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THE MINISTRY OF FINANCE
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SOCIALIST
REPUBLIC OF VIET NAM
Independence - Freedom – Happiness
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No. 155/1998/TT-BTC
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Hanoi, December 08, 1998
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CIRCULAR
PROVIDING ADDITIONAL GUIDANCE ON A NUMBER OF POINTS
IN CIRCULAR No. 60-TC/CDKT OF SEPTEMBER 1, 1997 OF THE MINISTRY OF FINANCE ON
THE ACCOUNTING AND AUDITING WORK AT FOREIGN - INVESTED ENTERPRISES AND
ORGANIZATIONS IN VIETNAM
To ensure the observance of Article 37 of the
Law on Foreign Investment in Vietnam, uniformly implement the provisions of
Circular No.60- TC/CDKT of September 1st, 1997 of the Ministry of Finance and
remove obstacles for foreign-invested enterprises and organizations in Vietnam
in the registration and application of accountancy regimes, the Ministry of
Finance hereby provides the following additional guidance:
1. Foreign - invested enterprises and
organizations (hereafter referred to as enterprises and organizations for
short) shall have to conduct the accounting and auditing work according to the
law on foreign investment in Vietnam, the provisions of Circular No.60-TC-CDKT
of the Ministry of Finance as well as guidance of this Circular .
2. On the system of applicable accountancy
regimes:
2.1. Enterprises and organizations shall have to
apply the Vietnam enterprise accountancy regime promulgated together with
Decision No. 1141-TC/QD/CDKT of November 1st, 1995 and the Circulars amending
and /or supplementing Decision No.1141-TC/QD/CDKT of Ministry of Finance.
As for insurance enterprises, the current
accountancy regime set for insurance enterprises (Decision No.1296-TC/QD/CDKT
of December 31st, 1996 of the Ministry of Finance) shall apply.
2.2. The Ministry of Finance shall consider and
allow the newly-established enterprises and organizations or the operating
enterprises and organizations to continue applying other common accountancy
regimes in the following cases where:
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2.3. Enterprises and organizations entitled to
delay the application of the Vietnam accountancy regime:
For enterprises and organizations which have not
yet prepared all necessary conditions for the shift to the Vietnam accountancy
regime (for example, they do not have due knowledge about the Vietnam
accountancy regime, their accountants have not been trained or their computer
software has not been rewritten yet), the Ministry of Finance shall consider
and allow them to delay shifting to the Vietnam accountancy regime to the end
of December 31, 2000 at the latest.
2.4. Enterprises and organizations shall be
exempt from shifting to the system of the Vietnam enterprise accountancy regime
if:
- Their operation duration in Vietnam is
expected to terminate in 3 years, counted from January 1, 1999 due to the
expiry of the investment licenses or the permits for the establishment of
branches of foreign lawyers' organizations in Vietnam.
- They are expected to terminate their operation
(due to the dissolution or bankruptcy...) within 6 months from January 1, 1999.
3. On the implementation of the accounting work:
3.1 . Accounting vouchers:
Accounting vouchers serving as bases for keeping
account books must be the original ones with full factors as prescribed. Copies
or faxes thereof shall not have the legal validity for keeping account books.
Forms of accounting vouchers to be made
regularly outside Vietnam by the capital contributing parties must be
registered in advance in the dossiers of accountancy regime registration while
the names of such vouchers as well as the contents of relevant economic transactions
must be translated into Vietnamese.
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a/ Enterprises and organizations where
accountancy has not been computerized shall have to register the use of a
ledger.
b/ Enterprises and organizations where
accountancy has been computerized shall have to register the use of a ledger
for handwritten entries of sum-up data of the accounting accounts.
The handwritten entries of data into the ledger
which has been registered with the local tax agency shall be conducted on a
quarterly and yearly basis, corresponding to the financial report-making
period. The balance recorded at the beginning of the year in the ledger is the
year end balance of the previous fiscal year, carried forward thereto.
Quarterly, the amount arising on each account shall be recorded correspondingly
to the total amount arising in such quarter. The quarter-end and year-end
balances shall be determined on the principle of calculating the balances of
each account.
c/ The local tax agency shall certify the number
of the ledger's pages, and affix stamp adjoining the ledger�s pages before it is used by the
concerned enterprise or organization.
3.3. Place of submitting financial reports:
Financial reports of foreign-invested enterprises and organizations shall be
submitted to the Ministry of Planning and Investment, the Ministry of Finance,
the Departments of Taxation, the Departments of Statistics of the localities
(where the enterprises are headquarters); the provincial Boards of Management
of Export Processing Zones, Industrial Parks and High-Tech Parks (for
enterprises operating in the export processing zones, industrial parks and
high-tech parks) and the parties contributing capital to joint ventures.
4. On the currency used in making accounting
records:
The currency used in accountancy recording shall
be Vietnamese dong. Foreign-invested enterprises may also use foreign
currency(ies) (the convertible ones) for making entries in account books and
accounting reports, provided that such foreign currency(ies) is(are) registered
in the applicable accountancy regimes and approved in writing by the Ministry'
of Finance before it(they) is(are) used.
The currencies other than the approved official
ones must be recorded in their original values and converted into the official
currency(ies) according to the actual exchange rates of the relevant economic
transactions or the actual average buying/ selling rates on the inter-bank
foreign exchange market, announced by the State Bank at the time the relevant
economic transactions arise.
The exchange rate differences shall be dealt
with according to the provisions of Circular No.74-TC/TCT of October 20, 1997
of the Ministry of Finance guiding the implementation of the tax-related
regulations applicable to different forms of investment under the Law on
Foreign Investment in Vietnam.
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Enterprises and organizations shall have to use Vietnamese
language in accountancy recording and making financial reports. In cases where
enterprises and organizations use two languages or more, one of such languages
must be the Vietnamese.
6. Enterprises and organizations which apply the
system of the Vietnam enterprise accountancy regime shall have the following
rights and responsibilities:
6.1. To choose on their own the forms of
accounting vouches, account books and accounting accounts, suited to their
activities; they may also open level-two accounts in the system of unavailable
accounts (where there are only level-one accounts), level-three and level-four
accounts of all kinds...; detailed account books; and accounting reports on
business administration according to the requirement for the management of
enterprises (without having to register them with the Ministry of Finance).
6.2. In cases where they wish to add level-one
accounts; rename the accounts; supplement the entry contents of the accounts;
or supplement the accounting vouchers, they shall have to give the reasons
therefor and explain in detail such changes in the dossiers of registration of
the applicable accountancy regimes, and can effect such changes only after they
are approved in writing by the Ministry of Finance.
7. On the time for shifting to the application
of the Vietnam accountancy regime:
The time for shifting to the application of the
Vietnam accountancy regime shall be January 1, 1999 for enterprises and
organizations with their fiscal year being the calendar year: and shall be the
time when the 1999 fiscal year begins, for enterprises with their fiscal year
being other than the calendar year.
8. Procedures for registration of the applicable
accountancy regimes:
8.1. Registration for the first time:
a/ If the enterprises and organizations strictly
follow the Vietnam enterprise accountancy regimes (without any amendment or
supplement thereto), they shall only have to send official dispatches for
registration to the Ministry of Finance, together with the copies of their
investment licenses or operation permits and the dossiers of the chief
accountants according to the regulations prescribed in Point 3.1.1 through
Point 3.1.4 of Circular No.60-TC/CDKT.
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c/ If they wish to apply other common
accountancy regimes, they shall have to clearly state in their registration
dossiers the reasons therefor as well as the whole contents of the accountancy
regime they want to apply (under the guidance of Point 3, Section D, Part III-
Circular No.60-TC/CDKT).
8.2. Registration of accountancy regime
shifting:
a/ Enterprises and organizations which want to
shift from foreign accountancy regimes to Vietnam�s
enterprise accountancy regimes without replacing their chief accountants, shall
only have to send an official dispatch registering the accountancy regime shift
(according to the form in Appendix No.1 of Circular No.60-TC/CDKT) and a copy
of the official dispatch approving the previously applied accountancy regime,
clearly stating the serial number of the granted investment license or
operation permit.
b/ Enterprises and organizations which, register
the accountancy regime shift with proposed amendments and/or supplements to the
to-be-applied accountancy regimes or the replacement of their chief accountants
shall, in addition to an official dispatch requesting the shift, have to submit
a written explanation of the reasons therefor as well as the contents of the
amendments and/ or supplements, and documents related to the chief accountants
as prescribed.
8.3. Request for the delayed application of the
Vietnam accountancy regime:
Enterprises and organizations shall have to send
official dispatches clearly stating the reasons for delaying the accountancy
regime shift, together with the copies of their investment licenses or
operation permits as well as the documents approving their previously applied
accountancy regimes, to the Ministry of Finance. Enterprises and organizations
shall have to commit to proceed with necessary procedures to ensure the shift
to the Vietnam accountancy regime within the time-limit approved by the
Ministry of Finance.
8.4. Cases of exemption from shifting to the
application of the Vietnam accountancy regime:
Enterprises and organizations shall have to
submit official dispatches clearly stating the reasons for the shift exemption,
together with the copies of their investment licenses or operation permits as
well as the document approving their previously applied accountancy regimes, to
the Ministry of Finance, with certification by the investment licensing
agencies or the operation permit issuing agencies (in case of the termination
of their operation due to the dissolution or bankrupcy).
9. On the procedures for accountancy regime
registration and registration dossier filing at export processing zones,
industrial parks or high-tech parks.
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- A dossier of registration of accountancy
regime shall be made in accordance with the regulations stated in Point 3.1.1
through Point 3.1.4 of Circular No.60-TC/CDKT of September 1, 1997 (4 complete
sets bound in a book).
- After an accountancy regime has been approved
for application to an enterprise, the dossier of that accountancy regime shall
be filed as follows:
+ 01 set - at the registering enterprise;
+ 01set - at the tax agency;
+ 01 set - at the Ministry of Finance; and
+ 01 set - at the management board of the export
processing zone, industrial park or high-tech park.
10. The Ministry of Finance requests enterprises
and organizations to take active measures to shift to the application of the
Vietnam accountancy regime. Concretely as follows:
- To organize study of and training and
fostering courses for the chief accountants, accountants and managerial
officials on the Vietnamese State's current regulations on the accounting and
auditing work at foreign-invested enterprises and organizations as well as on
the system of Vietnam enterprise accountancy regime.
- To well prepare material conditions on the
accounting systems and accounting books, write new or rewrite computer software
suited to the application of the Vietnam accountancy regime.
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12. This Circular takes effect 15 days after its
signing.
In the course of implementation of this
Circular, if any problems arise, they should be reported to the Ministry of
Finance for study and settlement.
FOR THE MINISTER OF
FINANCE
VICE MINISTER
Tran Van Ta