Decree No. 174/2016/ND-CP detailing some provisions of the Accounting Law

 

DECREE

Detailed regulations on certain provisions of the Accounting Law

Pursuant to the Government Organization Law dated June 19, 2015;

Pursuant to the Accounting Law dated November 20, 2015;

At the proposal of the Minister of Finance;

The Government issues this Decree detailing certain provisions of the Accounting Law.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Decree details certain provisions of the Accounting Law regarding the content of accounting work, accounting organizational structure and accountants, accounting service business activities, cross-border provision of accounting services, and accounting professional organizations.

Article 2. Applicability

1. The objects specified in Clauses 1, 2, 3, 4, 5, 6, 7, 8, and 9 of Article 2 of the Accounting Law.

2. Foreign organizations and individuals (not subject to Vietnamese law) generating income from providing services or services attached to goods in Vietnam (hereinafter referred to as foreign contractors).

3. Budget accounting units and financial units at commune, ward, and town levels.

4. Other agencies, organizations, and individuals related to accounting and accounting service business activities in Vietnam.

Article 3. Explanation of Terms

In this Decree, the following terms are understood as follows:

1. Accounting units in the business sector include enterprises established and operating under Vietnamese law; branches of foreign enterprises operating in Vietnam; cooperatives and cooperative unions; project management boards, and other entities with legal personality established by enterprises.

2. Accounting units in the state accounting sector include agencies responsible for collecting and disbursing state budgets at all levels (State Treasury, tax authorities, customs authorities); budget accounting units and financial units at commune, ward, and town levels; state agencies; public institutions; organizations and units using the state budget; project management boards with legal personality established by state agencies and public institutions; agencies and organizations managing non-budget state financial funds; organizations funded by the state to operate according to specific political-social objectives.

3. Other accounting units are those accounting units not falling within the scope defined in Clause 1 and Clause 2 of this Article.

4. Persons responsible for managing and directing accounting units are enterprise managers or founders of enterprises as stipulated by enterprise laws; members of the Management Board (General Management Board) of cooperatives as stipulated by cooperative laws; heads or legal representatives of accounting units; other individuals holding managerial positions authorized to sign transactions on behalf of the accounting unit as prescribed.

5. Accounting service business units include accounting service enterprises, individual accounting service businesses, branches of foreign accounting service enterprises in Vietnam, and foreign accounting service enterprises providing cross-border accounting services in Vietnam.

6. Cross-border provision of accounting services in Vietnam refers to foreign accounting service enterprises without a commercial presence in Vietnam still providing accounting services to enterprises and organizations in Vietnam.

7. The content of accounting work includes accounting vouchers; accounting accounts and ledgers; financial reports; accounting audits; asset inventory, preservation, and storage of accounting documents; accounting tasks in cases where accounting units undergo division, separation, merger, conversion of form or ownership type, dissolution, cessation of operations, bankruptcy.

8. A consortium in the provision of cross-border accounting services in Vietnam is a combination between foreign accounting service enterprises and domestic accounting service enterprises without forming a new legal entity to provide accounting services in Vietnam.

Article 4. Units of measurement used in accounting

1. The monetary unit used in accounting is the Vietnamese Dong, with the national symbol being "đ" and the international symbol being "VND". In cases where economic transactions or financial matters arise in foreign currencies, the accounting entity must simultaneously record the original currency and convert it to Vietnamese Dong for bookkeeping purposes, except where otherwise provided by law; for foreign currencies that do not have exchange rates with the Vietnamese Dong, they must be converted through another foreign currency that has an exchange rate with the Vietnamese Dong and the foreign currency requiring conversion.

An accounting entity that primarily deals with economic transactions in a particular foreign currency may choose that foreign currency as the monetary unit in its accounting, and shall be responsible for such choice under the law and notify the directly managing tax authority. The exchange rate for converting foreign currencies to the monetary unit in accounting and for converting financial statements prepared in foreign currencies to Vietnamese Dong shall be carried out according to the guidelines of the Ministry of Finance, except where otherwise provided by law.

2. Accounting entities in the state accounting field, when generating budget revenues and expenditures in foreign currencies, must convert them to Vietnamese Dong according to the provisions of the State Budget Law.

3. Physical units and time units of labor used in accounting include ton, hundredweight, dan, kilogram, square meter, cubic meter, workday, work hour, and other measurement units as prescribed by laws on measurement.

4. Accounting entities in the business sector, when preparing consolidated financial statements or consolidated financial statements from the financial statements of subsidiaries or subordinate accounting entities, or accounting entities in the state accounting field, when preparing consolidated financial statements or annual final accounts reports from the financial statements and final accounts reports of subordinate entities, if at least one item on the report contains nine digits or more, may use a shortened monetary unit of thousands of dong (1,000 dong); if it contains twelve digits or more, may use a shortened monetary unit of millions of dong (1,000,000 dong); if it contains fifteen digits or more, may use a shortened monetary unit of billions of dong (1,000,000,000 dong).

5. When publicly disclosing financial statements or final accounts reports, accounting entities may use shortened monetary units as stipulated in Clause 4 of this Article.

6. When using shortened monetary units, accounting entities may round off figures by adding one unit to the shortened monetary unit digit if the subsequent digit is five or higher; if it is less than five, it is not counted.

Chapter II

SPECIFIC PROVISIONS

Section 1

CONTENTS OF ACCOUNTING WORK

Article 5. Accounting vouchers

1. Accounting vouchers must be clearly, fully, timely, accurately prepared, easy to check, control, and reconcile according to the contents prescribed in Article 16 of the Accounting Law.

2. Accounting entities engaged in business activities may proactively develop and design accounting voucher formats but must ensure the main contents of accounting vouchers as prescribed in Clause 1 of Article 16 of the Accounting Law, suitable for their operational characteristics and management requirements, except where otherwise provided by law.

3. In cases where a person who is totally blind signs an accounting voucher, there must be a sighted person designated by the entity issuing the voucher present as a witness. For persons who are partially blind, signing of accounting vouchers shall be carried out as prescribed in the Accounting Law.

4. Accounting entities using electronic vouchers as prescribed in Article 17 of the Accounting Law may use electronic signatures in accounting work. Electronic signatures and the use of electronic signatures shall be carried out according to the provisions of the Electronic Transactions Law.

5. Accounting vouchers recorded in a foreign language, when used for bookkeeping and preparing financial statements in Vietnam, must translate the main contents prescribed in Clause 1 of Article 16 of the Accounting Law into Vietnamese. The accounting entity shall be responsible for the accuracy and completeness of the content of accounting vouchers translated from a foreign language into Vietnamese. The translated version of the accounting voucher in Vietnamese must be attached to the original version in the foreign language.

Documents accompanying accounting vouchers in a foreign language, such as contracts, payment voucher attachments, project investment files, final account reports, and other related documents of the accounting entity are not required to be translated into Vietnamese unless requested by competent state authorities.

Article 6. Photocopies of accounting documents

1. Photocopies of accounting documents must be made from original documents. Photocopies of accounting documents have the same value and are stored in the same manner as original documents. On photocopies of accounting documents, there must be the signature and stamp (if any) of the legal representative of the unit keeping the original documents or of the state agency authorized to temporarily detain or confiscate accounting documents. The accounting unit may only make photocopies of accounting documents in the cases specified in Articles 2, 3, 4, and 5 of this Article.

2. In cases where the accounting unit has a foreign loan or aid project that requires submitting original accounting vouchers to the foreign financier, the accounting vouchers used at the unit must bear the signature and stamp (if any) of the legal representative (or authorized person) of the financier or of the accounting unit.

3. In cases where a project, program, or topic is led by one agency or unit but implemented by multiple agencies or units, accounting vouchers are stored at the agency or unit directly using the project, program, or topic funds. If regulations require sending vouchers back to the leading agency or unit, the agency or unit directly using the funds must make photocopies of the accounting vouchers and send them with the signature and stamp (if any) of the legal representative (or authorized person) of the unit to the leading agency or unit.

4. In cases where the original accounting documents of the accounting unit are temporarily detained or confiscated by a competent state agency, the photocopies left at the unit must bear the signature and stamp (if any) of the legal representative (or authorized person) of the state agency authorized to temporarily detain or confiscate the accounting documents according to Clause 2 of Article 7 of this Decree.

5. In cases where accounting documents are lost or destroyed due to objective reasons such as natural disasters, floods, fires, and other objective reasons, the accounting unit must go to the purchasing unit, selling unit, service provider, or related units to request photocopies of the accounting documents. On photocopies of accounting documents, there must be the signature and stamp (if any) of the legal representative (or authorized person) of the purchasing unit, selling unit, or related units.

6. In cases where the unit related to providing accounting documents for photocopying has been dissolved, declared bankrupt, or ceased operations, the legal representative of the accounting unit requiring photocopies must establish a committee and prepare a "Record confirming accounting documents that cannot be photocopied," while bearing legal responsibility for that determination.

Article 7. Sealing, temporary detention, and confiscation of accounting documents

1. When a competent state agency decides to seal accounting documents in accordance with the law, the accounting unit and the representative of the competent state agency responsible for sealing the accounting documents must prepare a "Sealing Record of Accounting Documents." The "Sealing Record of Accounting Documents" must clearly state: Reason, type of document, quantity of each type of document, accounting period, and other necessary contents of the sealed accounting documents. The legal representative of the accounting unit and the legal representative (or authorized person) of the state agency sealing the accounting documents must sign and stamp (if any) on the "Sealing Record of Accounting Documents."

2. In cases where a competent state agency temporarily detains or confiscates accounting documents, the accounting unit and the legal representative of the competent state agency temporarily detaining or confiscating the accounting documents must prepare a "Handover Record of Accounting Documents." The "Handover Record of Accounting Documents" must clearly state: Reason, type of document, quantity of each type of document, accounting period, and other necessary contents of the detained or confiscated documents; if temporarily detained, the duration of use and the return date of the accounting documents must also be clearly stated.

The legal representative of the accounting unit and the legal representative (or authorized person) of the state agency temporarily detaining or confiscating the accounting documents must sign and stamp (if any) on the "Handover Record of Accounting Documents," and the accounting unit must make photocopies of the detained or confiscated accounting documents. On photocopies of the accounting documents, there must be the signature and stamp (if any) of the legal representative (or authorized person) of the state agency temporarily detaining or confiscating the accounting documents.

For accounting documents created on electronic media, the accounting unit must print them out, sign, and stamp (if any) to provide to the state agency temporarily detaining or confiscating the accounting documents.

Article 8. Types of accounting documents to be stored

Types of accounting documents to be stored include:

1. Accounting vouchers.

2. Detailed accounting books, summary accounting books.

3. Financial reports; budget settlement reports; consolidated budget settlement reports.

4. Other documents related to accounting including various types of contracts; management accounting reports; project completion settlement files, national key project settlement reports; inventory and asset evaluation reports; documents related to inspection, audit, supervision, and auditing; minutes of accounting document destruction; decisions on additional capital from profits, distribution of profit funds; documents related to dissolution, bankruptcy, division, merger, cessation of operations, conversion of ownership form, conversion of business type, or conversion of units; documents related to the receipt and use of funds, capital, and funds; documents related to tax obligations, fees, and other obligations to the State and other documents.

Article 9. Preservation, storage, and provision of accounting information and documents

1. Accounting documents for storage must be original copies in accordance with the provisions of the law for each type of accounting document, except for the following cases:

a) Accounting documents specified in Clause 2 and Clause 3, Article 6 of this Decree, which have only one original copy but need to be stored in multiple units, then in addition to the unit storing the original copy, other units may store photocopies of the accounting documents.

b) During the period when accounting documents are temporarily seized or confiscated according to Clause 4, Article 6 of this Decree, the accounting unit must store photocopies of the accounting documents along with the "Minutes of Accounting Document Handover" as stipulated in Clause 2, Article 7 of this Decree.

c) In cases where accounting documents are lost or destroyed due to objective reasons as provided in Clause 5, Article 6 of this Decree, the accounting unit must store photocopies of the accounting documents. If it is not possible to make photocopies of the accounting documents as provided in Clause 6, Article 6 of this Decree, the unit must store the "Minutes Determining Accounting Documents That Cannot Be Photocopied."

2. Accounting documents must be fully and safely preserved by the accounting unit during their use. The accounting unit must establish regulations on the management, use, and preservation of accounting documents, clearly defining responsibilities and rights for each department and each person involved in accounting. In cases where the accounting unit is a micro-enterprise as defined by the law on supporting small and medium-sized enterprises, it is not required to establish such regulations but still must ensure full and safe preservation of accounting documents as prescribed. The accounting unit must ensure adequate physical facilities and means for managing and preserving accounting documents. Accountants are responsible for preserving their own accounting documents during use.

3. The legal representative of the accounting unit decides whether to preserve and store accounting documents on paper or electronically. Preservation and storage of accounting documents must ensure safety, completeness, confidentiality, and availability of information upon request by authorized state agencies.

4. Accounting documents placed into storage must be complete, systematic, classified, and arranged into separate files in chronological order and according to the accounting year.

5. The legal representative of the accounting unit has the responsibility to provide timely, complete, truthful, and transparent accounting information and documents to the tax authority and authorized state agencies as prescribed by law. Agencies receiving accounting documents must be responsible for safeguarding and preserving the documents during their use and must return all used accounting documents fully and on time.

Article 10. Accounting documents stored on electronic media

Clause 1. Accounting vouchers and accounting books of accounting units before being archived must be printed on paper for storage in accordance with regulations, except when the unit chooses to store on electronic media. Storing accounting documents on electronic media must ensure safety, confidentiality of information data, and must ensure accessibility within the retention period.

Units in the state accounting sector (excluding budget revenue and expenditure units at all levels) if choosing to store accounting documents on electronic media must still print consolidated accounting books on paper and have them signed and stamped (if applicable) for storage in accordance with regulations. Printing accounting vouchers, detailed accounting books, and other accounting documents on paper is decided by the legal representative of the unit. Budget revenue and expenditure units at all levels shall implement in accordance with the regulations of the Minister of Finance.

Clause 2. When there is a request from the competent authority to serve inspection, audit, supervision, and auditing activities as prescribed, the accounting unit must be responsible for printing out on paper the accounting documents stored on electronic media, having them signed by the legal representative or the chief accountant (responsible for accounting), and stamped (if applicable) to provide within the deadline requested by the competent authority.

Article 11. Location for Storing Accounting Documents

Clause 1. Accounting documents of which unit are stored in the warehouse of that unit. The accounting unit must ensure sufficient equipment for preservation and ensure safety during the storage process in accordance with the provisions of the law.

In case the unit does not organize a storage department or warehouse within the unit, it may hire organizations or agencies to store accounting documents based on storage contracts in accordance with the law.

Clause 2. Accounting documents of foreign-invested enterprises, branches, and representative offices of foreign enterprises operating in Vietnam during their operation period in Vietnam as specified in the Investment Certificate, Enterprise Registration Certificate, or Branch Operation Certificate, Representative Office Operation Certificate issued must be stored at the accounting unit in Vietnam or hired organizations to store accounting documents in Vietnam. Upon completion of operations in Vietnam, the legal representative of the unit decides the place to store accounting documents except where otherwise provided by law.

Clause 3. Accounting documents of units dissolved, bankrupt, ceased operations, or projects terminating operations including accounting documents of annual accounting periods still within the retention period and accounting documents related to dissolution, bankruptcy, cessation, termination of operations are stored at the location decided by the legal representative of the accounting unit or according to the decision of the competent authority deciding to cease operations or terminate the project.

Clause 4. Accounting documents of units changing ownership form, changing business type, or changing unit type including accounting documents of annual accounting periods still within the retention period and accounting documents related to changes in ownership form, changes in business type, or changes in unit type are stored at the new accounting unit or at the location decided by the competent authority deciding changes in ownership form, changes in business type, or changes in unit type.

Clause 5. Accounting documents of annual accounting periods still within the retention period of units divided or split: If the accounting documents are allocated to the new accounting unit, they are stored at the new unit; if the accounting documents cannot be allocated, they are stored at the divided or split accounting unit or at the location decided by the competent authority deciding division or split. Accounting documents related to dividing the accounting unit are stored at the new accounting units. Accounting documents related to splitting the accounting unit are stored at the split unit or the new accounting unit.

Clause 6. Accounting documents of annual accounting periods still within the retention period and accounting documents related to the merger or consolidation of accounting units are stored at the receiving unit or the consolidated accounting unit.

Clause 7. Accounting documents concerning security and defense must be stored in accordance with relevant laws.

Article 12. Accounting documents must be retained for a minimum of 5 years.

1. Accounting vouchers not directly used to record accounting ledgers and prepare financial reports such as receipts, payment vouchers, inventory receipt vouchers, inventory dispatch vouchers shall not be stored in the accounting department's accounting document collection.

2. Accounting documents used for management and operation that do not directly record accounting ledgers and prepare financial reports.

3. In cases where accounting documents specified in Clause 1 and Clause 2 of this Article are required by other laws to be retained for more than 5 years, they shall be retained according to those provisions.

Article 13. Accounting documents must be retained for a minimum of 10 years.

1. Accounting vouchers directly used to record accounting ledgers and prepare financial reports, detailed schedules, detailed accounting books, summary accounting books, monthly, quarterly, and annual financial reports of the accounting unit, final settlement reports, self-audit accounting reports, minutes of accounting document destruction, and other documents directly used to record accounting ledgers and prepare financial reports.

2. Accounting documents related to the liquidation, sale of fixed assets; reports on asset inventory results and assessment.

3. Accounting documents of the project investor unit, including accounting documents of each accounting period of the year and accounting documents regarding final settlement reports of completed projects belonging to Group B and C.

4. Accounting documents related to establishment, division, separation, merger, consolidation, change of ownership form, change of business type, or change of unit, dissolution, bankruptcy, cessation of operations, completion of projects.

5. Documents related to the unit such as audit files of the State Audit Agency, inspection, supervision files of competent state agencies, or files of independent auditing organizations.

6. Other documents not specified in Article 12 and Article 14 of this Decree.

7. In cases where accounting documents specified in Clauses 1, 2, 3, 4, 5, and 6 of this Article are required by other laws to be retained for more than 10 years, they shall be retained according to those provisions.

Article 14. Accounting documents must be retained permanently.

1. For accounting units in the field of state accounting, accounting documents that must be retained permanently include the General Settlement Report of the State Budget for the year approved by the National Assembly, Local Budget Settlement Reports approved by the People's Councils at all levels; Files and settlement reports of completed projects belonging to Group A, national key projects; Other accounting documents with archival value, significant economic, security, and defense importance.

The determination of other accounting documents that must be retained permanently is decided by the legal representative of the accounting unit, industry, or locality based on the archival nature and significant economic, security, and defense importance.

2. For business activities, accounting documents that must be retained permanently include accounting documents with archival value, significant economic, security, and defense importance.

The determination of accounting documents that must be retained permanently is decided by the head or legal representative of the accounting unit based on the archival value and long-term significance of the documents and information to decide for specific cases and assign to the accounting department or another department for storage in original form or other forms.

3. The permanent retention period must be over 10 years until the accounting documents are naturally destroyed.

Article 15. Time Point for Calculating the Retention Period of Accounting Documents

The time point for calculating the retention period of accounting documents shall be regulated as follows:

1. The time point for calculating the retention period for accounting documents prescribed in Clause 1, Clause 2, Clause 7 of Article 13, and Article 14 of this Decree shall be calculated from the end date of the annual accounting period.

2. The time point for calculating the retention period for accounting documents prescribed in Clause 3 of Article 13 of this Decree shall be calculated from the date the final settlement report of the completed project is approved.

3. The time point for calculating the retention period for accounting documents related to the establishment of an entity shall be calculated from the date of establishment; accounting documents related to division, separation, merger, consolidation, change in ownership form, or change in business type shall be calculated from the date of division, separation, merger, consolidation, change in ownership form, or change in business type; accounting documents related to dissolution, bankruptcy, cessation of operations, or completion of projects shall be calculated from the date of completing the dissolution, bankruptcy, cessation of operations, or completion of projects procedures; accounting documents related to audit files, inspection reports, or examination conclusions of competent authorities shall be calculated from the date of audit reports or inspection and examination conclusions.

Article 16. Destruction of Accounting Documents

1. Accounting documents that have exceeded their retention period may be destroyed according to the decision of the legal representative of the accounting entity if there is no other directive from a competent state agency.

2. The accounting entity that stores the accounting documents shall carry out the destruction of such documents.

3. Depending on the specific conditions of each accounting entity, appropriate methods of destroying accounting documents should be selected, such as burning, cutting, tearing into small pieces, or other forms of destruction, ensuring that the destroyed accounting documents cannot be reused for any information or data contained therein.

Article 17. Procedures for Destroying Accounting Documents

1. The legal representative of the accounting entity decides to establish a "Committee for Destroying Expired Accounting Documents." The committee consists of: the leadership of the accounting entity, the chief accountant, representatives of the storage department, and other members designated by the legal representative of the accounting entity.

2. The Committee for Destroying Accounting Documents must conduct an inventory, evaluation, and classification of accounting documents by type, prepare a "List of Accounting Documents to be Destroyed" and a "Minutes of Destroying Expired Accounting Documents."

3. The "Minutes of Destroying Expired Accounting Documents" must be prepared immediately after the destruction of accounting documents and must clearly record the following contents: the type of accounting documents destroyed, the retention period for each type, the method of destruction, the conclusion, and the signatures of the committee members.

Section 2

ORGANIZATION OF ACCOUNTING DEPARTMENT AND ACCOUNTANTS

Article 18. Accounting Organization Structure

1. An accounting entity must arrange personnel to ensure compliance with the Accounting Law regulations, with the number of accounting personnel determined based on the scale of operation, management requirements, functions, tasks, or staffing of the entity. An accounting entity may arrange accounting personnel to concurrently perform other tasks not prohibited by accounting laws.

2. The organization of the accounting structure at accounting entities is decided by the authority responsible for establishing the entity. In cases where there is no such authority, it is decided by the legal representative of the entity.

The organization of the accounting structure and accounting work of subordinate units that are not accounting entities or directly affiliated accounting entities are decided by the legal representative of the accounting entity. Accounting entities in the state accounting sector shall not appoint chief accountants or accounting supervisors in units that are not accounting entities.

Financial statements of accounting entities must include financial information of subordinate units and directly affiliated units.

3. State agencies responsible for budget revenue and expenditure at all levels organize accounting structures to account for budget revenue and expenditure in accordance with their organizational structures and assigned functions and tasks.

4. State agencies, organizations, and public institutions using state budgets organize accounting work according to budgetary units. In cases where provincial-level accounting entities without directly affiliated budgetary units are both upper-level budgetary units and budget users, and county-level accounting entities are both upper-level budgetary units and budget users, they may be organized under a single accounting structure to handle all accounting work of the unit.

5. A person with professional qualifications in accounting is someone who has graduated from a vocational secondary school, college, university, or postgraduate studies in finance, accounting, or auditing at secondary, college, or university institutions or academies within and outside Vietnam; a person holding a certified public accountant certificate as stipulated by the Independent Auditing Law; a person holding an accounting certificate as stipulated by the Accounting Law; a person holding a certified accounting specialist or accounting certificate issued by foreign organizations or foreign professional associations recognized by the Ministry of Finance of Vietnam.

6. For individuals who have been appointed as chief accountants of accounting entities in the state accounting sector by authorized bodies and have served as chief accountants in these entities for ten years or more up to the effective date of this Decree, they may still be considered and appointed as chief accountants of accounting entities in the state accounting sector if they meet other conditions specified for chief accountants as stipulated in this Decree, without being required to hold a degree in finance, accounting, or auditing as provided in Clause 5 of this Article.

7. For individuals without a degree in finance, accounting, or auditing but who were appointed to the rank of accountant or senior accountant at state accounting units before January 1, 2014, they may continue to work as accountants but shall not be appointed as chief accountants until they meet the criteria and conditions for chief accountants as stipulated, except for those persons still eligible to serve as chief accountants under Clause 6 of this Article.

Article 19. Persons Not Eligible to Work as Accountants

1. The cases specified in Clause 1 and 2 of Article 52 of the Accounting Law.

2. The father, mother, adoptive father, adoptive mother, spouse, child, adopted child, brother, sister, or half-sibling of the legal representative, head, director, or general manager, and deputy of the head, deputy director, or deputy general manager in charge of financial and accounting work, chief accountant within the same accounting unit, except for private enterprises, limited liability companies owned by a single individual, and other types of enterprises without state capital and classified as micro-enterprises under laws supporting small and medium-sized enterprises.

3. Individuals currently working in management, operation, warehouse, treasury, or regularly assigned tasks of purchasing and selling assets within the same accounting unit, except in private enterprises, limited liability companies owned by a single individual, and other types of enterprises without state capital and classified as micro-enterprises under laws supporting small and medium-sized enterprises.

Article 20. Chief Accountant and Accounting Supervisor

1. Accounting units must appoint a chief accountant, except for units specified in Clause 2 of this Article. In cases where an immediate appointment of a chief accountant cannot be made, an accounting supervisor should be appointed or outsourced services for a chief accountant should be hired according to regulations. The maximum period for appointing an accounting supervisor is twelve months; thereafter, the accounting unit must appoint a chief accountant.

2. Accounting Supervisor:

a) State accounting units including: Units with only one person working as an accountant or an accountant兼任多个职位；预算和财务乡镇单位不任命会计主管，只任命会计负责人。

b) Micro-enterprises defined by laws supporting small and medium-sized enterprises can appoint an accounting supervisor without being required to appoint a chief accountant.

3. The term of appointment for chief accountants in state accounting sectors and the term of appointment for accounting supervisors in units specified in Point a, Clause 2 of this Article is five years, after which the reappointment procedures for chief accountants and accounting supervisors must be carried out.

4. When changing chief accountants or accounting supervisors, the legal representative of the accounting unit or the manager of the accounting unit must organize the handover of work and accounting documents between the outgoing chief accountant or accounting supervisor and the incoming chief accountant or accounting supervisor, and simultaneously notify relevant departments within the unit and financial institutions where the unit has accounts of the name and signature sample of the new chief accountant or accounting supervisor. The new chief accountant or accounting supervisor assumes responsibility for their accounting work from the date of receiving the handover. The outgoing chief accountant or accounting supervisor remains responsible for their accounting work during their tenure.

5. The Ministry of Home Affairs shall provide guidance on job responsibility allowances, authority, procedures for appointment, reappointment, dismissal, and replacement of chief accountants and accounting supervisors in state accounting sectors.

Article 21. Standards and conditions for chief accountants and accounting supervisors

1. Chief accountants and accounting supervisors must meet the standards specified in point a, c, d Clause 1, Article 54 of the Accounting Law and not fall under the cases prohibited from being an accountant as stipulated in Article 19 of this Decree. The Ministry of Finance shall prescribe on the organization, training, and issuance of chief accountant certificates.

2. Chief accountants and accounting supervisors of the following accounting units must have professional expertise in accounting at the bachelor's degree level or higher, including:

a) Agencies responsible for state budget revenue and expenditure at all levels;

b) Ministries, ministerial-level agencies, government agencies, National Assembly agencies, and other central state agencies and their subordinate accounting units;

c) Public service organizations under ministries, ministerial-level agencies, government agencies, and other central state agencies, People's Committees of provinces;

d) Specialized agencies directly under People's Committees of provinces and equivalent agencies; state management agencies directly under these agencies;

đ) Central agencies organized vertically located in provinces;

e) Political organizations, political-social organizations, political-social-professional organizations, social organizations, and social-professional organizations at the central and provincial levels using the state budget;

g) Project Management Boards with separate accounting structures, using the state budget for group A projects and national key projects;

h) Level 1 budgetary units under district budgets;

i) Enterprises established and operating under Vietnamese law except for the cases stipulated in point g, Clause 3 of this Article;

k) Cooperatives and cooperative federations with registered capital of VND 10 billion or more;

l) Branches of foreign enterprises operating in Vietnam.

3. Chief accountants and accounting supervisors of the following accounting units must have professional expertise in accounting at the professional associate degree level or higher, including:

a) Specialized agencies directly under People's Committees of districts with accounting structures (excluding level 1 budgetary units under district budgets);

b) Central agencies organized vertically located at the district level, provincial agencies located at the district level;

c) Political organizations, political-social organizations, political-social-professional organizations, social organizations, and social-professional organizations at the district level using the state budget;

d) Project Management Boards with separate accounting structures, using the state budget excluding the cases stipulated in point g, Clause 2 of this Article;

đ) Accounting units of village, town, and township budgets and finances;

e) Public service organizations outside those specified in point c, Clause 2 of this Article;

g) Enterprises established and operating under Vietnamese law without state capital, with registered capital less than VND 10 billion;

h) Cooperatives and cooperative federations with registered capital less than VND 10 billion.

4. For other organizations and units not covered by the subjects specified in Clauses 2 and 3 of this Article, the standards regarding qualifications and professional expertise of chief accountants and accounting supervisors shall be determined by the legal representative of the unit in accordance with the Accounting Law and other relevant laws.

5. For chief accountants and accounting supervisors of parent companies that are state-owned enterprises or enterprises with state capital exceeding 50% of the registered capital, they must have at least five years of practical work experience in accounting.

6. The standards and conditions regarding professional expertise of chief accountants and accounting supervisors of units under the people's armed forces shall be prescribed by the Ministry of Defense and the Ministry of Public Security.

Article 22. Hiring accounting services, accounting manager services, and accounting supervisor services

1. Accounting units in business fields; organizations, non-state budget-funded entities, and other accounting units as specified in Clause 3, Article 3 of this Decree may hire business entities providing accounting services to perform accounting work or serve as accounting managers or accounting supervisors. Non-state budget-funded organizations may hire business entities providing accounting services to perform accounting work or serve as accounting managers or accounting supervisors upon decision by the legal representative of the entity.

2. Business entities providing accounting services must ensure compliance with the provisions set forth in Clause 1, Article 51, Articles 56 and 58 of the Accounting Law when assigning personnel to provide accounting services for clients, and must not fall under the cases prohibited from performing accounting work or providing accounting services as stipulated in Article 19 and Article 25 of this Decree.

3. Business entities providing accounting services must ensure compliance with the provisions set forth in Articles 56 and 58 of the Accounting Law, Article 21 of this Decree when assigning personnel to provide accounting manager or accounting supervisor services for clients, and must not fall under the cases prohibited from performing accounting work or providing accounting services as stipulated in Article 19 and Article 25 of this Decree.

4. Personnel hired to provide accounting services have the rights and responsibilities of accountants as stipulated in Clauses 2 and 3, Article 51 of the Accounting Law. Personnel hired to provide accounting manager services have the rights and responsibilities of accounting managers as stipulated in Article 55 of the Accounting Law.

5. The legal representative of the accounting unit shall be responsible for hiring accounting services, hiring accounting manager services, and hiring accounting supervisor services.

Article 23. Accounting for foreign enterprises' representative offices operating in Vietnam, individual businesses, and cooperatives, and foreign contractors

1. The appointment of personnel to perform accounting work for foreign enterprises' representative offices operating in Vietnam and individual businesses, cooperatives shall be decided by the head of the representative office, the representative of the individual business, or the cooperative.

2. Foreign enterprises' representative offices operating in Vietnam and individual businesses, cooperatives may apply the enterprise accounting system to open accounting books to facilitate monitoring, recording, and determining tax liabilities to the state budget.

3. Foreign contractors having a permanent establishment or place of residence in Vietnam, which is not an independent legal entity, may choose to fully or partially apply the Vietnamese Enterprise Accounting System suitable to their operational characteristics and management requirements and must notify the tax authority as prescribed.

In case contractors choose to fully apply the Vietnamese Enterprise Accounting System, they must consistently implement it throughout the entire accounting period.

Section 3

ACTIVITY OF ACCOUNTING SERVICES BUSINESS

Article 24. Conducting accounting services business by auditing firms and practicing auditors

1. Auditing firms meeting the conditions for conducting auditing services as prescribed by laws on independent auditing may conduct accounting services business. When they no longer meet the conditions for conducting auditing services as prescribed by laws on independent auditing, auditing firms may not conduct accounting services business.

2. Practicing auditors meeting the conditions for practicing auditing as prescribed by laws on independent auditing may practice accounting services. When they no longer meet the conditions for practicing auditing as prescribed by laws on independent auditing, practicing auditors may not practice accounting services.

3. Auditing firms and practicing auditors are subject to the Ministry of Finance's supervision over the quality of accounting services they have performed.

Article 25. Cases Where Accounting Services Are Not Provided

An accounting service business enterprise, an individual household engaged in accounting services, or an auditing enterprise (hereinafter collectively referred to as the accounting service business unit) shall not provide accounting services to another unit when the person responsible for management, operation, or the person directly performing accounting services of the unit falls under any of the following cases:

1. Is the father, mother, adoptive father, adoptive mother, wife, husband, biological child, adopted child, brother, sister, or full-blooded sibling of the person responsible for management, operation, or the chief accountant of the accounting unit, except where the accounting unit is a private enterprise, a limited liability company owned by a single individual, or a micro enterprise that does not have state capital according to the law on supporting small and medium-sized enterprises.

2. The cases prescribed in Clause 2, 3, 4, and 5 of Article 68 of the Accounting Law.

3. Other cases as prescribed by the Accounting and Auditing Professional Ethics Standards and the law.

Article 26. Proportion of Contributed Capital of Organizational Members in a Limited Liability Company with Two or More Members

An organizational member may contribute up to 35% of the charter capital of a limited liability company providing accounting services with two or more members. In cases where there are multiple organizations contributing capital, the total proportion of contributed capital of the organizations must not exceed 35% of the charter capital of the limited liability company providing accounting services with two or more members.

Article 27. Proportion of Contributed Capital of Practicing Accountants at a Limited Liability Company with Two or More Members

1. A limited liability company providing accounting services must have at least two members contributing capital who are registered practicing accountants at the company. The contributed capital of the practicing accountants must account for over 50% of the charter capital of the company.

2. A practicing accountant shall not simultaneously register to practice accounting services at two or more accounting service business units at the same time.

Article 28. Professional Liability Insurance

1. An accounting service business unit must purchase professional liability insurance to have a source of funds to compensate customers for losses caused by risks during the period when the practicing accountants of the unit provide services to customers.

2. The purchase of professional liability insurance for practicing accountants must be completed no later than 60 days from the date the practicing accountant is issued a Certificate of Registration for Practicing Accounting Services at the unit.

Insurance costs are deductible as business expenses based on actual insurance costs incurred and must be supported by valid invoices and receipts.

3. The accounting service business unit and the insurance company may agree on insurance premiums to ensure that if damage occurs, the level of compensation according to the liability stipulated in the contract/agreement between the parties is not less than the service fee received by the accounting service business unit from the customer.

Section 4

PROVISION OF ACCOUNTING SERVICES ACROSS BORDERS BY FOREIGN ACCOUNTING SERVICE ENTERPRISES

Article 29. Subjects eligible to provide cross-border accounting services to enterprises and organizations in Vietnam

1. The subjects eligible to provide cross-border accounting services to enterprises and organizations in Vietnam are foreign accounting service businesses with citizenship in member states of the World Trade Organization or in countries and territories that have international treaties with Vietnam regarding the provision of cross-border accounting services in Vietnam.

2. The centralized accounting work carried out according to the general policy of the group for the parent company and other subsidiaries within the same group operating in Vietnam by a foreign business shall not be considered as cross-border accounting service activities. In this case, the accounting unit in Vietnam shall not be deemed to hire accounting service or chief accountant service as stipulated in this Decree, and the chief accountant and the legal representative of the accounting unit in Vietnam must bear full responsibility for the financial accounting data and information of the unit in Vietnam in accordance with Vietnamese law.

Article 30. Conditions for providing cross-border accounting services

1. A foreign accounting service business meeting all of the following conditions shall be registered to provide cross-border accounting services:

a) Being permitted to provide accounting services in accordance with the laws of the country where the headquarters of the foreign accounting service business is located;

b) Having a document from the management agency of the accounting service profession (the state management agency on accounting or professional organization) at the location of the headquarters of the foreign business certifying that it has not violated regulations on accounting service business operations and other foreign laws within three years prior to the date of application for issuance of the Certificate of Eligibility for Accounting Service Business Operations;

c) Having at least two persons who have been issued a registration certificate for accounting service practice by the Ministry of Finance of Vietnam, including the legal representative of the foreign accounting service business;

d) Having purchased professional liability insurance for accountants practicing in Vietnam;

đ) Not having been administratively punished for providing cross-border accounting services in Vietnam within twelve months prior to the date of application for issuance of the Certificate of Eligibility for Accounting Service Business Operations in Vietnam;

2. A foreign accounting service business may only provide cross-border accounting services in Vietnam after registering and being issued by the Ministry of Finance of Vietnam the Certificate of Eligibility for Accounting Service Business Operations. The method of providing cross-border accounting services must comply with the provisions of Article 31 of this Decree.

3. A foreign accounting service business must continuously maintain the conditions stipulated in Clause 1 of this Article throughout the validity period of the Certificate of Eligibility for Accounting Service Business Operations in Vietnam. When failing to meet any of these conditions, along with expired documents, the foreign accounting service business shall have the responsibility to notify the Ministry of Finance within twenty days from the date of no longer meeting the conditions as prescribed.

Article 31. Method of Providing Accounting Services Across Borders

1. A foreign accounting service business when providing accounting services across borders in Vietnam must establish a joint venture with a domestic accounting service business that meets the conditions for providing accounting services as stipulated by law.

2. Only a domestic accounting service business that ensures all business conditions for accounting services prescribed in Article 60 of the Accounting Law and this Decree, and has obtained a Certificate of Eligibility to Engage in Accounting Service Business, may enter into a joint venture with a foreign accounting service business to provide cross-border services.

3. The foreign accounting service business and the domestic accounting service business must establish a Joint Venture Contract regarding the provision of accounting services across borders. The Joint Venture Contract must clearly define the responsibilities of each party in the provision of cross-border accounting services.

4. When establishing a joint venture to provide accounting services across borders, the foreign accounting service business and the domestic accounting service business must conclude an accounting service contract with the accounting service client in accordance with Vietnamese law. The accounting service contract must be signed by the legal representatives of the foreign accounting service business, the domestic accounting service business, and the accounting service client.

5. Foreign accounting service businesses and domestic accounting service businesses participating in the joint venture contract for providing accounting services must appoint an accounting practitioner to oversee the portion of accounting services under their responsibility in the accounting service contract.

6. The accounting service contract, joint venture contract, and accounting service documentation must be established simultaneously in both Vietnamese and English.

7. All payment transactions and transfers related to fees for providing accounting services across borders must be conducted through bank transfers via financial institutions operating in accordance with Vietnamese laws on foreign exchange management.

Article 32. Responsibilities of Foreign Accounting Service Businesses Providing Accounting Services Across Borders

1. Staffing to ensure the quality of accounting services. Adhere to prohibitions on certain actions and situations where accounting services cannot be provided as stipulated in Clause 25 of this Decree and other relevant provisions in the Accounting Law.

2. Comply with Vietnamese accounting standards and accounting regulations when providing accounting services across borders in Vietnam.

3. Pay taxes and fulfill other financial obligations related to providing accounting services across borders in Vietnam in accordance with current Vietnamese tax laws.

4. Report to the Ministry of Finance every six months on the implementation of contracts for providing accounting services across borders arising during the period in Vietnam, in the format prescribed by the Ministry of Finance.

5. Appoint a responsible person to represent the business in reporting and explaining to Vietnamese competent authorities about the accounting service contract, accounting service documentation, and other issues related to providing accounting services across borders in Vietnam.

6. Within 120 days from the end of the fiscal year, submit annual financial statements and a review and evaluation report from the regulatory body overseeing the practice of accounting services at the location where the foreign accounting service business is headquartered, regarding the implementation and compliance with laws governing the operation of accounting service businesses and other relevant laws.

7. Fulfill the rights and obligations of an accounting service business as stipulated in this Decree and comply with provisions in the Accounting Law and other relevant laws of Vietnam.

Article 33. Responsibilities of domestic accounting service businesses participating in joint ventures with foreign accounting service businesses to provide cross-border accounting services

1. Maintain all files related to joint venture accounting service provision for submission to competent authorities upon request.

2. Bear legal responsibility for the results of providing accounting services and be accountable to competent authorities regarding the results of providing accounting services, accounting service provision files, and other issues arising from joint ventures with foreign accounting service businesses to provide cross-border accounting services.

3. Report to the Ministry of Finance semi-annually on the situation of joint ventures with foreign accounting service businesses in providing cross-border accounting services occurring during the period according to the report form prescribed by the Ministry of Finance.

4. Be subject to annual quality control of accounting services in accordance with the regulations of the Ministry of Finance.

Article 34. Documents, Procedures, and Formalities for Issuing Certificates of Eligibility for Providing Cross-Border Accounting Services in Vietnam for Foreign Accounting Service Businesses

1. The application documents for issuing certificates of eligibility for providing cross-border accounting services in Vietnam include:

a) Documents proving that the foreign accounting service business is permitted to provide accounting services according to the laws of the country where the foreign accounting service business is headquartered;

b) A confirmation letter from the competent authority of the country where the foreign accounting service business is headquartered stating that there has been no violation of accounting service business operation regulations and other foreign laws within three years prior to the date of applying for a certificate of eligibility for providing cross-border accounting services;

c) A copy of the Certificate of Registration for Accounting Practice issued by the Ministry of Finance for practicing accountants including the legal representative of the business;

d) Documents proving the purchase of professional liability insurance for practicing accountants in Vietnam.

2. Procedures and formalities for issuing certificates of eligibility for providing cross-border accounting services

a) Foreign accounting service businesses applying for certificates of eligibility for providing cross-border accounting services shall submit one set of documents as stipulated in Clause 1 of this Article to the Ministry of Finance;

b) Within fifteen days from the date of receiving complete and valid documents, the Ministry of Finance will consider issuing certificates of eligibility for providing cross-border accounting services to foreign accounting service businesses. In case of refusal, the Ministry of Finance must respond in writing and specify the reasons.

3. The Ministry of Finance shall prescribe the format of certificates of eligibility for providing cross-border accounting services and reports on providing cross-border accounting services in Vietnam by foreign accounting service businesses.

Section 5

PROFESSIONAL ORGANIZATIONS IN ACCOUNTING

Article 35. Professional Organizations in Accounting

1. Professional organizations in accounting are social professional organizations of accountants, certified accountants, practicing accountants, and accounting service businesses.

2. Professional organizations in accounting may:

a) Provide training and update knowledge for accountants and practicing accountants;

b) Participate in researching, drafting, and updating the Vietnamese accounting standards and accounting professional ethics standards based on international accounting and professional ethics standards;

c) Participate in organizing the examination for certified accountant qualifications as prescribed by the Ministry of Finance;

d) Cooperate with the Ministry of Finance to implement inspections and quality controls of accounting services when required.

3. The Ministry of Finance shall specify detailed conditions, methods, reporting systems, monitoring, inspection, and audit procedures for the activities of professional organizations in accounting as stipulated in Clause 2 of this Article.

Chapter III

IMPLEMENTATION

Article 36. Effective Date

1. This Decree takes effect from January 1, 2017.

2. Decree No. 128/2004/ND-CP dated May 31, 2004, of the Government detailing and guiding the implementation of certain provisions of the Accounting Law applicable in state accounting and Decree No. 129/2004/ND-CP dated May 31, 2004, of the Government detailing and guiding the implementation of certain provisions of the Accounting Law in business operations cease to be effective from the date this Decree takes effect.

Article 37. Transitional Provisions

1. Within twenty-four months from the date this Decree takes effect, persons appointed as accounting supervisors before the date this Decree takes effect must ensure they have an accounting supervisor certificate as prescribed at point c, Clause 1, Article 54 of the Accounting Law.

2. Within the time limit of twenty-four months from the date this Decree takes effect, limited liability companies with two or more members engaged in accounting service businesses established before the date this Decree takes effect must ensure the proportion of capital contributions of contributing organizations and practicing accountants as prescribed in this Decree and other conditions under the Accounting Law to obtain a certificate of eligibility for providing accounting services. If they fail to meet any of the conditions prescribed in this Decree or the Accounting Law, they must cease their accounting service business operations.

3. For units in the state accounting sector that have appointed accounting supervisors before the date this Decree takes effect but according to this Decree only appoint accounting supervisors, it is not necessarily required to immediately dismiss the accounting supervisors when this Decree takes effect, but they can continue to be appointed as accounting supervisors until the end of the term specified in the current appointment decision. When reappointing or newly appointing, only accounting supervisors as prescribed in this Decree can be appointed.

Article 38. Responsibility for Implementation

1. The Minister of Finance is responsible for guiding and implementing the contents assigned in this Decree; conducting inspections and supervision of compliance with legal provisions on accounting work, accounting organizational structure, accountants, and accounting service business operations.

2. The Ministers, Heads of ministerial-level agencies, Heads of government agencies, Chairpersons of People's Councils, Chairpersons of People's Committees of centrally governed cities and provinces shall be responsible for implementing this Decree./.