Bonus deduction from the Supervisory Board of 100% state-owned one-member limited liability companies in Vietnam

Bao Ngoc

09:11, 06/12/2021

On November 25, 2021, the Ministry of Finance of Vietnam promulgated Circular 105/2021/TT-BTC guiding the setting up and management of salaries, remuneration and bonuses for the Head of the Supervisory Board, the Supervisors at 100% state-owned one-member limited liability companies is held by the State.

According to this Circular, the bonus regulations of the Head of Supervisory Board and Supervisors include annual bonus and bonus at the end of the term.

When making the decision to pay annual bonuses to managers, officers and employees of the company, the one-member limited liability company transfers 90% of the annual bonus of the Head of the Supervisory Board and the Controller to the salary and remuneration fund and bonuses of the Control Board at the owner's representative agency.

Up to 15 days from the day on which the annual bonus is transferred, the agency representing the owner shall pay the annual bonus to the Head of the Supervisory Board and the Supervisors on the basis of assessing the level of completion of the assigned tasks, the number of the maximum payout is 90% of the annual bonus.

The remainder of the annual bonus fund is established as a term bonus fund. Based on the completion of tasks for the entire term, the agency representing the owner shall pay the remainder to the Head of the Supervisory Board and the Supervisors as prescribed.

Circular 105/2021/TT-BTC takes effect from January 15, 2022 and replaces Circular 97/2017/TT-BTC of Vietnam.

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