Who is required to contribute to the disaster prevention fund? What is the contribution amount?
Who is required to contribute to the disaster prevention fund? What is the contribution amount?
Based on Article 12 of Decree 78/2021/ND-CP, which stipulates the financial sources:
Article 12. Financial Sources
1. The mandatory contribution rate from domestic and foreign economic organizations in a year is 0.02% of the total asset value according to the financial statements drawn up on December 31 annually of the organization reporting to the Tax authority but at least 500 thousand VND and at most 100 million VND, and it shall be accounted into the production and business operating expenses of the organization.
2. Voluntary contributions, donations, support from organizations and enterprises to the provincial disaster prevention fund are considered deductible expenses when determining taxable corporate income.
3. Vietnamese citizens from 18 years old to retirement age under normal working conditions according to labor laws are required to contribute annually as follows:
a) Officials and public employees, salaried individuals, allowances and workers working in agencies, organizations, public service providers of the Communist Party, the State, socio-political organizations, and associations supported by the state budget operating costs at the central, provincial, municipalities, district, district-level town, city belonging to the province, city under the municipality (district level), at the commune level, wards, commune-level towns (communal level), in special administrative-economic units, and armed forces contribute half of the statutory pay rate divided by the number of working days in the month.
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According to the above regulations, Vietnamese citizens from 18 years old to retirement age under normal working conditions according to labor laws are required to contribute to the disaster prevention fund.
The contribution levels to the disaster prevention fund are as follows:
[1] Contribute half of the statutory pay rate divided by the number of working days in the month for the following subjects:
- Officials and public employees, salaried individuals, allowances, and workers working in agencies, organizations, public service providers of the Communist Party, the State, socio-political organizations.
- Associations supported by state budget operating costs at the central, provincial, municipalities, district, district-level towns, city belonging to the province, city under the municipality (district level), at the commune level, wards, commune-level towns (communal level), in special administrative-economic units.
- Armed forces.
[2] Contribute half of the regional minimum wage divided by the number of working days in the month according to the labor contract for employees working under labor contracts in enterprises.
[3] Only contribute once according to the longest labor contract for employees signing multiple contracts with many enterprises.
[4] Contribute 10,000 VND/person/year for other workers, except for the aforementioned subjects.
In addition, for domestic and foreign economic organizations in a year, the contribution is 0.02% of the total asset value according to the financial statements drawn up on December 31 annually of the organization reporting to the Tax authority but at least 500 thousand VND and at most 100 million VND, and it shall be accounted into the production and business operating expenses of the organization.
Who is required to contribute to the disaster prevention fund? What is the contribution amount? (Internet image)
Which agency has the authority to establish the central disaster prevention fund in Vietnam?
Based on Article 3 of Decree 78/2021/ND-CP, which stipulates the names and legal status of the disaster prevention fund:
Article 3. Names and legal status of the disaster prevention fund
- The disaster prevention fund is an off-budget state financial fund with legal status, a separate seal, and it can open accounts at the State Treasury and commercial banks legally operating in Vietnam.
- The central disaster prevention fund (hereinafter referred to as the Central Fund) is established by the Government of Vietnam under the provisions of this Decree, and managed by the Ministry of Agriculture and Rural Development. The international transaction name of the Central Fund is: Vietnam Disaster Management Fund, abbreviated as VNDMF.
- The provincial disaster prevention fund (hereinafter referred to as the Provincial Fund) is established by decision of the Chairman of the People's Committee of the province or centrally-governed city, managed by the People's Committee of the province or centrally-governed city. The international transaction name of the Provincial Fund is named after each province or centrally-governed city.
- The disaster prevention fund operates as a single-member limited liability company wholly owned by the State.
According to the above regulations, the central disaster prevention fund is established by the Government of Vietnam and managed by the Ministry of Agriculture and Rural Development.
What are activities using spending from the disaster prevention fund in Vietnam?
According to Article 7 of Decree 78/2021/ND-CP, the activities using spending from the disaster prevention fund in Vietnam include:
- Rescue, support urgent disaster response activities when it exceeds the local response capacity, giving priority to emergency relief of food, drinking water, medicine, and other essential needs for those affected by disasters, supporting house repairs, medical facilities, schools and sanitation handling in disaster areas.
- Support post-disaster recovery activities for localities severely affected by disasters that exceed the local recovery capacity; provide emergency support and allowance for victims, families of victims of disasters and those who suffer accidents and losses while participating in disaster prevention and control activities.
- Support urgent disaster prevention and control projects and projects for basic investigations and disaster prevention activities across provinces, regions, and sectors.
- Support disaster warning, monitoring, supervision, and communication activities.
- Support information, communication, training, and education to raise disaster prevention awareness for the public; organize training sessions, professional guidance, and exchange, and learn management experience between Provincial Funds.
- Management and operational costs of the Central Fund for the year shall not exceed 1% of the total revenue of the fund for that year.
