Regulation on management and payment for projects using public investment capital via State Treasury

VCN - The State Treasury has just issued a regulation on management and payment for projects using public investment capital via the State Treasury system.
Major goals of thrift practice against waste Major goals of thrift practice against waste
HCM City: Focus on disbursing public investment capital HCM City: Focus on disbursing public investment capital
Slow disbursement of public investment capital, difficult to stimulate economic demand Slow disbursement of public investment capital, difficult to stimulate economic demand
The State Treasury has just issued a regulation on management and payment of projects using public investment capital via the State Treasury system.
The State Treasury has just issued a regulation on management and payment of projects using public investment capital via the State Treasury system.

Clear regulation

According to the State Treasury, the regulation on management and payment for projects using public investment capital through the State Treasury system shall comply with Clause 1, Article 1 of Decree 99/2021/ND-CP of the Government on management, payment and settlement for projects using public investment capital (except for secret public investment projects) and works which are repaired, maintained, renovated, upgraded and expanded with costs of VND500 million or more according to Clause 6, Article 7 of Decree 11/2020/ND-CP dated January 20, 2020 of the Government on procedures in the field of State Treasury.

The scope of application will be the State Treasury of the provinces and centrally-run cities; Transaction Offices of State Treasury, State Treasury of districts, towns, provincial cities and centrally-run cities and civil servants in charge of procedures of management and payment of projects using public investment capital through the State Treasury system.

The State Treasury stipulates: "Payment before management" of public investment capital is a form of payment applicable to expenditures under contracts and multiple payments until the disbursed amount reaches 80% of the contract value.

In particular, the State Treasury agency shall carry out payment procedures immediately after receiving complete and valid applications as prescribed in Decree 99/2021/ND-CP.

The control of expenditures and settlement of inspection results shall be carried out by the State Treasury agency after such expenditures have been paid.

Accordingly, the State Treasury agency will perform "payment before management" for each disbursement (including advance/payment of the complete volume) of a multi-payment contract until the disbursed amount reaches 80% of the contract value, then switch to the form of "management before payment" for the next disbursements until the contract value is fully paid.

In case the disbursed capital has not reached 80% of the contract value but the investor requests the final payment, the State Treasury shall implement “management before payment".

The "management before payment" of public investment capital is a form of payment control applicable to expenditures without contracts and a final payment of contracts or other expenditures under contracts with a payment value greater than 80% of the contract value until the end of the contract.

State Treasury allowed to suspend capital payments in some cases

The regulation clearly states that the investor and the management board of projects using public investment capital from the state budget and lawful revenue of state agencies for investment and agencies signing PPP project contracts, the governing body is permitted to invest in the payment account at the State Treasury agency.

Along with that, the State Treasury shall receive documents sent by the investor according to the process described in Decree 11/2020/ND-CP; Decision 3519/QD of the Director General of the State Treasury and Decision 2899/QD of the Director General of the State Treasury.

Besides, the State Treasury shall control payments on the basis of dossiers and documents provided by the investor in accordance with payment principles and regulations in Decree 99/2021/ND-CP.

Moreover, the State Treasury is allowed to suspend capital payment and give written opinions to the investor in the following cases: payment reductions or refusal of payment; answering the investor's problems in capital payment; coordination with the investor and relevant agencies in recovering the capital used for the wrong purpose, wrong receivers and contrary to the State's financial management regime, and report it to the governing body and the superior State Treasury to report to the financial agency for settlement.

After completing the payment procedures, if it is discovered that the investor's application for payment has not yet met the regime or lacks documents as prescribed in Decree 99/2021/ND-CP, the State Treasury shall refuse payment and provide the reason for the refusal within three working days from the date of receiving the investor’s application.

If after the prescribed time limit, there is no response from the investor in accordance with current regulations, the State Treasury shall report to the senior and report to the financial agency for settlement.

Working day and night to accelerate disbursement of public investment capital in 2021 Working day and night to accelerate disbursement of public investment capital in 2021

VCN - The 5th Working Group on inspecting, urging, removing difficulties and accelerating the disbursement of public ...

The regulation clearly states that the public investment capital paid for each job or item of a task or project must not exceed the approved estimate. The total amount of capital paid for the task or project must not exceed the total approved investment. The amount of public investment capital disbursed for the task and project in the year must not exceed the planned capital in the year already allocated for the projects.

In the case of payment under a contract, the contract value must not exceed the bidding package value; the payment value does not exceed the value of the signed contract or the adjusted contract.

By Thuy Linh/ Huyen Trang

Related News

Tax declaration and payment by e-commerce platforms reduces declaration points and compliance costs

Tax declaration and payment by e-commerce platforms reduces declaration points and compliance costs

VCN - E-commerce platforms that declare and pay taxes on behalf of traders not only help to reduce the number of tax declaration points but also reduce the cost of compliance with administrative procedures for the whole society because only one point as the e-commerce trading platform implements tax deduction, payment and declaration on behalf of tens, hundreds of thousands of individuals and business households on the platform.
Public investment spending up 1.8% in first 10 months of 2024

Public investment spending up 1.8% in first 10 months of 2024

VCN - Public investment from Vietnam’s state budget saw steady growth in the first ten months of 2024, reaching 64.3% of the annual target—an increase of 1.8% compared to the same period last year.
Many "big enterprises" pay taxes after enforcement

Many "big enterprises" pay taxes after enforcement

VCN - Many enterprises with large tax debts ranging from several billion to tens of billions of VND have paid taxes to the state budget after being forced by the Customs.
Removing many bottlenecks in regular spending to purchase assets and equipment

Removing many bottlenecks in regular spending to purchase assets and equipment

VCN - Decree No. 138/2024/ND-CP, which has just been issued, is expected to contribute to resolving bottlenecks in allocating funds for purchasing assets and equipment; renovating, upgrading, expanding, and constructing new construction items in projects that have been invested in and constructed in the past.

Latest News

Ministry of Finance proposed to reduce VAT by 2% in the first 6 months of 2025

Ministry of Finance proposed to reduce VAT by 2% in the first 6 months of 2025

VCN - In order to promote the early recovery and development of production and business activities, contributing back to the State budget, the Ministry of Finance proposed to continue reducing 2% of VAT on groups of goods and services currently subject to a tax rate of 10% in the first 6 months of 2025.
Hanoi Customs resolves tax policy queries for enterprises

Hanoi Customs resolves tax policy queries for enterprises

VCN - Queries regarding customs consultation procedures and tax refunds due to price reduction clauses were addressed by the Hanoi Customs Department, providing clarity for businesses.
Regularly check tax obligations to avoid temporary exit suspension

Regularly check tax obligations to avoid temporary exit suspension

VCN - In order to avoid the situation of arriving at the airport or border gate and only finding out that you owe taxes and being temporarily suspended from leaving the country by the Tax Authority, the Tax Authority recommends that taxpayers regularly look up their tax obligations to have a plan to pay taxes on time, not letting the tax debt situation drag on and drag on.
Implementing the SAFE framework in Vietnam: Assessment through the lens of international standards

Implementing the SAFE framework in Vietnam: Assessment through the lens of international standards

VCN - In June 2005, the World Customs Organization (WCO) developed and adopted the SAFE Framework of Standards to Secure and Facilitate Global Trade. The SAFE Framework plays a crucial role in encouraging countries to modernize, enhance security, and facilitate trade within global supply chain management and Authorized Economic Operator (AEO) programs. This approach introduces a comprehensive method for cross-border goods management and promotes closer cooperation between Customs, businesses, and stakeholders. The Customs News presents a two-part series on implementing the SAFE Framework in Vietnam.

More News

Proposing the Tax Authority be flexible in applying tax debt enforcement measures simultaneously

Proposing the Tax Authority be flexible in applying tax debt enforcement measures simultaneously

VCN - In the draft revised Law on Tax Administration, the Ministry of Finance proposed amending regulations on measures to enforce administrative decisions on tax administration to remove obstacles in policy mechanism and improve the effectiveness of tax administration.
Many shortcomings in process and manual book on handling administrative violations

Many shortcomings in process and manual book on handling administrative violations

VCN - Legal policies on handling administrative violations have effectively supported the technical work of the Customs sector. However, some legal bases and regulations have been amended, replaced, and supplemented, which have limited the efficiency of handling administrative violations of the customs sector.
Implementing the SAFE Framework in Vietnam: Lessons from practice

Implementing the SAFE Framework in Vietnam: Lessons from practice

VCN - The Framework of Standards to Secure and Facilitate Global Trade (SAFE Framework) is a strategic international instrument introduced by the World Customs Organization (WCO) to enhance security and trade facilitation in global supply chains. It contributes significantly to the economic development of the 21st century.
Implementing the SAFE Framework in Vietnam: Solutions and Recommendations

Implementing the SAFE Framework in Vietnam: Solutions and Recommendations

VCN - Recognizing the significance, impact, and benefits of the SAFE Framework in customs modernization and reform, Vietnam Customs is advancing the implementation of SAFE. This involves both capacity building and phased deployment aligned with Vietnam Customs’ development strategy and practical needs.
Abolishing regulations on tax exemption for small-value imported goods must comply with international practices

Abolishing regulations on tax exemption for small-value imported goods must comply with international practices

VCN - The Ministry of Finance said that the abolition of regulations on tax exemption for imported goods valued at less than VND1 million must comply with international practices in the context of the growing trend of cross-border e-commerce activities.
Policy adaptation and acceleration of digital transformation in tax and customs management

Policy adaptation and acceleration of digital transformation in tax and customs management

VCN - In order to contribute to economic growth, tax, customs and logistics management policies need to ensure high adaptability, stability and predictability so that they require little amendment or supplementation.
Implement regulations on special preferential import tariffs under VIFTA

Implement regulations on special preferential import tariffs under VIFTA

VCN - The General Department of Vietnam Customs (GDVC) requests provincial and municipal customs departments to implement Vietnam's special preferential import tariffs under the Free Trade Agreement between the Government of the Socialist Republic of Vietnam and the Government of the State of Israel for the period 2024-2027 (referred to as the VIFTA) from October 15, 2024.
Perfecting tax policy for goods traded via e-commerce

Perfecting tax policy for goods traded via e-commerce

VCN - In order to ensure the goal of developing e-commerce activities without causing loss of state budget revenue, the Customs authority is actively coordinating with policy advisory units of the Ministry of Finance to research and review regulations on tax exemption for import and export goods transacted via e-commerce.
Are belongings of foreigners on business trip to Vietnam exempt from tax?

Are belongings of foreigners on business trip to Vietnam exempt from tax?

VCN - That is the question of Nhat Viet Relocation Company Limited, which has just been answered by the Customs Department and given specific instructions on providing a confirmation of residence of foreigners on business trip to Vietnam to follow tax exemption procedures for movable assets.
Read More

Your care

Latest Most read
Ministry of Finance proposed to reduce VAT by 2% in the first 6 months of 2025

Ministry of Finance proposed to reduce VAT by 2% in the first 6 months of 2025

The Ministry of Finance proposed to continue reducing 2% of VAT on groups of goods and services currently subject to a tax rate of 10% in the first 6 months of 2025.
Hanoi Customs resolves tax policy queries for enterprises

Hanoi Customs resolves tax policy queries for enterprises

Queries regarding customs consultation procedures and tax refunds due to price reduction clauses were addressed by the Hanoi Customs Department, providing clarity for businesses.
Regularly check tax obligations to avoid temporary exit suspension

Regularly check tax obligations to avoid temporary exit suspension

Tax Authority recommends that taxpayers regularly look up their tax obligations to have a plan to pay taxes on time, not letting the tax debt situation drag on and drag on.
Implementing the SAFE framework in Vietnam: Assessment through the lens of international standards

Implementing the SAFE framework in Vietnam: Assessment through the lens of international standards

The SAFE Framework plays a crucial role in encouraging countries to modernize, enhance security, and facilitate trade within global supply chain management and Authorized Economic Operator (AEO) programs
Proposing the Tax Authority be flexible in applying tax debt enforcement measures simultaneously

Proposing the Tax Authority be flexible in applying tax debt enforcement measures simultaneously

VCN - In the draft revised Law on Tax Administration, the Ministry of Finance proposed amending regulations on measures to enforce administrative decisions on tax administration to remove obstacles in policy mechanism and improve the effectiveness of tax
Mobile Version