Chapter IV
PROFITS DISTRIBUTION
Article 20. Incomes subject to corporate income tax
The incomes subject to enterprise income tax of branches of foreign banks and credit institutions must comply with laws on enterprise income tax.
Article 21. Distribution of profits applicable to wholly state-owned credit institutions
The profits of credit institutions after deducting losses of previous year as prescribed in the Law on corporate income tax and paying corporate income tax shall be distributed as follows:
1. Distribute profits to the contributors under the signed contract (if any).
2. Deduct the expired loss recovery in the previous year from the profits before corporate income tax according to regulations.
3. The remaining profit after deducting the amount prescribed in Clauses 1 and 2 of this Article shall be distributed in the following order:
a) Add 5% of the profit to the charter capital addition reserve fund, the maximum amount of this fund must not exceed the charter capital of the credit institution;
b) Add 10% of the profit to the financial reserve fund;
c) Add not more than 25% of the profit to the development investment fund;
d) Set aside the reward and welfare fund for the employees of the credit institution:
Credit institutions rated A according to the law may set aside an amount equivalent to 3 months' earned income of employees for two reward and welfare funds;
Credit institutions rated B according to the law may set aside an amount equivalent to 1.5 months' earned income of employees for two reward and welfare funds;
Credit institutions rated C according to the law may set aside an amount equivalent to 01 months' earned income of employees for two reward and welfare funds;
Unrated credit institutions rated may not set aside for two reward and welfare funds.
dd) Set aside the reward fund for credit institution managers and controllers:
Credit institutions rated A according to the law may set aside an amount equivalent to 1.5 months' earned income of managers and controllers for this funds;
Credit institutions rated B according to the law may set aside an amount equivalent to 01 months' earned income of managers and controllers for this funds;
Credit institutions rated C according to the law or unrated enterprises may not set aside the reward fund for their managers and controllers.
e) The remaining amount of profits after being set aside for funds stipulated in Point a, b, c, d and dd of this Clause shall be paid to the state budget.
Article 22. Distribution of profits after corporate income tax applicable to credit institutions being cooperatives
The profits of credit institutions being cooperatives after deducting losses of previous year as prescribed in the Law on corporate income tax and paying corporate income tax shall be distributed as follows:
1. Add 5% of the profit to the charter capital addition reserve fund, the maximum amount of this fund must not exceed the charter capital of the credit institution.
2. Add 10% of the profit to the financial reserve fund.
3. Add not more than 20% of the profit to the development investment fund.
4. The remaining profit after deducting the amount prescribed in Clauses 1, 2 and 3 of this Article shall be distributed in the following order:
a) Cooperative banks:
At least 30 days before the general members’ meeting, the representative of a portion of state capital at the bank must obtain the approval of the State bank of Vietnam on the distribution of profit after tax before voting at the general meeting.
Within 15 working days from the receipt of all documents, the State bank of Vietnam must consult with the Ministry of Finance on the distribution of the remaining profit to instruct the representative of a portion of state capital at the bank to vote at the general members’ meeting.
Within 15 working days from the receipt of all documents, the Ministry of Finance shall send the State bank of Vietnam an official written opinion.
The profits distributed to members being the State shall be used to supplement the charter capital (the State's support capital).
b) People’s credit funds: the distribution of remaining profit shall comply with the Law on cooperatives and the Charter of people’s credit funds.
Article 23. Distribution of profits after corporate income tax applicable to other credit institutions and branches of foreign banks
The profits of credit institutions and branches of foreign banks after deducting losses of previous year as prescribed in the Law on corporate income tax and paying corporate income tax shall be distributed as follows:
1. Distribute profits to the contributors under the signed contract (if any).
2. Deduct the expired loss recovery in the previous year from the profits before corporate income tax.
3. Add 5% of the profit to the charter capital addition reserve fund of the credit institution or to the provided capital accumulation reserve fund of the foreign bank branch. These funds must not exceed the charter capital of the credit institution or the provided capital of the foreign bank branch.
4. Add 10% of the profit to the financial reserve fund.
5. The distribution of the remaining profit shall be decided independently by branches of foreign banks and credit institutions. For credit institutions being joint-stock commercial banks of which 50% of the charter capital is owned by the State, at least 30 days before the general meeting of shareholders, the representative of a portion of state capital at the bank must obtain the opinion from the State bank of Vietnam on the distribution of the remaining profits before voting at the general meeting of shareholders.
Within 15 working days from the receipt of all documents, the State bank of Vietnam must consult with the Ministry of Finance on the distribution of the remaining profit to instruct the representative of a portion of state capital at the bank to vote at the general meeting of shareholders.
Within 15 working days from the receipt of all documents, the Ministry of Finance shall send the State bank of Vietnam an official written opinion.
Article 24. Management and use of funds
1. The addition reserve funds of the charter capital and provided capital are used for accumulating the charter capital and provided capital.
2. The financial reserve fund is used for covering the remaining loss and damage of assets during the business of after being covered by compensation from the organizations and individuals that causes such loss, from the indemnity from the insurer, from the reserve fund extracted from the expenses and used for other purposes as prescribed by law.
3. The development investment fund is used for investing in expanding the business scale and improving the technology, work conditions and amending the charter of the credit institution. Depending on the demand for investment and capability of the fund, the credit institution shall decide the form and method of investment on the principles of efficiency, safety and capital growth.
4. The reward fund for credit institution managers and controllers shall be used for:
a) Rewards for the chairman and members of the board of director/members' council, general director, director, deputy general director, deputy director, supervisor, chief accountant;
b) The level of reward shall be determined by the General Meeting of Shareholders/Owner's Representative on the basis of the business performance of the credit institution and the level of accomplishment of the assigned tasks, at the proposal of the Chairman of the Board of directors/board of members of the credit institution
5. The reward fund is used to:
a) Give annual rewards or periodic rewards to officers and employees of the credit institution. The reward levels are decided by the Board of directors/Board of members of the credit institution at the proposal of the General Director (or Director) and the Union of the credit institution consistently with the productivity and work results of their employees;
b) Give irregular rewards to individuals or collectives in the credit institution that introduce initiatives to improve the techniques and professional process that enhance business efficiency. The reward levels are decided by the Board of directors/Board of members of the credit institution;
c) Give rewards to individuals and units outside the credit institution economically involved that completely fulfill the contractual conditions and efficiently contribute to the business of the credit institution. The reward levels are decided by the Board of directors/Board of members of the credit institution.
6. The welfare fund is used to:
a) Invest in building or repair, supplement funds for welfare constructions of the credit institution, contribute to the investment in the common welfare constructions of the industry or of other units according to contract;
b) Spend on cultural, sport activities and public welfare of the staffs and employees of the credit institution;
c) Spend on the regular or irregular support for staffs and employees in difficulties of the credit institution, including retired or disabled ones;
d) Spend on other welfare activities.
The Board of directors/ Board of members, General Director (Director) of the credit institution shall cooperate with the Executive board of the Union of the credit institution in managing and using this fund.
Tìm kiếm
Nghị định 93/2017/NĐ-CP (Bản Word)
Nghị định 93/2017/NĐ-CP (Bản Pdf)