Circular No. 86/2010/TT-BTC dated June 10, 2010 of the Ministry of Finance prescribing charges for maintenance of and re-investment in infrastructure of Vung Ang economic zone, Ha Tinh province
Subjects of application This Circular applies to:
1. Enterprises investing and operating in Vung Ang Economic Zone, Ha Tinh province;
2. Companies dealing in the economic zone's infrastructure (below referred to as infrastructure-dealing
3. The Management Board of Vung Anh Economic Zone, Ha Tinh province (below referred to as the Management Board).
Interpretation of terms
1. The economic zone's infrastructure includes infrastructure facilities of the economic zone under the scheme approved or adjusted by a competent agency and public-utility properties.
2. Public-utility properties means properties which are used to provide public services for enterprises' operations but not yet included in the economic zone's infrastructure under the scheme approved or adjusted by a competent agency, and are formed from public-service charges paid by enterprises. These properties must satisfy criteria of fixed assets prescribed by the Ministry of Finance.
3. Infrastructure maintenance and reinvestment charges mean charges, exclusive of public-service charges, paid by enterprises to assure the operation and maintenance of and re-investment in the economic zone's infrastructure.
Principles of collection, remittance, management and use of infrastructure maintenance and re-investment charges prescribed in this Circular
1. The collection of charges must not affect the investment environment of the economic zone as well as the common investment environment.
2. Infrastructure maintenance and re-investment charges shall only be collected by infrastructure-dealing companies from enterprises investing and operating in the economic zone.
3. Contents of infrastructure maintenance and re-investment work carried out by infrastructure-dealing companies with charge amounts collected under this Circular must be agreed upon with the Management Board.
4. The use of deducted charge amounts by the Management Board must comply with the Ministry of Finance's regulations on financial mechanisms applicable to management boards of industrial parks, export-processing zones and economic zones.
Accounting and taxation
1. Enterprises shall account charge amounts actually paid under infrastructure-dealing companies' notices as their business costs which will be deducted when determining their enterprise income tax-liable incomes.
2. Infrastructure maintenance and reinvestment charges (below referred to as charges) collected by infrastructure-dealing companies are not taxed. Infrastructure-dealing companies shall account this charge separately from their other incomes.
3. Infrastructure-dealing companies shall open a detailed accounting book to monitor the increase or decrease of collected charge amounts (charge collection, division and use). The Management Board shall set forms of reports and issue regulations on publicization of charge collection, division and use.
1. Charge rates shall be calculated as a percentage of any of the following items:
2. Infrastructure-dealing companies shall determine the item used for charge calculation and report it to the Management Board before application.
1. Infrastructure-dealing companies shall collect charges from enterprises located in the zone. The order of and procedures for charge collection and payment shall be agreed upon between infrastructure-dealing companies and enterprises. Charge collection and payment must be notified in writing to enterprises.
2. Enterprises shall fully pay charge amounts as stated in infrastructure-dealing companies' notices. If meeting with any problems, enterprises may report them to the Management Board for study and settlement.
3. Based on the enterprise accounting regime prescribed by the Ministry of Finance, when collecting charges, infrastructure-dealing companies shall issue a receipt to charge payers, serving as a valid document evidencing the charge payment by enterprises.
4. Annually, infrastructure-dealing companies shall elaborate and send a charge collection plan (with quarterly, biannual and annual details) to the Management Board for consideration and approval before application. In the course of implementation, if modifications must be made to the plan, infrastructure-dealing companies shall elaborate and send an adjusted one to the Manage-ment Board for consideration and approval.
1. Infrastructure-dealing companies shall distribute the collected charge amount as follows:
2. The specific division rate shall be agreed upon between the Management Board and infrastructure-dealing companies based on the practical situation of charge collection, payment and use but must be notified to the Finance Department of Ha Tinh province.
3. Within the first 10 days of the subsequent month, on the basis of the collected charge amount, infrastructure-dealing companies shall temporarily transfer the charge amount enjoyed by the Management Board according to the agreed division rate to the Management Board's account opened at the State Treasury of Ha Tinh province.
4. At the end of a fiscal year, infrastructure-dealing companies and the Management Board shall finalize the charge collection, division and use under regulations.
1. After remitting the deducted charge amount to the Management Board, infrastructure-dealing companies shall use the remaining charge amount to maintain and re-invest in infrastructure facilities in the zone according to spending items already agreed upon with the Management Board, aiming to ensure normal operations of infrastructure facilities to serve enterprises.
2. The management and use of deducted charge amounts remitted by infrastructure-dealing companies to the Management Board must comply with the Finance Ministry's regulations on financial mechanisms applicable to management boards of industrial parks, export-processing zones and economic zones.
3. Annually, within the first 10 days of January, infrastructure-dealing companies shall make and send to the Management Board a plan on the use of collected charge amounts for infrastructure maintenance and re-investment in conformity with work items and spending needs already agreed with the Management Board under Clause 1 of this Article.
4. In the course of implementation, if unexpected needs for infrastructure maintenance and re-investment arise outside the plan or major changes are made in the plan implementation, infrastructure-dealing companies shall make and send a supplementary or adjusted plan to the Management Board for consideration and approval.
5. Infrastructure-dealing companies shall use collected charge amounts for infrastructure maintenance and re-investment under the plan approved by the Management Board and report implementation results to the Management Board no later than January 31 of the subsequent year.
Management and monitoring of charge collection and use
1. Infrastructure-dealing companies shall make detailed accounting of infrastructure maintenance and re-investment expenses according to current accounting regimes and Article 1 of this Circular.
2. Infrastructure-dealing companies shall open a separate account at a commercial bank lawfully operating in Ha Tinh province (referred to as charge accumulation account) to monitor and manage the difference between collected charge amounts and amounts used annually. Differences between collected charge amounts and amounts used annually by infrastructure-dealing companies shall be deposited in this account. The Management Board and infrastructure-dealing companies shall jointly determine the differences to be deposited in the charge accumulation account under this Article.
3. The positive balance of the charge accumulation account may be used only for maintenance of and re-investment in infrastructure facilities in the zone under the charge use plan stipulated in Articles 8 and 9 of this Circular.
4. Collection and use of charges under Articles 6 and 8 of this Circular constitute a content of the plan on annual audit at infrastructure-dealing companies.
5. The collection and use of charges by infrastructure-dealing companies must be evaluated and publicized to enterprises under the following regulations:
- The situation and results of implementation of the plan on charge collection in the fiscal year;
- The situation and results of implementation of the plan on infrastructure maintenance and reinvestment in the fiscal year;
- The positive balance of the charge accumulation account by December 31 of the reporting year.
publicization: Within 30 days after receiving a finalization report from an infrastructure-dealing company, the Management Board shall assess the accuracy of audited data and publicize this information among enterprises located in the zone and, at the same time, send it to the People's Committee of Ha Tinh province. To-be-publicized contents shall be posted at the head offices of infrastructure-dealing companies and sent to each enterprise located in the zone or otherwise publicize, if necessary.
Organization of implementation
1. This Circular takes effect 45 days from the date of its signing.
2. Any problems arising in the course of implementation should be reported to the Ministry of Finance for amendment and supplementation to suit the reality.-
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