Guidelines for Determining the Costs of Reorganizing and Converting Agricultural and Forestry Companies

According to Circular 51/2015/TT-BTC, with respect to agricultural and forestry companies that are reorganized or converted into joint-stock companies, the costs of reorganization and conversion are determined in accordance with the legal provisions stated in Clause 2, Article 4 of this Circular.

Guidelines for determining the reorganization and conversion costs of agricultural and forestry companies (Illustration)

For agricultural and forestry companies that continue to be maintained and consolidated in the form of the State holding 100% of the charter capital, converted into limited liability companies with two or more members, converted into management boards of protective forests, or dissolved, the maximum total cost is determined according to the total value of assets reported in the accounting report at the time of conversion, specifically as follows:

- Not more than 100 million VND for companies with total asset value below 50 billion VND.- Not more than 150 million VND for companies with total asset value from 50 billion VND to 100 billion VND.- Not more than 200 million VND for companies with total asset value above 100 billion VND.

Note: The reorganization and conversion costs mentioned above do not include the costs of reviewing, measuring, mapping cadastral maps, and issuing land use right certificates according to the regulations in Decree No. 118/2014/ND-CP and related documents.

Additionally, the Circular stipulates the accounting for reorganization and conversion costs of agricultural and forestry companies as follows:

- Agricultural and forestry companies reorganized or converted into joint-stock companies shall follow the legal provisions stated in Clause 2, Article 4 of this Circular.

- For agricultural and forestry companies that continue to be maintained in the form of the State holding 100% of the charter capital, converted into limited liability companies with two or more members, the reorganization and conversion costs shall be accounted into the production and business expenses of the enterprise.

- For agricultural and forestry companies converted into management boards of protective forests, the reorganization and conversion costs shall be accounted into the management board's expenses after conversion.

Details can be found at Circular 51/2015/TT-BTC, effective from June 2, 2015

Le Hai

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