Uni 29-08-2013 - CIT policy

According to Official letter No.2732/TCT-CS:

• When incurring thejob severance, enterprises are allowed to recognizethe employees’ job severanceinto the deductible administration expense under the provisions of Circular No. 180/2012/TT-BTC dated 24 October 2012 for determining CIT taxable income.

• Particularly, in 2012, enterprises are now using the reserve fund balance for the unemployment benefits made ​​in accordance with Circular No.82/2003/TT-BTC dated 14 August 2003 of the Ministry of Finance to 31 December 2011 (if applicable) to pay the unemployment benefits toemployees. If the severancefund balance is not enough or no corporate fund balances to pay the unemployment benefits to the employees, the entire lacking cost is accounted for the deductible administration expenseat the time of the balance sheet date and included in deductible expense as prescribed. In case of preparing the financial statements of 2012, if the source of funds for unemployment benefits is still remained (after paying the job severance in 2012), the job severance will be recognized in other income of 2012, the remained balance will not be carried forward in the  following year to use."