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THE
GOVERNMENT
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SOCIALIST
REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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No:
73/1999/ND-CP
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Hanoi,
August 19, 1999
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DECREE
ON THE POLICY OF ENCOURAGING SOCIALIZATION OF THE ACTIVITIES
IN EDUCATION, HEALTHCARE, CULTURE AND SPORT
THE GOVERNMENT
Pursuant to the Law on Organization of the
Government of September 30, 1992;
In order to concretize Resolution No. 90/CP of August 21, 1997 of the Government
on the orientation and policy of socialization of the activities in education,
healthcare and culture;
At the proposal of the Minister of Finance, the Minister of Planning and
Investment, the Minister-Chairman of the Government Commission for Organization
and Personnel, the Minister of Education and Training, the Minister of Labor,
War Invalids and Social Affairs, the Minister of Health, the Minister of
Culture and Information, the Minister-Head of the Commission for Physical
Training and Sports, and the General Director of the General Land
Administration,
DECREES:
Chapter I
GENERAL PROVISIONS
Article 1.- To socialize
the activities in education, healthcare, culture and sport is to mobilize and
organize the broad participation of the people and the entire society into the
development of these activities aimed at step by step raising the level of
enjoyment of education, healthcare, culture and sport in the physical and
spiritual development of the people.
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The State and society appreciate and treat the
products and services provided by the non-public establishments on the same
footing as those provided by the public establishments. Non-public
establishments also have the responsibility to admit and supply services for
the beneficiaries of social policies as the public establishments.
Article 3.- The State
encourages organizations and individuals to mobilize resources within the
people and organizations of all economic sectors to develop the activities in
education, healthcare, culture and sport according to prescriptions of law.
Article 4.- Forms of
non-public establishments
1. Semi-public: These are establishments founded
on the basis of the linkage between State organizations and non-State
organizations of all economic sectors or individuals according to the following
modes: newly founded, involving the whole or part of a public unit into joint
investment to build the material basis of the semi-public unit and to assume
the management and operation of all its activities as prescribed by law.
2. People-founded: These are establishments
founded by an organization with investment coming from funds outside the State
budget (fund of organizations, collectives or individuals). They manage and operate
all activities according to prescriptions of law. It is forbidden to use funds,
properties and budget of the State to invest in people-founded establishments.
3. Private: These establishments are founded by
individuals or family households that manage and operate all activities
according to prescriptions of law.
The Minister of Education and Training, the
Minister of Labor, War Invalids and Social Affairs, the Minister of Health, the
Minister of Culture and Information and the Minister-Head of the Commission for
Physical Training and Sports shall coordinate with the related ministries and
branches and base themselves on Resolution No. 90/CP of August 21, 1997 of the
Government on the orientation and policy of socialization of the activities in
education, healthcare and culture and this Decree to draw up their plans of
development of the non-public forms of establishments in their branches and
concretize the policies and levels of preference and encouragement to the
development of the non-public forms suited to each domain and mode of
operation.
Chapter II
POLICY OF ENCOURAGEMENT
TO NON-PUBLIC ESTABLISHMENTS
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Article 5.- The
non-public establishments are given priority in renting houses and
infrastructures of the State as stipulated by the Government.
Article 6.- The
semi-public establishments formed by the transformation (partial or whole) of
public establishments by decision of the competent authority are entitled to
continue the management and use of the part of properties invested by the State
(including land and the properties attached to it) on the basis of the
inventory and revaluation of these properties according to the prices at the
time of the transformation. Such properties shall be determined as the capital
contribution from the State.
Article 7.- The people’s
Committees of the provinces and centrally-run cities shall base themselves on
their competence, the planning and plan of land use and the land fund potential
in the localities to allocate land or lease land to the non-public
establishments as base of operation. The non-public establishments must use the
land allocated or leased to them according to the set purpose and abide by the
prescriptions of land legislation. In all cases of land use not in conformity
with the purpose set in the land allocation documents, the land shall be
withdrawn according to prescriptions of law.
On the basis of the current Land Law, the
collection of land use levy and land rent from non-public establishments is
stipulated as follows:
1. The State allocates land on a stable and
long-term basis to non-public establishments and shall not collect land use
levy on the land allocated for the construction of hospitals and other medical
establishments, schools, job training centers, dormitories, stadiums, sport
competition centers, swimming pools, sport training centers, cultural houses,
art performance centers, libraries, exhibition centers and other cases
prescribed by the Government.
2. In other cases of land allocation or lease by
the State, the non-public establishments shall pay the land use levy or the
land rent according to current legislation.
Article 8.- The State
encourages organizations and individuals that own houses and land to lease them
to non-public establishments for use as base of operation according to the
objectives stipulated in Clause 1, Article 7 of this Decree.
Organizations and individuals that lease land to
non-public establishments for use as base of operation according to objectives
stipulated in Clause 1, Article 7 of this Decree do not have to pay Value Added
Tax for the turnover from the lease and are refunded the tax by the State at
the maximum rate equal to the income tax to be paid by the enterprise for the
income from the lease according the above-said purposes.
Organizations and individuals that are refunded
the tax already paid must ensure the conditions of stable term of lease, reduce
the rent and must use the money refunded by the State to invest in the
infrastructure for lease.
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Article 9.- On housing
and land tax
1. Non-public establishments that are allocated
land for use according to the purposes stipulated in Clause 1, Article 7 of
this Decree shall not have to pay housing and land tax.
2. In other cases of land allocation by the State,
payment of housing and land tax shall comply with prescriptions of current law.
Article 10.- On
registration fee
Non-public establishments are exempt from
registration fee when registering the land use right and housing ownership
right.
Article 11.- On Value
Added Tax
Non-public establishments do not have to pay
Value Added Tax on the following activities:
1. Medical activities: medical examination,
medical treatment, prevention of epidemics, medical care during convalescence.
2. Cultural, exhibition and sport activities
which have a movement or mass character, organization of training, competition
free of charge or in which the charge is not aimed at business purpose.
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Film distribution and projection activities: for
celluloid films without distinction of subjects of the films, for video films
which are only documentary, reportage and scientific films.
4. Teaching and job training, including
education in general subjects, teaching of foreign languages, informatics and
other subjects.
5. Printing, publication and distribution:
newspapers, periodicals, specialized news bulletins, political books, text
books, curricula, books of legal documents, books in scripts of national ethnic
minorities, paintings and pictures, posters, mass education and mobilization.
6. Technology transfer (not including value of
equipment and machinery accompanying the transferred technology).
Article 12.- On
enterprise income tax
1. On tax rate:
a/ Non-public establishments in the domains of
education, healthcare, culture and sport engaged in the following activities:
teaching, job training, medical examination and treatment; performing national
songs, dances, music and arts, film projection; art collection, conservation,
development and popularization of national culture; exhibition and physical
culture and sport activities not for business purposes, shall enjoy
preferential rate for enterprise income tax as follows:
- Eligible for the 15% tax rate if they operate
in areas with specially difficult socio-economic conditions.
- Eligible for the 20% tax rate if they operate
in areas with difficult socio-economic conditions.
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b/ In other cases not stipulated in Point a,
Clause 1 of this Article, the 32% tax rate as currently prescribed by law shall
apply.
c/ Non-public establishments do not have to pay
supplementary enterprise income tax for the incomes coming from the activities
stipulated in Point a, Clause 1 of this Article.
2. On reduction and exemption of
enterprise income tax:
a/ Newly founded non-public establishments in
the domains of education, healthcare, culture and sport including: schools at
various levels; establishments for job training and raising the vocational
skills of workers, fostering and raising the business management knowledge;
medical establishments in the domain of medical examination and treatment;
houses of national culture, traditional song and dance troupes; establishments
for collection, conservation, develop-ment and popularization of the national
culture; sport training and competition centers and other cases prescribed by
the Government shall enjoy preferences in reduction and exemption of enterprise
income tax from the time they acquire taxable incomes. More concretely:
- Reduction of income tax in the first four
years and reduction by 50% of the tax to be paid in the nine subsequent years
for the establishments invested in areas with exceptionally difficult
socio-economic conditions.
- Exemption for the first four years and
reduction by 50% of the tax payable in the seven following years for the
establishments invested in areas with difficult socio-economic conditions.
- Exemption in the first two years and reduction
by 50% of the payable tax in the following four years for the establishments
invested outside the above areas.
b/ Non-public establishment stipulated in Point
a, Clause 1 of this Article which are invested for expansion of scale and
technology renewal, improvement of the ecology and environment shall enjoy
preference in the reduction and exemption of enterprise income tax on the additional
income brought by the new investment from the time they acquire payable income.
More concretely:
- Exemption for four years and reduction by 50%
of the payable tax for the seven subsequent years if they operate in areas with
exceptionally difficult socio-economic conditions.
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- Exemption for one year and reduction by 50% of
the payable tax during the four subsequent years if they operate outside the
above areas.
The process, procedures and method of
determining the tax to be reduced or exempted shall comply with the current tax
legislation.
Article 13.- In case of
necessity to invest in building the infrastructure or expanding and upgrading
the quality of the activities, the State may reallocate to the non-public
establishments the enterprise income tax amounts that they have paid for the
incomes from the conduct of such activities as teaching, job teaching; medical
examination and treatment; performance of national songs, dances, music and
art, film projection; collection, conservation, development and popularization
of national culture; exhibitions and physical culture and sport activities not
for business purposes.
The maximum reallocation by the State shall be
equal to the enterprise income tax that the non-public establishments have to
pay. The non-public establishments can use the reallocation by the State only
for the development of their material bases, strengthening, expanding and
raising the quality of their activities.
The Ministry of Finance shall provide concrete
guidance on the process and procedures for the reallocation; inspect the use of
the reallocation at the non-public establishments as stipulated in this
Article.
Article 14.- Income tax
on high-income earners
Persons in the public establishments who work
extra-hours for non-public establishments shall be exempt from income tax on
earners if such incomes are paid high incomes by the non-public establishments.
Individuals contributing capital to non-public
establishments are exempt from income tax on high-income earners if the income
derives from the capital contribution and is paid by the non-public
establishments.
Article 15.- On export
tax and import tax
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- Equipment, machinery and specialized means of
transport in the technological line imported to create fixed assets of the
non-public establishments, to expand the scale of investment or to renovate the
technology.
- Specialized transport means to commute staff
personnel, teachers and students.
2. The equipment, machinery and specialized
transport means exempt from import tax must get the consent of the competent
agency which decides that they are eligible for the preferential policy and
must register with the border gate customs office.
3. The list of equipment, machinery and
specialized transport means exempt from import tax and the competence in
deciding the exemption from import tax for the non-public establishments
stipulated in this Article shall comply with the provisions of the Law on
Export Tax and Import Tax, the Law on Domestic Investment Promotion, and other
legal documents in force.
III. CREDIT
Article 16.- The
non-public establishments which conduct activities covered by the preferential
policies stipulated in Point a, Clause 1, Article 12 of this Decree are
eligible for preferential credit policies of the State as prescribed by current
law to build material bases and buy equipment in service of the specialized
jobs of the units according to projects approved by the competent authorities.
IV. INSURANCE
Article 17.- Non-public
establishments shall have to carry out and direct the laborers in the units to
carry out fully the current provisions of the State regarding social insurance
and medical insurance so that the laborers in the units may enjoy the rights
and interests concerning social insurance and medical insurance as laborers in
the public units.
Public servants and laborers who are moved from
public establishments to non-public establishments are guaranteed the social
insurance of the period of their work at the public establishment or shall
receive a package once-and-all allowance as provided by the State if they so
desire.
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Article 18.- Laborers
in non-public establishments are eligible to be considered by the State for the
award of commendation certificates, merit certificates, medals and commemorative
medals, and the award of titles of merit like any laborer in the public
establishments as well as cash rewards at the rate stipulated by the State from
the State budget sources.
Chapter III
FINANCIAL MANAGEMENT
Article 19.- Non-public
establishments shall collect charges, service charges and revenues from the
sales of products and other revenues to make up for expenditures as stipulated
by the Government and competent agencies:
1. Collection of school fees, hospital charges
and other contributions as stipulated by the Government and competent agencies.
2. The collection of service charges and
revenues from the sales of products shall be made as agreed upon between the
service-providing unit and the beneficiary of the service... (except for the
service products on which the State sets prices).
Apart from the above revenues, non-public
establishments can also receive aid from organizations and individuals in the
country and abroad according to prescriptions of law on the management and use
of aid sources.
Article 20.- The annual
financial results of non-public establishments shall be determined on the basis
of the difference between the total revenues and total expenditures of the
units in the fiscal year after fulfilling the obligation of collection and remittance
to the State budget as prescribed by law. Part of the revenue of the unit shall
be deduced to supplement the fund, spend on strengthening the material bases,
reduce service charges, supplement the expenditures for beneficiaries of social
policies, spend on rewards and welfare allowances for the laborers in the units
and the objects directly cooperating with the units. The remainder shall be
distributed according to the rate of contributions from the State, collectives
and individuals taking part in the non-public establishments.
The revenues originating from the fund
contributed by the State shall be left to the establishment for continued
investment.
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Chapter IV
STATE MANAGEMENT OF
NON-PUBLIC ESTABLISHMENTS OPERATING IN THE DOMAINS OF EDUCATION, HEALTHCARE, CULTURE AND SPORT
Article 22.- State
management of non-public establishments operating in the domains of education,
healthcare, culture and sport consists of the following:
1. On the basis of the strategy, planning and
plans adopted in each period and yearly for education, healthcare, culture and
sport to work out the orientation for socialization in each domain as basis for
the various levels and branches and the population to organize the
implementation.
2. To issue policies and regimes to encourage
socialization suited to the various forms of operation in education,
healthcare, culture and sport and to the need of development of each domain in
each period and each region.
3. To effect unified management of the contents
and programs, the requirements in quantity and quality of the service in each
domain as basis for the organization of implementation, monitoring and
supervision by different levels and branches and the entire society.
4. To issue and withdraw permits as prescribed
with regard to the non-public establishments operating in the domains of
education, healthcare, culture and sport.
5. To inspect and check the implementation of
the State regulations at the non-public establishments operating in the domains
of education, healthcare, culture and dport; to handle the violations as
prescribed by law.
6. The ministries, branches and the People’s
Committees at various levels shall base themselves on their functions, tasks
and competence to carry out the above stipulations on State management.
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1. The Prime Minister shall give permission for
the founding of universities.
2. The Minister of Education and Training shall
give permission for the founding of colleges and pre-university schools.
3. The Ministers, the heads of the
ministerial-level agencies, and agencies attached to the Government shall give
permission for the founding of semi-public establishments or the transformation
of the whole or part of vocational secondary schools or attached job training
schools into semi-public schools.
4. The Presidents of the provincial-level People’s
Committees shall give permission for the founding of general secondary schools,
general education boarding schools for ethnic minorities, vocational secondary
schools and job training schools under the management of the provincial level
People’s
Committees.
5. The Presidents of the district-level People’s
Committees shall give permission for founding pre-infant schools and infant
schools, primary schools, basic secondary schools, and semi-boarding general
schools for ethnic minorities under the management of the district People’s
Committees.
Article 24.- Competence
for giving permission to found non-public establishments in the domain of
healthcare:
1. The Prime Minister shall decide to found
major medical establishment of national and international status.
2. The Minister of Health shall give permission
to found hospitals.
3. The ministers, the heads of the
ministerial-level agencies and agencies attached to the Government shall give
permission to found semi-public establishments or to transform wholly or
partially attached medical establishments into semi-public medical
establishments.
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Article 25.- Competence
for giving permission to found non-public establishments in the domain of
culture:
1. The Prime Minister shall give permission to
found major cultural establishments of national and international status.
2. The ministers, the heads of the
ministerial-level agencies and agencies attached to the Government shall give
permission to found semi-public establishments or to transform wholly or
partially attached cultural establishments into semi-public establishments.
3. The Presidents of the People’s
Committees of provincial level shall give permission to found cultural
establishments under the management of the provincial People’s
Committee.
Article 26.- Competence
for permission to found non-public establishments in the domain of sport:
1. The Prime Minister shall give permission to
found major training and competition centers and sport grounds and stadiums of
national and international status.
2. The ministers, the heads of the ministerial-level
agencies and agencies attached to the Government shall give permission to found
semi-public establishments or to transform wholly of partially attached sport
establishments into semi-public establishments.
3. The Presidents of the provincial-level People’s
Committees shall give permission to found training and competition centers,
stadiums and entertainment centers of sport character of small scale under the
management of the provincial People’s Committees.
Article 27.- The
founding of establishments with foreign investment in the domains of education,
healthcare, culture and sport shall be effected according to the Law on Foreign
Investment in Vietnam and related documents.
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Chapter V
ORGANIZATION OF IMPLEMENTATION
Article 29.- This
Decree takes implementation effect 30 days after its signing. The earlier
provisions on the policy encouraging socialization of the activities in the
domain of education, healthcare, culture and sport which are contrary to the
stipulations in this Decree are now annulled.
Non-public establishments operating in the
domain of education, healthcare, culture and sport which were formed before the
effective date of this Decree and which are still in the period of preferential
treatment according to the stipulations in this Decree shall continue to enjoy
such preferential policies as stipulated in this Decree for the remaining
period.
Article 30.- The
Minister of Education and Training, the Minister of Labor, War Invalids and
Social Affairs, the Minister of Health, the Minister of Culture and
Information, the minister-head of the Commission for Physical Training and
Sports shall have to coordinate with the related ministries and branches in
guiding the application of this Decree in a way conformable with the
characteristics of the activities and organization in each domain.
Article 31.- The
Ministers, the heads of the ministerial-level agencies, the heads of the
agencies attached to the Government and the Presidents of the People’s
Committees of the provinces and centrally-run cities shall have to implement
this Decree.
ON BEHALF OF THE GOVERNMENT
PRIME MINISTER
Phan Van Khai
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