Penalties related to 2020 financial statements

AACS We would like to introduce to readers the article Related fines Financial report 2020. Content related to the article includes: Which agency to submit financial statements to and Penalties for late submission of financial statements, etc.

Penalties related to 2020 Financial Reports

Applicable from May 1, 2018

According to Article 10, Article 11, Article 12 of Decree 41/2018/ND-CP dated March 12, 2018 of the Government: Regulations on sanctioning administrative violations in the field of accounting and independent auditing, specifically as follows:

Article 10. Penalties for violations of regulations on accounting accounts

– Fine from 5,000,000 VND to 10,000,000 VND for one of the following acts:

a) Accounting not according to the prescribed contents of the accounting account;

b) Make changes to the content and accounting method of an accounting account or open an additional accounting account that must be approved by the Ministry of Finance but has not yet been approved.

– Fine from 10,000,000 VND to 20,000,000 VND for failure to properly implement the accounting account system issued or approved by the Ministry of Finance.

Article 11. Penalties for violations of regulations on preparation and presentation financial report

– Fine from 5,000,000 VND to 10,000,000 VND for one of the following acts:

a) Prepare financial reports with incomplete content or incorrect forms as prescribed;

b) Financial statements do not have the signature of the preparer, chief accountant, in charge of accounting or the legal representative of the accounting unit.

– Fine from 10,000,000 VND to 20,000,000 VND for one of the following acts:

a) Incomplete preparation of financial reports according to regulations;

b) Applying a financial reporting form different from the provisions of accounting standards and regimes unless approved by the Ministry of Finance.

– Fine from 20,000,000 VND to 30,000,000 VND for one of the following acts:

a) Failure to prepare financial reports according to regulations;

b) Prepare financial statements inconsistent with data in accounting books and accounting documents;

c) Preparing and presenting financial statements that do not comply with accounting regimes and accounting standards.

– Fine from 40,000,000 VND to 50,000,000 VND for one of the following acts:

a) Falsifying financial reports, falsifying data on financial reports but not to the extent of criminal prosecution;

b) Agreeing or forcing others to falsify financial reports or declare false data on financial reports but not to the extent of criminal prosecution;

c) Intentionally, agreeing or forcing others to provide or confirm false information and accounting data but not to the extent of criminal prosecution.

– Remedial measures:

a) Compulsory preparation and presentation of financial statements in accordance with accounting regimes and accounting standards for violations specified in Clause 3 of this Article;

b) Forced destruction of falsified or false financial reports for violations specified in Clause 4 of this Article.

Article 12. Penalties for violations of regulations on submission and disclosure of financial reports

– Fine from 5,000,000 VND to 10,000,000 VND for one of the following acts:

a) Submitting financial reports to competent state agencies less than 03 months behind the prescribed deadline;

b) Publicizing financial statements less than 03 months later than the prescribed deadline.

– Fine from 10,000,000 VND to 20,000,000 VND for one of the following acts:

a) Publicizing financial statements with incomplete content as prescribed;

b) Submit financial reports to competent state agencies without attaching audit reports for cases where financial statements are required by law to be audited;

c) Submit financial reports to competent state agencies 3 months or more behind the prescribed deadline;

d) Publicize financial statements without accompanying audit reports in cases where the law requires financial statements to be audited;

d) Publicizing financial reports 3 months or more behind the prescribed deadline.

– Fine from 20,000,000 VND to 30,000,000 VND for one of the following acts:

a) Information and data published in financial reports are false;

b) Providing and publishing financial reports for use in Vietnam with inconsistent data within an accounting period.

– Fine from 40,000,000 VND to 50,000,000 VND for one of the following acts:

a) Failure to submit financial reports to competent state agencies;

b) Failure to disclose financial reports according to regulations.

– Remedial measures:

Forced submission and disclosure of audit reports attached to financial statements for violations specified in Points b and d, Clause 2 of this Article.

Attention:

– The maximum fine for an administrative violation in the field of accounting and independent auditing is 50,000,000 VND for individuals and 100,000,000 VND for organizations.

– This is the penalty for late submission of financial statements

– There is also a penalty for late submission of tax declaration documents (CIT finalization declaration, personal income tax...)

II. Before May 1, 2018

According to Article 9 and Article 10 of the Decree 105/2013/ND-CP As follows:

Article 9. Penalties for violations of regulations on accounting accounts

– Fine from 5,000,000 VND to 10,000,000 VND for one of the following acts:

a) Accounting does not comply with the prescribed content of the accounting account;

b) Modify the content and accounting method of accounting accounts issued by the Ministry of Finance or open additional accounting accounts in the selected level I accounting account system without the approval of the Ministry of Finance.

– Fine from 10,000,000 VND to 20,000,000 VND for one of the following acts:

a) Failure to properly apply the accounting account system prescribed for the unit's industry and field of operation;

b) Failure to properly implement the account system approved by the Ministry of Finance.

Article 10. Penalties for violations of regulations on financial reporting, settlement reports and disclosure of financial reports

– Fine from 5,000,000 VND to 10,000,000 VND for one of the following acts:

a) Failure to prepare a financial report or preparing a financial report with incomplete content as prescribed;

b) Prepare and present financial statements incorrectly; unclear; regulatory inconsistency;

c) Submit financial report, report settlement to competent state agencies late from 01 month to 03 months according to the prescribed time limit;

d) Publicizing financial reports with incomplete content as prescribed, including: Final settlement of annual state budget revenues and expenditures and other financial revenues and expenditures; situation of assets, liabilities, equity, results of business operations, appropriation and use of funds, and income of employees;

d) Publish financial reports late from 01 month to 03 months according to the prescribed time limit.

– Fine from 20,000,000 VND to 30,000,000 VND for one of the following acts:

a) Submitting financial reports and settlement reports to competent state agencies more than 03 months late according to the prescribed deadline;

b) Prepare financial statements inconsistent with data in accounting books and accounting documents;

c) Falsifying financial reports, falsifying data on financial reports;

d) Agree or force others to falsify financial reports or falsify data on financial reports;

d) Intentionally, agree or force others to provide or confirm false accounting information and data;

e) Making public financial statements more than 03 months late according to the prescribed deadline;

g) Information and data published in financial reports are false;

h) Submit financial reports to competent state agencies without attaching audit reports for cases where audit is required by law.

– Additional penalties:

a) Revoke the right to use the Accounting Practicing Certificate for accounting practitioners from 01 month to 03 months; Suspension of accounting service business for organizations providing accounting services from 01 month to 03 months violating the provisions of Points b, c, d, dd, g Clause 2 of this Article;

b) Confiscate financial reports for violations specified in Points b, c, d, dd Clause 2 of this Article.

If you want to know where your business must submit financial statements, please continue reading the article:

To which agencies must financial reports be submitted?:

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