What risks can incur when the accounting firm partner up with a foreign accounting firm to provide transboundary accounting services in Vietnam?

Pursuant to Article 32, Decree 41/2018/ND-CP, violations against obligations of accounting firms forming joint venture with foreign accounting firms for provision of transboundary accounting services in Vietnam will be penalized as follows:

1. A fine ranging from VND 5.000.000 to VND 10.000.000 shall be imposed on the Vietnamese accounting firm committing one of the following violations:

a) Failure to retain the documents of joint venture contracts with foreign accounting firms in full while providing transboundary accounting services in Vietnam;

b) Failure to provide the documents of joint venture contracts with foreign accounting firms for the competent authority in full or on time upon request while providing transboundary accounting services in Vietnam;

c) Failure to explain the documents of joint venture contracts with foreign accounting firms for provision of transboundary accounting services in Vietnam to the competent authority in full detail or on time.

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

a) Failure to retain the documents of joint venture contracts with foreign accounting firms for provision of transboundary accounting services in Vietnam;

b) Failure to provide the documents of joint venture contracts with foreign accounting firms for provision of transboundary accounting services in Vietnam for the competent authority upon request;

c) Failure to explain the documents of joint venture contracts with foreign accounting firms for provision of transboundary accounting services in Vietnam to the competent authority.

d) Failure to notify the Ministry of Finance of the execution of joint venture contracts with foreign accounting firms for provision of transboundary accounting services.

3. Additional penalty:

The Vietnamese accounting firm committing any of the violations mentioned in Clause 2 of this Article shall have its certificate of eligibility to provide accounting services suspended for 1-3 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.