Headlines 23/11/2017 08:36 SA

10 new regulations that accountants should know

Quý Nguyễn

THƯ VIỆN PHÁP LUẬT would like to keep you informed of 10 significant changes in regulatory policies regarding the accounting sector in order to help our members to "eliminate legal risks and seize opportunities for wealth":

1. New public sector accounting system

The Ministry of Finance has recently issued the Circular No. 107/2017/TT-BTC providing guidance on the public sector accounting system which replaces the old one prescribed by the Decision No. 19/2006/QD-BTC dated March 30, 2006.

This Circular provides specific instructions regarding accounting documents, records and accounts, final settlement reports and financial statements.

In addition, the followings are attached in this Circular:

- List of forms and methods for establishing compulsory accounting documents;

- Chart of accounts and bookkeeping methods;

- List of sample accounting records and methods for establishing accounting records;

- List of sample reports and methods for establishment and representation of financial statements and final settlements of budget of accounting units as prescribed by Article 2 of this Circular.

The Circular No. 107/2017/TT-BTC is set to commence on November 24, 2017 and officially applied from January 1, 2018.

2. Downloading the latest declaration support (HTKK) application version 3.8.0  

Recently, the General Department of Taxation has issued a notification of downloading upgraded tax-related applications. In particular, users may use the following latest versions:

- Bar code declaration (HTKK) application version 3.8.0

- Bar code declaration form (NTK_TMS) version 2.5.3

- Online tax declaration (iHTKK) version 3.6.0

- XML-formatted tax declaration reader, verification and tax notification (iTaxViewer) version 1.4.2

- Electronic tax (eTax) service version 1.3.0

- Centralized tax management service (TMS) version 2.4

Meanwhile, downloading the newest version of iHTKK, eTAX, HTKK, NTK_TMS application is aimed at getting an updated schedule of taxes on (fees for) natural resource consumption, special consumption, environmental protection, and those appropriate to new sub-items referred to in the Circular No. 300/2016/TT-BTC.  

Application upgrading time: From 09.00 a.m. (November 11, 2017) to 00.00 a.m. (November 12, 2017).

3. Region-specific minimum pay rate is increased from January 1, 2018

On August 7, 2017 the National Payroll Council has officially agreed on region-specific minimum pay rates of 2018 (which are set to commence on January 1, 2018) according to the following table:


Minimum pay rate

Increase (percent) compared to 2017


VND 3,980,000 / month



VND 3,530,000 / month



VND 3,090,000 / month



VND 2,760,000 / month


4. Taking a test to obtain the accountant certificate in accordance with new regulations

From now on, participation in a test to qualify for an accountant certificate will be subject to new regulations laid down in the Circular No. 91/2017/TT-BTC (into force from October 15, 2017). Pursuant to this Circular, there will be certain new regulations that candidates should take into consideration, including:

- Eligibility requirements for participation in a test for either an accountant certificate or an auditor certificate shall be combined to apply for both of them, instead of each subject to separate regulations. 

- The period of employment in the finance, accountancy and audit sector, which is considered as one of the eligibility requirements, will be decreased to 36 months (contrary to the period of 60 months stipulated by the Circular No. 129/2012/TT-BTC). 

Furthermore, the Circular No. 91 will give an example to explain the situation in which a test result is maintained for later use.

Example: If a candidate takes a test in 2017, passing test scores will be maintained for later use in 2018 and 2019.

If till 2019 that candidate has not yet passed the test, his/her result of test taken in 2020 which is used for determining pass or fail will be the aggregate of test results achieved in 2018, 2019 and 2020; the similar process is repeated for 2021 onwards.   

5. More other incomes are subject to the social security tax

As provided by the 2014 Law on Social Security and guidance given in Article 30 of the Circular No. 59/2015/TT-BLDTBXH,

- According to regulations now in force:

Monthly pay subject to the compulsory social security tax = pay rates + allowances

- According to regulations in effect from January 1, 2018:

Monthly pay subject to the compulsory social security tax = base pay rate + allowances + Supplements

Note: With respect to calculation of supplements, specific monetary amounts and agreed pay rates must be defined and they must be those paid regularly in each pay period.

6. Parental benefit is increased from July 1, 2018

Recently, the National Assembly has officially passed the Resolution on the state budget estimate for 2018.

Pursuant to this Resolution, the National Assembly mandates the Government to make a change in the base pay rate from VND 1,300,000/month to VND 1,390,000/month; the date of commencement is July 1, 2018. 

Hence, from the date of increase in the base pay rate, the rate of parental benefit will increase as well;

The amount of benefit paid for each birth or adoption will be increased from VND 2,600,000 to VND 2,780,000 (equivalent to the increasing rate of 6.923%).

7. More persons are required to participate in the compulsory social security program

From January 1, 2018 employees working under employment contracts having the term of 01 month to under 03 months will be obliged to participate in the compulsory social security program.

Additionally, from this date,  employees who are foreign nationals working in Vietnam and holding work permits or practicing certificates or licenses issued by Vietnamese competent authorities will be entitled to participate in the compulsory social security program in accordance with the Government's regulations in force.

8. Persons who are obliged to pay but refuse to pay social security contributions for employees will be given a prison sentence

The 2015 Penal Code has supplementing regulations on crimes involving evasion of payment of social security contributions for employees as a manner to restrict the amount of outstanding social security debts owed.  

Hence, it is clear that persons subject to this regulation are those who are obliged to pay social security contributions for employees..."  Though there is none of specific instructions yet, the accountant who is usually assigned to directly deal with issues relating to payment of social security contributions for employees should become aware of this regulation.

9. Any person violating the regulation on employment of workers under 16 will face up to 12 years in jail.

10. The period (in years) of social security contribution is extended in order for beneficiaries to receive the maximum retirement pension rate

As prescribed by the 2014 Law on Social Security, the maximum retirement pension rate equals 75% multiplied by the monthly average pay rate paid as the social security contribution

Below is the chart in which the periods (in years) during which employees must pay social security contributions to be entitled to the maximum retirement pension rate before and after January 1, 2018 are compared according to regulations laid down in paragraph 1 and 2 Article 56 of the 2014 Law on Social Security:   


According to regulations currently in force

According to regulations in force from January 1, 2018

Female employee

From 25 years of payment of social security contribution

From 30 years of payment of social security contribution

Male employee

From at least 30 years of payment of social security contribution

From 31 years of payment of social security contribution

(if he retires in 2018)

From 32 years of payment of social security contribution

(if he retires in 2019)

From 33 years of payment of social security contribution

(if he retires in 2020)

From 34 years of payment of social security contribution

(if he retires in 2021)

From 35 years of payment of social security contribution

(if he retires in 2022 or later)



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