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Guidelines for profit distribution with state-owned joint stock companies in Vietnam

Nguyễn Thị Diễm My

17:20, 21/03/2023

Below is the content of Circular 16/2023/TT-BTC dated 17/3/2023 amending Circular 36/2021/TT-BTC guiding the contents of state capital investment in enterprises and the management and use of capital and assets in enterprises in Vietnam.

Thus, additional regulations on profit distribution for joint stock companies and limited liability companies with two or more members who have shares and contributed capital of the State are as follows:

Enterprises distribute profits according to the provisions of Clause 17 of Article 2 of Vietnam's Decree 140/2020/ND-CP.

In case the enterprise operates under the model of a parent-ssubsidiary company, it uses the parent company's separate financial statements to determine the after-tax profit as the basis for distribution.

In addition, Vietnam's Circular 16/2023/TT-BTC also replaces the forms in Appendix 3 of Vietnam's Circular 36/2021/TT-BTC with the following forms:

- Report on some off-balance sheet indicators: Form No. 1;

- Report on a number of consolidated off-balance sheet items - model of parent company and subsidiary company: Form No. 2.

Vietnam's Circular 16/2023/TT-BTC takes effect from May 8, 2023.

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