The Ministry of Finance has promulgated Circular No. 85/2021/TT-BTC guiding some contents on the collection and payment of profits and dividends to be distributed to the state invested capital in enterprises.
This Circular details the collection and payment to the state budget of the remaining after-tax profit after deduction of funds (hereinafter referred to as the remaining profit) for enterprises 100% owned by the State, charter capital; dividends and profits distributed in cash to the state capital portion in joint-stock companies, limited liability companies with two or more members with State capital contributed by ministries, ministerial-level agencies, agencies under The Government and the People's Committees of the provinces, and centrally-run cities shall act as the representative of the owner.
Accordingly, the remaining profit payable to the state budget of the enterprise is the profit determined following the accounting law after subtracting the following amounts: offset the loss of the previous year following the law on corporate income tax; extract the science and technology development fund as prescribed (if not deducted from the cost when determining accounting profits); corporate income tax payable following the law on corporate income tax...
At the same time, the determination of the profit of state-owned enterprises with 100% charter capital when investing capital in other enterprises will be based on the remaining profits of subsidiaries held by the parent company with 100% of charter capital determined based on the results of production and business, financial statements following the law on state capital investment in enterprises. The parent company decides to earn the remaining profits of the subsidiaries and account for the financial revenue of the parent company to pay the state budget.
In addition, the basis for calculating dividends and profits distributed from joint-stock companies, limited liability companies with two or more members with a capital contribution of enterprises in which 100% of charter capital held by the State shall be determined based on business results, financial statements following the law on investment of state capital in enterprises, and decisions on dividend payment, profits of the General Meeting of Shareholders or the Members' Council of a joint-stock company, a limited liability company with two or more members. Enterprises in which 100% of charter capital is held by the State shall be responsible for collecting dividends and distributed profits and accounting for financial revenues to pay the state budget.
The plan for the distribution of annual after-tax profits at the enterprise complies with the principles specified in Clause 17, Article 2 of Decree No. 140/2020/ND-CP dated November 30, 2020, of the Government.
Dividends and distributed profits payable to the state budget include: dividends and profit temporarily distributed in the fiscal year (if any); dividends and profit of previous years to be divided in the fiscal year.
Joint-stock companies, limited liability companies with two or more members with state capital shall have to pay the state budget the dividends and profits distributed to the state shareholders.
Enterprises of which 100% charter capital is held by the State, joint stock companies and limited liability companies with two or more members with capital contributed by the State made by ministries, ministerial-level agencies, and government-attached agencies representing the owner to pay 100% to the central budget for the remaining profits and dividends and distributed profits.
Enterprises of which 100% charter capital is held by the State, joint-stock companies, limited liability companies with two or more members with capital contributed by the State, made by the People's Committees of the provinces and centrally-run cities representing the owner to pay 100% to the local budget for the remaining profits and dividends and profits.
Collected from the source
Thuy Linh
