Circular No. 40/2020/TT-BTC guides the reporting regime in the field of accounting and independent auditing pursuant to Decree No. 174/2016/NĐ-CP dated December 30, 2016 of the Government detailing certain provisions of the Accounting Law and Decree No. 17/2012/NĐ-CP dated March 13, 2012 of the Government detailing and guiding the implementation of certain provisions of the Independent Auditing Law.

CIRCULAR

Guidelines on reporting procedures in the field of accounting and independent auditing
pursuant to Decree No. 174/2016/NĐ-CP dated December 30, 2016 of the Government detailing certain provisions of the Accounting Law and Decree No. 17/2012/NĐ-CP dated March 13, 2012 of the Government detailing and guiding the implementation of certain provisions of the Independent Auditing Law
pursuant to Decree No. 17/2012/NĐ-CP dated March 13, 2012 of the Government detailing and guiding the implementation of certain provisions of the Independent Auditing Law
13/3/2012 of the Government detailing and guiding the implementation of
some Articles of the Law on Independent Auditing

Pursuant to the Independent Auditing Law No. 67/2011/QH12 dated March 29, 2011;

Pursuant to the Accounting Law No. 88/2015/QH13 dated November 20, 2015;

Pursuant to Decree No. 17/2012/NĐ-CP dated March 13, 2012 of the Government detailing and guiding the implementation of certain provisions of the Independent Auditing Law;

Pursuant to Decree No. 174/2016/NĐ-CP dated December 30, 2016 of the Government detailing certain provisions of the Accounting Law;

Pursuant to Decree No. 09/2019/NĐ-CP dated January 24, 2019 of the Government on the reporting system of administrative agencies;

Pursuant to Decree No. 87/2017/NĐ-CP dated July 26, 2017 of the Government on the functions, tasks, powers, and organizational structure of the Ministry of Finance;

At the proposal of the Director of the Accounting and Auditing Supervision Department, Ministry of Finance issues this Circular guiding the reporting system in the field of accounting and independent auditing under Decree No. 174/2016/NĐ-CP dated December 30, 2016 of the Government detailing certain provisions of the Accounting Law and Decree No. 17/2012/NĐ-CP dated March 13, 2012 of the Government detailing and guiding the implementation of certain provisions of the Independent Auditing Law.

This Circular guides the periodic reporting system on the situation of implementing contracts for providing accounting and independent auditing services across borders arising during the period in Vietnam and the situation of implementing joint ventures with foreign accounting service enterprises, foreign auditing enterprises in providing accounting and independent auditing services across borders as stipulated in Article 32, Article 33 of Decree No. 174/2016/NĐ-CP dated December 30, 2016 of the Government detailing certain provisions of the Accounting Law and Article 13, Article 14 of Decree No. 17/2012/NĐ-CP dated March 13, 2012 detailing and guiding the implementation of certain provisions of the Independent Auditing Law.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

Vietnamese accounting service enterprises that have joint ventures with foreign accounting service enterprises to provide accounting services across borders in Vietnam. Foreign accounting service enterprises that provide accounting services across borders in Vietnam. Vietnamese auditing enterprises that have joint ventures with foreign auditing enterprises to provide auditing services across borders in Vietnam. Foreign auditing enterprises that provide auditing services across borders in Vietnam. Organizations and individuals related to the periodic reporting system on the situation of implementing contracts for providing accounting and auditing services across borders arising during the period in Vietnam and the situation of implementing joint ventures with foreign accounting service enterprises, foreign auditing enterprises in providing accounting and auditing services across borders.

Article 2. Applicability

Article 3. Periodic Reporting System when Providing Accounting Services Across Borders

Chapter II

SPECIFIC PROVISIONS

1. Contents of the periodic report on the provision of accounting services across borders by foreign accounting service enterprises:

a) Report Name: Implementation Status of Contracts for Providing Accounting Services Across Borders.

b) Content Required for Reporting:

- Information about joint venture parties;

- List of practicing accountants of the foreign accounting service enterprise;

- List of practicing accountants assigned to oversee parts of the work within the responsibility of each party in the accounting service provision contract;

- List of accounting service provision across borders contracts concluded over a six-month period;

- Compliance with Vietnamese laws.

c) Reporting Entity: Foreign accounting service enterprises providing accounting services across borders in Vietnam.

d) Receiving Authority: Ministry of Finance (Accounting and Auditing Supervision Department).

đ) Method of Sending and Receiving Reports: The periodic report shall be presented in either paper form or electronic copy and sent via one of the following methods:

- Direct delivery;

- Email transmission;

- Sending via postal service;

e) Deadline for Submission of Report: No later than July 31 of the reporting year for the first half-year report; No later than January 31 of the following year for the second half-year report.

- Other methods as prescribed by law.

g) Frequency of Reporting: Semi-annual reports.

h) Data Cut-off Time: For the first half-year data cut-off time is from January 1 to June 30 of the reporting year. For the second half-year data cut-off time is from July 1 to December 31 of the reporting year.

i) Outline of the Report: In accordance with Appendix No. 01/BC issued together with this Circular.

k) Statistical Table of the Report: In accordance with Appendix No. 01/BC issued together with this Circular.

i) Guidance on the Reporting Process: Annually, foreign accounting service enterprises compile information according to the template and submit it to the Ministry of Finance within the prescribed deadline.

2. Contents of the periodic report on the implementation status of joint ventures with foreign accounting service enterprises:

a) Report Name: Implementation Status of Joint Ventures with Foreign Accounting Service Enterprises in Providing Accounting Services Across Borders.

- Information about joint venture parties;

b) Content required for reporting:

- List of practicing accountants assigned to oversee parts of the work within the responsibility of each party in the accounting service provision contract;

- List of accounting service provision across borders contracts concluded over a six-month period.

c) Reporting Entity: Vietnamese accounting service enterprises that have joint ventures with foreign accounting service enterprises to provide accounting services across borders in Vietnam.

d) Receiving Authority: Ministry of Finance (Accounting and Auditing Supervision Department).

đ) Method of Sending and Receiving Reports: The periodic report shall be presented in either paper form or electronic copy and sent via one of the following methods:

- Direct delivery;

- Email transmission;

- Sending via postal service;

- Sent through the electronic mail system;

- Other methods as prescribed by law.

e) Reporting deadline: The latest date for the report on the first six months of the year is July 31 of the reporting year; the latest date for the report on the last six months of the year is January 31 of the following year.

h) Data Cut-off Time: For the first half-year data cut-off time is from January 1 to June 30 of the reporting year. For the second half-year data cut-off time is from July 1 to December 31 of the reporting year.

h) Data closing period for the report: The data closing period for the first six months of the year runs from January 1 to June 30 of the reporting year. The data closing period for the last six months of the year runs from July 1 to December 31 of the reporting year.

i) Report outline template: In accordance with Appendix No. 02/BC issued together with this Circular.

k) Report data form: In accordance with Appendix No. 02/BC issued together with this Circular. Guidance on the reporting process: Each year, accounting service enterprises in Vietnam compile information according to the template and submit it to the Ministry of Finance within the prescribed deadlines.

Article 4. Regular Reporting System when Providing Cross-border Audit Services

1. Content of regular reports on the implementation of contracts for providing cross-border audit services by foreign auditing enterprises:

a) Report name: Implementation status of contracts for providing cross-border audit services.

- Information about joint venture parties;

- List of practicing accountants of the foreign accounting service enterprise;

- List of auditors practicing at the foreign auditing enterprise;

- List of auditors assigned responsibility for tasks under each party's obligations in the audit contract;

- List of cross-border audit service contracts concluded during the six-month period;

- Compliance with Vietnamese laws.

c) Reporting entity: Foreign auditing enterprises providing cross-border audit services in Vietnam.

đ) Method of Sending and Receiving Reports: The periodic report shall be presented in either paper form or electronic copy and sent via one of the following methods:

- Direct delivery;

- Email transmission;

- Sent via postal service;

- Sent through the electronic mail system;

- Other methods as prescribed by law.

e) Reporting deadline: The latest date for the report on the first six months of the year is July 31 of the reporting year; the latest date for the report on the last six months of the year is January 31 of the following year.

g) Frequency of reporting: Semi-annual reports.

i) Outline of the Report: In accordance with Appendix No. 01/BC issued together with this Circular.

i) Report outline template: In accordance with Appendix No. 03/BC issued together with this Circular.

k) Report data form: In accordance with Appendix No. 03/BC issued together with this Circular.

l) Guidance on the reporting process: Each year, foreign auditing enterprises compile information according to the template and submit it to the Ministry of Finance within the prescribed deadlines.

2. Content of regular reports on the implementation of joint ventures with foreign auditing enterprises:

a) Report name: Implementation status of joint ventures with foreign auditing enterprises in providing cross-border audit services.

b) Content required for reporting:

- List of practicing accountants assigned to oversee parts of the work within the responsibility of each party in the accounting service provision contract;

- List of auditors assigned responsibility for tasks under each party's obligations in the audit contract;

- List of cross-border audit service contracts concluded during the six-month period.

c) Reporting entity: Auditing enterprises in Vietnam that have joint ventures with foreign auditing enterprises to provide cross-border audit services in Vietnam.

đ) Method of Sending and Receiving Reports: The periodic report shall be presented in either paper form or electronic copy and sent via one of the following methods:

- Direct delivery;

- Email transmission;

- Sent via postal service;

- Sent via email system; Other methods as provided by law.

c) Reporting deadline: The latest date for the report on the first six months of the year is July 31 of the reporting year; the latest date for the report on the last six months of the year is January 31 of the following year.

h) Data Cut-off Time: For the first half-year data cut-off time is from January 1 to June 30 of the reporting year. For the second half-year data cut-off time is from July 1 to December 31 of the reporting year.

i) Outline of the Report: In accordance with Appendix No. 01/BC issued together with this Circular.

i) Report outline template: In accordance with Appendix No. 04/BC issued together with this Circular.

k) Report data form: In accordance with Appendix No. 04/BC issued together with this Circular.

l) Guidance on the reporting process: Each year, auditing enterprises in Vietnam compile information according to the template and submit it to the Ministry of Finance within the prescribed deadlines.

Article 5. Effective Date

This Circular takes effect from July 1, 2020. During its implementation, if there are difficulties or obstacles, please promptly reflect them to the Ministry of Finance for research and appropriate amendments and supplements.

Deputy Minister
Ha Cong Tuan

(Signed)

Do Hoang Anh Tuan