Below is the remarkable content at Circular 36/2021/TT-BTC stipulating guidance on the content of invest State capital in enterprises and manage and use capital and assets at enterprises as prescribed at Decree 91/2015/ND-CP; Decree 32/2018/ND-CP; Decree 121/2020/ND-CP and Decree 140/2020/ND-CP.
Profit distribution for enterprises with 100% of charter capital held by the State in Vietnam (Illustration)
Specifically, profit distribution shall be subject to Article 31 of Decree No. 91/2015/ND-CP; Article 2 of Decree No. 32/2018/ND-CP; Clause 4, Article 4 of Circular 36 and the following regulations:
- After using the enterprise’s profit determined according to the provisions of the law on accounting for compensating for the loss of the previous year according to the provisions of the law on corporate income tax, contribution to the science and technology development fund and payment of corporate income tax in accordance with laws, the remaining profit is distributed according to the provisions of Clauses 1, 2, 3, Article 31 of Decree No. 91/2015/ND-CP and Article 2 of Decree No. 32/2018 /ND-CP.
- Bases for setting aside profit to contribute to the bonus and welfare fund and the reward fund for corporate managers and controllers shall be as follows:
+ Classifying businesses into A, B and C as a basis for setting aside profit as contributions to the fund shall be subject to Government’s regulations on supervision of investment of state capital in enterprises; financial supervision for assessment of business performance and public disclosure of financial information of enterprises of which 100% of charter capital is held by the state and state-invested enterprises and Circulars providing instructions about this activity of the Ministry of Finance of Vietnam
+ Setting aside monthly base wages or salaries to contribute to these funds:
Note: In case the enterprise implements the salary and bonus mechanism according to specific regulations, it shall follow the government's regulations on that particularity in Vietnam.
Circular 36/2021/TT-BTC takes effect from July 10, 2021 and replaces Circular 219/2015/TT-BTC and Circular 59/2018/TT-BTC.
Bao Ngoc
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