New regulations that greatly affect the accounting field from 2018

1. Electronic invoice

The Ministry of Finance is drafting the Decree on invoices for goods sale and service provision, which will replace Decree No. 51/2010/ND-CP, Decree No. 04/2014/ND-CP and amend Decree 51.

Some notable contents of the draft decree:

- It is now required to issue an invoice even if the payment for a purchase is below VND 200,000

This is the difference between electronic invoices and physical invoices. To be specific:

 It is not required to issue a physical invoice if the payment for a purchase is below VND 200,000, unless the buyer requests the invoice or the seller uses electronic invoices.

- More entities are required to use electronic invoices, for example:

+ Enterprises and business organizations that have used e-invoices under Decree No. 51/2010/ND-CP and Decree No. 04/2014/ND-CP. />
+ Enterprises that have used e-invoices having authentication codes from tax authorities under guidance of the Ministry of Finance.

+ Organizations other than enterprises but sell goods or provide services and need to issue invoices to their customers, etc.

2. Conditions for taking the examination for accounting practicing certificate

Circular No. 91/2017/TT-BTC (hereinafter referred to as Circular No. 91) on examination, issuance and management of auditing practicing certificates and accounting practicing certificates comes into force from October 15, 2017.

Accordingly, the mandatory period of working in the finance, accounting or audit field required when taking the exam has been shorten to 36 months (Circular No. 129/2012/TT-BTC requires 60 months).

In addition, Circular No. 91 also gives a better example of reservation of exam results:

E.g. A person has taken exam in 2017. His/her passed modules of 2017 will be reserved for 2018 and 2019.

If he/she has not met examination requirements in 2019, the examination results to be considered in 2020 will be those of 2018, 2019 and 2020; and so on.

3. New guidelines for public sector accounting

The Ministry of Finance promulgates Circular No. 107/2017/TT-BTC on guidelines for public sector accounting which supersedes Decision No. 19/2006/QD-BTC dated March 30, 2006.

Accordingly, Circular No. 107 provides specific guidelines on vouchers, accounts, accounting books; final accounts and financial statements.

In addition, the following contents are issued together with the Circular:

- The list of forms and methods of making compulsory accounting vouchers;

- The chart of accounts and methods of recognizing accounts;

- The list of forms and methods of making accounting books;

- The list of forms and methods of making and presenting financial statements and budget final accounts of entities prescribed in Article 2 of this Circular.

Circular No. 107/2017/TT-BTC comes into forces from November 24, 2017 and officially applies from January 1, 2018.

4. Increase of region-based minimum wages from January 01, 2018

Decree No. 141/2017/ND-CP providing for region-based minimum wages applied to employees working under labor contracts applies from January 01, 2018 as follows:

- Region I: VND 3,980,000/month (Increased VND 230,000 compared with current regulations in Decree No. 153/2016/ND-CP) />
- Region II: VND 3,530,000/month (Increased VND 210,000)

- Region III: VND 3,090,000/month (Increased VND 190,000)

- Region IV: VND 2,760,000/month (Increased VND 180,000).

5. Increase in income subject to compulsory social insurance

According to the provisions of the Law on social insurance 2014 and guidelines in Article 30 of Circular No. 59/2015/TT-BLDTBXH: />
- Currently: Monthly salary as the basis for payment of compulsory social insurance = Salary + allowances

- From January 01, 2018 onwards: Monthly salary as the basis for payment of compulsory social insurance = Salary + allowance + other additional payments

Note: Specific amounts of additional payments must be specified together with the salary agreed in the labor contract and paid regularly in each payment period.

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