Recently, the Government of Vietnam has promulgated Decree 80/2021/ND-CP detailing and guiding the implementation of a number of articles of Law on Business Support small and medium enterprises. In particular, the identification of micro, small and medium enterprises is done based on the following criteria:
Article table of contents
Criteria to determine the latest micro, small and medium enterprises (Illustration image)
|
Type of Enterprise |
Average number of employees participating in social insurance (X people) |
Total revenue (T billion VND) or Total capital (V) billion dong) of the year |
||
|
Micro-enterprise |
Enterprises Agriculture, forestry and fishery; industry and construction |
X ≤ 10 people |
T or V ≤ 3 billion VND |
|
|
Trade and service sector |
X ≤ 10 people |
T ≤ 10 billion |
V ≤ 3 billion |
|
|
Small Enterprise |
Agriculture, forestry and fishery; industry and construction |
10 people X 100 people |
3 billion T 50 billion |
3 billion V 20 billion |
|
Trade and service sector |
10 people X 50 people |
10 billion T ≤ 100 billion |
3 billion V ≤ 50 billion |
|
|
Medium enterprises |
Agriculture, forestry and fishery; industry and construction |
100 people X ≤ 200 people |
50 billion T 200 billion |
20 billion V ≤ 100 billion |
|
Trade and service sector |
50 people X 100 people |
100 billion T ≤ 300 billion |
50 billion V 100 billion |
|
In which, each criterion is specified as follows:
(1) The fields of operation of SMEs shall be determined according to their primary business lines as registered with business registration authorities.
(2) Determine the average annual number of employees participating in social insurance of SMEs
- The number of employees who participate in social insurance means all the employees who get paid by of the enterprise and participate in social insurance in accordance with social insurance laws.
- The average annual number of employees who participate in social insurance equals (=) the total number of employees who participate in social insurance of all the months in the preceding years divided by (:) 12 months.
- The number of employees who participate in social insurance of a month shall be determined at the end of the month according to documents about social insurance premium payment of that month that are submitted by the enterprise to the social insurance authority.
- In case an enterprise has been operating for less than 01 year, the average annual number of employees who participate in social insurance shall equal (=) the total number of employees who participate in social insurance of the operating months by (:) the number of months.
(3) Determination of total capital of SMEs
- The total capital of a year determined in the balance sheet and specified on the financial statement of the preceding year which is submitted by the enterprise to the tax authority. The total capital of a year shall be determined at the end of the year.
- In case an enterprise has been operating for less than 01 year, the total capital shall be determined in the balance sheet of the enterprise at the end of the latest quarter before the enterprise applies for assistance.
(4) Determination of total revenues of SMEs
- The total revenue of a year is the total revenue from sale of goods, provision of service by the enterprise and specified in the financial statement of the preceding year which is submitted by the enterprise to the tax authority.
- In case an enterprise has been operating for less than 01 year or more than 01 year but has not generated revenue, the total capital criterion specified in Article 8 of Decree 80/2021/ND-CP of Vietnam shall apply.
Bao Ngoc
- Key word:
- Decree 80/2021/ND-CP of Vietnam
