Who is eligible for exemption of payment of contributions of Disaster Management Fund in Vietnam?

Who is eligible for exemption of payment of contributions of Disaster Management Fund in Vietnam? (Internet image)

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

1. What is the Disaster Management Fund?

According to Clause 1, Article 3 of Decree 78/2021/ND-C, the Disaster Management Fund is a state extra-budgetary financial foundation having its legal personality, its own seal and allowed to have its accounts opened at the State Treasury and commercial banks legally operating in Vietnam.

2. Who is eligible for exemption of payment of contributions of Disaster Management Fund in Vietnam?

Specifically, Article 13 of Decree 78/2021/ND-C stipulates persons and entities eligible for exemption, reduction or deferment of payment of contributions as follows:

- Persons entitled to the preferential treatment intended for people with meritorious services to the revolution according to the provisions of Article 3 of the Ordinance on Incentives for people with meritorious services to the revolution No. 02/2020/UBTVQH14 dated December 9, 2020.

- Social protection beneficiaries that are enjoying monthly welfare;

- Non-commissioned officers and soldiers joining the armed services within a definite term who are receiving living allowance.

- Students and learners who are taking intensive and long-term courses at universities, colleges, secondary schools and vocational schools.

- Persons who are handicapped or are incapacitated at the rate of 21% or more, persons suffering from fatal diseases or mental illnesses that hold medical certificates issued by hospitals at the district or higher level.

- Persons who are unemployed or jobless for 6 months in a year or a longer period.

- Women that are rearing their children aged under 12 months.

- Members of poor or near-poor households; members of households at extremely disadvantaged communes located at coastal areas, islands, region-III communes and extremely disadvantaged villages within ethnic minority or mountainous areas as referred to in Government’s Decrees, Prime Minister’s Decisions and other relevant legislative documents; members of families seriously afflicted by natural disasters, diseases, fires and accidents.

- Cooperatives earning no revenue.

- Domestic and foreign economic organizations that operate in the localities suffering damage to property, factories and equipment caused by natural disasters in a year to the extent that the cost incurred from repair or purchase accounts for 0.02 % of total value of their asset, or their production and business must be temporarily closed for 5 consecutive days or more as certified by the district-level People's Committees, or they are exempted from the requirement for payment of corporate income tax.

3. Authority to decide exemption, reduction, deferment and duration of exemption, reduction and deferment of

Pursuant to Article 14 of Decree 78/2021/ND-CP stipulating the competence to decide on exemption, reduction or suspension and the time limit for exemption, reduction or suspension as follows:

- District-level People's Committees shall compile lists of entities specified at Points i and k, Clause 1 and Clause 2 of Article 13 of Decree 78/2021/ND-CP and submit them to the Presidents of the provincial-level People's Committees to seek their decisions on exemption, reduction or deferment of contributions to the Fund. The period of deferment of contributions to the Fund is from 06 months to 01 year.

- Communal-level People's Committees shall compile lists of the rest persons and entities specified in Clause 1 of Article 13 of Decree 78/2021/ND-CP and submit them to the Presidents of the district-level People's Committees to seek their decisions on exemption from payment of contributions to the Fund.

- The consideration of exemption, reduction and suspension of contributions to the provincial Fund by each local authority shall take place once a year at the time of setting targets of the provincial-level fund collection plan.

In cases of exemption, reduction or deferment due to damage caused by natural disasters or epidemics, organizations and individuals must send damage reports and recommendations to local authorities for their preparation of a general report to be sent to competent agencies for consideration of exemption, reduction or deferment.

If any of them has made contributions to the provincial fund, and is eligible for exemption, reduction or deferment, the paid amount will be deducted from the next year's contribution amounts.

Ho Quoc Tuan

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