Law on Natural Disaster Prevention and Control 2013 (Amended and supplemented by Law on Natural Disaster Prevention and Control and the Levee Law 2020) stipulates the natural disaster prevention and control fund, including the following provisions:
“Financial sources of a provincial natural disaster management fund include assistance and voluntary contributions of domestic organizations and individuals; compulsory contributions of domestic and foreign business entities within the province, Vietnamese citizens from at least 18 years of age to retirement age in normal working conditions in accordance with labor regulations; are extracted from the central natural disaster management fund, other provincial natural disaster management funds and other lawful sources”
(The Law on Natural Disaster Prevention and Control 2013 (amended and supplemented by the Law on Natural Disaster Prevention and Control and Law on Dikes 2020) )
On August 1, 2021, the Government issued Decree No. 78/2021/ND-CP, effective from September 15, 2021, on the establishment and management of the Natural Disaster Prevention and Control Fund, which stipulates the contribution to the natural disaster prevention and control fund of domestic and foreign economic organizations in Vietnam. Specifically as follows:
1. On Mandatory Contribution Levels
According to Clause 1, Article 12 of Decree 78/2021/ND-CP, the regulation states:
“The mandatory contribution from domestic and foreign economic organizations within the locality in one year is 0.02% of the total value of current assets as per the financial report prepared on December 31 annually, that submitted to the Tax authority. However, the minimum contribution is 500,000 VND, and the maximum is 100 million VND, and it is accounted into the operating costs of the organization’s production and business.”
2. On Mandatory Payment Deadlines
In Article 15 Decree 78/2021/ND-CP, the regulation states:
“The deadline for payment to the provincial fund: For individuals, payment is made once before July 31 annually; for domestic and foreign economic organizations within the locality, at least 50% of the required amount must be paid before July 31, with the remainder paid before November 30 annually. In cases of prolonged natural disasters or epidemics affecting a large scope, the Chairman of the Provincial People’s Committee may consider adjusting the payment deadline or decide to exempt
or reduce the contribution to the provincial fund as appropriate.”
3. On Penalty Sanctions for Violations
| Failing to contribute to the fund as required; 300,000 VND or less | 600,000-1,000,000 VND |
| Failing to contribute to the fund as required; 300,000 to 500,000 VND | 1,000,000-2,000,000 VND |
| Failing to contribute to the fund as required; 500,000 to 3,000,000 VND | 2,000,000-6,000,000 VND |
| Failing to contribute to the fund as required; 3,000,000 to 5,000,000 VND | 6,000,000-10,000,000 VND |
| Failing to contribute to the fund as required; 5,000,000 to 10,000,000 VND | 10,000,000-16,000,000 VND |
| Failing to contribute to the fund as required; 10,000,000 to 20,000,000 VND | 16,000,000-24,000,000 VND |
| Failing to contribute to the fund as required; 20,000,000 to 40,000,000 VND | 24,000,000-40,000,000 VND |
| Failing to contribute to the fund as required; 40,000,000 to 60,000,000 VND | 40,000,000-60,000,000 VND |
| Failing to contribute to the fund as required; 60,000,000 to 80,000,000 VND | 60,000,000-80,000,000 VND |
| Failing to contribute to the fund as required; 80,000,000 to 100,000,000 VND | 80,000,000-100,000,000 VND |
In addition to the fine, for the above violations, organizations are also required to remediate the consequences as per Clause 3, Article 17 of Decree 03/2022/ND-CP: “Be compelled to make payment to the disaster management fund”.
4. Regarding prescriptive time limits for imposing penalties
According to Point a, Clause 1, Article 5 of Decree 03/2022/ND-CP, the statute of limitations for administrative sanctions in the field of disaster prevention and water resources is 1 year.
The starting point for calculating the statute of limitations is stipulated as follows: “Regarding natural disaster management and irrigation, the prescriptive time limit shall be 01 year.” In which:
・“The administrative violations specified in Articles 16, 17, and 36 of this Decree” are “administrative violations that have ended” (Clause 4.b, Article 5 of Decree 03/2022/ND-CP)
・“The time when the violation specified in Article 17 of this Decree ends” is “the day the deadline for Fund contributions ends or the day the deferment period for Fund contributions ends as stipulated in Decree 78/2021/ND-CP dated August 1, 2021, on the establishment and management of the Disaster Prevention Fund” (Clause 4.b, Article 5 of Decree 03/2022/ND-CP).
Accordingly, the statute of limitations for administrative sanctions regarding the violations specified in Article 17 of Decree 03/2022/ND-CP is 1 year, calculated from the deadline for Fund contributions or the end of the deferment period as per Decree 78/2021/ND-CP dated August 1, 2021, on the establishment and management of the Disaster Prevention Fund.
