Circular 101/2025/TT-BTC providing guidance on accounting principles applicable to insurance brokerage enterprises

CIRCULAR

Providing guidance on accounting principles applicable to insurance brokerage enterprises

Pursuant to the Accounting Law No. 88/2015/QH13 dated November 20, 2015;

Pursuant to the Law No. 56/2024/QH15 dated November 29, 2024, Amending and Supplementing a Number of Articles of the Law on Securities, Accounting Law, Law on Independent Audit, Law on the State Budget, Law on Management and Use of Public Properties, Law on Tax Administration, Law on Personal Income Tax, Law on National Reserves, and Law on Handling of Administrative Violations;

Pursuant to the Law on Insurance Business No. 08/2022/QH15 dated June 16, 2022;

Pursuant to the Government’s Decree No. 46/2023/ND-CP dated July 01, 2020, detailing the implementation of a number of articles of the Law on Insurance Business;

Pursuant to the Government's Decree No. 29/2025/ND-CP dated February 24, 2025, defining the functions, tasks, powers and organizational structures of the Ministry of Finance, and the Government’s Decree No. 166/2025/ND-CP dated June 30, 2025, amending and supplementing a number of articles of the Government’s Decree No. 29/2025/ND-CP dated February 24, 2025, defining the functions, tasks, powers and organizational structures of the Ministry of Finance;

At proposal of the Director of the Department of Accounting and Audit Management and Supervision;

The Minister of Finance hereby promulgates the Circular providing guidance on accounting principles applicable to insurance brokerage enterprises.

Chapter I

GENERAL PROVISIONS

Article 1. Scope and subjects of application

This Circular provides guidance on accounting principles and financial statement presentation for certain specific economic operations applicable to insurance brokerage enterprises established and operating under Vietnamese law. This Circular does not apply to the determination of tax obligations of insurance brokerage enterprises toward the State budget.

Article 2. General accounting principles

Insurance brokerage enterprises must fully comply with the Accounting Law, its guiding documents, accounting standards and applicable enterprise accounting regimes, documents providing amendments, supplements or replacements thereof, relevant provisions of the law on insurance business, and the provisions of this Circular, in recording accounting books, preparing and presenting financial statements.

Chapter II

SPECIFIC PROVISIONS

Article 3. Guidance on accounting principles for certain of economic operations of insurance brokerage enterprises

1. For the Compulsory Reserve Fund:

Insurance brokerage enterprises shall apply the account “Other equity funds” to record the setting aside and use of the Compulsory Reserve Fund, and shall present the Compulsory Reserve Fund as “Other equity funds” in financial statements and explanatory notes in accordance with the enterprise accounting regime. The setting aside and use of the Compulsory Reserve Fund shall strictly comply with the law on insurance business and relevant laws.

2. For the time of revenue recognition:

Where the law on insurance business prescribes a time of revenue recognition for insurance brokerage enterprises that differs from that provided in the enterprise accounting regime, insurance brokerage enterprises shall comply with the law on insurance business.

3. For refunds, reductions of insurance brokerage commissions, and other items of similar nature:

Insurance brokerage enterprises shall record such amounts as deductions from revenue and account for them in accordance with the enterprise accounting regime.

4. For cooperation in insurance brokerage activities:

The parties shall share common revenues and expenses from cooperative insurance brokerage activities in accordance with their cooperation agreements.

Where an insurance brokerage enterprise has full authority to determine the value of brokerage contracts and bears all risks arising from such contracts, the payments made to the cooperating insurance brokerage parties shall be recorded as expenses incurred during the period by the insurance brokerage enterprise.

5. Insurance brokerage enterprises shall account for insurance brokerage operating expenses as the cost of goods sold in accordance with Article 83 of the Government's Decree No. 46/2023/ND-CP dated July 01, 2023, detailing the implementation of a number of articles of the Law on Insurance Business. At the same time, they must present and explain the cost of goods sold in the financial statements in accordance with the enterprise accounting regime.

Article 4. Conversion of balances

1. Insurance brokerage enterprises shall convert and transfer the balances of accounting accounts currently applied to the accounts consistent with the provisions of the enterprise accounting regime.

2. Insurance brokerage enterprises shall convert the balance of the item “Compulsory Reserve Fund” to the item “Other equity funds” in the statement of financial position (balance sheet) in accordance with the enterprise accounting regime.

Chapter III

IMPLEMENTATION ORGANIZATION

Article 5. Transitional provisions

Insurance brokerage enterprises shall restate comparative information in the financial statements for the items that differ between the provisions of this Circular and those of Circular No. 175/2011/TT-BTC dated December 05, 2011, of the Ministry of Finance, guiding accounting applicable to insurance brokerage enterprises, and shall provide explanations for the reasons leading to the changes in such contents and figures.

Article 6. Effect

This Circular takes effect on January 01, 2026, and applies from the 2026 fiscal year.

This Circular replaces the Ministry of Finance's Circular No. 175/2011/TT-BTC dated December 05, 2011, guiding accounting applicable to insurance brokerage enterprises, from January 01, 2026.

In case the legal documents referred to in this Circular are amended, supplemented or replaced, the amending, supplementing or replacing ones shall prevail.

Article 7. Implementation organization

1. The Director of the Department of Accounting and Audit Management and Supervision; the Director of the Department of Insurance Management and Supervision; General Directors (Directors) of insurance brokerage enterprises and heads of relevant units shall implement this Circular.

2. Any difficulties and problems arising in the course of implementation should be reported to the Ministry of Finance for study and settlement./.