provincial/municipal Services of Communications and Transport
(or Services of Communications and Public Works) shall organize the study of
elaboration of appropriate norms for submission to the provincial/municipal
People's Committees which shall promulgate techno-economic norms for bus
operation in the provinces or cities.
1.2. Basing themselves on the techno-economic
norms of bus operation, promulgated by the provincial/municipal People's
Committees and on the reasonable expenses mentioned at Point 2, Part B, Section
II of this Circular, the provincial/municipal Services of Communications and
Transport (or Services of Communications and Public Works) and the
provincial/municipal Finance-Pricing Services shall estimate expenses for
public passenger transportation activities according to the implementation year
or implementation route for each enterprise, then submit them to the
provincial/municipal People's Committees for approval, which shall serve as
basis for price subsidies or signing of contracts and expense payment in cases
of goods ordering or bidding for carrying out public-utility mass transit
activities.
2. Settlement of public-utility products:
2.1. The State's price subsidies:
For State enterprises or sections of State
enterprises, which are engaged in public-utility activities of public passenger
transportation by buses, if their turnover from sale of bus tickets are not
enough to cover the public-utility activities, they shall be provided with
price subsidies by the provincial/municipal People's Committees from the local
State budget. The annual price subsidy level shall ensure the coverage of
reasonable expenses prescribed at Point 2, Section B, Part II of this Circular
and the State's current regime.
The local State budget shall ensure adequate
supply for two reward and welfare funds with two months' actual wages for
laborers in the enterprises or sections of State enterprises, which are engaged
in public-utility activities of public passenger transportation by buses.
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For State enterprises and enterprises of other
economic sectors where the State orders the purchase of public-utility mass
transit products:
The ordering of purchase of public-utility
products may be effected through decisions of the provincial/municipal People's
Committees or may be authorized to provincial/municipal Services of
Communications and Transport (or Services of Communications and Public Works)
which shall sign contracts with public-utility enterprises. The signing of
contracts shall be conducted before the enterprises carry out the
public-utility activities.
Where in a city many enterprises register for
participation in public passenger transportation by buses, bidding therefor
shall be organized under the State's current regulations on bidding
organization.
Based on the demands of the persons placing the
order for public-utility products, the volume of services provided by
enterprises and the estimated expenditures, the contractual value shall be the
difference between the ticket sale turnover and the expenses for public-utility
service- providing activities, with profits for public-utility enterprises. The
State shall not make up for losses in cases where enterprises conduct public
passenger transportation under contracts with revenues being not enough to
cover the expenses. In case of profits, the provisions at Point 3.3, Section B,
Part II of this Circular shall be complied with.
Public passenger bus transportation enterprises
shall have to provide public-utility services according to goods ordering
plans' norms, strictly observe the commitments in quantity, quality and sale at
correct prices... prescribed by the provincial/municipal People's Committees.
3. The funding sources for price
subsidies and purchase of mass transit public-utility products shall be ensured
by the provincial/municipal State budgets under the provisions of the State
Budget Law.
The allocation and settlement of mass transit
bus public-utility products shall be effected by the provincial/municipal
Finance-Pricing Services through the State Treasury system under the Finance
Ministry's regulations guiding the regime of management, allocation, settlement
of State budget expenditures via State Treasuries.
D. FINANCIAL SETTLEMENT AND BOOK-KEEPING
EXAMINATION OF MASS TRANSIT BUS ACTIVITIES AT ENTERPRISES
1. Making financial reports:
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- The financial settlement of the public-utility
activities shall be addressed to the provincial/municipal Services of
Communications and Transport (or Services of Communications and Public Works),
the provincial/municipal Finance-Pricing Services and Tax Departments as
prescribed.
- The time for sending the settlements shall
comply with the current regulations.
2. Examination of financial reports:
- For State enterprises: Annually, the
provincial/municipal Finance- Pricing Services shall, together with the
Services of Communications and Transport (or Services of Communications and
Public Works), examine the settlement of the mass transit public-utility
activities of enterprises in order to make records on price subsidies for the
public-utility products in the year for enterprises.
- For enterprises of other economic sectors, the
local tax offices shall examine the situation of fulfillment of the
enterprises' obligations to make State budget remittances.
The enterprises shall have to observe the
financial, accounting regimes and discipline in budget collection and
remittance and ensure the accuracy and truthfulness of the financial statements
as provided for.
The violations of the accounting regime, the
financial revenue and expenditure regime, the State budget collection and
remittance regime and other financial regimes shall be administratively
sanctioned, economically sanctioned under law provisions.
III. IMPLEMENTATION ORGANIZATION
1. Apart from the separate regulations for mass
transit public-utility activities prescribed in this Circular, the enterprises
engaged in public passenger transportation by buses in urban centers must also
observe other provisions of law for each type of enterprise.
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If any problems arise in the course of
implementation, the provincial/municipal People's Committees and enterprises
are requested to report them in time to the Finance Ministry for consideration
and appropriate amendments.
FOR THE FINANCE MINISTER
VICE MINISTER
Le Thi Bang Tam