Guidance on Profit Distribution by SCIC

The remaining profit, after deducting the items specified in points a and b, clause 1, Article 34 of Decree 151/2013/ND-CP shall be distributed as follows:

- Allocate a maximum of 30% to the development investment fund of the Corporation;- Allocate to the reward and welfare fund for employees of the Corporation in accordance with the law;- Allocate to the reward fund for enterprise managers and supervisors of the Corporation in accordance with the law;- In case the remaining profit after setting up the Development Investment Fund is not sufficient to allocate to the reward and welfare fund, reward fund for enterprise managers, and supervisors according to the specified levels, the Corporation may reduce the portion of the profit allocated to the Development Investment Fund to supplement the source for adequately setting up the reward and welfare fund, reward fund for enterprise managers, and supervisors according to the specified levels, but the maximum reduction shall not exceed the amount allocated to the Development Investment Fund in the fiscal year;- Set up a reward fund for capital selling achievements at 10% of the difference between the total proceeds from capital sales in the year and the re-determined price according to regulations in Article 8 of Decree 151/2013/ND-CP, sales costs, and corporate income tax, but not exceeding 3 months of actual salary;- The remaining profit after setting up the funds of the Corporation (development investment fund; reward and welfare fund; reward fund for enterprise managers and supervisors; reward fund for capital selling achievements) specified in this clause shall be submitted to the State Budget (NSNN).

More details can be found in Decree 147/2017/ND-CP, effective from December 25, 2017.

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