Accordingly, the credit institutions and foreign bank branches are allowed to use working capital for business activities on the principle of assurance of capital safety and development. Specifically, during the course of business activities, the credit institutions and branches of foreign banks must ensure to maintain limited investment in the construction, purchase of fixed assets directly used for business on the principles: the residual value of fixed assets does not exceed 50% of the charter capital and additional reserve fund of charter capital for the credit institutions, not exceed 50% of the granted capital and additional reserve fund of capital granted for the branches of foreign banks. For real estate’s held temporarily by the credit institutions to sell, transfer in order to withdraw capital, the credit institutions do not account increase of assets, do not depreciate.

Besides, for revenue and cost management, the Circular amended some expenses not calculated in the cost of the credit institutions and foreign bank branches including: expenses without valid vouchers; the items accounted as expense but not paid actually; the fines for administrative violations that individuals must pay under the provisions of the law include: violation of business registration regime, violations of the statistics, accounting regime…

Under this Circular, report on annual financial plan must be submitted no later than November 15 of the year before the plan year; Deadline for submission of annual financial statements is no later than 180 days for foreign credit institutions and 90 days for other credit institutions from the end of the fiscal year.

This Circular takes effect from February 25, 2013 and shall be applicable from the 2013 fiscal year. This Circular replaces the Circular No.12/2006/TT-BTC dated February 21, 2006.

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