On August 26, 08, the Government issued Decree 2021/80/ND-CP guiding the Law on Supporting Small and Medium Enterprises (SMEs) effective from October 2021, 15 and replacing Decree No. 10. /2021/ND-CP dated March 39, 2018 of the Government.
Criteria for identifying small and medium enterprises according to Decree 80/2021
According to Article 5, Decree 80/2021/ND-CP, the criteria for identifying SMEs are as follows:
(1) Micro-enterprises in the fields of agriculture, forestry, fishery and industry and construction employing no more than 10 employees per year participating in social insurance. , and total revenue of the year is not more than 3 billion or Total capital is not more than 3 billion dong.
Micro-enterprises in the field of commerce and services employing no more than 10 people per year in social insurance , and total revenue of the year is not more than 10 billion or Total capital is not more than 3 billion dong.
(2) Small enterprises in the fields of agriculture, forestry, fishery and industry and construction employing employees participating in social insurance on an average of no more than 100 people per year. , and total revenue of the year is not more than 50 billion or total capital of the year is not more than 20 billion dong, but it is not a micro-enterprise as prescribed in clause (1).
Small enterprises in the field of commerce and services employing an average of not more than 50 people a year participating in social insurance. , and total revenue of the year is not more than 100 billion or total capital of the year is not more than 50 billion dong, but it is not a micro-enterprise as prescribed in clause (1).
(3) Medium-sized enterprises in the fields of agriculture, forestry, fishery and industry and construction employing employees participating in social insurance on an average of not more than 200 people per year. , and total revenue of the year is not more than 200 billion or the total capital of the year must not exceed 100 billion dong, but it is not a small enterprise or a micro-enterprise as prescribed in clauses (1), (2).
Medium-sized enterprises in the field of commerce and services employing an average of no more than 100 people a year participating in social insurance. , and Total revenue of the year is not more than 300 billion VND or the total capital must not exceed 100 billion dong, but it is not a micro-enterprise, a small enterprise as prescribed in Clauses (1), (2).
Notes on how to identify small and medium enterprises
In the regulations on identifying small and medium enterprises, there is 1 word AND and 1 word OR, the correct interpretation is as follows:
Enterprises must satisfy both conditions at the same time of an object:
- Condition 1: Average number of employees participating in social insurance per year; and
- Condition 2: Total revenue of the year or total capital.
Differences in criteria between Decree 80/2021/ND-CP and Decree 39/2018/ND-CP
| mục | Criteria | Decree 80 / 2021 / ND-CP | Decree 39 / 2018 / ND-CP |
| A | Identify areas of activity for small and medium-sized enterprises | The field of operation of a small and medium-sized enterprise is determined based on the main business line that the enterprise has registered with the business registration agency. | Small and medium-sized enterprises' operation domains are determined based on the provisions of law on the system of economic branches and the provisions of specialized laws. In the case of activities in many sectors, small and medium-sized enterprises are determined based on the field with the highest revenue. Where the highest revenue field is not available, small and medium-sized enterprises are determined based on the areas with the highest labor use. |
| B | Determine the average number of employees participating in social insurance annually of small and medium-sized enterprises | 1. The number of employed employees participating in social insurance is the total number of employees managed, employed, and paid by the enterprise for participation in social insurance according to the law on social insurance. | |
| 2. The average annual number of employees participating in social insurance is calculated as the total number of employed employees participating in social insurance of all months in the preceding year divided by 12 months. The number of employed employees participating in social insurance for a month is determined at the end of the month and based on the social insurance payment voucher of that month that the enterprise submits to the social insurance agency. | 2. The average number of employees participating in social insurance is calculated by the total number of employees participating in social insurance of the year divided by the number of months in the year and determined on the voucher of payment of social insurance of the previous year. adjoining enterprises to social insurance agencies. | ||
| 3. In case an enterprise operates for less than 01 year, the average number of employees participating in social insurance for the year is calculated as the total number of employees participating in social insurance of the months of operation divided by the number of employees participating in social insurance. number of months of operation. | |||
| C | Determining the total capital of small and medium enterprises | 1. The total capital of the year is determined in the balance sheet shown in the financial statement of the preceding year that the enterprise submits to the tax authority. Total capital of the year is determined at the end of the year. | |
| 2. In case an enterprise has been operating for less than 01 year, the total capital source shall be determined in the balance sheet of the enterprise at the end of the quarter immediately preceding the time the enterprise registers for the support content. | |||
| D | Determine the total revenue of small and medium enterprises | 1. Total revenue of the year is the total revenue from selling goods and providing services of an enterprise and is determined on the financial statement of the preceding year that the enterprise submits to the tax authority. | |
| 2. In case an enterprise has been operating for less than 01 year or over 01 year but has not yet generated revenue, the enterprise shall base itself on the criteria of total capital as prescribed in this Decree to determine a small and medium-sized enterprise. | |||
| E | Identification and declaration of small and medium enterprises | 1. Small and medium-sized enterprises shall base themselves on the form specified in the Appendix issued together with this Decree to self-determine and declare the size as micro-enterprises, small-enterprises and medium-sized enterprises and submit it to the agency. organization supporting small and medium enterprises. Small and medium enterprises are responsible before the law for the declaration. | |
| 2. In case the enterprise detects that the scale declaration is incorrect, the enterprise shall take the initiative in making adjustments and re-declaring it. The re-declaration must be done before the time the small and medium-sized enterprises enjoy the support content. | |||
| 3. In case an enterprise intentionally makes dishonest declarations about its size in order to receive support, the enterprise must take responsibility before law and refund the entire funding received for support. | |||
| 4. Based on the time when the enterprise proposes to support, the agency or organization supporting the small and medium-sized enterprise compares information about the enterprise on the National Business Registration Portal to determine the enterprise's information. declaration to ensure the correct object of support. | Do not have | ||
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System of legal documents regulating small and medium enterprises
Decree 80/2021/ND-CP guiding small and medium enterprises
This Decree guides the identification of small and medium-sized enterprises, supporting small and medium-sized enterprises to transform from household businesses
Decree 80/2021/ND-CP issued with many supports helps create leverage for SMEs to facilitate development as well as contribute to promoting the country's economy. For any unclear issues in the Decree, you can contact the Consulting Department of EXPERTIS for timely answers.
