Benefits of enterprises combining the economy with national defense and security in Vietnam

Benefits of enterprises combining the economy with national defense and security in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

April 25, 2023, the Government of Vietnam promulgated Decree 16/2023/ND-CP on the organization, management, and operation of enterprises directly serving national defense and security and enterprises combining economy with national defense and security.

1. Conditions for determining enterprises combining economics with national defense and security in Vietnam

According to Article 4 of Decree 16/2023/ND-CP, an enterprise is defined as an enterprise combining economics with national defense and security, ensuring the following conditions simultaneously:

- Being an enterprise in which the State holds more than 50% of the charter capital or the total number of shares with voting rights and the Ministry of National Defense or the Ministry of Public Security exercises the right to represent the state owner in the enterprise.

- Being assigned by the Ministry of National Defense or the Ministry of Public Security directly or through functional agencies or focal units of the Ministry of National Defense or the Ministry of Public Security the task of manufacturing and supplying defense and security products and services;

Performing national defense and security tasks to meet regular or unexpected requirements and tasks of defense and security;

Implementing investment projects related to national defense secrets, important national defense tasks, investment projects in areas with key positions in defense and security.

2. Benefits of enterprises combining the economy with national defense and security in Vietnam

Benefits of enterprises combining economics with national defense and security are prescribed as follows:

- To enjoy incentives on land rent, land use levy, and land use tax for the land area assigned for management and use in service of national defense and security tasks in accordance with the law on land, tax, and other relevant laws.

- To be allocated budget and other resources by the State to ensure expenditures according to prescribed norms, including:

+ Expenses for annual military equipment, military discharge, service, and termination according to the current regime for officers and professional soldiers, defense workers, defense officers, non-commissioned officers, public security workers, and cipher workers;

+ Salary payments, social insurance contributions during the period of preparation for retirement according to the current regime for officers, professional soldiers, defense workers, defense officials, public security workers, and people doing cipher work.

Enterprises shall calculate deductible expenses when determining their taxable income in accordance with the provisions of the Law on Corporate Income Tax and guiding documents for operating expenses of enterprises, expenditures for military service, national defense and security, and military-civilian relations according to plans and tasks set by the Ministry of National Defense, and the Ministry of Public Security shall directly or through specialized agencies or focal units directly assign tasks.

(Clause 1, 2, Article 8 of Decree 16/2023/ND-CP)

3. Benefits of employees at enterprises combining the economy with national defense and security in Vietnam

According to Clauses 3 and 4, Article 8 of Decree 16/2023/ND-CP, the benefits of employees at enterprises combining economics with national defense and security are prescribed as follows:

- Salaries of employees who are officers, professional soldiers, defense workers, defense officers, non-commissioned officers, public security workers, and cipher workers:

Calculated in accordance with regulations on regimes and policies of law applicable to officers, professional soldiers, defense workers, defense officials, non-commissioned officers, public security workers, and people doing cipher work and based on labor productivity, annual production, and business results of enterprises.

- When performing national defense and security tasks, if an employee is injured or dies but fully meets the following conditions and criteria:

Being considered and certified as a person with meritorious services to the revolution according to the provisions of the preferential law on people with meritorious services to the revolution, if the employee suffers an occupational accident, he/she shall be considered for the occupational accident regime according to the provisions of the labor law.

Decree 16/2023/ND-CP takes effect from April 25, 2023.

Nguyen Thi Hoai Thuong

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