Accounting and Auditing Alerts

In Vietnam, the accounting and auditing system is overseen by the Accounting and Auditing Policy Department, which falls under the supervision of the Ministry of Finance (“MOF”).

Companies operating in Vietnam are required to comply  with the Vietnam Accounting System (“VAS”).  The tax authorities will treat VAS  non-compliance as a basis for tax reassessment and imposition of penalties, including withdrawal of CIT incentives, disallowance of taxable expense  deductions for CIT purposes and disallowance of input VAT credits/refunds.

The fiscal year is the calendars year. A business has to notify the tax authorities if its fiscal year differs from the calendar year and in such case, only quarter ended fiscal year is allowed.

Accounting records are generally required to be maintained in Viet Nam currency and langugue.

Foreign-invested business entities can select a foreign currency to be used for their accounting records and can be combined with a commonly-used foreign language and Vietnamese language.

The annual financial statements of all foreign-invested business entities/state own companies and public companies must be audited by an independent auditing company operating in Vietnam. Audited annual financial statements must be completed within 90 days from the end of the financial year. These financial statements should be filed with the applicable licensing body, Ministry of Finance, local tax authority, Department of Statistics and other local authorities if required by law.

Vietnam has issued 26 accounting standards and    37 auditing standards which are primarily based on international standards with some local modifications.

This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors.

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