Below is an article showing the rights and obligations of enterprises directly serving national defence and security functions in Vietnam.
Hanoi-Vietnam: Rights and obligations of enterprises directly serving national defence and security functions (Image from the internet)
According to Clause 1, Article 5 of Decree 16/2023/ND-CP stipulating, enterprises directly serving national defence and security functions have the rights and obligations prescribed in Article 9 of the Enterprise Law 2020 and the following provisions:
Be provided with sufficient resources, and invested in adequate charter capital by the Ministry of Defense, and Ministry of Public Security to implement the assigned national defense and security tasks.
Use the allocated resources for production and business activities (in addition to performing national defense and security tasks) when ensuring the following conditions:
Be approved and endorsed in writing by the Ministry of Defense, Ministry of Public Security;
Supplement business activities to support the national defense and security tasks or to enhance the utilization and efficiency of assets;
Do not reduce capacity and impact the implementation of the assigned national defense and security tasks;
Fulfill the tax obligations as prescribed by law.
Manage the resources allocated to implement national defense and security tasks according to current regulations.
Comply with the laws and regulations of the Ministry of Defense, the Ministry of Public Security on international cooperation when linking with foreign organizations and individuals to perform national defense and security tasks.
Comply with decisions of the Ministry of Defense, the Ministry of Public Security on transferring capital or assets serving the national defense and security tasks of the enterprise to perform national defense and security tasks in another enterprise when needed as per current legal regulations.
Enterprises directly serving national defence and security functions are subject to the following policies:
Enterprises directly serving national defence and security functions are entitled to preferential treatment regarding land lease fees, land use fees, and land use tax for areas allocated for management and use serving national defense and security tasks, as prescribed by land, tax laws, and related legal regulations.
The State allocates budget and other resources to ensure expenses according to the regime, norm regulation includes: uniforms for officers, professional soldiers, defense employees, defense civil servants, security soldiers, security employees, cryptographic employees; expenditure for task rehearsals, combat training, reserve mobilization training; other expenses for national defense, security tasks, and civilian-military relations work.
In case the state budget does not fully ensure, the uncovered expense is counted as a deductible expense when determining taxable income for corporate income tax as per the Corporate Income Tax Law and guiding documents; excluded when evaluating and ranking enterprises as per Government regulations.
The State allocates budget and other resources to fund maintaining, repairing, and operating production chains, defense and security product repair equipment during the temporary halt in defense and security product production as per plans and tasks assigned directly by the Ministry of Defense, Ministry of Public Security or through specialized agencies, focal units.
The State allocates budget and other resources to support two reward and welfare funds equivalent to 2 months' salary if there are insufficient sources to establish the funds.
They are subject to depreciation for fixed assets being production chains, repair chains for weapons, equipment, infrastructure, and other specialized, special assets serving national defense and security tasks as per the Ministry of Finance's guidance.
(Clause 1, Article 7 of Decree 16/2023/ND-CP)
Employees in enterprises directly serving national defence and security functions are subject to the following regimes and policies:
Salaries for employees who are officers, professional soldiers, defense employees, defense civil servants, security soldiers, security employees, cryptographic employees are calculated in accordance with the regime, policy regulations for such groups and based on labor productivity and the annual production and business results of the enterprise.
When performing national defense and security tasks, employees who are injured or killed, if meeting the conditions and standards, are considered and recognized as contributors to the revolution according to the preferential laws for contributors to the revolution; employees injured in labor accidents are entitled to labor accident regimes as per labor laws.
The State allocates funds to ensure salaries, pay social insurance for officers, professional soldiers, defense employees, defense civil servants, security employees, and cryptographic employees during retirement preparation; pay for discharged, demobilized, resigned expenses as per current regimes;
Salary payment for the number of employees shall be staffed according to production, repair chains for defense and security products during temporary operation halt according to plans and tasks assigned directly by the Ministry of Defense, Ministry of Public Security or through specialized agencies, or focal units.
(Clause 2, Article 7 of Decree 16/2023/ND-CP)
Nguyen Ngoc Que Anh
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