Expenses of the Farmer Support Fund in Vietnam from February 15, 2025

Expenses of the Farmer Support Fund in Vietnam from February 15, 2025​ (Image from the internet)

On December 31, 2024, the Minister of Finance of Vietnam promulgated Circular 92/2024/TT-BTC guiding certain provisions of Decree 37/2023/ND-CP regarding the establishment, organization, and operations of the Farmers Support Fund.

Expenses of the Farmer Support Fund in Vietnam from February 15, 2025

The expenses of the Farmers Support Fund in Vietnam are stipulated in Article 8 of Circular 92/2024/TT-BTC as follows:

The Fund's expenses are payable amounts arising during the period related to the Fund's operations, including:

(1) Operational expenses:

- Lending entrustment fee;

- Provisions for loan risks as prescribed in Article 16 of this Circular;

- Exchange rate differences (if any);

- Insurance costs for risks and other occupational insurances as prescribed by law;

- Expenses for debt recovery and handling;

- Other operational expenses as prescribed by law.

(2) Administrative expenses:

- Expenses for staff and employees:

- Salaries and allowances for employees and the Fund's management as stipulated in Article 33 Decree 37/2023/ND-CP and according to the fund's internal expenditure regulations;

- Contributions based on salaries for employees include mandatory social insurance, health insurance, unemployment insurance, union funds; mid-shift meals, labor protection equipment expenses for those in need of labor protection equipment while working, expenses for female employees, overtime pay, and other expenses applicable according to the law for a single-member limited liability company wholly owned by the State;

- Attire expenses for the Fund's staff and employees, not exceeding the level of attire expenses calculated as deductible expenses when determining taxable income for enterprises;

- Management and official duties expenses:

- Conference, seminar, guest reception; training, study, research trips; travel expenses for Fund staff on domestic and overseas business according to regulations; support for delegates as the Fund's lower-level employees attending conferences, seminars, or training programs organized by higher-level Fund organizations (including meals, lodging, and transportation) when these expenses are not covered by other agencies, organizations, or units, as stipulated by the Fund's internal expenditure regulations. The allocation of these expenses is implemented following the law applicable to state agencies;

- Electricity, water, telephone, internet, postage, materials, paper, ink, office supplies; purchase of materials, books, newspapers; consulting services related to the Fund's operations, payment services, auditing; hiring domestic and foreign experts; collaborator costs, scientific research, technological innovation research; incentives for innovative improvements, productivity increases, environmental protection, agency protection; medical expenses, fuel, fire prevention, transportation, propaganda, advertising, marketing; reception and ceremonial expenses as prescribed by law;

- Asset costs include: Depreciation of fixed assets; asset rental; maintenance, repair, and operation of assets; purchase of equipment and tools; asset insurance, vehicle inspection; disposal and liquidation, including the residual value of disposed or sold fixed assets (if any);

- Other expenses related to administrative operations as prescribed by law.

(3) Payment of taxes, fees, and charges (if any) according to tax, fee, and charge laws.

(4) Other expenses:

- Provisions for other reserves (excluding provisions for loan risks) applied according to the law for enterprises;

- Expenses for asset loss handling after compensation from other funds according to regulations;

- Expenses recorded as income but not actually collected;

- Fines for breaching economic contracts;

- Court fees, execution fees, and other procedural costs as prescribed by law;

- Support for the Fund's party, union activities (expenses beyond the funds provided by the party and union organizations);

- Participation in activities organized by the various levels of the Farmers Union related to the Fund's activities;

- Other expenses as prescribed by law.

(5) The Fund shall execute expenditures according to the limits for specific expenses stipulated in this Circular; other expenses shall follow legal regulations on deductible expenses when determining taxable income for a single-member limited liability company wholly owned by the State. When the law does not provide or restrict expenditure levels, the Fund will base on its financial capacity to establish limits in its internal spending regulations, ensuring efficiency and legal compliance.

Refer to more datails in the Circular 92/2024/TT-BTC effective from February 15, 2025, replacing Circular 69/2013/TT-BTC.

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