Basis for Determining Financial Results of Irrigation Works Operation Units and Establishing Funds

According to Circular 73, the determination of the financial results of the irrigation works exploitation unit and the establishment of the Fund is based on the following grounds:

- The financial results of the irrigation works exploitation unit include the total revenue from public utility irrigation service activities, other irrigation service activities, financial activities, and other business activities after deducting expenses, including any taxes payable (if any).

- For enterprises, the profit for the year serves as the basis for profit distribution and fund establishment within the enterprise.

- For other irrigation works exploitation units, the determination and use of the fund are based on the unit's regulations, aligned with its business performance and in compliance with relevant legal provisions.

- For state-owned enterprises involved in irrigation works exploitation, the process for setting aside and sourcing the reward and welfare funds is as follows:

- Enterprises performing assigned tasks without using support funds for public utility products and services will set aside two reward and welfare funds based on enterprise classification results, following the regulations of Decree 91/2015/ND-CP, and receive partial support for fund establishment according to the budget capacity:- The central budget supports central irrigation works exploitation units;- The local budget supports local irrigation works exploitation units;

- Enterprises operating following the form of bidding or placing orders for providing public utility irrigation services will set aside two reward and welfare funds based on the financial results of the enterprise and classification results, in accordance with the regulations of Decree 91/2015/ND-CP.

See additional related regulations at Circular 73/2018/TT-BTC.

- Thanh Lam -

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