On December 11 the Ministry of Finance publicized the Rule on
Distribution of the State-Owned Capital Profits of Central
Enterprises. All the State-owned Enterprises (SOEs) directly
supervised by the central government should turn over dividends of
varying ratios to the government from December 11th onward.
According to the rule, different industries should submit their
dividends in varying ratios: enterprises in resources-related
industries including tobacco, oil and petrochemical, energy,
telecommunications, and coal will turn over 10 percent of their
after-tax profits to the State. Those in more competitive sectors
such as steel, transportation, electronics, trade, and construction
are subject to a 5 percent rate. The rate for military industries
and transformed science research institutes will be decided in
another three years.
These enterprises will pay their proportions under the
supervision of the Ministry of Finance and the State-owned Assets
Supervision and Administration Commission (SASAC). The Ministry of
Finance will directly look through the dividends of the China
Tobacco Corporation regarding their State-owned capital profits,
and the corporation should pay their proportion according to the
state audit.
The profits of these state-owned assets include the profits
handed in by the solely State-owned companies, the dividend and
stock bonus from SOEs where the State holds a stake, the
transferred income of state-owned property rights, liquidation
income from solely State-owned companies and liquidation income and
other additional income from SOEs where the State holds a
stake.
The Ministry of Finance also publicized the Trial Rule of
Central State-Owned Capital Management of Budget-making.
According to the rule, central enterprises should make budget plans
for state-owned capital management expenditures and the central
budget department should make a suggestive draft for state-owned
capital spending budgets of these enterprises. The Ministry of
Finance would then make state-owned capital budget drafts for
income and spending according to the suggested draft and its income
budget.
(China.org.cn by Chen Lin December 12, 2007)
