August 30, 2018

TMF's monthly update | Vietnam government clarifies penalties for accounting administration failures

April 2018

The Vietnamese government recently issued official notes to clarify administration penalties. Companies and entities operating in the country should be aware of the penalties, and work with a local partner to help ensure compliance.

Decree No. 41/2018/ND-CP, dated 12 March 2018 and replacing Decree No. 105/2013/ND-CP, regulates administration penalties given for accounting issues and fraud. It sets a maximum penalty of VND100 million for organisations and takes effect on 1 May 2018.

Vietnam sets strict requirements for the format of the accounting vouchers, books, charts of accounts, financial statements and company governance, and this decree shows even a minor transgression could result in significant financial penalties, as detailed below.

Accounting vouchers

Issues with the format and content of your accounting vouchers could result in the following penalties:

VND 3-5 million for accounting vouchers not having the required information, or for using a signature stamp

VND 5-10 million for signing accounting vouchers which do not have sufficient information or power of attorney, that have inconsistent signatures, or that are not translated into the Vietnamese language

VND 10-20 million for non-compliance with regulations in wording, numbers, monetary units, and the accounting period

VND 20-30 million for not preparing accounting vouchers when transactions occur; for duplicate accounting vouchers for one transaction; or for payment without sufficient signatures of the authorisors on payment vouchers.

Accounting books

Issues with the format and content of your accounting books could result in the following penalties:

VND 1-2 million for accounting books that don’t state the company name, or which are not signed by the person who prepared them. The books must also have page numbers, an overlap stamp, and other contents regulated by Vietnamese law

VND 5-10 million for accounting books without accounting vouchers, or those that do not tally with the supplied accounting vouchers.

Chart of accounts

Those who use incorrect chart of accounts which was registered with Ministry of Finance will face penalties of VND 5-10 million.

Financial statements 

Those who submit financial statements late, or who don’t have consistent data in their statements, face the following penalties:

VND 5-10 million for submitting financial statements to authorities up to three months late

VND 10-20 million for submitting financial statements to authorities more than three months late

VND 20-30 million if financial statements have inconsistent data in one accounting period, or if data in the financial statements does not tally with the company’s accounting books and vouchers

VND 40-50 million for failing to submit the financial statements to authorities.

Governance
Those who do not appoint a chief accountant or person in charge of accounting could face the following penalties:

VND 5-10 million for failure to appoint or for failure to notify the authorities when there is a change in chief accountant / person in charge of accounting

VND 20-30 million for appointing a chief accountant that does not meet legal requirements. 

Vietnam is one of the most complex country in Asia Pacific for Accounting and Tax compliance, according to TMF Group’s Financial Complexity Index 2018; it’s best to work with a local partner who is on the ground and up-to-date. Get in touch with our experts at TMF Vietnam for details on how we can help you navigate the complexity.

More News

See all

February 23, 2024

Laying foundations: discussing an Irish chamber of commerce in Vietnam

Read more

February 23, 2024

Exploring business opportunities: EuroCham’s dialogue with Hung Yen Province

Read more

February 16, 2024

[Work @ EuroCham] GEFE EXHIBITION PROJECT MANAGER – based in Ho Chi Minh City

Read more

February 15, 2024

[EXTENDED DEADLINE] [Work @ EuroCham] Operations Officer – based in Central Vietnam

Read more

January 30, 2024

[EXTENDED DEADLINE] [Work @ EuroCham] GREEN GROWTH SECTOR COMMITTEE & SUSTAINABLE FINANCE SECTOR COMMITTEE INTERN – based in Ho Chi Minh

Read more

January 26, 2024

EuroCham and VAFIE Discuss EU Investment Trends and Challenges in Vietnam

Read more

January 26, 2024

EuroCham Vietnam and Ho Chi Minh City unite for sustainability

Read more

January 26, 2024

EuroCham’s Construction Sector Committee: spearheading sustainable development in Vietnam’s construction industry

Read more

January 26, 2024

[CORPORATE SUPPORT] A smart factory for smart materials: BASF celebrates the inauguration of its TPU plant at the Zhanjiang Verbund site

Read more

January 24, 2024

EuroCham Vietnam and Ho Chi Minh City unite for sustainability

Read more

January 24, 2024

[CORPORATE PARTNER] PwC – Asia Pacific climate actions not on track: Moving beyond commitment and towards transformation

Read more

January 19, 2024

[EXTENDED DEADLINE] [Work @ EuroCham] GEFE Project Officer and GEFE Project MarCom Officer – based in Ho Chi Minh

Read more

January 19, 2024

Economic Insights Unveiled at “Economic Outlook 2024” Business Luncheon organized by EuroCham and BritCham

Read more

January 19, 2024

EuroCham Vietnam’s latest Whitebook proposes recommendations for boosting investment for a greener, more sustainable economy

Read more

January 19, 2024

[SUPPORTED CONTENT] PWC recently launched report on the impact of Corporate Sustainability Reporting Directive (CSRD)

Read more

January 19, 2024

EuroCham Construction Sector Committee Meets with Ministry of Construction to Foster Industry Dialogue

Read more

January 18, 2024

High-Level Hungarian delegation meets with EuroCham Vietnam, CEEC, and Consulate General of Hungary

Read more

January 12, 2024

EuroCham Rings in 2024 with Festive Celebration in Hanoi

Read more

January 12, 2024

Ringing in 2024 with Cheer at EuroCham’s New Year Celebration in Ho Chi Minh

Read more

January 05, 2024

Successful EuroCham Vietnam advocacy outcome regarding Circular on Nutritional Labeling

Read more

January 05, 2024

Vietnam’s business confidence gains traction in Q4 2023 amid challenges: EuroCham Vietnam Business Confidence Index (BCI)

Read more

January 05, 2024

Vice-Chairman Minh Nguyen continues tenure on Prime Minister’s Advisory Council for Administrative Procedures Reform

Read more

December 19, 2023

[Work @ EuroCham] MEMBERSHIP ASSISTANT – based in Ho Chi Minh

Read more

December 19, 2023

EuroCham’s constructive engagement at the Ministry of Foreign Affairs’ 21st National Conference on Provincial Affairs

Read more

December 15, 2023

Memorandum of understanding signing ceremony on enhancing the regulatory environment and healthcare access towards promoting technological advancements in the medical device sector

Read more

December 15, 2023

[Sector Committee Spotlight] Mobility Sector Committee

Read more

December 15, 2023

EuroCham’s mission to Da Nang: strengthening ties and showcasing investment potential in Central Vietnam

Read more

December 14, 2023

[CORPORATE PARTNER] BASF launches Irgastab® PUR 71, a cutting-edge antioxidant improving regulatory compliance and performance for polyols and polyurethane foams

Read more

December 08, 2023

[CORPORATE PARTNERS] BASF engages young minds in chemistry with two new Virtual Lab experiments in Vietnamese

Read more

December 08, 2023

[Event Recap][Breakfast talk] EuroCham Construction Sector Committee’s Successful HCMC Breakfast Talk on Designing with AI!

Read more

Pour une expérience optimale, veuillez tenir votre mobile à la verticale !

Platinum Partners

Gold Premium Partners

Gold Partners

Silver Partners

Premium Service Partners