COLLECTION AND REMITTANCE OF PROFITS DISTRIBUTED FOR THE STATE CAPITAL AMOUNTS INVESTED IN ENTERPRISES
On October 05, 2021, the Ministry of Finance issues the Circular No. 85/2021/TT-BTC guiding the collection and remittance of profits and dividends distributed for the State capital amounts invested in enterprises.
According to this Circular, the remaining profits payable to the state budget of enterprises in which the State holds 100% of charter capital refer to the profits determined according to the accounting law after deducting the following amounts: Offsetting losses in the previous year; Making deductions for the Science and Technology Development Fund; Paying enterprise income tax; Distributions and deductions for funds as prescribed.
Dividends and profits distributed from joint-stock companies and limited liability companies with two or more members with capital contribution by enterprises in which the State holds 100% of charter capital shall be determined on the basis of production and business results, financial statements and the decision on dividend and profit distribution of the General Meeting of Shareholders or the Board of Members of joint-stock companies and limited liability companies with two or more members.
Besides, enterprises in which the State holds 100% of charter capital, joint-stock companies, and limited liability companies with two or more members whose State capital contribution is represented by ministries, ministerial-level agencies, and Government-attached agencies shall remit into the central budget 100% of the remaining profits, distributed dividends and profits payable to the state budget.
This Circular takes effect on January 01, 2022.
