Transfer of Investment Capital in BCC Contracts of the State

17:31, 11/07/2024

Circular 59/2018/TT-BTC has been promulgated by the Ministry of Finance to amend and supplement a number of articles of Circular 219/2015/TT-BTC on investment of state capital in enterprises and the management and use of capital and assets in enterprises.

Circular 59 provides guidelines for state-owned enterprises transferring their investment capital in BCC contracts, specifically:

1. The authority to decide on capital transfer is based on the specific content of the BCC contract. In cases where capital transfer is allowed for divestment purposes, the appropriate capital transfer method shall be applied according to one of the following scenarios:

- If capital transfer is only permitted to members participating in the BCC contract, the capital transfer method of state-owned enterprises in a two-member limited liability company shall be applied;- If there is no binding regulation on transferring capital to members participating in the BCC contract, the capital transfer method of state-owned enterprises in an unlisted joint-stock company shall be applied.

2. In case a state-owned enterprise contributes capital to a BCC contract with the value of land use rights but performs capital transfer and does not continue participating in the BCC contract, land handling shall follow the provisions of land law.

In cases where capital transfer is associated with the value of land use rights, the value of land use rights must be determined closely according to market prices to include in the transferred capital value as a basis for determining the starting price.

See more Circular 59/2018/TT-BTC effective from September 1, 2018.

- Thanh Lam -

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