Legal Counselling

Vietnam: Guidance on distribution of financial result and loss forwarding of the small and medium-sized enterprise development fund

Lê Trang

09:05, 26/10/2015

The annual financial result is profitable, after the payment of fines due to violation of regulations of law and compensation for losses from the previous years (if any), 100% of the remaining number is distributed as follows:

- Appropriation of 30% for development investment Fund;

- Appropriation of welfare Fund and bonus Fund:

+ In case of completion of the annual operating plan approved at the beginning of year by the Fund management board, the Fund may make appropriation from the welfare Fund and bonus Fund with a maximum of 03 salary months in the year.

- The remaining number after appropriation of the above funds shall be further appropriated in the development investment Fund.

When the annual financial result is lost, the Fund may forward the loss to the following year. The time for forwarding of loss shall not exceed 05 years continuously since the year succeeding the year with incurred loss.

If after 05 years, the Fund cannot forward all its losses, the Fund management board shall report to the Ministry of Planning and Investment to report to the Prime Minister for consideration and decision.

View more details at Circular No. 119/2015/TT-BTC of the Ministry of Finance of Vietnam, effective from October 01, 2015.

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