1. What is the fund for natural disaster prevention and control?

Natural disaster prevention and control fund is an off-budget state financial fund, including the central disaster prevention and control fund managed by the Ministry of Agriculture and Rural Development and the provincial disaster prevention and control fund managed by the People’s Committee. managed by the province. Clause 2, Article 10 of the Law on Natural Disaster Prevention and Control, as amended by Point a, Clause 7, Article 1 of the Law on Natural Disaster Prevention and Control and the Amendment of the Law on Dikes 2020 stipulates:

“The financial sources of the Natural Disaster Prevention and Control Fund are prescribed as follows:

a) Financial sources of the Central Disaster Prevention and Control Fund include support and voluntary contributions of domestic and foreign organizations and individuals; regulation from the Provincial Natural Disaster Prevention and Control Fund according to the Prime Minister’s decision and other lawful sources;

b) Financial sources of the provincial disaster prevention and control fund include support and voluntary contributions of domestic and foreign organizations and individuals; compulsory contributions of domestic and foreign economic organizations in the locality, Vietnamese citizens from full 18 years old to retirement age under normal working conditions in accordance with the labor law; regulation from the Central Disaster Prevention and Control Fund, between provincial disaster prevention and control funds and other lawful sources.”

Therefore, according to the law, both enterprises and employees are obliged to contribute to this Disaster Prevention and Control Fund.

The tasks of the Fund for Natural Disaster Prevention and Control are as follows:

– Support for natural disaster prevention and control activities that the state budget has not yet invested in or has not met the requirements.

– Receive, manage and use financial resources.

– Implement the reporting and accounting regime as prescribed in this Decree and relevant laws.

– Comply with the inspection, examination and audit of competent state agencies in accordance with law.

– To publicly announce the operation regulations and operation results of the Natural Disaster Prevention and Control Fund, and report on the fund’s implementation according to the provisions of this Decree and relevant laws.

2. Obligation to contribute of enterprises

Clause 1, Article 12 of Decree No. 78/2021/ND-CP regulating the establishment and management of natural disaster prevention and control funds takes effect from September 15, 2021.

“1. Compulsory contribution from domestic and foreign economic organizations in the locality per year is 0.02% of the total value of existing assets according to the financial statements made on December 31 of each year of the Company. organizations report to tax authorities but at least 500,000 dong, maximum 100 million dong, and this may be accounted into the organization’s production and business expenses.”

Therefore, every year, the enterprise will be obliged to contribute to the provincial Natural Disaster Prevention and Control Fund an amount equivalent to 0.02% of the total value of existing assets according to the financial statements made on December 31 of that year. reported to the tax authority but the minimum is 500 thousand dong, the maximum is 100 million dong.

Enterprises are entitled to exemption, reduction and suspension of contributions in the following cases:

• Domestic and foreign economic organizations in the locality during the year are damaged by natural disasters in terms of properties, factories and equipment when they have to repair or purchase with a value greater than two thousandths (0.02) %) of the total value of the organization’s assets, or having to stop production and business for 5 consecutive days or more, certified by the district-level People’s Committee, or be exempt from corporate income tax.
• Domestic and foreign economic organizations in the area eligible for corporate income tax reduction may consider reducing or suspending contributions to the provincial-level fund. The reduction in fund contribution is equivalent to the reduction in corporate income tax announced annually by the tax office.

3. Sanctions for administrative violations in contributing to the Natural Disaster Prevention and Control Fund

Pursuant to Article 17 of Decree 03/2022/ND-CP stipulating penalties for administrative violations in the field of natural disaster prevention, irrigation, and dykes, which stipulates:

“1. Fines for failure to pay the disaster prevention and control fund are as follows:

a) A fine ranging from VND 300,000 to VND 500,000 shall be imposed for failure to contribute to the disaster prevention and control fund under VND 300,000;

b) A fine ranging from VND 500,000 to VND 1,000,000 shall be imposed for failing to pay the disaster prevention and control fund from VND 300,000 to under VND 500,000;

c) A fine ranging from VND 1,000,000 to VND 3,000,000 shall be imposed for failing to pay the Disaster Prevention and Control Fund from 500,000 VND to under 3,000,000 VND;

d) A fine ranging from VND 3,000,000 to VND 5,000,000 shall be imposed for failing to pay the disaster prevention and control fund from VND 3,000,000 to under VND 5,000,000;

dd) A fine ranging from VND 5,000,000 to VND 8,000,000 shall be imposed for failing to pay the disaster prevention and control fund from VND 5,000,000 to under 10,000,000;

e) A fine ranging from VND 8,000,000 to VND 12,000,000 shall be imposed for failing to pay the disaster prevention and control fund from VND 10,000,000 to under VND 20,000,000;

g) A fine ranging from VND 12,000,000 to VND 20,000,000 shall be imposed for failing to pay the natural disaster prevention and control fund from VND 20,000,000 to under 40,000,000;

h) A fine ranging from VND 20,000,000 to VND 30,000,000 shall be imposed for failing to pay the disaster prevention and control fund from VND 40,000,000 to under 60,000,000;

i) A fine ranging from VND 30,000,000 to VND 40,000,000 shall be imposed for failing to pay the Disaster Prevention and Control Fund from VND 60,000,000 to under VND 80,000,000;

k) A fine ranging from VND 40,000,000 to VND 50,000,000 shall be imposed for failing to pay the disaster prevention and control fund from VND 80,000,000 to VND 100,000,000.

2. A fine of between VND 5,000,000 and 10,000,000 shall be imposed on domestic and foreign economic organizations when they fail to provide or provide an incomplete list of plans for collection and payment to the Prevention and Control Fund. natural disasters of individuals under their management to competent agencies.

3. Remedial measures:

Enforced payment of the Natural Disaster Prevention and Control Fund, for violations specified in Clause 1 of this Article.”

Article 18 of the Decree also stipulates the level of penalties for violations committed by foreign organizations and individuals and international organizations participating in disaster response and remediation activities in Vietnam:

“1. A fine ranging from VND 10,000,000 to VND 20,000,000 shall be imposed for operating activities that do not conform to the registered contents.

2. A fine ranging from VND 20,000,000 to VND 30,000,000 shall be imposed for performing natural disaster prevention and control activities without registration papers or with expired registration papers.”

The above is the advice of Khoa Tin regarding the responsibilities of enterprises related to the Disaster Prevention and Control Fund.

In case customers have unclear problems or need to discuss further, please call us immediately at 0983.533.005 for a free consultation.

Best regards./.