Circular 54/2019/TT-BTC guiding the management and use of state budget funds to support small and medium-sized enterprises using consulting services under the consultant network issued by the Minister of Finance

CIRCULAR

PROVIDING GUIDANCE ON THE MANAGEMENT AND USE OF STATE BUDGET TO SUPPORT SMALL AND MEDIUM-SIZED ENTERPRISES IN USING CONSULTANCY SERVICES PROVIDED BY CONSULTANT NETWORK

Pursuant to Law on the State budget dated June 25 2015;

Pursuant to Law on Support for small and medium-sized enterprises dated June 12 2017;

Pursuant to Decree No.163/2016/ND-CP dated December 21,2016 by the Government providing guidance on a number of articles of Law on State budget;

Pursuant to Decree No.87/2017/ND-CP dated July 26 2017 by the Government defining the function, tasks, powers and organizational structure of the Ministry of Finance;

Pursuant to Decree No .39/2018/ND-CP dated March 11 2018 by the Government detailing a number of articles of the Law on support for small and medium-sized enterprises;

At the proposal of the Director of the Corporate Finance Department;

The Minister of Finance promulgates a Circular providing guidance on the management and use of State budget to support small and medium-sized enterprises in using consultancy services provided by consultant network.

Article 1. Scope

1. This Circular provides guidance on the estimation, management, use and settlement of State budget to support small and medium-sized enterprises (SMEs) in using consultancy services provided by consultant network (hereinafter referred to as “consultancy support for SMEs”) in accordance with Article 13 of Decree No. 39/2018/ND-CP dated March 11, 2018 by the Government providing guidance on a number of articles of Law on support for small and medium-sized enterprises (hereinafter referred to as Decree No. 39/2018/ND-CP)

2. This Circular does not apply to:

a) Consultation about administrative procedures in accordance with specialized laws. The Ministry of Planning and Investment shall determine and provide guidance on administrative procedures in accordance with specialized laws.

b) Consultation about order, procedures, application for establishment of an enterprise; order, procedures, application for certificate of eligibility for trade of conditional business lines (if any) to a household business registering for enterprise conversion.

c) Consultation about procedures of issuance of initial business license to SMEs converted from household business.

d) Consultation about administrative taxation procedures and accounting regulations to SMEs converted from household business within 3 years from the date of receiving the initial business license.

e) Content of consultancy for creative SME startups and SMEs engaging in industrial clusters and value chains prescribed in clause 1, points b and d clause 2 Article 21; clause 2, point b clause 3, points b and d clause 4 Article 24 of Decree No 39/2018/ND-CP.

- Authority in charge of the Scheme for support SMEs shall formulate and submit to the competent authority the regulations on consultancy for creative SME startups and SMEs engaging in industrial clusters and value chains funded by the State budget.

Article 2. Regulated entities

1. Enterprises which are incorporated and operating in accordance with law on enterprises and meet criteria for SMEs as prescribed in Article 6 of Decree No. 39/2018/ND-CP.

2. Ministries, ministerial-level agencies, the People’s Committee of provinces and centrally-run cities (hereinafter referred to as “provincial People’s Committees”).

3. Agencies affiliated to ministries, ministerial-level agencies which have the consultant network, or units affiliated to provincial People's Committees which are assigned to implement the consultancy support in corresponding fields (hereinafter referred to as “SME supporting bodies”).

If there are several supporting SMEs affiliated to one ministry, ministerial-level agency or a provincial People’s Committee, the centralized unit must be established to undertake the support in SME development, consolidation of estimates and settlement of funding for the consultancy support for SMEs. The centralized unit affiliated to a ministry, ministerial-level agency must be one of the agencies assigned to organize the consultant network.

4. Organizations, individuals participating in the consultant network.

5. Other organizations, individuals related to the management and use of State budget for support in consultancy to SMEs.

Article 3. Organizing the consultancy support for SMEs

Regulations on the organization of consultancy support for SMEs (including: the organization and operation of the consultant network; procedures of consultancy support for SMEs from consultant selection, receiving application for consultation, decision of approving the consultation support; handling violations; regimes of report, supervision, evaluation and other provisions of the organization of consultancy support for SMEs) shall comply with Circular No. 06/2019/TT-BKHDT dated March 29, 2019 by the Ministry of Planning and Investment on guidelines for organization and operation of consultant network, consultancy support for small and medium-sized enterprises through consultant network and other amending documents (if any).

Article 4. Principles of allocating, managing and using the State budget for consultancy support for SMEs

1. Principles of allocation:

From the State budget: The funding for consultancy support for SMEs is allocated from annual budget estimates of SME supporting bodies affiliated to ministries and ministerial-level agencies.

b) From the provincial budget: The funding for consultancy support for SMEs is allocated from annual budget estimates of SME supporting bodies affiliated to provincial People’s Committees.

2. Funds from the State budget for consultancy support for SMEs shall be estimated, managed and used for the right purpose in accordance with regulations specified in Law on State budget and this Circular.

3. The funding for consultancy support for SMEs from the State budget is allocated to SME supporting bodies. Such bodies shall not use funds from the State budget for the organization of the governing body, investment in infrastructure or any spending other than the consultancy support for SMEs.

4. SME supporting bodies shall be responsible to law for the management and use of funds; the accuracy, adequacy of documents relating to the use of funds; the accounting, settlement and storing related documents in accordance with regulations.

Article 5. Estimating, allocating and assigning the State budget for consultancy support for SMEs

The estimation, allocation and settlement of funds for consultancy support for SMEs shall comply with regulations in current laws on budget and provisions specified in this Circular.

1. Establishment and consolidation of estimates:

At the time of making the annual State budget estimate, based on the documents of the Ministry of Finance and the Ministry of Planning and Investment guiding the formulation of plans to support the use of consultancy service in SMEs, the report on the previous year’s implementation and regulations specified in this Circular, SME supporting bodies shall plan and estimate funding for the implementation of such support and submit such plan and estimate to the centralized unit.

b) Ministries, ministerial-level agencies, provincial People’s Committees shall submit the consolidated plan and estimates of budget for consultancy support for SMEs (in accordance with Appendix 1 attached to this Circular) to the Ministry of Planning and Investment before July 20 for the consolidation of the national report; and incorporate such budget into the annual budget estimate of their agencies for submission to competent authority in accordance with Law on State budget and other guiding documents.

- The State budget: Based on proposals of ministries, ministerial-level agencies and the total funding from the State budget for consultancy support for SMEs, the Ministry of Planning and Investment shall formulate the overall plan of allocating the State budget and detail plans thereof for ministries, ministerial-level agencies (in accordance with Appendix 2 attached to this Circular) then submit such plans to the Ministry of Finance for consideration and incorporation such allocation into the budget estimates of agencies, which are submitted to the National Assembly for decision.

- The provincial budget: Based on the capability of balancing the local government annual budget, the Department of Finance of a provincial People’s Committee shall cooperate with the centralized unit to formulate the overall plan for allocation of estimated budget for consultancy support for SMEs and the detailed plan thereof for SME supporting bodies affiliated to the provincial People’s Committee; incorporate such allocation into the estimate of the local government budget revenues and expenditures and submit such estimates to competent authorities in accordance with regulations specified in Law on State budget and other guiding documents.

2. Allocation and assignment of funds

From the State budget:

Based on the estimation of State budget for consultancy support for SMEs approved by competent authorities, ministries, ministerial-level agencies shall allocate and assign the estimated funds for SME supporting bodies in accordance with regulations specified in Law on State budget and other guiding document and the scheme for consultancy support for SMEs announced by the Ministry of Planning and Investment.

b) From the provincial budget:

Based on the estimation of provincial budget for consultancy support for SMEs approved by competent authorities, each provincial People’s Committee shall allocate and assign the estimated funds for affiliated SME supporting bodies in accordance with regulations specified in Law on State budget, other guiding documents and the approved annual scheme for consultancy support for local SMEs.

Article 6. Levels of support from the State budget

1. Enterprises using the consultancy services provided by consultant network are supported by the State budget with the amount specified in clause 3 Article 13 of Decree No. 39/2018/ND-CP.

If a SME has used the consultancy services provided by consultant network and has received the support from the State budget yet the supporting amount has not exceeded the limit specified in clause 3 Article 13 of Decree No. 39/2018/ND-CP, such SME shall only receive the remaining amount of support and report such amount to the SME supporting bodies for consideration and decision of approving the consultancy support.

2. SME supporting bodies are responsible for determining and specifying the rate, amount of support from the State budget in the decision of approving the consultancy support for SMEs.

3. During the implementation of a consultancy contract, if there is a change in the contract’s value (the objectives, basic content of the contract remain unchanged) which leads to the increase/decrease of the supporting amount from the State budget, the SME shall report to the SME supporting body to redefine the supporting amount to be in line with the new contract's value after reduction, providing that the support rate is assigned as prescribed in clause 3 Article 13 of Decree No. 39/2018/ND-CP

Article 7. Payment for the consultancy support from the State budget

1. SME supporting bodies which decide the approval of consultancy support for SMEs are responsible for the payment for consultancy support for SMEs from the State budget.

2. Based on the decision on approving the consultancy support to a SME and the receiving amount after inspecting, completing contract and paying for consultants from such SME, the SME supporting body shall receive the funding for consultancy support for SMEs from the State Treasuries. The State Treasuries shall carry out the spending control in conformity with the applicable regulations.

SME supporting bodies shall be responsible for the accuracy, adequacy of documents relating to the consulting contracts and the implement thereof. Consultants shall cooperate with the SME supporting bodies to determine the accuracy, adequacy of documents relating to the consulting contracts and the implement thereof at request.

3. Based on the organization of consultancy support for SMEs and the number of SMEs supported in a period, SME supporting bodies shall set the receipt of payment for consultancy support for SMEs from the State budget on a monthly or quarterly basis. (Example: A SME supporting body set the receipt of payment for consultancy support for SMEs from the State budget on a monthly basis. In March 2019, 10 SMEs received the consultancy support from this supporting body. The supporting body shall receive the amount of support of 10 SMEs in one instalment in the following month).

Article 8. Settling the funding from the State budget for consultancy support for SMEs

1. The settlement of funds for the consultancy support for SMEs shall comply with regulations of Law on State budget, other guiding documents and legal normative documents on the accounting of the State budget.

2. The SME supporting bodies shall settle the funding from the State budget for consultancy support for SMEs, form reports of settlement of such funding for SMEs (in accordance with Appendix 3 attached to this Circular) and submit the consolidated report to the centralized unit for consolidation at ministries, ministerial-level or provincial People’s Committee level (in accordance with Appendix 4 attached to this Circular).

Article 9. Implementation provisions

1. This Circular takes effect on October 10 2019.

2. Any problem arising in the course of implementation should be reported to the Ministry of Finance for consideration and settlement./.

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