Vietnam: Criteria and guidelines for distribution of revenue sources and the allocation of local budget revenues

Vietnam: Criteria and guidelines for distribution of revenue sources and the allocation of local budget revenues (Illustrative image)

Article 4 Circular 188/2010/TT-BTC stipulates criteria and guidelines for the distribution of revenue sources and the allocation of local budget revenues in Vietnam as follows:

- The Provincial People's Committee, based on the list of local budget revenues, shall submit to the Provincial People's Council for decision on the distribution of revenue sources and the distribution of revenues among the local budget levels according to the following criteria and guidelines:

+ Code of chapter, economic sector (clause), economic content (sub-section) of the Table of Contents of the State Budget;

+ The revenue authority code is used according to the budget relationship code of the collecting authority and is determined in specific cases as follows:

• For revenues managed by the Tax/Customs authority: According to the budget relationship code of the Tax/Customs authority that directly manages that revenue. Note, for the higher-level unit, use the aggregate code of the higher-level unit, do not use the code of the higher-level unit office.
• For administrative violation fines (except administrative violation fines collected by the Tax/Customs authorities): According to the budget relationship code of the Department of Finance or the Finance Department; for the Department of Finance, use the aggregate code of the Department of Finance, do not use the code of the Department of Finance office.
• For source transfers, revenue from the Financial Reserve Fund, surplus revenue, aid revenue, liquidation revenue, price difference, exchange rate difference, the recovery of State budget revenues and expenditures according to the conclusions of the State Audit (when the State budget has been cleared), etc.: According to the budget relationship code of the financial authority at the corresponding level; for the Department of Finance, use the aggregate code of the Department of Finance, do not use the code of the Department of Finance's office.
• For revenues authorized by the collecting authority to another unit (including authorization to the commune): According to the budget relationship code of the collecting authority that authorizes the collection.
• For revenues directly managed by the commune: According to the budget relationship code of the commune.
• For revenue transfers from budget levels: According to the budget organization code (Provincial budget organization code, District budget organization code) of the level entitled to the revenue. Particularly for revenue transfers from the commune budget levels: According to the budget relationship code of the commune.

+ Code of the locality (province, district, commune) where the revenue arises: According to the lowest administrative division with the allocated state budget revenue.

More details may be found in Circular 188/2010/TT-BTC effective from January 06, 2011.

Nguyen Phu

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