Circular No. 87/2006/TT-BTC amending and supplementing Circular No. 33/2005/TT-BTC dated April 29, 2005 of the Ministry of Finance guiding certain provisions of the Financial Management Regulation for State-owned companies and management of State capital invested in other enterprises.

CIRCULAR

Amending and supplementing Circular No. 33/2005/TT-BTC dated April 29, 2005

of the Ministry of Finance guiding certain provisions of the Financial Management Regulation

 of state-owned enterprises and management of state capital invested in other enterprises

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Pursuant to Decree No. 199/2004/NĐ-CP of the Government dated December 3, 2004 promulgating the Financial Management Regulation of state-owned enterprises and management of state capital invested in other enterprises, the Ministry of Finance guides the amendment and supplementation of Circular No. 33/2005/TT-BTC dated April 29, 2005 guiding certain provisions of the Financial Management Regulation of state-owned enterprises and management of state capital invested in other enterprises as follows:

1. Supplement at the end of point 1.2.b section A chapter II as follows:

"In cases where certain industries have special characteristics requiring a higher or lower registered capital than 30% of the total asset value on the financial statement, the representative of the owner must clearly state in the plan to determine the registered capital submitted to the Ministry of Finance for prior agreement before approval."

2. Supplement at the end of point 3.1.b section A chapter II as follows:

"In cases where State-owned corporations guarantee loans for member enterprises, they shall follow the Guarantee Regulation of banks and credit organizations. Regarding the authority to decide on guarantee contracts, it shall be applied according to the provisions of Clause 1, Article 9 of the Financial Management Regulation of state-owned enterprises and management of state capital invested in other enterprises issued together with Decree No. 199/2004/NĐ-CP dated December 3, 2004 of the Government."

3. Replace points 5.2 and 5.3 section A chapter II as follows:

"The establishment and use of provisions for inventory write-downs, doubtful debts, and losses from financial investments shall be carried out in accordance with the provisions of Circular No. 13/2006/TT-BTC dated February 27, 2006 of the Ministry of Finance."

4. Supplement at the end of point 1.2.b part I section C chapter II as follows:

"The collection of management fees shall be implemented according to the financial regulations of the corporation and applied to independent accounting subsidiaries that have not yet converted to another business form. This expense shall be recorded as management expenses of the subsidiary in the year. For subsidiaries that have converted to joint-stock companies or limited liability companies and receive advisory, management support, advertising services from the corporation, they must pay service fees to the corporation through a contract."

For member companies that have converted to joint-stock companies or limited liability companies, if they receive advisory, management support, advertising services, etc., from the Group Company, they must pay service fees to the Group Company through a contract.”

5. Replace the last paragraph of point 1.5.b part II section C chapter II "Regarding the payment of commission in transactions, export brokerage for foreigners, it shall be carried out in accordance with the provisions of Circular No. 01/2000/TT-BTC dated January 5, 2000 of the Ministry of Finance" with the following paragraph:

"Payment of commission in transactions, export brokerage for foreigners shall be carried out in accordance with the provisions of Circular No. 62/2001/TT-BTC dated August 1, 2001 of the Ministry of Finance."

6. Replace point 1.7 part II section C chapter II as follows:

"Provision for product warranty, goods, construction works shall be carried out in accordance with the provisions of Circular No. 13/2006/TT-BTC dated February 27, 2006 of the Ministry of Finance."

7. Supplement point 1.3 section 1 chapter III regarding the procedure for selling off state capital in other enterprises as follows:

a/ Supplement at the end of point 1.3.a as follows:

"The sale of state shares in joint-stock companies must comply with the provisions of Clause 5, Article 84 of the Enterprise Law 2005 and the Articles of Association of the joint-stock company."

b/ Add point 1.3.c as follows:

"For amounts paid into the Enterprise Restructuring Support Fund, representatives are responsible for urging intermediary financial organizations to conduct auction sales or transferring funds directly to the Fund through the Stock Exchange, not to the enterprise."

This Circular takes effect 15 days after its publication in the Official Gazette. During implementation, if there are any difficulties, relevant ministries, sectors, and state-owned enterprises are requested to report to the Ministry of Finance for study and amendment.