Decree No. 94/2014/ND-CP on the setting up and management of natural disaster prevention and control funds

4 THE GOVERNMENT No. 94/2014/ND-CP OFFICIAL GAZETTE Issue nos 07-08/October 2014 THE SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness Hanoi, October 17, 2014 DECREE On the setting up and management of natural disaster prevention and control funds(*) Pursuant to the December 25, 2001 Law on Organization of the Government; Pursuant to the June 19, 2013 Law on Natural Disaster Prevention and Control; At the proposal of the Minister of Agriculture and Rural Development, The Government promulgates the Decree on the setting up and management of natural disaster prevention and control funds. Chapter I GENERAL PROVISIONS Article 1. Scope of regulation This Decree provides for the setting up; contributors and contribution levels; and management and use of natural disaster prevention and control funds (below refe1Ted to as funds). Article 2. Subjects of application This Decree applies to Vietnamese agencies, organizations, households and individuals; foreign organizations and individuals and international organizations that cmTently reside or operate or are engaged in natural disaster prevention and control in Vietnam. Article 3. Operation principles of funds 1. Funds shall be managed and used in a timely, public, transparent, equal and effective manner for proper purposes. 2. Funds shall operate for not-for-profit pmposes. Article 4. Setting up of funds 1. Funds shall be set up at the provincial level and managed by provincial-level People 's Committees. The year-end balance of funds may be cm.Tied fo1ward to the subsequent year. 2 . Chai1persons of provincial-level People's Committees shall decide on the setting up of fund management agencies. Fund management agencies shall be located at provincial­ level Agricultural and Rural Development Depru.iments, have seals and may open accounts at state treasuries. Directors of funds shall be appointed, relieved from duty or dismissed by chaiipersons of provincial-level People's Committees. f*J Cong Bao Nos 965-966 (01111/2014) © Vietnam Law and Legal F ornm Issue nos 07-08/October 2014 OFFICIAL GAZETTE 5 3. Chairpersons of provincial-level People's Committees shall promulgate Regulations on organization and operation of funds; and authorize district- and commune-level People 's Committees to organize the collection of contributions to funds. Chapter II CONTRIBUTORS AND CONTRIBUTION LEVELS Article 5. Contributors and contribution levels 1. Independent accounting-practicing economic organizations: The annual compulso1y contribution level is 0.02% of the total value of cmTent assets in Vietnam according to annual financial statements, which, however, must be at least VND 500,000 and at most VND 100 million, and may be accounted as production and business cost. 2. Vietnamese citizens aged between full 18 years and the retirement age prescribed by the labor law shall make contributions as follows: a/ Salaried cadres, civil se1vants and public employees working in agencies, organizations and aim ed forces and managers of state enterprises shall contribute one day's salaiy /person/yeai· calculated based on their base salaiy after deducting payable taxes and insmance premiums; b/ Workers in ente1prises shall contribute one day's wage/person/year calculated based on the region-based minimum wage; c/ Other workers, other than those specified at Points a and b of this Clause shall contribute VND 15, 000/person/yeai·. 3. Organizations and individuals are encomaged to make volunta1y contributions to funds. Article 6. Subjects eligible for exemption from or reduction or suspension of payment of, contributions 1. Subjects eligible for exemption from contributions: a/ Wai· invalids and diseased soldiers and persons eligible for the policy applicable to war invalids; b/ Natm-al pai·ents and spouses of fallen soldiers; c/ Persons who are perfo1ming their milita1y se1v ice duty in the aimed forces, and non­ commissioned officers and soldiers se1v ing for a given te1m in the People 's Public Secmity Forces and enjoying cost-of-living allowance; d/ Students studying under long-te1m fo1mal training programs at universities, colleges, inte1mediate and vocational training schools; dd/ Persons with disabilities or persons who have lost 21 % or more of their working capacity and people suffering from dangerous diseases certified by district- or higher-level health establishments; el Persons who ai·e unemployed or do not have any job for 6 months or more in a yeai·; g/ Members of poor households or households living just above the poverty line; members of households in mountainous, remote and deep-lying ai·eas; members of households suffering from damage caused by natm-al disasters, epidemics, fires, explosions or accidents; h/ Cooperatives that have no somce of revenues. ©Vietnam Law and Legal Fomm 6 OFFICIAL GAZETTE Issue nos 07-08/October 2014 i/ Independent accounting-practicing economic organizations that have spent more than 0.02% of their total asset value on repairing and purchasing assets, workshops and equipment or postponed production and business for 5 days or more in a year due to damage caused by natural disasters. 2. Subjects eligible for reduction or suspension of payment of contributions: Independent accounting-practicing economic organizations eligible for enterprise income tax exemption or reduction shall be considered for reduction or suspension of payment of contributions to funds. Article 7. Competence to decide on exemption from, or reduction or suspension of payment of, contributions 1. Provincial-level People 's Committees are competent to decide on exemption from, or reduction or suspension of payment of, contributions, for the subjects specified in Alticle 6 of this Decree. 2. The exemption from, reduction and suspension of payment of, contributions to local funds shall be considered once a year at the time of assignment of collection quotas for funds. Organizations and individuals eligible for exemption from, reduction and suspension of payment of, contributions due to damage caused by natural disasters shall repo1t the damage to local administrations for summarization and sending to competent agencies for exemption, reduction and payment suspension consideration. For those that have made contributions to funds before they are considered for contribution exemption, reduction or payment suspension, the paid sums of money may be subtracted from the subsequent year 's contributions. Chapter III MANAGEMENT AND USE OF FUNDS Article 8. Management of collection and plans on collection for funds 1. Heads of independent accounting-practicing economic organizations shall pay contributions to funds according to the levels specified in Clause 1, Alticle 5 of this Decree, and transfer them into fund management agencies' accounts or district-level accounts authorized by provincial-level People's Committees. 2. Heads of agencies and organizations shall collect the contributions of their cadres, civil servants, public employees, workers, officers and public employees of the aimed forces under their management, and transfer them into fund management agencies' accounts or district-level accounts authorized by provincial-level People's Committees. 3. Commune-level People's Committees shall collect the contributions of other workers in their localities ( except those specified in Clause 2 of Alticle) and transfer them into district-level accounts authorized by provincial-level People 's Committees. The collection of contributions in cash must use receipts issued by the Ministiy of Finance. 4. Deadlines for payment of contributions: Individuals shall pay their contributions once a year before May 30; independent accounting-practicing economic organizations shall pay at least 50% of their contributions before May 30 and the remainder before October 30 every year. 5. Heads of agencies, organizations and commune-level People 's Committees shall, © Vietnam Law and Legal F ornm Issue nos 07-08/October 2014 OFFICIAL GAZETTE 7 based on contributors and contribution levels under their management and subjects eligible for exemption from or reduction or suspension of payment of, contributions, prepare collection plans of their agencies, organizations or localities. 6. Chairpersons of provincial-level People 's Committees shall guide the making of collection plans by, and approve and notify to, each related agency or unit. Article 9. Spending contents of funds 1. Suppo1i ing natural disaster prevention and control activities specified in Clause 3, Ali icle 10 of the Law on Natural Disaster Prevention and Control, including: a/ Relieving and suppo1i ing the remediation of natural disaster consequences: Providing emergency relief in food, drinking water, curative medicines and other essentials to those suffering from damage caused by natural disasters; supporting the repair of houses, health establishments and schools, and for dealing with environmental sanitation issues in natural disaster-hit areas, repair of evacuation houses serving natural disaster prevention and control or urgent repair of natural disaster prevention and control facilities with a value of under VND 1 billion/facility; b/ Suppo1i ing natural disaster response activities: Evacuating people out of dangerous areas; health care; providing food and drinking water to those in evacuation places; suppo1iing observation, infom1ation, announcement, warning and ale1i of natural disasters at community; c/ Suppo1i ing prevention activities: Disseminating the law on natural disaster prevention and control, making plans on and organizing drills of natural disaster prevention and control at the commune level. 2. Suppo1i ing at most 5% of the actually collected amounts annually to pay remuneration to collectors and other administrative expenses for collection work at the communal level. 3. TransfeITing funds to suppo1i other localities suffering from damage caused by natural disasters in case the remediation exceeds the capacity of these localities. Article 10. Competence to decide on funds' spending 1. Chaiipersons of provincial-level People's Committees may decide on spending levels and contents for eligible subjects at the request of provincial-level commanding committees for natural disaster prevention and control and search and rescue. 2. Provincial-level commanding committees for natural disaster prevention and control and search and rescue shall summarize the damage and suppo1i needs of district-level People's Committees and related agencies and units, and make proposals to chai1persons of provincial­ level People's Committees. 3. Based on the actually collected amounts, chai1persons of provincial-level People 's Committees shall decide on the use of theii· funds to support other localities. 4. The Prime Minister may decide to transfer local funds for supporting other localities as follows: a/ For urgent transfer to suppo1i localities seriously affected by natural disasters, the Chaiiperson of the Central Steering Committee for Natural Disaster Prevention and Control shall coordinate with the chaiipersons of related provincial-level People's Committees in ©Vietnam Law and Legal Fomm 8 OFFICIAL GAZETTE Issue nos 07-08/October 2014 repo11ing and making proposals to the Prime Minister for decision; b/ Based on annual revenue and expenditure :finalization rep01ts of local funds, the Central Steering Committee for Natural Disaster Prevention and Control shall assume the prime responsibility for, and coordinate with the Ministry of Agriculture and Rural Development and the Ministry of Finance in, elaborating a plan on the use of the balance of local funds to maintain the balance of funds and transfer funds to suppo1t other localities seriously affected by natural disasters; and submitting it to the Prime Minister for decision. Article 11. Repo1ting and approval of :finalization repo1is 1. Fund management agencies shall make annual revenue and expenditure :finalization repo1is and send them to provincial-level People's Committees in the first quaiier of the subsequent year. Chaiipersons of provincial-level People's Committees shall dii·ect related agencies to verify and approve :finalization repo1is under regulations. 2. Provincial-level People 's Committees shall repo1i on funds ' revenue and expenditure :finalization to the Central Steering Committee for Natural Disaster Prevention and Contr·ol, the Ministry of Agriculture and Rural Development and the Ministry of Finance. Article 12. Inspection, audit and supervision of funds ' operation 1. Natural disaster prevention and control funds ai·e subject to examination, inspection and audit by state agencies under regulations. 2. Chaiipersons of provincial-level People 's Committees shall direct related agencies and units to examine and supervise funds ' operations. They shall take measures to urge agencies, organization and individual to fully contr·ibute to funds in according with law. 3. Provincial-level Fatherland Front Committees and associations related to funds may request provision of infom1ation on funds, and exercise their oversight power through giving opinions, proposals and criticisms. Article 13. Publicity of funds ' revenues and expenditures 1. Agencies, units and organizations shall publicize lists of cadres, civil servants, public employees and workers who make contributions to funds. The fonns of publicity include written notification and public display at units; and notification at meetings of cadres, civil servants, public employees and workers at units. The publicization shall be made within 30 days after completion of collection. 2. Commune-level People 's Committees shall publicize collected amounts and lists of workers who have made contributions in theii· communes, and the total funds allocated for natural disaster prevention and control and spending contents. The fo1ms of publicity include repo1ting at year-end review meetings; public display at head offices of People's Committees and cultural centers of villages, and announcement via communes ' public addressing systems. 3. Fund management agencies shall publicize collected amounts, lists and contribution levels of agencies, organizations, units and districts; revenue and expenditure :finalization repo1ts; and spending contents in district-level localities. The fo1ms of publicity include public display at the head offices of the funds; written notification to contri.buting agencies and organizations; and posting on theii· websites. © Vietnam Law and Legal F ornm Issue nos 07-08/October 2014 OFFICIAL GAZETTE Chapter IV RESPONSIBILITIES AND OBLIGATIONS OF AGENCIES, ORGANIZATIONS AND INDIVIDUALS 9 Article 14. Responsibilities of People's Committees at all levels, the Central Steering Committee for Natural Disaster Prevention and Control and related ministries, ministerial-level agencies and government-attached agencies 1. Provincial-level People's Committees shall organize funds ' collection and spending; direct the inspection, examination and supervision of funds ' operations; and direct publicity of funds according to this Decree and relevant regulations. 2. Chairpersons of district- and commune-level People 's Committees and heads of agencies and organizations shall organize collection and payment of contributions to funds according to Aliicle 8, Chapter III of this Decree. 3. The Central Steering Committee for Natural Disaster Prevention and Control shall assume the prime responsibility for, and coordinate with the Ministry of Finance, the Ministry of Agriculture and Rural Development and related ministries, ministerial-level agencies and government-attached agencies in, inspecting and urging the implementation of this Decree; and annually summarize implementation results and report them to the Prime Minister. Article 15. Obligations of independent accounting-practicing economic organizations and individuals obliged to make contributions to funds Independent accounting-practicing economic organizations and individuals specified in Aliicle 5, Chapter II of this Decree shall contr·ibute to funds under regulations. ChapterV IMPLEMENTATION PROVISIONS Article 16. Effect 1. This Decree takes effect on December 8, 2014. 2. This Decree replaces the Government's Decree No. 50/CP of May 10, 1997, issuing the Regulation on the setting up and operation oflocal funds for flood and st01m prevention and contr·ol. 3. Organizations and individuals that have made contributions to funds for flood and sto1m prevention and contr·ol for 2014 in accordance with the Government's Decree No. 50/ CP of May 10, 1997, before the effective date of this Decree, are exempted from contr·ibution to natural disaster prevention and control funds for 2014. The balance of flood and sto1m prevention and control funds shall be tr·ansfened to natural disaster prevention and control fund management agencies for management and use under this Decree. Article 17. Implementation responsibility Ministers, heads of ministerial-level agencies, heads of government-attached agencies, chairpersons of People's Committees at all levels and related agencies, organizations and individuals shall implement this Decree. On behalf of the Government Prime Minister NGUYEN TAN DUNG ©Vietnam Law and Legal Fomm