How will violations against regulations on methods for provision of transboundary audit services be penalized?

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How will violations against regulations on methods for provision of transboundary audit services be penalized?

Pursuant to Article 63, Decree 41/2018/ND-CP, violations against regulations on methods for provision of transboundary audit services shall be penalized as follows:

1. A fine ranging from VND 10.000.000 to VND 20.000.000 shall be imposed on the foreign auditing firm committing one of the following violations:

a) Making payment of service charges against regulations of law on foreign currency management of Vietnam;

b) Failure to make audit contracts in compliance with Vietnamese law while providing transboundary audit services;

c) Failure to make joint venture contracts while providing transboundary audit services in Vietnam.

2. A fine ranging from VND 20.000.000 to VND 30.000.000 shall be imposed the organization in the following cases:

a) The Vietnamese auditing firm forms joint venture with a foreign firm that is not eligible for provision of transboundary audit services while providing transboundary audit services in Vietnam;

b) The foreign auditing firm forms joint venture with a Vietnamese firm that is not eligible for provision of transboundary audit services while providing transboundary audit services in Vietnam.

3. A fine ranging from VND 30.000.000 to VND 40.000.000 shall be imposed on the foreign auditing firm that fails to form joint venture with a Vietnamese firm that is eligible for provision of audit services while providing transboundary audit services in Vietnam.

4. Additional penalty:

The foreign auditing firm committing the violation mentioned in Clause 3 of this Article shall have its certificate of eligibility to provide transboundary audit services in Vietnam suspended for 6-12 months from the day the decision on penalty imposition comes into effect.

As an established company in the field of tax and legal consulting, Vinasc hopes to adequately inform our customers to help them mitigate the risk during operation in Vietnam. Should there be any further concern, please contact Vinasc’s Customer Care department for timely support.

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