Guidance on expenditure management of wholly state-owned single-member limited liability companies in Vietnam

09:00, 20/03/2016

On January 20, 2016, the Ministry of Finance of Vietnam issued Circular No. 14/2016/TT-BTC, which specifies expenditure management of wholly state-owned single-member limited liability companies.

According to Circular No. 14/2016/TT-BTC of the Ministry of Finance of Vietnam, expenditures incurred during participation in accomplishment of political objectives shall be separately, reasonably, and legitimately accounted for in accordance with the Law on Corporate income tax and relevant legislative documents.

Enterprises shall open detailed accounting books to separately monitor expenditures incurred during participation in accomplishment of political objectives as follows:

- Fixed assets, current assets dedicated to accomplishment of political objectives, and other expenditures serving accomplishment of political objectives shall be accounted for according to actual documents.

- If it is not possible to separate fixed assets, current assets, and other expenditures serving accomplishment of political objectives, expenditures (including depreciation of fixed assets and costs of current assets and other costs) shall be accounted for according to the ratio of revenue from business operation and provision of products and services during participation in accomplishment of political objectives to total revenue from the enterprise's overall business operation.

View details at Circular No. 14/2016/TT-BTC of the Ministry of Finance of Vietnam, effective from March 07, 2016.

-Thao Uyen-

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE

15 lượt xem

- The legal regulations in this article are according to Vietnamese Law;
- This English translation is for reference purposes only and not a definitive translation of the original Vietnamese texts;
- Articles may be compiled from a variety of sources;
- Applicable Terms may have expired at the time you are reading;
- If you have any questions about the copyright of the article, please contact us via email [email protected]