Circular No. 970-TC/TCT provides detailed guidance on the accounting for salaries, bonuses, and mid-shift meals in production and business units to unify financial management and accurately determine taxable income. This circular specifies the method for determining unit prices for salaries, the responsibilities of financial and tax authorities in reviewing and inspecting, as well as the accounting methods for related expenses.
适用范围
Production and business units, chairmen of boards of directors, ministers of the Ministry of Labor, Invalids and Social Affairs, chairmen of provincial/municipal People's Committees, financial labor and social affairs agencies, tax agencies.
要点
- The Chairman of the State Council issued Decision No. 317-CT to regulate salary and bonus management in state-owned enterprises;
- Financial and tax authorities shall review and inspect the unit price of salaries for products or units according to the分级指导审核的指示；
- The unit price of salaries, if correctly calculated based on the construction of the unit price of salaries and parameters guided by the Inter-Ministerial Directive, serves as the basis for determining salary costs when calculating taxable income;
- Mid-shift meals are necessary and reasonable requirements in production and business activities and shall not be accounted for as production and business costs to reduce taxable income;
- Night shift allowances and allowances for hazardous materials are implemented according to the circulars of the Ministry of Labor;
🌐 本文件的社会影响
- Positive impact: Unifying financial management, accounting for salaries, bonuses, and mid-shift meals helps production and business units operate more efficiently;
- Negative impact: Units must strictly comply with regulations on cost accounting, which may cause difficulties in financial management;
❓ 常见问题
To which entities does this circular apply?
It applies to production and business units;
How is the unit price of salaries determined?
For products and services with state-set prices, monopoly and key products and services, the Ministry of Labor, Invalids and Social Affairs, the Ministry of Finance, the State Planning Committee, and the competent ministries shall examine and decide. For other products and services, the director decides after approval by the Workers' Congress (or the Enterprise Management Board) and registers with the management authority according to the分级指导；
What are the responsibilities of financial and tax authorities in reviewing the unit price of salaries?
Review and inspect the unit price of salaries for products or units according to the分级指导审核指示。If discrepancies are found, they require adjustments and handle violations of the income tax law;
How is the accounting for mid-shift meals conducted?
Mid-shift meals are funded from the retained earnings of the unit after all taxes have been paid and shall not be accounted for as production and business costs (reasonable and legitimate costs) to reduce taxable income;
How are night shift allowances and allowances for hazardous materials implemented?
Night shift allowances are implemented according to Circular No. 02-LĐ/TT dated January 9, 1987, of the Ministry of Labor; Allowances for hazardous materials are implemented according to Circular No. 07-LA-TT dated July 17, 1986, of the Ministry of Labor. The quantities specified in these allowances are calculated at market prices and accounted for as production and business costs but not included in the wage fund or unit price of salaries.
全文
LETTER
OF THE MINISTRY OF FINANCE NUMBER 970-TC/TCT ON JULY 27, 1991
REGARDING CALCULATION AND ACCOUNTING FOR WAGES, BONUSES, AND MID-SHIFT MEALS
AND MEAL ALLOWANCE BETWEEN SHIFTS
Recently, the Finance Departments, Tax Bureaus of localities, and Anti-Evasion Teams have reported to the Ministry about difficulties in managing, accounting for wages, bonuses, and mid-shift meals at production and business units.
To unify financial management work, handle inspection results appropriately, and accurately determine taxable income; the Ministry of Finance provides additional specific guidance on accounting for wages, bonuses, and mid-shift meals as follows:
1. Regarding wages and bonuses:
The Chairman of the State Council issued Decision 317-CT on September 1, 1990, concerning the rectification of wage and bonus management in state-owned enterprises. The Ministry of Labor, War Invalids and Social Affairs and the Ministry of Finance jointly issued Circular 16-TT/LB on November 5, 1990, to guide the implementation of the aforementioned decision. The Ministry of Finance issued Circular 454-TC/CĐTC on April 10, 1991, regarding the promotion of bonus management work. At Point 3 of Circular 789-TC/TCT dated June 14, 1991, concerning reasonable and legitimate expenses, it stipulates that "for other products approved by sectors, localities, or self-built by production and business units but must be accepted in writing by tax authorities."
To align with national legal provisions on wages and bonuses, as well as the provisions on wages and bonuses in Directive 408-CT dated November 20, 1990, of the State Council Chairman, the Ministry of Finance guides at Point 3 of Circular 789-CT/TCT regarding the unit price of wages in state-owned enterprises as follows:
a) Issuing decisions on wage unit prices according to Circular 16-TT/LB:
- For products and services with state-set prices, monopoly and key economic products (currently including products from the electricity sector, cement, paper, railway transportation, air cargo, postal services, specialized banks under the State Bank, and companies directly under the State Bank), the Ministry of Labor, War Invalids and Social Affairs, the Ministry of Finance, the National Price Control Committee, and the relevant ministries will examine and decide.
- For traditional products or services with relatively stable characteristics under the management of ministries, departments, provincial, and city People's Committees, the respective ministry heads, provincial, and city People's Committee chairmen shall, based on management requirements, establish product and service lists and decide on the wage unit prices for those products and services.
- Remaining products and services shall be decided by the director after approval by the Workers' Congress (or the Enterprise Council) and registration with the management authority according to the分级处理可能更为合适，但根据您的要求，我将直接提供翻译而不做任何解释或拆分。继续：
b) Tasks of financial agencies and tax authorities in reviewing and inspecting the implementation of wage unit prices:
- Plan to participate with the base units and the Department of Labor, Invalids, and Social Affairs in establishing labor norms, wage unit prices, and bonus systems. Actively participate in reviewing wage unit prices for products or units according to the hierarchical review guidelines of the central government and localities.
- Organize the acceptance and inspection of wage unit prices, wage systems, and bonus systems of units (as guided by Joint Circular No. 16-TT/LB). If discrepancies are found between the unit's established and registered wage unit prices and the national guidelines, they may require the unit to cease implementation and propose a re-establishment of the wage unit prices. Units failing to recalculate will be considered as violating the Income Tax Law and subject to legal penalties.
Wage unit prices registered by production and business organizations, if verified to be calculated correctly according to the wage unit price construction methods and parameters guided by the Joint Ministries, particularly the inflation adjustment factor (100% applied in 1991 as stipulated in Joint Decision No. 110-QĐ/LB dated April 3, 1991), can serve as the basis for determining wage costs when calculating taxable income. Tax authorities cannot use wage unit prices calculated inconsistently with national guidelines in determining taxable income for units.
- Inspect the accounting of wage and bonus costs in production and business expenses. Pay attention to cases where actual wages increase correspondingly with production and business efficiency beyond planned levels from product sales, total revenue, production and business outcomes... In principle, the wage fund of a unit is bound by the absolute amount of the budgeted wage fund according to the system and the prescribed inflation rate (excluding time-based wages).
Cases of accounting for wages and bonuses not in accordance with approved wage unit prices and not corresponding to production and business outcomes must be excluded from reasonable and legitimate costs when determining taxable income and must be deducted from retained earnings.
2. Regarding mid-shift meals:
Mid-shift meals are necessary and reasonable needs in production and business, determined by the Enterprise Council and the Director based on fulfilling tax obligations and production and business efficiency.
According to the Income Tax Law and Joint Circular No. 05-TT/LB dated July 1, 1991, of the Ministry of Labor, War Invalids and Social Affairs and the Ministry of Finance, expenditures for mid-shift meals should be sourced from retained earnings after all taxes have been paid and cannot be accounted for as production and business expenses (reasonable and legitimate expenses) to reduce taxable income. This regulation was implemented from January 1, 1991.
- Night shift allowances are implemented according to the regulations set out in Circular No. 02-LĐ/TT dated January 9, 1987, of the Ministry of Labor; allowance policies for hazardous conditions are implemented according to Circular No. 07-LA-TT dated July 17, 1986, of the Ministry of Labor. The quantities specified in these policies are calculated based on market prices and accounted for as production and business expenses but not included in the wage fund and wage unit prices.
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