GUIDING REMITTANCE OF PROFITS EARNED FROM STATE CAPITAL AMOUNTS
On April 11, 2016, the Ministry of Finance issued the Circular No. 61/2016/TT-BTC dated April 11, 2016 of the Ministry of Finance guiding collection, remittance and management of profits and dividends earned from state capital amounts invested in enterprises. Prescribing that enterprises that the state holds 100% of working capital including enterprises established and managed by political organizations, political and social organizations; national defense and security sectors must remit the remaining profits after tax after making deductions for funds.
Quarterly, based on the business activities, enterprises shall remit profit after tax remaining after setting up funds to remit into state budget of the quarter no later than the thirtieth of the next quarter arising the obligations of paying profit after tax remaining after setting up funds, declaring and remitting the profit after tax remaining after setting up funds. When the fiscal year is done, based on the financial statements, enterprises shall finalize remaining profit after tax after setting up funds to remit into state budget and pay profit after tax remaining after setting up funds that need to be remitted (if any) no later than the ninetieth since the last day of fiscal year.
Enterprises that are late for submission of dossier on declaration of remaining profit after tax after setting up funds compared with the deadline shall be fined for acts of late submission as stipulated under the law on tax management. Enterprises that are late for remittance of profits after tax remaining after setting up funds to remit into state budget shall pay an amount for late payment into state budget according to the law on tax management, the law on amending and supplementing a number of articles of the law on tax management. If the total remaining profit after tax after making deductions for funds that are temporarily paid in the fiscal year is 20% or more lower than the profit after tax remaining after setting up funds, enterprises shall have to pay for late payment for the differences from 20% or more between the amount that has to be paid according to the finalization and the temporarily paid amount from the day after the deadline of Quarter IV till the actual day of paying profit after tax remaining after setting up funds that are deficient compared with the amount of finalization.
This Circular takes effect on May 26, 2016 and applies for year from 2016.
