CIRCULAR guide financial management mode for airports (SOE operations, public interest) pursuant to Decree No. 56/CP dated 8 October 1996 from the Government about the activities of State enterprises;
Pursuant to decision No. 113/1998/QD-TTg dated 6 July 1998 by the Prime Minister about the airports the airport in Northern, Central, southern from business units have the currency into a State enterprise operating public utility and decision No. 258/1998/QD-TTg dated 31-12-1998 of the Prime Minister regarding the additional amendment to decision No. 113/1998/QD-TTg dated 14 July 1998 of the The Prime;
Pursuant to circular No. 09/02/24 TCDN TC in 1997 of the Ministry of Finance shall guide financial management mode for the State enterprise operating public utility.
To fit the particularities of activity in the field of management of infrastructure in the airports, the Ministry of finance instructed some of the content on the financial management mode for the following airports: i. GENERAL PROVISIONS-The airports are State enterprises, public interest activities , has the task of managing the exploitation of airports to provide aviation services, public services according to the policy of the State, according to the State Planning Department and according to reviews by State regulations. Financial regimes defined in circular 6/TCDN TC on 24/02/1997 of the Ministry of finance "Guide financial management mode for the State Enterprise public activity" and the specific provisions of this circular.
-In addition to the task of public activity, the airports do not have the rights to organize business activities more according to Charter operations, in accordance with their abilities and the needs of the market with the conditions: + Vietnam Civil Aviation Department has agreed in writing.
+ Does not affect the exercise of the tasks of the State, public interest has delivered.
+ Additional registry category under the current rules.
+ Partial accounting business activity more.
+ Service tax for the business activities more in accordance with the law.
II. SPECIFIC PROVISIONS A. FINANCIAL RESULTS And HANDLE FINANCIAL RESULTS 1. The sales revenue of the airports not including revenue from public activity, revenue from business activities (if any) and other activities.
1.1. The revenue from public activity: revenue from operations of public interest the airports include: a. operating revenue from providing services at airports:-Currency commercial technical service ground-operating Income down aircraft takeoff-Currency used aircraft parking-Currency-Currency passenger service counters for hire passengers-Currency exploitation franchise-Currency specialized equipment rental-Currency-Currency security screening service providers operating transit flight supplements-for lease in the Terminal air-car parking-Currency Income for rent outside the station-for rent ads-other Income.
b. costs and fees (if applicable) c. Currency from grants, subsidies of the State (if any) and other revenues.
The content and the level of income the revenues from the operation of the airports follow circular No. 171/1998/TTLT/BVG-CAAV on 07/02/1998 of the DMP and the Government of Vietnam Civil Aviation Bureau and the specific provisions of the Vietnam Civil Aviation Bureau.
1.2. The revenue from business activities and other activities: applied as prescribed for State enterprise business activities.
2. Costs: costs of these airports do not include the cost of public activities, business activities and other activities.
2.1. public utility operating costs: the costs for the operation of the airports include:-the cost of salaries and allowances-social insurance, health insurance, Union funding.
-The cost of raw materials, fuel, power-Chi shops labor tools-depreciation LOAN-LOAN overhaul-preservation, repair costs often LOAN-application training and specialized technical and scientific management-Chi operation.
-The cost of plane calibration equipment-land tax paid-other related costs.
2.2. content costs of business operations and other activities conducted as prescribed for State enterprise business activities.
3. Manage currency-financial expenditure of the airports-The airports are using the revenue to offset the costs, including revenue from public activity is used to offset the costs of public works, the taxes payable by law (except enterprise income tax). Private revenues of fees was hiuện under the provisions of the State on the management fees and charges. Revenue from business activities and other activities used to offset the entire cost of the product, the service was consumed, other charges, taxes and dues payable under the provisions of State law (except enterprise income tax). Production activities must have accounting books, private accounting revenue, expenses and financial results of the activity, not obtain financial results of public activities to offset losses (if any) for production and business activities.
-Certificate from the currency due to the Ministry of Finance (tax administration) issued, cases of use of specific evidence of currency, the airports must be registered with the tax authorities before implementation.
4. Handle the financial result: 4.1. The airports are State enterprises, public interest activities, the difference between revenue and spending are treated as follows: a. the corporate income tax according to law.
b. except for the fines in violation of discipline currency lodging budget, administrative violations, breach of contract, the overdue fine, legitimate expenses have not been deducted in determining taxable income.
c. offset the losses have not yet been deducted from the profit before tax.
d. Part of the profit remaining after subtracting the a, b, c above, the airports was quoted by the National Fund and the level of control as follows: + investment fund development: minimum 50% of the quoted rate + financial reserve fund: Extract 10%, the balance of this Fund must not exceed 25% of the capital.
+ Extract two reward Welfare Fund must not exceed 3 months salary if the number of actual budget in higher reports years ago, by 2 months salary if the number of actual budget reports by year or lower than the previous year.
After excluding items a, b, c, d, and the development of investment Fund financial reserve fund if the extracted profits on two funds rewarded, then the residual benefit variances were transferred into the entire development investment fund, if not enough sources to cite established two reward Fund, benefits by two months in fact, airports are State level enough parts missing.
4.2. for airports have not enough income to offset the expenses or interest rates but not enough to extract the two awards and benefits fund by two months of real wages, are treated as follows: 4.2.1. After using 50% of the profits from business activities and other activities to offset, if still in the hole, are supported by state-subsidised enough holes left.
-Level 2 Reward Fund, welfare, real wages by 2.
4.2.2. the remaining profits except business activities and other activities Development Fund is 80%, the financial reserve fund of 20%.
B. the annual FINANCIAL PLAN, based on the rules and guidelines of the financial authority, the airports are reporting:-business plan includes public activities and other business activities according to the prescribed regimes of State.
-Financial expense estimation (including pension plans, the subsidies (if any).

These reports are sent to the Vietnam Civil Aviation Bureau, Ministry of finance and the tax authorities. After the unanimous opinion by the Ministry of finance, Vietnam Civil Aviation Bureau conducted and approval of the plan for the cluster of aviation at the same time as the Organization directing the unit perform the estimation of financial expenditure and income guarantee plan currency lodging budget.
C. CHECK The FINANCIAL STATEMENTS And PUBLICLY FINANCE 1. Financial reporting.
-Quarterly and in the airports are responsible for financial reporting under the current rules. The Director General of the cluster as found not responsible to the State and the law for the accuracy, the truthfulness of financial reports.
-Quarterly financial reports and the five Vietnam Civil Aviation Bureau sent, the local tax authorities, the Agency and the State property in enterprises, according to the statistics agency content and form prescribed in decision No. 1141TC/QD-CĐKT on November 1, 1995 by the Minister of Finance on accounting mode of State enterprises.
2. Check the financial statements.
-Quarterly, in the airports must check the accounting, the financial statements of the unit.
-Vietnam Civil Aviation Bureau, the same agency that manages state assets and capital in the enterprise is responsible for inspecting approved financial statements of the airports in the area.
-Financial institutions have a duty to examine the observance of the financial regime, accounting, remittance and discipline the accuracy and honesty of the financial report.
-The violation of accounting mode, the mode income of finance, remittance, and extract mode using the funds of the enterprise will be administrative sanctions, economic sanctions prescribed by law.
3. financial report publicly every year.
-Based on the annual financial statements have been approved by the competent authority, airports do not publicize financial targets before meeting officials of the business.
-The content of the target public disclosure as defined in the circular 06/02/24 TCDN TC in 1997 of the Ministry of finance.
III. ENFORCEMENT Of TERMS 1. In addition to the provisions of this circular, the aviation Cluster areas also made the provisions of the law for State enterprises.
2. This circular applies from 1 January 1999. All previous provisions on financial management for the airports left with this circular are repealed.
3. in the implementation process if there are obstacles, suggest the business timely reflection of the Ministry of finance to study the amended and supplemented accordingly.