Circular No. 108/2026/TT-BTC issued to guide accounting for equitization of State-owned enterprises

The Ministry of Finance has issued Circular No. 108/2026/TT-BTC guiding accounting for the equitization of enterprises wholly owned by the State, which takes effect on July 24, 2026.

Regarding its scope, the Circular provides guidance on accounting for economic transactions arising during the equitization of enterprises in which the State holds 100% of the charter capital (hereinafter referred to as equitized enterprises).

Circular No. 108/2026/TT-BTC does not apply to the determination of tax obligations of equitized enterprises to the state budget. The determination of tax obligations arising during the equitization process shall be carried out in accordance with tax laws.

The Circular applies to the following entities:

• Parent companies of economic groups, parent companies of State corporations, and parent companies in parent company–subsidiary groups;
• Independent single-member limited liability companies wholly owned by the State;
• Owner representative agencies, direct owner representatives, and other relevant agencies, organizations, and individuals.

Accounting principles

During the equitization process, equitized enterprises shall apply the guidance provided in this Circular to account for economic transactions related to equitization. Other economic transactions shall be accounted for in accordance with the accounting regime applicable to the enterprise.

Where an equitized enterprise engages in economic transactions related to equitization that are not specifically guided in this Circular, it shall account for such transactions based on their substance, the legal provisions on equitization, the accounting principles set out in the Law on Accounting, the Vietnamese Accounting Standards, and the Circulars guiding the implementation of the Vietnamese Accounting Standards.

If the legal regulations on equitization are amended, supplemented, or replaced during the equitization process, the equitized enterprise shall account for the relevant economic transactions in accordance with the amended, supplemented, or replacement regulations on equitization, together with the accounting principles prescribed in the Law on Accounting, the Vietnamese Accounting Standards, the Circulars guiding the implementation of the Vietnamese Accounting Standards, and this Circular.