On November 16, 2021, the Government issued Decree 102/2021/ND-CP amending and supplementing decrees on administrative sanctions for violations in the fields of taxation, invoices, customs, insurance business, lottery business, management and use of public assets, practicing thrift and combating waste, national reserves, State Treasury, accounting, and independent auditing.
1. Points to note regarding penalties for accounting and auditing violations.
Article 5 of Decree 102/2021/ND-CP amending and supplementing a number of articles of Decree 41/2018/ND-CP dated March 12, 2018 of the Government on regulations on administrative sanctions in the field of accounting and independent auditing, includes several new contents that need to be noted as follows:
Amend and supplement Clause 3, Article 3 of Decree 41/2018/ND-CP to add an explanation regarding the time when the administrative violation ceases for the purpose of calculating the statute of limitations for penalties as follows:
- The time when an organization or individual completes the business process and job requirements as stipulated by law on accounting and independent auditing;
- When an organization or individual ceases the violation to comply with the regulations of accounting and auditing law, the competent authority for imposing administrative penalties will base its decision on the regulations of accounting and independent auditing law, the case file, documents, and circumstances of each specific case to determine whether the violation has ended or is ongoing.
Simultaneously, the following regulation is added: To determine whether an administrative violation has ended or is ongoing, in addition to relying on the regulations regarding the time of termination of the administrative violation to calculate the statute of limitations for penalties as mentioned above, the competent authority or person imposing administrative penalties shall base their assessment on the provisions of the law on accounting, independent auditing, records, documents, and the specific circumstances of each case to determine whether the violation has ended or is ongoing.
Additionally, amendments were made to several provisions related to fines in the fields of accounting, independent auditing, and the authority to impose administrative penalties for violations.
Decree 102/2021/ND-CP also amends and supplements many other decrees, including amending and supplementing several articles of Decree 125/2020/ND-CP dated October 19, 2020 of the Government on regulations on administrative penalties for violations of tax and invoice regulations, with some notable contents such as:
- The statute of limitations for administrative penalties related to invoices is 02 years (instead of 01 year as currently in effect).
- The regulations have been amended to include penalties for issuing invoices that do not contain all the mandatory information as required by law, with fines ranging from 4.000.000 VND to 8.000.000 VND,...
- A fine of VND 5.000.000 to VND 10.000.000 shall be imposed for the act of losing, burning, or damaging invoices that have been issued and declared for tax purposes during use or storage, except in cases stipulated in Clauses 1, 2, and 3 of Article 26 of Decree 125/2020/ND-CP.
2. Details of the full text
For full information Decree 102/2021/ND-CP and regulations that affect its financial accounting management operations.
VVietnam is a destination for a large amount of foreign investment, so tightening management, ensuring transparency in financial reporting, adhering to standards, and reflecting substance rather than form are mandatory requirements, as well as demanding that businesses enhance compliance in their production and business activities.