THE MINISTRY OF FINANCE
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SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom – Happiness
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No. 201/2009/TT-BTC
Hanoi, October 15, 2009
 
CIRCULAR
GUIDING THE HANDLING OF EXCHANGE RATE DIFFERENCES IN ENTERPRISES
Pursuant to the 2008 Law on Enterprise Income Tax;
Pursuant to the Government's Decree No. 124/2008/ND-CP of December 11, 2008, detailing and guiding a number of articles of the
Law on Enterprise Income Tax;
Pursuant to the Government's Decree No. 118/2008/ND-CPof November27, 2008, defining the functions, tasks, powers and organizational structure of the Ministry of Finance;
Pursuant to the Government's Decree No. 09/ 2009/ND-CP of February 5, 2009, promulgating the Regulation on financial management of state companies and management of state capital invested in other enterprises;
To realize the directing opinions of Deputy Prime Minister Nguyen Sinh Hung in the Government Office's Official Letter No. 2225/VPCP-KTTH of April 9, 2009, on the handling of foreign exchange rate differences, the Ministry of Finance guides the handling of exchange rate differences in enterprises as follows:
Part A
GENERAL PROVISIONS
Article 1. Subjects and scope of application
This Circular applies to enterprises estab­lished and operating in Vietnam under law. It does not apply to foreign currency trading enterprises.
For enterprises established on the basis of treaties concluded between the Government of the Socialist Republic of Vietnam and governments of foreign countries and containing provisions on the handling of exchange rate differences different from this Circular's guidance, these treaties prevail.

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Article 2. Terms referred to in this Circular are construed as follows:
1. "Foreign currency" means a currency different from the currency used in accounting activities of an enterprise.
2. Foreign currency operations'* means revenue and expenditure operations in foreign currencies and for pricing.
3. "Foreign exchange rale" means an exchange rale between two currencies (below referred to as exchange rate).
4. "Foreign exchange rate difference" means the difference between a booked exchange rate and an exchange rate for conversion of the same foreign currency at the lime of adjustment.
Article 3. Enterprises that conduct foreign currency operations shall account foreign exchange rate differences under current accounting regulations.
Exchange rates for conversion of foreign currencies into Vietnam dong must comply with the Finance Minister's Decision No. 15/2006/QD-BTC of March 20, 2006, promulgating enterprise accounting regulations.
Article 4. Foreign currencies of which exchange rates for conversion into Vietnam dong are not publicly announced by the State Bank of Vietnam will all be converted through the US dollar at exchange rates applied by banks at which enterprises open their accounts at the time when the balances of monetary items of foreign-currency origin actually arise or are revaluated at the end of a period.
Part B
SPECIFIC PROVISIONS

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Article 5. All foreign exchange rate differences arising from production and business activities in a period, including also capital construction investment activities (of enterprises engaged in both production and business activities and capital construction investment activities) shall be immediately accounted as financial expenditures or turnover from financial operations in the period.
Article 6. Handling of foreign exchange rate differences
1. Handling of foreign exchange rate differences of foreign currency operations in a period:
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