Circular 12/2018/TT-BTC was issued by the Ministry of Finance on January 31, 2018, providing specific guidance on determining after-tax profits and after-tax profit rates on equity.
According to Circular 12, post-tax profit is defined as net profit from business activities after deducting credit risk provisioning expenses and current corporate income tax expenses, refundable corporate income tax expenses;
The post-tax return on equity ratio is determined by the following formula:
In which:
- Post-tax profit is determined as mentioned above
- Average equity for the year is determined by the following formula:
Circular 12 also stipulates that equity is derived from the equity item on the balance sheet of the credit institution, including: the capital of the credit institution, funds of the credit institution, exchange rate discrepancies, re-evaluation of assets discrepancies, and undistributed profits.
See details Circular 12/2018/TT-BTC effective from March 19, 2018.
-Thao Uyen-
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