What penalties are applied for violations against regulations on creation and presentation of financial statements?

Financial statement is crucial for foreign enterprises and must be filed based on a regulated standard. Violations against these regulations will cause enterprises to receive penalties stipulated in Article 11, Decree 41/2018/ND-CP:

1. A fine ranging from VND 5.000.000 to VND 10.000.000 shall be imposed in the following cases

a) The financial statement does not have sufficient contents or does not follow the standard form;

b) The financial statement lacks the signature of the creator, chief accountant, accounting manager or the accounting unit’s legal representative.

2. A fine ranging from VND 10.000.000 to VND 20.000.000 shall be imposed for one of the following violations:

a) Failure to make sufficient financial statements;

b) Applying a financial statement form other than the one specified in accounting standards and regulations except when approved by the Ministry of Finance.

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

a) Failure to make financial statements;

b) The financial statement’s figures do not match those in the accounting book or accounting records;

c) Make and present financial statements against accounting regulations and standards;

4. A fine ranging from VND 40.000.000 to VND 50.000.000 shall be imposed in the following cases:

a) Forge financial statements or falsify figures but not serious enough for criminal prosecution;

b) Forge financial statements falsify figures by means of collusion or coercion but not serious enough for criminal prosecution;

c) Provide or confirm false accounting figures deliberately or by means of collusion or coercion but not serious enough for criminal prosecution.

5. Remedial measures:

Make and present financial statements mentioned in Clause 3 of this Article conform to accounting regulations and standards;

b) Destroy the financial statements mentioned in Clause 4 of this Article.

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.