Regulations on the use of account, freezing and closing accounts at Vietnam State Treasury

Regulations on the use of account, freezing and closing accounts at Vietnam State Treasury (Internet image)

1. Regulations on principles of use of accounts at the Vietnam State Treasury

Principles of use of accounts at the Vietnam State Treasury (VST) according to Article 10 of Circular 18/2020/TT-BTC are stipulated as follows:

- Estimate accounts:

+ Budget estimate units, investors, project management boards funded through budget estimates (related to current expenditures, capital expenditures, authorization expenditures, and aids) shall use estimate accounts in accordance with applicable regulations on expenditure control and budget payment regime through VST.

+ According to the estimate account opened at VST and approval for budget estimate made by the State Budget, the budget-using unit or investor shall make an equivalent document (request for disbursement of estimated fund, request for disbursement of investment capital) to enter into relevant payment transactions.

+ If a ministry or agency, funded by the central budget and tasked to make an estimate related to expenditures on business trips, information purchase, or membership dues, etc. wishes to make payments in foreign currency from the concentrated foreign currency fund of the state, it shall register an estimate account at the Operation Center affiliated to VST.

+ VST shall directly pay salaries, benefits, allowances to beneficiaries and make payments to sellers of goods and services if required conditions are met. If required conditions are not met in order for the VST to pay directly to entities mentioned above, the budget-using unit may pay them in advance based on the approved budget estimate, and receive equivalent disbursement from the VST thereafter as prescribed by the Ministry of Finance.

+ The estimate account shall not be used to receive payments made by other entities, other than those refunded by banks or other VST, estimate refund and refund of budget expenditures, capital investment payback given by the budget-using unit or investor when the budget statement has not been made.

- Deposit accounts

+ The registrant may only use its account to conduct transactions within their scope of operation and in line with the type of account registered with the VST; they registrant may only use the account within its credit balance in accordance with regulations on non-cash payment, cash management and financial regime of the state.

+ The registrant may, based on the deposit account opened at the VST and its credit balance, prepare documents (payment orders, remittance bill to state budget, etc.) to conduct relevant transactions. c) Upon a request of a competent authority:

++ The VST may automatically deduct amounts from deposit account of the registrant to pay it to the state budget.

++If the deduction is impossible because the balance of the said deposit account is not enough or reaches zero, the VST may record it in a separate logbook for keep track of the insufficient amount. When the deposit account balance is enough, the VST keeps deducting the required amount to pay it to the state budget as prescribed.

+ The registrant may not lease or lend its deposit account at VST.

+ In a case where the registrant uses the deposit account in such an improper manner or violates payment procedures: The VST is entitled to decline such payment and return the proof of payment to the registrant.

+ If the registrant violates financial regime, the VST shall retain proof of payment and notify the competent authority for further actions.

- Deposit-like accounts

+ Comply with Clause 2 of this Article.

+ The transfer from accounts payable to money, property held in custody pending further actions (account 3940) of relevant units must attach relevant decision of the competent authority. According to the mentioned decision and payment order of the registrant, the VST shall make payment as prescribed.

- Revenue and expenditure accounts of collecting authorities

For the purpose of tax refund to taxpayers, the tax authority shall send the VST at the same administrative level a decision on tax refund and order to refund state budget revenue or decision on tax refund and deduction of state budget revenue and order to refund tax and deduct state budget revenue.

In order to make adjustments of revenues and expenditures of state budget, finance authorities, tax authorities, or customs authorities shall send corresponding requests for adjustments.

2. Regulations on freezing accounts at Vietnam State Treasury

Details about freezing accounts at Vietnam State Treasury according to Clause 1, Article 11 of Circular 18/2020/TT-BTC are as follows:

- An account shall be frozen in any of the following cases:

+ When it is so requested in writing by a competent authority.

+ Regarding programs and projects funded by ODA, external concessional loans: The account shall be frozen or unfrozen in accordance with regulations of the sponsor under relevant agreement.

+ The account holder violates regulations on use of account as specified in point a, point dd, Clause 1 and point d, e Clause 2 Article 10 of Circular 18/2020/TT-BTC.

- The account shall be unfrozen under a relevant decision of the competent authority.

3. Regulations on closing accounts at Vietnam State Treasury

Details about closing accounts at Vietnam State Treasury according to Clause 1, Article 11 of Circular 18/2020/TT-BTC are as follows:

- An account shall be closed in any of the following cases:

+ The registrant is acquired or dissolved.

+ The registrant applies for change of the place where the account is registered and used.

+ The project has its final statement approved, has debts receivable and payable settled according to the estimate approval and has the advance paid back as prescribed.

+ The registrant makes such a request for closing account.

+ The account has not been active for 24 consecutive months (except for the account of disbursement of investment capital).

- Closing accounts

The applicant will send an application for closing account (stating the name of VST where the account is opened, applicant’s details:

+ Name, the account, details about establishment such as number, issuing authority, date of issue; superior body;

+ Full name of account holder, chief accountant, number and date of the appointment of account holder or chief accountant and signature of the account holder or authorized person thereof) together with a balance confirmation sheet to the VST in person

Or through the public service named “Closing account of registrant at VST” as prescribed in Appendix III issued together with Circular 18/2020/TT-BTC in case the Ministry of Finance of Vietnam has launched this public service.

Appendix III

- The VST shall notify the account holder (or its superior body if the mentioned registrant has been dissolved) of the balance of the account to be closed in writing;

If the balance is still positive derived from the state budget and the account holder has raised no objection within 30 days since the notice is sent, such balance will be transferred to the state budget by the VST.

- If the account proposed to be closed is still positive, the account holder must send relevant documents to VST to process it.

- The VST may only close an account when its balance reaches zero.

Quoc Dat

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