Circular No. 180/2012/TT-BTC guiding financial treatment for unemployment benefits paid to workers at enterprises

CIRCULAR

H||| Guidelines for handling financial mattersintention ||| Scientific and technological affairs expenses;"b) In addition to the lists of public services issued according to the provisions of Clause 2, Article 4 of this Decree, specialized agencies under provincial People's Committees shall report to the provincial People's Committee for decision-making on amending, supplementing, or issuing the list of public services funded by the state budget within their jurisdiction and consistent with the local budget capacity within the approved budget by the Provincial People's Assembly, and send it to the Ministry of Finance and relevant ministries and sectors for supervision during implementation."||| concerningi ||| unemployment benefits l||| for workers at enterprises

___________________________________

Pursuant to the Law on Navigation of Vietnam dated June 14, 2005; l||| pursuant to the Labor Law dated June 23, 1994; the Law Amending and Supplementing Certain Provisions of the Labor Law dated April 2, 2002, the Law Amending and Supplementing Certain Provisions of the Labor Law dated December 29, 2002;No. Article 1. Announcement of the maritime area of the coastal port located within the jurisdiction of Qu l||| the Labor Law dated April 2, 2002;June 2024;||| the Law Amending and Supplementing Certain Provisions of the Labor Law dated December 29, 2002;, amended and supplemented by Decree No. 109/2025/NĐ-CP and Decree No. 193/2025/NĐ-CP ,No. ||| articles of the Labor Code L||| pursuant to the Government's Decree No. 39/2003/NĐ-CP dated April 18, 2003 on detailed regulations and guidance for implementation of certain provisions of the Labor Law regarding employment;June 2024;December 11, 2006;

Pursuant to the Law on Navigation of Vietnam dated June 14, 2005; lLabor Code on June 18, 2012;

||| pursuant to the Government's Decree No. 118/2008/NĐ-CP dated November 27, 2008 on the functions, tasks, and organizational structure of the Ministry of Finance;i Pursuant to Decree No. 48/2015/NĐ-CP dated May 15, 2015 of the Government detailing certain provisions of the Higher Education Lawi Pursuant to Decree No. 11/2020/NĐ-CP dated October 15, 2020 of the Government detailing implementation of certain provisions and measures for organizing the implementation of the Law on Petitions;No. Article 1. Announcement of the maritime area of the coastal port located within the jurisdiction of Qu lAmendment and Supplement to Certain Provisions of the Tobacco Control Law L||| the Government's Decree No. 122/2011/NĐ-CP dated December 27, 2011 amending and supplementing certain provisions of the Government's Decree No. 124/2008/NĐ-CP dated December 11, 2008 on the Corporate Income Tax Law; lwork;

||| the Government's Decree No. 124/2008/NĐ-CP dated December 11, 2008 on the Corporate Income Tax Law;"b) In addition to the lists of public services issued according to the provisions of Clause 2, Article 4 of this Decree, specialized agencies under provincial People's Committees shall report to the provincial People's Committee for decision-making on amending, supplementing, or issuing the list of public services funded by the state budget within their jurisdiction and consistent with the local budget capacity within the approved budget by the Provincial People's Assembly, and send it to the Ministry of Finance and relevant ministries and sectors for supervision during implementation."||| pursuant to the Resolution of the Director of the Department of Finance;onof the State Treasury;, amended and supplemented by Decree No. 109/2025/NĐ-CP and Decree No. 193/2025/NĐ-CP ||| the Department of Finance;

Pursuant to the Government Decree number ||| hereby issues this Circular guiding the handling of financial matters concerning unemployment benefits for workers at enterprises:"b) In addition to the lists of public services issued according to the provisions of Clause 2, Article 4 of this Decree, specialized agencies under provincial People's Committees shall report to the provincial People's Committee for decision-making on amending, supplementing, or issuing the list of public services funded by the state budget within their jurisdiction and consistent with the local budget capacity within the approved budget by the Provincial People's Assembly, and send it to the Ministry of Finance and relevant ministries and sectors for supervision during implementation."||| This Circular guides the handling of financial matters concerning unemployment benefits for workers in enterprises established and operating in Vietnam in accordance with the provisions of the law.No. ||| For joint ventures established based on Agreements signed between the Government of the Socialist Republic of Vietnam and foreign governments, if the Agreement contains provisions on setting aside and paying unemployment benefits different from the guidelines set out in this Circular, such provisions shall be implemented according to the Agreement.June 2024;||| Article 2. Basis for determining the amount of unemployment benefits that enterprises can account for as business expenses."b) In addition to the lists of public services issued according to the provisions of Clause 2, Article 4 of this Decree, specialized agencies under provincial People's Committees shall report to the provincial People's Committee for decision-making on amending, supplementing, or issuing the list of public services funded by the state budget within their jurisdiction and consistent with the local budget capacity within the approved budget by the Provincial People's Assembly, and send it to the Ministry of Finance and relevant ministries and sectors for supervision during implementation."3/NĐ-CP dated June 06,i Pursuant to Decree No. 11/2020/NĐ-CP dated October 15, 2020 of the Government detailing implementation of certain provisions and measures for organizing the implementation of the Law on Petitions;on the organization and operation ||| The amount of unemployment benefits paid to workers when enterprises undergo changes in organizational structure or technology as stipulated in Clause 1, Article 17 of the Labor Code 1994 and Clause 1, Article 11 of the Government's Decree No. 39/2003/NĐ-CP dated April 18, 2003 on detailed regulations and guidance for implementation of certain provisions of the Labor Law regarding employment shall be calculated based on the time workers have worked for the enterprise before December 31, 2008, as specified in Circular No. 39/2009/TT-BLĐTBXH dated November 18, 2009 of the Ministry of Labor, Invalids, and Social Affairs guiding the implementation of Article 12 of the Government's Decree No. 39/2003/NĐ-CP dated April 18, 2003 on detailed regulations and guidance for implementation of certain provisions of the Labor Law regarding employment.

Code: QTKĐ 05:2016/BQP.on ||| In case the Labor Law No. 10/2012/QH13 adopted by the National Assembly of the Socialist Republic of Vietnam, session XIII, meeting III, dated June 18, 2012 comes into effect and replaces the above-mentioned documents, the determination of the amount of unemployment benefits for enterprises shall be carried out in accordance with the provisions of the replacement documents.- Government;||| Article 3. Handling of financial matters concerning unemployment benefits and the balance of the Unemployment Benefit Reserve Fund at enterprises.

1. Selling state property through public listing."b) In addition to the lists of public services issued according to the provisions of Clause 2, Article 4 of this Decree, specialized agencies under provincial People's Committees shall report to the provincial People's Committee for decision-making on amending, supplementing, or issuing the list of public services funded by the state budget within their jurisdiction and consistent with the local budget capacity within the approved budget by the Provincial People's Assembly, and send it to the Ministry of Finance and relevant ministries and sectors for supervision during implementation."||| 1. When unemployment benefits are incurred, enterprises shall account for the amount of unemployment benefits paid to workers in accordance with this Circular as business management expenses and deduct them when determining the taxable income of the enterprise.intention ||| Scientific and technological affairs expenses;"b) In addition to the lists of public services issued according to the provisions of Clause 2, Article 4 of this Decree, specialized agencies under provincial People's Committees shall report to the provincial People's Committee for decision-making on amending, supplementing, or issuing the list of public services funded by the state budget within their jurisdiction and consistent with the local budget capacity within the approved budget by the Provincial People's Assembly, and send it to the Ministry of Finance and relevant ministries and sectors for supervision during implementation."||| concerningi ||| unemployment benefits l||| In 2012, enterprises may use the balance of the Unemployment Benefit Reserve Fund established in accordance with Circular No. 82/2003/TT-BTC dated August 14, 2003 of the Ministry of Finance up to December 31, 2011 (if any) to pay unemployment benefits to workers. If the balance of the Unemployment Benefit Reserve Fund is insufficient or the enterprise does not have a reserve fund balance to pay unemployment benefits to workers, the entire shortfall shall be accounted for as business management expenses at the time of preparing the annual financial report and deducted when determining the taxable income of the enterprise according to the regulations. In case the enterprise prepares its 2012 financial report, if there is still a balance in the Unemployment Benefit Reserve Fund (after paying unemployment benefits in 2012), the enterprise shall record it as other income in 2012 and shall not transfer the balance to the next year for use.

Article 1. Scope of Application and Regulatory Scope

1. ||| In case during the year, the enterprise undergoes changes in organizational structure or technology, resulting in a large number of workers losing their jobs, if the enterprise accounts for all the money spent on unemployment benefits (excluding the balance of the Unemployment Benefit Reserve Fund used for payment if any) as business management expenses and incurs losses, then the enterprise may allocate the amount paid as unemployment benefits to business management expenses in subsequent years, with a maximum allocation period of three years.

2. For joint ventures established based on Agreements signed between the Government of the Socialist Republic of Vietnam and foreign governments, if the Agreement contains provisions regarding the establishment and payment of unemployment benefits that differ from the guidance provided in this Circular, such provisions shall be implemented according to the Agreement.3cm Article 2. Basis for determining the amount of unemployment benefit expenses to be recorded as business costs.

Clause 1. The expenditure on unemployment benefits for employees in cases where the enterprise undergoes changes in organizational structure or technology as stipulated in Clause 1, Article 17 of the Labor Code of 1994, and Article 11 of Decree No. 39/2003/NĐ-CP dated April 18, 2003 of the Government detailing and guiding the implementation of certain provisions of the Labor Code concerning employment.i The amount of unemployment benefits is calculated based on the time employees have worked at the enterprise before December 31, 2008, in accordance with the provisions set out in Circular No. 39/2009/TT-BLDTBXH dated November 18, 2009, issued by the Ministry of Labor, Invalids, and Social Affairs, guiding the implementation of Article 12 of Decree No. 39/2003/NĐ-CP dated April 18, 2003 of the Government detailing and guiding the implementation of certain provisions of the Labor Code concerning employment.

1. In the case where the Labor Code No. 10/2012/QH13 was passed by the National Assembly of the Socialist Republic of Vietnam, Session XIII, Third Meeting, on June 18, 2012, and comes into effect, replacing the aforementioned documents, the determination of the amount of unemployment benefits for enterprises shall be carried out in accordance with the provisions of the replacement documents., amended and supplemented by Decree No. 109/2025/NĐ-CP and Decree No. 193/2025/NĐ-CPArticle 3. Financial handling of expenditures on unemployment benefits and the balance of the Unemployment Benefit Reserve Fund at enterprises.of the Government stipulating functions, tasks, powers, and organizational structure of the Ministry of Home AffairsClause 1. When unemployment benefits are incurred, the enterprise records the expenditure on unemployment benefits for employees in accordance with this Circular as business management costs and is allowed to deduct it when determining the taxable income of the enterprise.No. Article 1. Announcement of the maritime area of the coastal port located within the jurisdiction of Qu lAmendment and Supplement to Certain Provisions of the Tobacco Control Law LIn 2012, the enterprise may use the balance of the Unemployment Benefit Reserve Fund established in accordance with Circular No. 82/2003/TT-BTC dated August 14, 2003, of the Ministry of Finance up to December 31, 2011 (if any), to pay unemployment benefits to employees. If the balance of the Unemployment Benefit Reserve Fund is insufficient or the enterprise does not have a reserve fund balance to pay unemployment benefits to employees, the entire shortfall is recorded as business management costs at the time of preparing the annual financial report and is deductible when determining the taxable income of the enterprise. In the case of preparing the 2012 financial report, if the enterprise's Unemployment Benefit Reserve Fund still has a balance (after paying unemployment benefits in 2012), the enterprise records an increase in other income for 2012, and the enterprise cannot transfer the balance of the fund to be used in subsequent years.

2. In the event that during the year, the enterprise undergoes changes in organizational structure or technology, resulting in a large number of employees losing their jobs, if the enterprise fully records the amount spent on unemployment benefits (excluding the balance of the Unemployment Benefit Reserve Fund used for payments if any) as business management costs and incurs losses, then the enterprise can allocate the amount paid as unemployment benefits to business management costs over the next three years.

3. During the implementation process, if there are difficulties, agencies and enterprises are requested to report to the Ministry of Finance for study and amendment./.

Article 3. Financial treatment for unemployment benefits payments and the balance of the Unemployment Benefit Reserve Fund at enterprisesnational 1. When unemployment benefit payments occur, the enterprise shall account for the unemployment benefit payment expenses for employees according to the provisions of this Circular as business management costs and be deductible when determining the taxable income of the enterprise for corporate income tax purposes.

For the year 2012, the enterprise may use the balance of the Unemployment Benefit Reserve Fund established according to Circular No. 82/2003/TT-BTC dated August 14, 2003 of the Ministry of Finance up to December 31, 2011 (if any) to pay unemployment benefits to employees. If the balance of the Unemployment Benefit Reserve Fund is insufficient or the enterprise does not have a reserve fund balance to pay unemployment benefits to employees, the entire shortfall shall be accounted for as business management costs at the time of preparing the annual financial report and be deductible when determining the taxable income of the enterprise for corporate income tax purposes as prescribed. In the case of preparing the 2012 annual financial report, if the enterprise's Unemployment Benefit Reserve Fund still has a balance (after paying unemployment benefits in 2012), the enterprise shall account for an increase in other income of the enterprise in 2012, and the enterprise shall not transfer the balance of the Fund to be used in subsequent years.

In cases where the enterprise experiences changes in structure or technology during the year, resulting in a large number of employees losing their jobs, if the enterprise fully accounts for the amount paid as unemployment benefits (excluding the balance of the Unemployment Benefit Reserve Fund already used for payments, if any) as business management costs for employees and incurs a loss, then the enterprise may allocate the amount paid as unemployment benefits to business management costs in subsequent years, with the maximum allocation period being three years.policiesDuring implementation, if there are any difficulties, the agency or enterprise is requested to report to the Ministry of Finance for research and amendment./.i còn thiếu doanh nghiệp được hạch toán vào chi phí quản lý doanh nghiệp tại thời điểm lập báo cáo tài chính năm và được trừ khi xác định thu nhập chịu thuế thu nhập doanh nghiệp theo quy định. Trường hợp khi lập báo cáo tài chính năm 2012, nếu nguồn Quỹ dự phòng trợ cấp mất việc làm của doanh nghiệp còn số dư (sau khi đã chi trợ cấp mất việc làm trong năm 2012) doanh nghiệp hạch toán tăng thu nhập khác năm 2012 của doanh nghiệp, doanh nghiệp không được chuyển số dư Quỹ sang năm sau sử dụng.

2. Trường hợp trong năm doanh nghiệp có thay đổi cơ cấu hoặc công nghệ, sNo. lượng lao động mất việc làm phát sinh lớn, nếu hạch toán đủ vào chi phí số tiền đã chi trợ cấp mất việc làm (trừ số dư Quỹ dự phòng về trợ cấp mất việc làm đã sử dụng để chi nếu có) cho người lao động của doanh nghiệp mà phát sinh lỗ, thì doanh nghiệp được hạch toán phân bổ số tiền đã chi trả trợ cấp mất việc làm cho người lao động vào chi phí quản lý doanh nghiệp các năm sau, thời gian phân bổ tối đa là 3 năm.

Article 4. Method of accounting for unemployment allowance expenses for workers at enterprisesi The method of accounting for unemployment allowance expenses for workers at enterprises shall be implemented in accordance with the enterprise accounting regulations issued together with Decision No. 15/2006/QĐ-BTC dated March 20, 2006 of the Minister of Finance and the guidance provided in this Circular, specifically as follows:

When disbursing unemployment allowances to workers from surplus funds as of December 31, 2011, record:FUNCTIONS, DUTIES, POWERS, ORGANIZATIONAL STRUCTURE, OPERATIONAL REGULATIONS, AND RELATIONSHIPS OF MANAGEMENT BOARDS; DUTIES, POWERS OF THE CHAIRPERSON, VICE CHAIRPERSON (IF ANY), SECRETARY, AND MEMBERS OF MANAGEMENT BOARDSDebit Account 351 - Unemployment Allowance Funddevelopment as follows:

Credit various accounts

Unemployment allowance expenses for workers in the fiscal year shall be recorded as enterprise management costs, recorded as:

Debit Account 642 - Enterprise Management Costs 111, 112,………

b. Credit Accounts 111, 112

In cases where the amount of unemployment allowance payments in the year is large, resulting in losses for the enterprise, the enterprise may allocate such expenses over the next three years as long-term prepaid expenses, after payment, record:

Debit Account 242 - Long-term Prepaid Expenses,.......

c. Credit Accounts 111, 112,

When allocating, record:

Credit Account 242 - Long-term Prepaid Expenses ……..

Debit various accounts

In cases where the amount of unemployment allowance payments in the year is large, resulting in losses for the enterprise, the enterprise may allocate such expenses over the next three years as long-term prepaid expenses, after payment, record:

Any surplus in the unemployment allowance reserve fund of the enterprise (if any) when preparing the financial statements for 2012 shall be recorded as an increase in other income of the enterprise, recorded as:

d. Credit Account 711 - Other Income

Unemployment allowance expenses for workers in the fiscal year shall be recorded as enterprise management costs, recorded as:

This Circular takes effect from December 10, 2012.June 2024;c.

Article 5. Effective dateệnto effecitselfpowers as prescribed by law and other tasksi ADJUSTMENT

1. This Circular replaces Circular No. 82/2003/TT-BTC dated August 14, 2003 of the Ministry of Finance guiding the establishment, management, utilization, and accounting of the unemployment allowance fund at enterprises.

2. During implementation, if there are any difficulties, please report to the Ministry of Finance for study and amendment./.

3. Trong quá trình thực hiện nếu có vướng mắc, đề nghị cơ quan, doanh nghiệp phản ánh về Bộ Tài chính để nghiên cứu sửa đổi, bổ sung./.