Proposal to abolish some Circulars in the field of corporate finance

According to the draft, all legal documents issued by the Minister of Finance in the field of corporate finance as follows are abolished:

1- Circular No. 155/2009/TT-BTC dated July 31, 2009 of the Ministry of Finance guiding the profit distribution regime of state-owned enterprises according to the provisions of Decree No. 09/2009/ND-CP dated February 5, 2009 of the Government .

Regarding the reason for the proposed abolition, the Ministry of Finance said that the 2005 Enterprise Law has abolished the 2003 State-owned Enterprise Law; the Government issued Decree No. 25/2010/ND-CP dated March 19, 2010 on the conversion of state-owned enterprises into single-member limited liability companies and the organization and management of single-member limited liability companies (LLCs) owned by the State (replaced by Decree No. 89/2024/ND-CP dated July 16, 2024 of the Government on the conversion of state-owned enterprises established and operating under the Law on State-owned Enterprises into single-member LLCs organized and operating under the provisions of the Enterprise Law). Accordingly, state-owned enterprises must be converted into single-member LLCs in which the State holds 100% of the charter capital for general operations in accordance with the provisions of the Enterprise Law.

Decree No. 09/2009/ND-CP dated February 5, 2009 of the Government promulgating the Regulation on financial management of state-owned enterprises and management of state capital invested in other enterprises has been replaced by Decree No. 91/2015/ND-CP dated October 13, 2015 of the Government on state capital investment in enterprises and management and use of capital and assets at enterprises.

Law on Management and Use of State Capital Invested in Production and Business at Enterprises No. 69/2014/QH13 dated November 26, 2014, Decree No. 91/2015/ND-CP dated October 13, 2015 of the Government on State capital investment in enterprises and management and use of capital and assets at enterprises (amended and supplemented by Decree No. 32/2018/ND-CP dated March 8, 2018 of the Government; Decree No. 121/2020/ND-CP dated October 9, 2020 of the Government and Decree No. 140/2020/ND-CP dated November 30, 2020 of the Government) have specific provisions on profit distribution for enterprises that are LLCs in which the State holds 100% of the charter capital.

Thus, the provisions of Decree No. 09/2009/ND-CP dated February 5, 2009 of the Government have expired, so the guidance in Circular No. 155/2009/TT-BTC dated July 31, 2009 of the Ministry of Finance guiding the profit distribution regime of state-owned enterprises is no longer applicable but there is no legal document replacing or abolishing it, so it is still legally effective according to the provisions of the Law on Promulgation of Legal Documents.

2- Circular No. 202/2009/TT-BTC dated October 20, 2009 of the Ministry of Finance guiding a number of financial contents in the transfer and sale of 100% state-owned enterprises.

According to the Ministry of Finance, the Circular guiding the provisions in Article 2 and Article 4 of Decree No. 109/2008/ND-CP dated October 10, 2008 of the Government on the sale and transfer of 100% state-owned enterprises (replaced by Decree No. 128/2014/ND-CP dated December 31, 2014 of the Government on the sale, transfer and assignment of 100% state-owned enterprises, now replaced by Decree No. 23/2022/ND-CP dated April 5, 2022 of the Government). Through review, these Decrees do not assign the Ministry of Finance to guide the content of financial handling in the transfer and sale of 100% state-owned enterprises.

Thus, the provisions of Decree No. 128/2014/ND-CP dated December 31, 2014 of the Government have expired, so the guidance in Circular No. 202/2009/TT-BTC dated October 20, 2009 of the Ministry of Finance no longer has a legal basis, but there is no legal document to replace or abolish it, so it is still legally effective according to the provisions of the Law on Promulgation of Legal Documents.

3- Circular No. 92/2011/TT-BTC dated June 23, 2011 of the Ministry of Finance guiding the implementation of hardship allowances for employees in enterprises according to Decision No. 471/QD-TTg dated March 30, 2011 of the Prime Minister .

The Ministry of Finance said that Decision No. 471/QD-TTg dated March 30, 2011 of the Prime Minister on hardship allowances for cadres, civil servants, public employees, armed forces, pensioners with low salaries, beneficiaries of preferential allowances for meritorious people and poor households with difficult lives was issued to provide emergency hardship allowances for low-income earners and those with difficult lives. In particular, Article 5 stipulates that state-owned enterprises shall provide hardship allowances for employees from the legal financial funds of the enterprise. Enterprises that support employees whose legal funds are not sufficient to cover expenses shall account for the enterprise's production and business costs. The Ministry of Finance shall provide specific instructions.

In Clause 1, Article 1 of Circular No. 92/2011/TT-BTC dated June 23, 2011 of the Ministry of Finance, the subjects applying for hardship allowances according to the guidance in this Circular are employees whose names are on the list of employees of the enterprise as of March 30, 2011 and have an income of VND 2.2 million/month or less (excluding bonuses from the enterprise's after-tax profits, meal allowances, allowances for hazardous, dangerous or especially hazardous and dangerous jobs), the content of the Circular guides enterprises to use the legal financial funds of the enterprise to pay hardship allowances to employees once in 2011, determine the remaining amount as a basis for accounting for expenses, preparing financial statements and performing the enterprise's 2011 corporate income tax settlement according to regulations. The content of this allowance provision does not arise in the following years.

Therefore, Circular No. 92/2011/TT-BTC dated June 23, 2011 of the Ministry of Finance is no longer applicable in practice.

4- Circular No. 180/2012/TT-BTC dated October 24, 2012 of the Ministry of Finance guiding the financial handling of unemployment benefits for employees.

The reason for the abolition given by the Ministry of Finance is: In Circular No. 82/2003/TT-BTC dated August 14, 2003 of the Ministry of Finance on the establishment, management, use and accounting of the Reserve Fund for unemployment benefits at enterprises and the enterprise accounting regime issued under Decision No. 15/2006/QD-BTC dated March 20, 2006 of the Ministry of Finance, enterprises are allowed to establish and account for the Reserve Fund for unemployment benefits at enterprises to pay unemployment benefits to employees.

Through review, the content of Circular No. 180/2012/TT-BTC only provides guidance on handling the balance of the Unemployment Compensation Reserve Fund that has been set aside according to the provisions of Circular No. 82/2003/TT-BTC at the time of preparing the 2012 financial report and the Fund balance cannot be transferred to the following year for use. Therefore, this policy does not arise in the following years.

In Clause 1, Article 2 of Circular No. 180/2012/TT-BTC dated October 24, 2012 of the Ministry of Finance, stipulating the amount of unemployment allowance for employees in case the enterprise changes its structure or technology as prescribed in Clause 1, Article 17 of the 1994 Labor Code, Article 11 of Decree No. 39/2003/ND-CP dated April 18, 2003 of the Government detailing and guiding the implementation of a number of articles on employment (the content of this regulation has expired and is replaced by the provisions of the 2019 Labor Code and the guidance in Decree No. 145/2020/ND-CP dated December 14, 2020 of the Government). Accordingly, the payment is accounted for in the production and business costs of the enterprise. At the same time, the current accounting regime stipulated in Circular No. 200/2014/TT-BTC dated December 22, 2014 of the Ministry of Finance no longer exists the Unemployment Compensation Reserve Fund.

Please read the full draft and give your comments here.

Source: https://thoibaonganhang.vn/de-xuat-bai-bo-mot-so-thong-tu-linh-vuc-tai-chinh-doanh-nghiep-162667.html