Vietnam: Procedures for distributing the balance if total revenues are larger than total expenditures

Vietnam: Procedures for distributing the balance if total revenues are larger than total expenditures (Internet image)

Decree 138/2007/ND-CP  stipulates that  A fiscal year of a local Development Investment Fund of Vietnam starts on January 1 and ends on December 31.. Therefore, if total revenues are larger than total expenditures, their balance is distributed in the following order:

- Offsetting accumulated loss amounts by the time of finalization;

- Paying fines for violation of law which fall within the Funds responsibilities in accordance with law;

- Deducting 10% for the financial risk provision until this provisions balance is equal to 25% of the charter capital of the Fund;

- The balance after subtracting the amounts specified in Points a, b and c, Clause 5 of this Article shall be deducted in the following order:

+ At least 30% for the development investment fund;

+ Up to 5% for setting up the reward fund of the Management and Administration Board of the Fund. The deducted amount must not exceed VND 500 million;

+ A maximum amount equal to 3 months paid salaries for the reward fund and the welfare fund. The specific deduction level shall be decided by the Management Council of the Fund;

+ The remainder shall be added to the development investment fund.

Note: The operation outcome of a local Development Investment Fund of Vietnam is the balance between total receivables and total payables which are rational and valid.

More details can be found in Decree 138/2007/ND-CP which comes into force from September 19, 2007.

Ty Na

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