What penalties are imposed on violations against foreign accounting firm’s obligations in provision of transboundary accounting services in Vietnam?

Pursuant to Article 31, Decree 41/2018/ND-CP, violations against foreign accounting firm’s obligations in provision of transboundary accounting services in Vietnam will be penalized as follows:

1. A warning shall be imposed on the foreign accounting firm committing one of the following violations:

a) Notifying the Ministry of Finance of one of the conditions required for provision of transboundary accounting services in Vietnam not being met less than 15 days after the specified deadline;

b) Submitting annual financial statements, the local accounting service authority’s reports on compliance with regulations of law on provision of accounting services and other regulations of law to the Ministry of Finance less than 15 days after the specified deadline;

c) Submitting reports on execution of contracts for provision of transboundary accounting services in Vietnam to the Ministry of Finance less than 15 days after the specified deadline.

2. A fine ranging from VND 5.000.000 to VND 10.000.000 shall be imposed on the foreign accounting firm in the following cases:

a) Notifying the Ministry of Finance of one of the conditions required for provision of transboundary accounting services in Vietnam not being met 15 days after the specified deadline or later;

b) Submitting annual financial statements, the local accounting service authority’s reports on compliance with regulations of law on provision of accounting services and other regulations of law to the Ministry of Finance 15 days after the specified deadline or later;

c) The report on execution of contracts for provision of transboundary accounting services in Vietnam does not have sufficient contents or submitted to the Ministry of Finance 15 days after the specified deadline or later.

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

a) Failure to notify the Ministry of Finance that one of the conditions required for provision of transboundary accounting services in Vietnam is not met;

b) Failure to submit annual financial statements, the local accounting service authority’s reports on compliance with regulations of law on provision of accounting services and other regulations of law to the Ministry of Finance;

c) Failure to report or reporting falsely on execution of contracts for provision of transboundary accounting services in Vietnam.

4. A fine ranging from VND 30.000.000 to VND 50.000.000 shall be imposed on the foreign accounting firm committing one of the following violations:

a) Committing prohibited acts or providing accounting services in prohibited cases;

b) Failure to comply with Vietnamese accounting standards and code of ethics while providing transboundary accounting services in Vietnam;

c) Failure to explain the contents relevant to provision of transboundary accounting services in Vietnam to the Vietnamese authorities.

5. Additional penalty:

The foreign accounting firm committing any of the violations mentioned in Clause 4 of this Article shall have its certificate of eligibility to provide transboundary accounting services in Vietnam suspended for 3-6 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.