Circular No. 92/2011/TT-BTC dated June 23, 2011 of the Ministry of Finance guiding the provision of special allowances for business employees under the Prime Minister’s Decision No.471/QD-TTg of March 30, 2011

BUSINESSES THEMSELVES PROVIDE SPECIAL ALLOWANCES NOT BE LOWER THAN VND 250,000 PER EMPLOYEE

On June 23, 2011, the Ministry of Finance issued the Circular No. 92/2011/TT-BTC guiding the provision of special allowances for business employees under the Prime Minister’s Decision No. 471/QD-TTg of March 30, 2011.

Beneficiaries of special allowances under this Circular are employees who are named on businesses’ payrolls by March 30, 2011, and have a monthly income of VND 2.2 million or less (exclusive of bonuses paid from businesses’ after-tax profits, allowances for mid-shift meals, hazardous and dangerous jobs or extremely hazardous and dangerous jobs).

Businesses shall base themselves on their lawful financial funds and capacity to decide on specific levels of special allowances for their employees, which must not be lower than VND 250,000 per employee. Allowance amounts shall be excluded from employees’ salary amounts used to calculate social, health and unemployment insurance premiums and trade union dues.

Based on the number of employees eligible for special allowances, each business shall make a list of allowance beneficiaries and determine the total payable allowance amount.

A business with insufficient lawful financial funds or without lawful financial funds as mentioned above to pay special allowances to employees at the decided levels may account the deficit amount, for which no funding sources are available, as its production and business cost. When determining its taxable income, the business may account this amount as reasonable expense at a level not exceeding VND 250,000 per employee.