Circular No. 72/2007/TT-BTC guides the registration and management of accounting practices

Pursuant to the Accounting Law No. 03/2003/QH 11 dated June 17, 2003;

Pursuant to the Decree No. 129/2004/NĐ-CP dated May 31, 2004 of the Government detailing and guiding the implementation of certain provisions of the Accounting Law applicable in business activities;

Pursuant to the Decree No. 77/2003/NĐ-CP dated July 1, 2003 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

The Ministry of Finance hereby stipulates and guides the registration and management of accounting practice as follows:

Chapter 1. GENERAL PROVISIONS

1.1. Annually, accounting service enterprises and other enterprises providing accounting services (collectively referred to as accounting service enterprises) must register the list of accounting practitioners; individual accounting service providers must register their practice with the Ministry of Finance or the professional association authorized by the Ministry of Finance (hereinafter referred to as the professional association).

1.2. Accounting service enterprises and individual accounting service providers may only provide accounting services after registering their practice and obtaining confirmation from the professional association as provided in Point 1.1 above. Individual accounting service providers who have registered their practice and received confirmation from the professional association are collectively referred to as individual accounting practitioners. Individual accounting practitioners and those who register their practice within accounting service enterprises are collectively referred to as accounting practitioners.

1.3. When providing services, accounting practitioners must present the Accounting Practice Certificate issued by the Ministry of Finance. When signing in documents related to the provided services, accounting practitioners must clearly indicate their full name and the number of their Accounting Practice Certificate.

1.4. In case accounting practitioners violate laws or breach professional ethics, they will be subject to legal penalties and their names will be removed from the registered practitioner list.

1.5. Accounting service enterprises and individual accounting service providers that fail to register their practice or comply with the provisions of this Circular will be subject to administrative fines under current regulations.

1.6. Enterprises, organizations, and agencies requiring accounting services such as bookkeeping, serving as chief accountants, establishing accounting systems, etc. (as stipulated in Article 43 of the Decree No. 129/2004/NĐ-CP dated May 31, 2004 of the Government detailing and guiding the implementation of certain provisions of the Accounting Law applicable in business activities) may only enter into contracts for accounting services with accounting service enterprises, auditing enterprises, and individual accounting service providers who have registered their practice and obtained confirmation from the professional association as provided in this Circular.

1.7. The Ministry of Finance is the state management agency for accounting. The professional association authorized by the Ministry of Finance shall implement the registration and management of accounting practice as provided in this Circular.

2. Conditions for Registering Accounting Practice

2.1. For individual accounting service providers:

a) Having a clear record, possessing professional ethics, being honest and incorruptible, not falling under the categories prohibited from working as accountants as stipulated in Clause 1 and Clause 2 of Article 51 of the Accounting Law;

b) Holding an Accounting Practice Certificate or an Auditor Certificate issued by the Ministry of Finance;

c) Having an office and business address;

d) Having a business registration for accounting services;

đ) Specifically, foreign individuals applying for individual accounting practice registration in Vietnam must also meet the condition of having been permitted to reside in Vietnam for at least one year, except where otherwise provided in international treaties to which the Socialist Republic of Vietnam is a party.

2.2. For accounting practitioners within accounting service enterprises:

a) Having a clear record, possessing professional ethics, being honest and incorruptible, not falling under the categories prohibited from working as accountants as stipulated in Clause 1 and Clause 2 of Article 51 of the Accounting Law;

b) Holding an Accounting Practice Certificate or an Auditor Certificate issued by the Ministry of Finance;

c) Having a labor contract to work in an accounting service enterprise established and operating in accordance with Vietnamese law.

2.3. For accounting service enterprises:

a) Having a business registration for accounting services;

b) Having at least two individuals holding an Accounting Practice Certificate or an Auditor Certificate issued by the Ministry of Finance, including the enterprise director who must hold an Accounting Practice Certificate or an Auditor Certificate for at least two years.

2.4. At any given time, an accounting practitioner may only register their practice in one accounting service enterprise, one auditing enterprise, or as an individual practitioner.

2.5. An accounting practitioner registering their practice for the second time or more must additionally meet the condition of fully participating in the annual knowledge update program as stipulated in Clause 6 of this Circular.

2.6. In case an accounting practitioner registered in one accounting service enterprise transfers to another accounting service enterprise or registers as an individual practitioner, they must first obtain a decision terminating their employment contract with the previous enterprise.

2.7. Individuals not listed in the registered practitioner list confirmed by the professional association may not sign in the accounting books (for bookkeeping services), may not sign financial statements (for financial statement preparation services, chief accountant services), and may not sign reports on the results of accounting services.

2.8. Accounting service enterprises using individuals not listed in the registered practitioner list to sign in the accounting books (for bookkeeping services), sign financial statements (for financial statement preparation services, chief accountant services), or sign reports on the results of accounting services will be subject to legal penalties along with the individuals involved.

2.9. Accounting practitioners will have their names removed from the registered practitioner list in the following cases:

a) Violating any of the prohibited acts concerning accounting practitioners as stipulated in Article 14 of the Accounting Law.

b) Violating any of the circumstances prohibiting the provision of accounting services as stipulated in Article 45 of the Decree No. 129/2004/NĐ-CP dated May 31, 2004 of the Government detailing and guiding the implementation of certain provisions of the Accounting Law applicable in business activities.

c) Not actually practicing accounting but still registering for accounting practice, or simultaneously registering for accounting practice in two places.

d) Violating laws or breaching professional ethics prohibited by accounting law.

2.10. A person who has been removed from the list of registered accounting practitioners shall not be allowed to re-register for practice for at least three years from the date of removal.

2.11. An accounting practitioner who has registered for practice but does not actually engage in accounting practice shall not be eligible for the professional association to continue confirming the registration list for the following year.

3. Application for Registration as an Accounting Practitioner

3.1. For individual service providers:

An individual applying for initial registration as an accounting practitioner must submit an application for registration to the professional association authorized by the Ministry of Finance, including:

a) An application form for registration as an accounting practitioner (Annex No. 01/KET)

b) A certified copy of the Certificate of Practice or Auditor's Certificate;

c) A certified copy of the Business Registration Certificate and Tax Registration Certificate.

d) Three 3x4 photographs taken at the time of submitting the application.

In addition, foreign individuals must provide a certified copy of the certificate of permission to reside in Vietnam.

Individuals applying for subsequent registrations only need to submit the "Application Form for Registration as an Accounting Practitioner" (Annex No. 01/KET) and a certificate of updated knowledge as stipulated in Clause 6 of this Circular.

3.2. For accounting practitioners working in accounting service enterprises:

Each year, individuals who are initially practicing in accounting service enterprises must prepare an application for registration as an accounting practitioner, including:

a) An application form for registration as an accounting practitioner sent to the General Director of the accounting service enterprise (Annex No. 02/KET);

b) A certified copy or a copy with the signature and stamp of confirmation of the General Director of the accounting service enterprise for the Certificate of Practice or Auditor's Certificate;

c) Documents as specified in Points 2.5 and 2.6 of Clause 2 of this Circular.

3.3. Individuals holding an Auditor's Certificate who have registered for auditing practice in accordance with the law are deemed qualified to practice accounting without having to submit an application for registration as an accounting practitioner.

3.4. For accounting service enterprises:

The General Director of an accounting service enterprise must review the application for registration as an accounting practitioner submitted by the accounting practitioner based on the conditions for practicing accounting and determine whether they meet the requirements for practice in that year. If they meet the requirements, the enterprise must prepare an application for registration as an accounting practitioner and submit it to the professional association authorized by the Ministry of Finance for examination and confirmation.

The initial application for registration as an accounting practitioner includes:

a) The list of registration as an accounting practitioner for the year... (Annex No. 03/KET) along with the application forms for each individual meeting the conditions in the list;

b) A certified copy of the Business Registration Certificate;

c) A certified copy or a copy with the signature and stamp of confirmation of the General Director of the accounting service enterprise for the Certificate of Practice or Auditor's Certificate of the General Director and of the individuals listed in the registration list;

d) Three 3x4 photographs taken at the time of submitting the application for each individual listed in the registration list.

Individuals who have previously registered for practice in an accounting service enterprise and are approved by the General Director to continue practicing the following year do not need to submit a full application as for the initial registration but only need to submit the "Application Form for Registration as an Accounting Practitioner" (in the format specified in Annex No. 02/KET).

An accounting service enterprise registering for practice from the second time onwards only needs to submit the "List of Registration as an Accounting Practitioner for the Year..." (Annex No. 03/KET). If there are additional registrations, the enterprise must also submit the application forms of the newly added individuals as specified in Point 3.2 of Clause 3 of this Circular.

4. Unified Management of Lists of Individual Accounting Practitioners and Accounting Service Enterprises

4.1. Initial Registration: Within thirty days from the date of issuance of the Business Registration Certificate, individual service providers and accounting service enterprises must submit their applications for registration to the professional association authorized by the Ministry of Finance.

4.2. Subsequent Registrations: Annually, before October 30, individual accounting practitioners and accounting service enterprises must register their lists for the following year.

4.3. Additional Registrations: When an accounting service enterprise hires new staff or receives new certificates for its accounting practitioners, the enterprise must submit additional registration lists within thirty days from the date the new staff member starts work or receives the certificate.

4.4. Applications for registration as an accounting practitioner as specified in Points 4.1, 4.2, and 4.3 above shall be processed according to the provisions of Clause 3 of this Circular. Within five working days from the date of receipt of complete applications in accordance with the regulations, the professional association authorized by the Ministry of Finance will confirm the list of qualified accounting practitioners for that year.

4.5. In cases where an accounting service enterprise has an accounting practitioner who transfers, retires, dies, or is deprived of the right to practice according to the law, the enterprise must notify the professional association authorized by the Ministry of Finance in writing, accompanied by a list of reduced practitioners within thirty days from the date the practitioner officially stops working.

4.6. Publicizing the List of Accounting Service Enterprises and Accounting Practitioners

a) Timeframe for Publicizing: By December each year, the professional association authorized by the Ministry of Finance will publicly announce the list of qualified individual accounting practitioners and accounting service enterprises providing accounting services confirmed by the professional association to tax authorities, financial departments, the State Securities Commission, ministries, sectors, and business registration agencies of provinces and cities (where financial statements are reported).

b) Method of Publicizing: By written notice and posting on the website and magazine of the professional association authorized by the Ministry of Finance;

c) Content of Publicizing:

- The list of individual accounting practitioners includes: Full name, professional qualifications, number and date of issue of the Certificate of Practice or Auditor's Certificate, office address, and other related information;

- The list of accounting service enterprises meeting the conditions for practice, including: enterprise name, year of establishment, main office address, number of practicing accountants, and other related information.

d) Tax authorities, financial agencies, State Securities Commission, ministries, sectors, business registration agencies shall not accept financial statements prepared by individuals or accounting service enterprises that have not been confirmed by the professional association, and at the same time shall be responsible for reporting to the Ministry of Finance and the professional association about enterprises, organizations, administrative units that have hired individuals or enterprises without the required qualifications, conditions, or those who have not registered for accounting practice to perform accounting work, serve as chief accountants, or prepare financial statements and other accounting services.

đ) If through inspection work, violations related to the regulations on accounting practice of individual practitioners or accounting service enterprises are reported and clearly identified by clients or agencies receiving financial statements, the Ministry of Finance will handle violations of accounting laws according to current regulations.

5. Responsibilities for providing information and supervising the quality of accounting practice activities and accounting services.

5.1. When there is a change in name, main office, branch office, and transaction address, or in the business registration content, within ten days from the date of such changes, individual practitioners and accounting service enterprises must notify in writing the professional association authorized by the Ministry of Finance.

5.2. Annually, no later than March 31, individual practitioners and accounting service enterprises must report in writing to the Ministry of Finance and the professional association authorized by the Ministry of Finance on key indicators regarding their business operations in the previous year (Annex No. 04/KET and Annex No. 05/KET).

5.3. The Ministry of Finance and the professional association authorized by the Ministry of Finance are responsible for supervising the quality of accounting practice activities and accounting services, inspecting compliance with accounting laws and guiding documents at accounting service enterprises and individual practitioners according to the provisions of the Quality Control Service Accounting Regulation.

5.4. The Ministry of Finance shall implement supervision over the registration and management of accounting practice activities of the professional associations authorized according to the provisions of Clause 8 of this Circular.

6. Annual knowledge update for accounting practitioners.

6.1. The subjects required to update knowledge annually are accounting practitioners currently practicing or planning to continue registering for accounting practice in the following year.

6.2. Contents of annual knowledge update include:

a) Basic contents of accounting laws, economic management, finance, tax, and related issues;

b) Provisions added or amended in accounting policies, systems, economic management, finance, tax, and related issues.

6.3. Time for annual knowledge update ranges from thirty to forty hours per year.

6.4. Forms of annual knowledge update:

a) Concentrated training organized by the professional association authorized by the Ministry of Finance; or,

b) Self-study: Accounting service enterprises organize annual knowledge updates for accounting practitioners according to the requirements and content provided by the professional association authorized by the Ministry of Finance. Accounting service enterprises must retain records of the content, program, time of updates, and lists of accounting practitioners from the enterprise who attended.

6.5. After each annual knowledge update course organized by the professional association authorized by the Ministry of Finance or self-organized by accounting service enterprises, accounting practitioners must take an examination or assessment organized by the professional association in the form of multiple-choice questions, case studies, or written summaries and must meet the requirements to be eligible to register for accounting practice in the following year.

6.6. Individuals holding a Certified Public Accountant certificate who have participated in knowledge updates according to the regulations on registering for auditing practice are not required to attend knowledge updates on accounting practice.

7. Responsibilities of the Vietnam Association of Accountants and Auditors in registering and managing accounting practice.

7.1. Organizing the acceptance and review of applications for accounting practice registration and confirming the list of accounting practitioners of accounting service enterprises and individuals applying for accounting practice registration according to regulations.

7.2. Establishing files to monitor and manage all relevant information about individual practitioners and accounting practitioners of each accounting service enterprise based on registration applications and other information submitted by individual practitioners and accounting service enterprises, including updating information on changes in names, transaction addresses, business registration content, establishment of branches, suspension or termination of operations, etc.

7.3. Managing professional ethics and expertise of accounting practitioners.

7.4. Organizing annual knowledge updates for accounting practitioners; tracking the time spent on knowledge updates by each individual and organizing examinations or assessments as a basis for confirming eligibility for accounting practice in the following year.

7.5. Publicizing the list of accounting service enterprises and the list of accounting practitioners according to regulations. Providing information related to accounting service enterprises and individual practitioners to organizations or individuals requesting it under the law; compiling and reporting the situation of accounting practice activities nationwide annually (based on information from Model Annexes 04/KET and 05/KET) to submit to the Ministry of Finance.

7.6. Preserving and storing files and documents related to registration and management of accounting practice.

7.7. Inspecting and supervising the quality of accounting services and professional ethics of accounting practitioners. Recommending to the Ministry of Finance and competent authorities to handle errors and violations of the law discovered during inspections.

7.8. Recommending to the Ministry of Finance on measures to resolve difficulties and challenges in managing accounting practice and supervising the quality of accounting services of accounting service enterprises and accounting practitioners.

7.9. Subject to inspection and supervision by the Ministry of Finance regarding the performance of responsibilities delegated concerning the registration and management of accounting practice and the quality control of accounting services.

8. Implementation organization

8.1. This Circular shall take effect fifteen days from the date of publication in the Official Gazette.

8.2. Pursuant to Decision No. 47/2005/QĐ-BTC dated July 14, 2005 of the Minister of Finance on the transfer of certain management tasks related to accounting and auditing practices to professional associations, from January 1, 2007, the Ministry of Finance has delegated to the Vietnam Association of Accountants (VAA) the implementation of registration and management of accounting practices as stipulated in this Circular. Individuals engaged in accounting practice and accounting service enterprises have the responsibility to comply with the management of the Vietnam Association of Accountants (VAA) which has been delegated by the Ministry of Finance.

8.3. Individuals holding an Accounting Practice Certificate in audit firms who wish to register for accounting practice must register their accounting practice according to the provisions of this Circular with the Vietnam Association of Accountants (VAA).

8.4. Individuals engaged in accounting practice and enterprises providing accounting services but not auditing services must register their accounting practice according to the provisions of this Circular with the Vietnam Association of Accountants (VAA). Enterprises providing auditing services must register their auditing practice according to the regulations with the Vietnam Association of Certified Public Accountants (VACPA).

8.5. Individuals engaged in accounting practice and accounting service enterprises, audit enterprises must strictly and fully comply with the provisions of this Circular.

8.6. The Vietnam Association of Certified Public Accountants (VACPA) is responsible for providing information about the registration and management of accounting practice, and the operation of accounting practice of audit enterprises annually to the Vietnam Association of Accountants (VAA).

8.7. The Vietnam Association of Accountants and the Vietnam Association of Certified Public Accountants are responsible for guiding and organizing the implementation of tasks delegated by the Ministry of Finance as stipulated in this Circular.

8.8. The Director of the Accounting and Auditing System Department, the Head of the Ministry's Office, and the Heads of relevant units are responsible for guiding, directing, and inspecting the implementation of this Circular.

Any difficulties encountered during the implementation should be reported to the Ministry of Finance for resolution./.