On 16 July 2018 the Ministry of Finance promulgate the Circular No. 59/2018/TT-BTC amending and supplementing some artichles of Circular No. 219/2015/TT-BTC on 31 December of the Ministry of Finace guidelines for a number of contents of the government’s Decree no. 91/2015/ND-CP dated October 13, 2015 regrading the investment of state capital in enterprises, use and management of capital and assets in enterprises. This Circular takes effect on September 1, 2018.
Accordingly, Circular No. 59/2018/TT-BTC promulgates detailed guidance on the increase and decrease of state capital invested in enterprises as follows:
1. State-owned enterprises shall record the increase of state capital in enterprises (Investor’s capital) and adjust the charter capital in the enterprise registration Certificate under the provisions of the Enterprise Law
To use the development investment fund at enterprises to supplement the charter capital. An enterprise shall base itself on the plan on supplementing its charter capital or the decision on supplementation of its charter capital already approved by a competent authority to account for the increase of its investment capital.
2. For enterprises to adjust the charter capital reduction: The representative office of the owner shall base on the practical situation of the enterprise, the need to reduce the operational scale of the business, The principle of determining the charter capital of a State enterprise that regulation in paragraph 1 Article 19 Decree No. 91/2015/NĐ-CP to determine the reduced charter capital and report to the Prime Minister for the decision on the reduction of the charter capital.
Therefore, Circular No. 59/2018/TT-BTC is issued to detailed guidance on some aspects of state capital investment in enterprises and financial management issues for state-owned enterprises in order to avoid unreasonable transfer of capital in the current period.