Circular No. 30/2002/TT-BTC on temporarily guiding the use of state capital at enterprises

CIRCULAR

Temporary Guidelines for Using

State Capital Utilization Funds at Enterprises

Implementing Resolution No. 02/2002/NQ-CP dated February 4, 2002 of the Government, pending amendments and supplements to the profit distribution regime after corporate income tax stipulated in Decree No. 27/1999/NĐ-CP dated April 20, 1999 of the Government, the Ministry of Finance issues temporary guidelines on the use of state capital utilization funds for state-owned enterprises as follows:

I - GENERAL PROVISIONS

1The subjects of this Circular are state-owned enterprises operating under the Law on State-Owned Enterprises, including independent state-owned enterprises, State Corporations, and member enterprises of State Corporations.

A limited liability company converted from a state-owned enterprise that does not fall within the scope of application of this Circular shall have its additional capital from post-tax profits implemented according to the guidance of the Ministry of Finance and decided by the Owner or the Owner's Representative of the Company.

2As of January 1, 2002, the State will not collect into the State budget the amount of state capital utilization funds held by enterprises falling under the objects mentioned in Point 1, Section I of this Circular.

Enterprises may use state capital utilization funds to implement investment projects aimed at enhancing production and business capacity, product quality, efficiency, and competitiveness of state-owned enterprises.

For the year 2001, the regime for utilizing state capital for state-owned enterprises shall be implemented in accordance with the provisions of Resolution No. 05/2001/NQ-CP dated May 24, 2001 of the Government regarding the supplementation of certain measures to manage the economic plan for 2001.

II. SPECIFIC PROVISIONS

1As of January 1, 2002, the realized profit of enterprises after paying corporate income tax; compensating losses of previous years; and paying fines for violations of state laws such as tax laws, traffic laws, environmental laws, trade laws, and administrative regulations... after deducting compensation for collective or individual damages (if any), less actual expenses incurred but not considered reasonable when determining taxable income, shall be supplemented into state capital at enterprises (operating capital - Account 411) an amount equal to 1.8% of the state capital at enterprises determined as provided in Clause 2 below.

After supplementing operating capital as prescribed above, the remaining post-tax profit shall be distributed in accordance with Circular No. 64/1999/TT-BTC dated June 7, 1999 of the Ministry of Finance guiding the profit distribution regime after corporate income tax and managing funds in state-owned enterprises (from Point 5 to Point 6 Part B Section II).

In cases where two Reward and Welfare Funds are established as prescribed but are insufficient for two months' salary, enterprises may reduce the amount of operating capital supplementation (from post-tax profit) to ensure that the Reward and Welfare Fund of the enterprise equals two months' salary. The maximum reduction shall be equivalent to the amount of supplementary capital from post-tax profit.

2For the year 2001:

The rate of state capital utilization applicable to all subjects is 0.15% per month (1.8% per year) multiplied by the average state capital of the enterprise, economic organization recorded in the accounting books.

State capital at enterprises shall be determined as follows:

For enterprises and economic organizations, state capital at enterprises is reflected in the enterprise's accounting books as follows:

Operating capital (Account 411)

Construction investment capital (Account 441)

For commercial banks and credit institutions, state capital at enterprises is reflected in the accounting books as follows:

Charter capital (Account 601)

Construction investment capital (Account 602)

If there is any increase or decrease in state capital during the year, the average annual state capital used by the enterprise shall be calculated using the following formula:

For public service enterprises, if they have separate business units (separately accounted for state capital of these units), the rate of state capital utilization shall be calculated based on the state capital used by these units for business activities.

In cases where public service enterprises cannot separately identify state capital used for business activities and public services, the state capital used by the enterprise for business activities shall be determined as follows to calculate the state capital utilization:

(Total revenue achieved in the year includes business revenue and public service revenue)

For enterprises where the state capital utilization rate calculated according to this Circular is higher than the rate calculated according to Decree No. 12/HĐBT dated January 24, 1991 of the Council of Ministers (now the Government) and Circular No. 33 TC/TCT dated June 15, 1997 of the Ministry of Finance guiding the collection of state budget capital utilization, only the amount calculated according to Decree No. 22/HĐBT and Circular No. 33 TC/TCT shall be paid.

If the amount of state capital utilization paid in the year is less than the amount due, the enterprise must pay the shortfall, and if it exceeds the amount due, it can offset corporate income tax payable.

3Provincial Tax Departments are responsible for guiding and inspecting the determination of state capital utilization amounts by enterprises in accordance with the provisions of this Circular.

4Financial departments of enterprises are responsible for monitoring, supervising, and inspecting the supplementation of capital from post-tax profits as stipulated in this Circular, ensuring the preservation and enhancement of the effectiveness of capital use by enterprises in accordance with current regulations.

III. IMPLEMENTATION

This Circular takes effect 15 days after the date of signature.

This Circular replaces Circular No. 33 TC/TCT dated June 13, 1997 of the Ministry of Finance guiding the state budget capital utilization collection system and other provisions guiding the state budget capital utilization system contrary to the provisions of this Circular.

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