Decree No. 49/1999/NĐ-CP On Administrative Sanctions for Violations in the Field of Accounting

DECREE OF THE GOVERNMENT

Regarding administrative penalties for violations in the accounting field

__________________________ 

THE GOVERNMENT

Pursuant to the Government Organization Law dated September 30, 1992;

||| Based on the Accounting and Statistics Ordinance dated May 20, 1988;

Pursuant to the Ordinance on Handling Administrative Violations dated July 6, 1995;

At the proposal of the Minister of Finance,

 

DECREE:

PART I

GENERAL PROVISIONS

Article 1. Scope and Applicability

1. The objects of administrative violations in the field of accounting are acts of individuals or organizations that intentionally or negligently violate state management rules on accounting but have not reached the level requiring criminal prosecution and, according to the law, must be subject to administrative penalties.

2. The provisions on administrative penalties in the field of accounting in this Decree apply to:

a) Individuals and organizations with acts of administrative violations in the field of accounting as stipulated in Chapter II of this Decree;

b) Foreign individuals and organizations operating within the territory of Vietnam with acts of administrative violations in the field of accounting as stipulated in Chapter II of this Decree, except where international treaties to which Vietnam is a party provide otherwise.

Article 2. Principles and Time Limit for Administrative Penalties

1. The principles for imposing administrative penalties for violations in the field of accounting shall be implemented according to Clause 1, 3, 4, 5, and 6 of Article 3 of the Ordinance on Handling Administrative Violations.

2. The time limit for administrative penalties for violations in the field of accounting is two years from the date the administrative violation in the field of accounting was committed.

For individuals who are indicted, prosecuted, or have a decision to bring the case to trial under criminal proceedings and have a decision to terminate the investigation or terminate the case by the competent authority, they will be subject to administrative penalties for acts indicating administrative violations; the time limit for administrative penalties is three months from the date of the decision to terminate.

In cases where individuals or organizations continue to commit administrative violations or deliberately evade or obstruct the imposition of penalties, the time limit for administrative penalties stipulated in this clause shall not be applied.

Article 3. Forms of Administrative Penalties in the Field of Accounting

1. Each individual or organization committing an administrative violation in the field of accounting must bear one of the following main forms of administrative penalty:

a) Warning;

b) Fine.

2. In addition to the main form of administrative penalty, individuals or organizations committing administrative violations in the field of accounting may also be subject to one or more supplementary forms of administrative penalty and other measures as stipulated in Clause 2 and 3 of Article 11 of the Ordinance on Handling Administrative Violations.

Article 4. Circumstances Mitigating or Aggravating Administrative Penalties in the Field of Accounting

1. Mitigating circumstances:

a) Individuals or organizations committing administrative violations have voluntarily taken measures to prevent or reduce the harmful effects of the violation or have voluntarily remedied the consequences and compensated for losses;

b) Violation under duress;

2. Aggravating circumstances:

a) Organized violation;

b) Repeated or recidivist violation;

c) Inciting, enticing, or compelling dependent persons to commit violations;

d) Taking advantage of positions or powers to commit violations;

đ) Taking advantage of special circumstances such as war, natural disasters, or other extraordinary difficulties in society to commit violations;

e) After committing the violation, there are acts of evading or concealing the administrative violation.

 

Chapter II

VIOLATIONS AND FORMS OF PENALTIES AND AMOUNTS OF PENALTIES

Article 5. Violations Regarding Authority to Issue and Apply Accounting Systems

1. A fine of VND 1,000,000 to VND 5,000,000, if there are aggravating circumstances, a fine up to VND 10,000,000 shall be imposed for any of the following acts:

a) Implementing incorrectly the regulations of the State regarding the authority to issue accounting vouchers, accounting books, accounting accounts, and financial reports.

b) Requiring, stipulating, or guiding subordinates to implement incorrect accounting vouchers, accounting books, or financial report forms contrary to the law on accounting.

c) Not registering the applied accounting system within the prescribed time limit.

d) Modifying accounting vouchers, modifying accounting books, modifying financial reports, or changing accounting methods without approval from the competent authority as required by regulations.

2. Supplementary form of penalty: confiscation of evidence of administrative violations for the acts specified in points a, b, and d of Clause 1 of this Article.

Article 6. Violation of principles for using accounting vouchers and accounting accounts

1. A fine of VND 500,000 to VND 3,000,000, and if there are aggravating circumstances, a fine of up to VND 5,000,000 shall be imposed on any of the following acts:

a) Recording economic and financial activities occurring in accounting vouchers not in accordance with the recording principles, including electronic voucher regulations.

b) Using invoices and accounting vouchers not in compliance with the regulations of the Ministry of Finance or without permission from the competent authority.

c) Selling blank financial invoices but not causing serious consequences.

d) Purchasing financial invoices not in accordance with regulations.

đ) Losing financial invoices or accounting vouchers without reporting.

2. A fine of VND 2,000,000 to VND 10,000,000, and if there are aggravating circumstances, a fine of up to VND 15,000,000 shall be imposed for the act of allowing another entity to use the unit's account to receive money and transfer funds for financial violations and capital usage.

3. Additional form of punishment: confiscation of evidence of administrative violation for the acts stipulated in points a, b, c, and d of Clause 1 of this Article.

Article 7. Forgery of accounting vouchers, ledgers, false declarations, and false reporting of accounting data

1. A fine of VND 2,000,000 to VND 10,000,000, and if there are aggravating circumstances, a fine of up to VND 15,000,000 shall be imposed on any of the following acts:

a) Forgery of accounting vouchers, ledgers.

b) False declaration of data, false reporting.

c) Compelling others to forge vouchers, books, make false declarations, and report false accounting data.

2. Additional form of punishment: confiscation of evidence of administrative violation for the acts stipulated in points a and b of Clause 1 of this Article.

Article 8. Violation of accounting principles regarding timeliness and completeness

1. A warning or a fine of VND 300,000 to VND 2,000,000, and if there are aggravating circumstances, a fine of up to VND 4,000,000 shall be imposed on any of the following acts:

a) Recording accounting vouchers not in accordance with the accounting system regulations.

b) Recording accounting ledgers not in accordance with the accounting system regulations.

c) Preparing or submitting financial reports not in accordance with the accounting system regulations.

2. A fine of VND 500,000 to VND 4,000,000, and if there are aggravating circumstances, a fine of up to VND 7,000,000 shall be imposed on any of the following acts:

a) Recording accounting vouchers not in accordance with the completeness requirements of the accounting system.

b) Recording accounting ledgers not in accordance with the completeness requirements of the accounting system.

c) Preparing financial reports not in accordance with the completeness requirements of the accounting system.

Article 9. Violation of regulations on opening, recording, closing accounting ledgers, and inventory checks

1. A warning or a fine of VND 200,000 to VND 1,000,000, and if there are aggravating circumstances, a fine of up to VND 2,000,000 shall be imposed on any of the following acts:

a) Opening or closing accounting ledgers not in accordance with the prescribed methods or accounting periods.

b) Recording accounting ledgers unclearly.

c) Amending or erasing accounting ledgers not in accordance with regulations.

2. A fine of VND 2,000,000 to VND 10,000,000, and if there are aggravating circumstances, a fine of up to VND 15,000,000 shall be imposed for the act of recording or calculating data in accounting ledgers not in accordance with the prescribed content and methods of the accounting system.

3. A fine of VND 1,000,000 to VND 8,000,000, and if there are aggravating circumstances, a fine of up to VND 15,000,000 shall be imposed on any of the following acts:

a) Selling goods without issuing financial invoices or entering sales records.

b) Omitting part of revenue or increasing fictitious revenue in the reporting period.

4. A fine of VND 500,000 to VND 4,000,000, and if there are aggravating circumstances, a fine of up to VND 7,000,000 shall be imposed on any of the following acts:

a) Not implementing or implementing incorrectly the State’s regulations on asset inventory.

b) Not processing or processing incorrectly the results of asset inventory before preparing the annual financial report.

5. A fine of VND 3,000,000 to VND 15,000,000, and if there are aggravating circumstances, a fine of up to VND 20,000,000 shall be imposed for the act of leaving assets and capital outside the accounting records.

Article 10. Violation of the reporting and provision of accounting documents regime

A fine of VND 1,000,000 to 8,000,000, if there are aggravating circumstances, then a fine of up to VND 15,000,000 shall be imposed for any of the following acts:

1. Preparing financial reports not in accordance with the prescribed forms of competent authorities.

2. Not implementing or implementing incorrectly the regulations on providing accounting documents related to the implementation of economic contracts signed with foreign countries and other economic relations to authorized agencies as required by law.

3. Not reporting, reporting inaccurately, or reporting incompletely the contents prescribed by the State or competent authorities regarding the situation of borrowing and using foreign loans and debts not through the State and domestic financial and banking systems as stipulated by law.

4. Not submitting periodic financial reports as prescribed by financial and banking agencies regarding the economic activities of units abroad.

5. Financial reports not being audited as prescribed by law.

Article 11. Violation of the accounting inspection regime

1. A fine of VND 1,000,000 to 8,000,000, if there are aggravating circumstances, then a fine of up to VND 15,000,000 shall be imposed for any of the following acts:

a) Obstructing inspections or not implementing recommendations of inspection organizations regarding accounting without justifiable reasons.

b) Delaying, evading, or intentionally not providing accounting documents, vouchers, ledgers, financial reports as requested by inspection organizations.

c) Altering or changing accounting vouchers, ledgers during financial and accounting inspections.

d) Not implementing sealing orders on files, documents, vouchers, ledgers, cash boxes, assets by competent authorities as prescribed by law.

đ) Arbitrarily removing, moving, or engaging in other actions that change the sealed state of warehouses, cash boxes, gold, silver, precious stones, vouchers, ledgers, loan repayment records, collateral, guarantees, or seized items still under seal without causing consequences.

2. Applying the measure of restoring the original condition for violations stipulated in points c and đ of Clause 1 of this Article.

Article 12. Violation of the preservation and storage regime of accounting vouchers, ledgers, and financial reports

1. Warning or a fine of VND 200,000 to 2,000,000, if there are aggravating circumstances, then a fine of up to VND 4,000,000 shall be imposed for any of the following acts:

a) Preserving and storing accounting file documents not in accordance with regulations.

b) Using stored accounting file documents not in accordance with regulations.

2. A fine of VND 500,000 to 4,000,000, if there are aggravating circumstances, then a fine of up to VND 7,000,000 shall be imposed for the act of damaging or losing accounting vouchers, ledgers, and financial reports within their retention period due to lack of responsibility.

3. A fine of VND 1,000,000 to VND 8,000,000, and if there are aggravating circumstances, a fine of up to VND 15,000,000 shall be imposed on any of the following acts:

a) Destroying accounting vouchers, ledgers, and financial reports before the prescribed retention period has expired.

b) Destroying accounting vouchers, ledgers, and financial reports not in accordance with prescribed procedures.

c) Destroying accounting vouchers, ledgers, and financial reports beyond authority or improperly.

Article 13. Violation of the principles of accounting organization

1. A fine of VND 2,000,000 to VND 10,000,000, and if there are aggravating circumstances, a fine of up to VND 15,000,000 shall be imposed on any of the following acts:

a) Arranging accounting staff to concurrently hold warehouse and cash box positions.

b) Arranging individuals to perform accounting, warehouse, and cash box duties when prohibited by accounting laws.

c) Not arranging individuals or not organizing departments to perform accounting work as prescribed by law.

2. A fine of VND 3,000,000 to 15,000,000, if there are aggravating circumstances, then a fine of up to VND 20,000,000 shall be imposed for any of the following acts:

a) Appointing chief accountants who have criminal records or disciplinary sanctions due to violations of the accounting profession and are currently barred from holding such positions by law.

b) Appointing individuals who do not meet the prescribed standards for professional qualifications and practical work experience as chief accountants.

3. Applying the measure of transferring the appointed position for those violating points a and b of Clause 1 and Clause 2 of this Article.

Article 14. Transfer of administrative violation files in the accounting field for criminal responsibility pursuit

When determining that an administrative violation in the accounting field has signs of a crime, the authorized person must immediately transfer the file to the competent criminal authority for resolution.

Strictly prohibit retaining cases of violations in the accounting field with signs of crimes for administrative handling.

 

Chapter III

AUTHORITY TO IMPOSE PENALTIES, PERSONS SUBJECT TO PENALTY, PROCEDURES FOR IMPOSING PENALTIES AND APPEALS

PENALTY, PENALTY PROCEDURES AND APPEAL

Article 15. Authority to impose penalties of specialized financial inspection

1. Financial inspection officers at all levels while performing their duties have the right:

a) To impose a warning penalty;

b) To impose a fine up to VND 200,000.

c) Seize objects and means used to commit administrative violations and apply other measures prescribed in point c, Clause 1, Article 34 of the Administrative Violation Handling Ordinance.

2. The head of the specialized financial inspection at the provincial level has the right:

a) To impose a warning penalty;

b) To impose fines up to VND 10,000,000;

c) Apply additional penalty forms and other measures prescribed in Clause 2, Article 3 of this Decree.

3. The head of the specialized financial inspection under the Ministry of Finance has the right:

a) To impose a warning penalty;

b) Impose a fine up to 20,000,000 dong;

c) Apply additional penalty forms and other measures prescribed in Clause 2, Article 3 of this Decree.

Article 16. Authority to impose penalties of Within 10 working days from the date of receipt of the dossier as mentioned in Sub-clause b, Clause 1, Article 3 above, the Ministry of Foreign Affairs will review and submit to the competent authority for decision (Issues exceeding the Ministry of Foreign Affairs' jurisdiction will be referred to the Prime Minister for consideration and decision).people's committee at district and provincial levels

1. The chairman of the People's Committee at the district level has the right:

a) To impose a warning penalty;

b) To impose fines up to VND 10,000,000;

c) Apply additional penalty forms and other measures prescribed in Clause 2, Article 3 of this Decree.

2. The chairman of the People's Committee at the provincial level has the right:

a) To impose a warning penalty;

b) Fine up to 100,000,000 dong;

c) Apply additional penalty forms and other measures prescribed in Clause 2, Article 3 of this Decree.

Article 17. Within 10 working days from the date of receipt of the dossier as mentioned in Sub-clause b, Clause 1, Article 3 above, the Ministry of Foreign Affairs will review and submit to the competent authority for decision (Issues exceeding the Ministry of Foreign Affairs' jurisdiction will be referred to the Prime Minister for consideration and decision).authority to impose administrative penalties

In cases where those authorized to impose administrative penalties as stipulated in Clause 2 and 3, Article 15; Clause 1 and 2, Article 16 of this Decree are absent or authorized by them, then their deputy has the authority to impose penalties according to their authority.

Article 18. Determination of authority to impose administrative penalties

1. The People's Committee at the district and provincial levels has the authority to impose administrative penalties in the accounting field within their jurisdiction.

2. Specialized financial inspection agencies at all levels have the authority to impose administrative penalties in the accounting field under their management.

3. In cases where an administrative violation in the accounting field falls under the authority of multiple agencies to impose penalties, the administrative penalty shall be carried out by the first agency to handle the case.

Article 19. Procedures for imposing administrative penalties in the accounting field

The procedures for imposing administrative penalties in the accounting field are implemented according to the provisions of Chapter VI of the Administrative Violation Handling Ordinance dated July 6, 1995.

Article 20. Compulsory enforcement of decisions on administrative penalties in the accounting field

The compulsory enforcement of decisions on administrative penalties in the accounting field is implemented according to the provisions of Article 55 of the Administrative Violation Handling Ordinance dated July 6, 1995.

Article 21. Imposing administrative penalties on acts of resisting persons performing official duties in the accounting field

The imposition of administrative penalties on persons who resist persons performing official duties in the accounting field is carried out according to the provisions of point a, b, Clause 2, point c, Clause 3, Article 5 of Decree No. 49/CP dated August 15, 1996 of the Government on administrative penalties in the field of security and public order.

Article 22. Awards and Disciplinary Measures

1. Individuals or organizations that have made contributions in detecting or reporting individuals or organizations committing administrative violations in the field of accounting shall be considered for awards in accordance with the general provisions of the State.

2. Those who have the authority to handle administrative violations in the field of accounting, if they conceal such administrative violations or fail to comply with the regulations on administrative penalty enforcement in the field of accounting as stipulated in this Decree, will be subject to disciplinary measures or criminal liability pursued, and must compensate for losses if damage occurs, according to the provisions of the law, depending on the nature and severity of the violation.

Article 23. Time Limit for Enforcement of Administrative Penalty Decisions

An administrative penalty decision in the field of accounting becomes void after one year from the date of issuance; however, in cases where the individual or organization being penalized deliberately evades or delays, the time limit provided for in this Article shall not apply.

Article 24. Complaints and Accusations

The procedures for complaints, accusations, and resolution of complaints and accusations against administrative penalty decisions in the field of accounting shall be carried out in accordance with the laws on complaints and accusations.

 

Chapter IV

IMPLEMENTING PROVISIONS

Article 25. Implementation Provisions

1. This Decree takes effect fifteen days from the date of signature. This Decree replaces the provisions on administrative penalties in the field of accounting in Decree No. 52/HĐBT dated February 19, 1992 of the Council of Ministers, and replaces the provisions at point c Clause 1, point a Clause 2, points a, c, d, e Clause 3 Article 2 and points b, c Clause 1 Article 3 of Decree No. 22/CP dated April 17, 1996 of the Government on administrative penalties in the field of taxation.

2. The Minister, Heads of Ministries, Heads of Government Agencies, Chairpersons of People's Committees of provinces and centrally governed cities are responsible for implementing this Decree.

3. The Minister of Finance is responsible for guiding the implementation of this Decree./.