Circular No. 296/2016/TT-BTC guiding the issuance, revocation, and management of the Certificate of Registration for Accounting Services Practice

CIRCULAR

Guidelines on Issuing, Revoking, and Managing Accounting Service Practice Certificates

On the basis of Law on Accounting No. 88/2015/QH13 dated November 20, 2015;

Decree No. Decree No. 215/2013/NĐ-CP dated December 23, 2013 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

At the proposal of the Director of the Accounting and Auditing Regulations Department;

The Minister of Finance issues this Circular guiding on issuing, revoking, and managing Accounting Service Practice Certificates.

PART I
GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular regulates the issuance, revocation, and management of Accounting Service Practice Certificates in accordance with the provisions of the Law on Accounting.

Article 2. Applicability

1. Individuals holding an accounting certificate or auditing certificate who register to practice accounting services in Vietnam (hereinafter referred to as individuals registering to practice accounting services).

2. Enterprises engaged in accounting service business, branches of foreign enterprises engaged in accounting service business in Vietnam (hereinafter collectively referred to as enterprises engaged in accounting service business); individual households engaged in accounting service business;

3. Organizations and individuals related to the issuance, revocation, and management of Accounting Service Practice Certificates.

Chapter II
SPECIFIC PROVISIONS

Section 1

ISSUING, RENEWING, REVOKING ACCOUNTING SERVICE PRACTICE CERTIFICATES

Article 3. Application for Registration of Accounting Services Practice

1. A request form for issuing an Accounting Service Practice Certificate according to the model prescribed in Appendix No. 01/ĐKHN issued together with this Circular.

2. A copy of the labor contract working full-time at an enterprise engaged in accounting service business, an individual household engaged in accounting service business (except in cases where the individual registering to practice accounting services does not need a labor contract under the Labor Law).

4. A confirmation letter regarding the actual time spent on financial, accounting, and auditing work according to the model prescribed in Appendix No. 04/ĐKHN issued together with this Circular or other documents proving the actual time spent on financial, accounting, and auditing work.

5. Two color photographs measuring 3x4 cm taken against a white background within six (06) months from the date of submitting the application for registration of accounting services practice.

6. A copy of the decision to terminate employment or the decision to terminate the labor contract at the previous workplace before registering to practice accounting services (if applicable).

7. A copy of the Work Permit in Vietnam of the individual registering to practice accounting services who is a foreigner, except in cases where the individual registering belongs to a category that does not require a work permit under Vietnamese labor laws.

Article 4. Full-Time Labor Contracts and Determining Actual Working Time in Financial, Accounting, and Auditing

1. An individual registering to practice accounting services shall be considered as having a full-time labor contract working at an enterprise engaged in accounting service business, an individual household engaged in accounting service business when:

a) The labor contract signed between the individual registering to practice accounting services and the enterprise engaged in accounting service business, an individual household engaged in accounting service business must comply with the provisions of the Labor Code;

b) The working hours stipulated in the contract and the actual daily and weekly working hours of the individual registering to practice accounting services must match and be consistent with the daily and weekly working hours of the enterprise engaged in accounting service business, an individual household engaged in accounting service business where the individual registers to practice;

For example, if the working hours of the enterprise engaged in accounting service business are from 08:00 to 17:00 and five days a week, then the individual must work the full hours from 08:00 to 17:00 every day and five days a week without including overtime, holidays, or public holidays.

c) During the actual daily and weekly working hours at the enterprise engaged in accounting service business, an individual household engaged in accounting service business as stipulated in point b of this clause, the individual registering to practice accounting services shall not concurrently hold positions such as legal representative, director (general director), chairman of the board of directors, chairman of the board of members, chief accountant (or responsible for accounting), accounting staff, internal auditor, or other positions at other units or organizations.

2. Determining Actual Working Time in Financial, Accounting, and Auditing:

a) Actual working time in financial, accounting, and auditing is calculated as the time spent on jobs related to finance, accounting, and auditing at agencies, organizations, and units where the individual registering to practice accounting services has been recruited or signed a labor contract in accordance with the actual working hours of those agencies, organizations, and units;

b) Actual working time in financial, accounting, and auditing is accumulated from the date of receiving the bachelor's degree graduation certificate to the date of submitting the application for issuing an Accounting Service Practice Certificate according to the principle of rounding up to the nearest month;

c) Actual working time in financial, accounting, and auditing must be confirmed and stamped by the agency, organization, or unit where the individual registering to practice accounting services actually worked. In cases where the agency, organization, or unit where the individual registering to practice accounting services worked has been dissolved, bankrupted, divided, merged, converted ownership forms, or changed types, there must be an explanatory statement accompanied by documents proving the actual time spent on financial, accounting, and auditing work at those agencies, organizations, and units such as copies of social insurance books, copies of labor contracts, copies of recruitment decisions.

Article 5. Principles for Registering Accounting Services Practice

1. The registration of accounting services practice shall be carried out through an accounting service business enterprise or an accounting service individual business where the person registering for accounting services practice has a full-time labor contract.

2. The person registering for accounting services practice shall be responsible for the information declared in the application dossier for accounting services practice registration. The legal representative of the accounting service business enterprise, the representative of the accounting service individual business, and other organizations and individuals related to confirming the information in the application dossier for accounting services practice registration shall be jointly liable for the truthfulness of the confirmed information.

3. Any diplomas or certificates in the application dossier that are in a foreign language must be accompanied by a certified Vietnamese translation by an authorized agency as prescribed by law.

Article 6. Procedure for Registering Accounting Services Practice

1. The person registering for accounting services practice must prepare one set of application dossier in accordance with Article 3 of this Circular and submit it to the Ministry of Finance through the accounting service business enterprise or the accounting service individual business.

2. The legal representative of the accounting service business enterprise and the representative of the accounting service individual business have the responsibility to review and verify the application dossier and sign to confirm on the Application Form for Issuance of Certificate of Registration for Accounting Services Practice for each person registering for practice at their unit.

Article 7. Certificate of Registration for Accounting Services Practice

1. The Certificate of Registration for Accounting Services Practice shall include the following basic contents:

a) Full name, date of birth, place of origin or nationality, photograph of the person to whom the Certificate of Registration for Accounting Services Practice is issued;

b) Number and date of issuance of the accounting certificate or auditing certificate;

c) Name of the business operating accounting services, individual household operating accounting services where the person registering for accounting services practice works;

d) Number of the Certificate of Registration for Accounting Services Practice;

đ) Validity period of the Certificate of Registration for Accounting Services Practice.

2. The Certificate of Registration for Accounting Services Practice has a maximum validity period of 5 years (60 months), but not later than December 31 of the fifth year from the date the Certificate of Registration for Accounting Services Practice becomes effective.

3. The model of the Certificate of Registration for Accounting Services Practice is specified in Appendix No. 05/ĐKHN issued together with this Circular.

Article 8. Use of the Certificate of Registration for Accounting Services Practice

1. The person who is issued the Certificate of Registration for Accounting Services Practice (hereinafter referred to as practicing accountant) may engage in accounting service work, chief accountant service work, financial reporting service work, accounting advisory service work, and other tasks within the scope of accounting work for organizations and individuals in need.

2. A practicing accountant may not continue to engage in accounting service work, chief accountant service work, financial reporting service work, accounting advisory service work, and other tasks within the scope of accounting work when the Certificate of Registration for Accounting Services Practice expires or loses its value.

Article 9. Expiry or Loss of Value of the Certificate of Registration for Accounting Services Practice

The Certificate of Registration for Accounting Services Practice expires or loses its value in the following cases:

1. The Certificate of Registration for Accounting Services Practice expires.

2. The Certificate of Registration for Accounting Services Practice is revoked.

3. During the period when the practicing accountant's practice of accounting services is suspended.

4. The practicing accountant no longer works and terminates the full-time labor contract at the accounting service business or individual household operating accounting services recorded on the Certificate of Registration for Accounting Services Practice.

5. The full-time labor contract at the accounting service business or individual household operating accounting services expires or undergoes changes that no longer ensure it is a full-time labor contract as stipulated in Article 4 of this Circular.

6. The work permit of the foreign practicing accountant in Vietnam expires or loses its value.

7. The practicing accountant ceases to engage in accounting services practice.

8. The accounting service business or individual household operating accounting services where the practicing accountant registers for practice is divided, split, merged, consolidated, terminated operations, dissolved, or declared bankrupt.

9. A person who has lost civil capacity; a person who is criminally prosecuted, convicted of one of the offenses related to economic management involving finance and accounting; a person subject to administrative measures or education in commune, ward, town; a person placed in compulsory educational facility or compulsory drug rehabilitation facility; a person convicted of a serious offense violating economic management order.

10. The practicing accountant dies or goes missing.

Article 10. Reissuing the Certificate of Registration for Accounting Services Practice

2. The application dossier for reissuing the Certificate of Registration for Accounting Services Practice as stipulated in Clause 1 of this Article shall include:

a) An application form for reissuing the Certificate of Registration for Accounting Services Practice according to the model specified in Appendix No. 02/ĐKHN issued together with this Circular;

b) Two color photographs measuring 3x4 cm taken against a white background within six (06) months prior to the date of submission of the application dossier for reissuing the Certificate of Registration for Accounting Services Practice;

c) The old Certificate of Registration for Accounting Services Practice in cases of damage.

3. The Ministry of Finance shall examine and reissue the Certificate of Registration for Accounting Services Practice for practicing accountants within fifteen days from the date of receipt of a valid dossier and payment of the prescribed fee. In case of refusal to reissue the Certificate of Registration for Accounting Services Practice, the Ministry of Finance shall respond in writing and specify the reasons.

4. The validity period of the reissued Certificate of Registration for Accounting Services Practice as stipulated in Clause 1 of this Article shall be the remaining validity period of the original Certificate of Registration for Accounting Services Practice that was lost or damaged.

Article 11. Changing the Content of the Certificate of Registration for Accounting Services Practice

1. The content of the Certificate of Registration for Accounting Services Practice may change in the following cases:

a) The Certificate of Registration for Accounting Services Practice has expired;

b) The practicing accountant changes their workplace or place of registration for accounting services practice;

c) There is a change in the name of the business providing accounting services where the accountant is registered to practice.

a) An application form for issuing the Certificate of Registration for Accounting Services Practice according to the model specified in Appendix No. 01/ĐKHN issued together with this Circular;

b) Two color photographs measuring 3x4 cm taken against a white background within six (06) months prior to the date of submission of the application dossier for registering accounting services practice;

c) Any documents specified in Clauses 2, 6, and 7 of Article 3 of this Circular if they have changed compared to the most recent registration.

a) An application form for issuing the Certificate of Registration for Accounting Services Practice according to the model specified in Appendix No. 01/ĐKHN issued together with this Circular;

b) Two color photographs measuring 3x4 cm taken against a white background within six (06) months prior to the date of submission of the application dossier for registering accounting services practice;

c) Any documents specified in Clauses 2, 6, and 7 of Article 3 of this Circular;

d) The old Certificate of Registration for Accounting Services Practice.

a) An application form for issuing the Certificate of Registration for Accounting Services Practice according to the model specified in Appendix No. 01/ĐKHN issued together with this Circular;

b) Two color photographs measuring 3x4 cm taken against a white background within six (06) months prior to the date of submission of the application dossier for registering accounting services practice;

c) The old Certificate of Registration for Accounting Services Practice.

5. The Ministry of Finance shall examine and issue the Certificate of Registration for Accounting Services Practice for practicing accountants within fifteen days from the date of receipt of a valid dossier and payment of the prescribed fee. In case of refusal to issue the Certificate of Registration for Accounting Services Practice, the Ministry of Finance shall respond in writing and specify the reasons.

6. The validity period of the issued Certificate of Registration for Accounting Services Practice in the cases stipulated in Clause 1 of this Article shall be as prescribed in Clause 2 of Article 7 of this Circular.

Section 2

SUSPENSION, REVOCATION, MANAGEMENT AND PUBLIC ANNOUNCEMENT OF THE LIST OF PRACTICING ACCOUNTANTS IN ACCOUNTING SERVICES PRACTICE

Article 12. Suspension of Accounting Services Practice

1. An accounting practitioner shall have their practice of accounting services suspended in accordance with the provisions of the law in the following cases:

a) The cases stipulated at point a, c, d, Clause 6, Article 69 of the Accounting Law;

b) An accounting practitioner does not meet the required number of annual continuing education hours as prescribed by the Ministry of Finance;

d) Other cases as prescribed by law.

2. During the period of suspension of accounting services practice, the accounting practitioner shall not continue to practice accounting services, chief accountant services, financial reporting services, accounting advisory services, and other tasks within the scope of accounting work.

Upon completion of the suspension period for accounting services practice, if the accounting practitioner meets the conditions as prescribed and the Certificate of Registration for Accounting Services Practice remains valid, they may resume practicing accounting services. The Ministry of Finance will update the name of the accounting practitioner to the public list of registered accounting practitioners at accounting service businesses and accounting service households immediately upon completion of the suspension period for accounting services practice.

Article 13. Revocation of the Certificate of Registration for Accounting Services Practice

1. An accounting practitioner shall have their Certificate of Registration for Accounting Services Practice revoked in the cases prescribed in Clause 7, Article 69 of the Accounting Law.

2. A person whose Certificate of Registration for Accounting Services Practice has been revoked shall not continue to practice accounting services, chief accountant services, financial reporting services, accounting advisory services, and other tasks within the scope of accounting work, and must return the Certificate of Registration for Accounting Services Practice to the Ministry of Finance as prescribed in Clause 4, Article 15 of this Circular.

3. A person whose Certificate of Registration for Accounting Services Practice has been revoked shall not be eligible to apply for a new Certificate of Registration for Accounting Services Practice within twelve months from the date the revocation decision takes effect. The application for the Certificate of Registration for Accounting Services Practice shall comply with the provisions of Clause 2, Article 11 of this Circular.

1. The Ministry of Finance shall regularly update and publicly disclose on its electronic information website the following information:

a) List of accounting practitioners at each accounting service business and accounting service household;

b) List of accounting practitioners whose practice of accounting services has been suspended;

c) List of accounting practitioners whose Certificate of Registration for Accounting Services Practice has been revoked;

d) List of accounting practitioners whose Certificate of Registration for Accounting Services Practice has expired or lost its validity.

2. The Ministry of Finance will update or remove the name of the accounting practitioner in the public list of registered accounting practitioners at each accounting service business and accounting service household immediately when the Certificate of Registration for Accounting Services Practice is issued, reissued, expires, or loses its validity.

Article 15. Responsibilities of practicing accountants

1. By no later than August 31 each year, practicing accountants must submit the Annual Report on Maintaining Conditions for Practicing Accounting Services to the Ministry of Finance through accounting service business enterprises or accounting service households according to the form prescribed in Appendix No. 08/ĐKHN issued together with this Circular.

5. Shall not use the Certificate of Registration for Practicing Accounting Services that has expired or lost its validity in accounting profession activities.

6. If a practicing accountant who is registered to practice at an accounting service business enterprise or accounting service household also concurrently serves as a legal representative, director (general director), chairman of the board of directors, chairman of the board of members, chief accountant (or accounting supervisor), accounting staff, internal auditor, or other positions at another entity or organization, they must notify the Ministry of Finance in writing within 15 days from the start or cessation of such work or changes in working hours or positions at those entities.

7. Provide periodic or ad hoc information related to their practice of accounting services as required by the Ministry of Finance.

8. Comply with regulations on inspecting and auditing the registration for practicing accounting services by the Ministry of Finance.

9. Other responsibilities as prescribed by law.

Article 16. Responsibilities of accounting service business enterprises, accounting service households, and their legal representatives

1. Manage practicing accountants registered to practice at their own units.

2. Review and ensure conditions, sign confirmation, and stamp the registration files for practicing accounting services and the Annual Reports on Maintaining Conditions for Practicing Accounting Services of practicing accountants registered at their organizations.

3. Summarize the annual situation of maintaining conditions for practicing accounting services of practicing accountants at their units according to the form prescribed in Appendix No. 09/ĐKHN issued together with this Circular to the Ministry of Finance by no later than August 31 each year.

In the case specified in Clauses 9 and 10 of Article 9 of this Circular, the deadline for notifying the Ministry of Finance in writing is at least 10 days from the date the Certificate of Registration for Practicing Accounting Services of practicing accountants registered at their units expires or loses its validity.

5. Return the old Certificate of Registration for Practicing Accounting Services to the Ministry of Finance within 30 days from the date the Certificate of Registration for Practicing Accounting Services expires or loses its validity for cases specified in Clauses 2, 4, 5, 6, 7, 8, 9, and 10 of Article 9 of this Circular.

7. When there is a change in working hours as stipulated in the full-time labor contract included in the registration file for practicing accounting services of a practicing accountant, the accounting service business enterprise or accounting service household must notify the Ministry of Finance in writing along with a copy of the newly signed labor contract with the practicing accountant within 10 days from the date of the change.

9. Other responsibilities as prescribed by law.

Article 17. Acts of violation related to registration for accounting service practice, management, and use of the Accounting Service Practice Registration Certificate

1. Falsely declaring information in the application that does not reflect reality, forging, or misrepresenting information in the application to meet the conditions for obtaining the Accounting Service Practice Registration Certificate.

2. Providing false confirmation on documents in the application to meet the conditions for obtaining the Accounting Service Practice Registration Certificate.

3. Using the Accounting Service Practice Registration Certificate that has expired or lost its validity in accounting professional activities.

4. Renting, lending, or allowing other organizations or individuals outside their current workplace to use their own Accounting Service Practice Registration Certificate in accounting professional activities.

5. Forging, erasing, or altering the Accounting Service Practice Registration Certificate.

Chapter III
IMPLEMENTING PROVISIONS

Article 18. Transitional Provisions and Effective Date

1. This Circular takes effect from January 1, 2017. Individuals who have been practicing accounting services since before 2016 are not required to submit a confirmation document regarding actual time spent working in financial, accounting, or auditing activities in their application for the Accounting Service Practice Registration Certificate.

2. This Circular replaces the provisions on accounting practice registration for practicing accountants set forth in Circular No. 72/2007/TT-BTC dated June 27, 2007, issued by the Ministry of Finance.

3. The calculation of continuing education hours in 2016 for registering to practice accounting services in 2017 shall be carried out according to the provisions of Circular No. 72/2007/TT-BTC dated June 27, 2007, issued by the Ministry of Finance, which provides guidance on registration and management of accounting practice.

Article 19. Implementation

1. Accounting service businesses, individual households engaged in accounting services, practicing accountants, and related organizations and individuals are responsible for implementing this Circular.

2. The Ministry of Finance is responsible for conducting inspections and supervision to ensure compliance with regulations on issuance, revocation, and management of the Accounting Service Practice Registration Certificate as stipulated by law.

3. During implementation, if there are difficulties or obstacles, they should be reported promptly so that the Ministry of Finance can study and make appropriate amendments and supplements.