Can accounting tax documents used for management and operation by an accounting unit be recorded in accounting books in Vietnam?

Shall accounting tax documents used for management and operation by an accounting unit be recorded in accounting books in Vietnam?

*Case where accounting documents must be retained for at least 5 years (Based on Article 12 Decree 174/2016/ND-CP).

[1] Accounting vouchers not used directly for book entries and preparation of financial statements, such as receipts, payment slips, warehouse entry, and exit slips, are not kept in the accounting document files of the accounting department.

[2] Accounting documents used for management and operation by an accounting unit are not directly recorded in accounting books and not used for preparing financial statements.

[3] If the accounting documents stipulated in paragraphs (1) and (2) above are required by other laws to be retained for more than 5 years, storage shall comply with those regulations.

*Case where accounting documents must be retained for at least 10 years (Article 13 Decree 174/2016/ND-CP)

[1] Accounting vouchers directly used to record accounting books and prepare financial statements, detailed listings, detailed ledgers, general ledgers, monthly, quarterly, and annual financial statements of the accounting unit, settlement reports, self-evaluation accounting reports, destruction records of archived accounting documents, and other documents directly used for bookkeeping and financial reporting.

[2] Accounting documents related to the liquidation and sale of fixed assets; inventory and asset evaluation reports.

[3] Accounting documents of the project owner, including accounting documents for annual periods and accounting documents on settlement reports of completed projects in groups B, C.

[4] Accounting documents related to establishment, division, separation, merger, consolidation, change of ownership, change of business type or unit, dissolution, bankruptcy, cessation of operation, project completion.

[5] Documents related at the unit like audit files of the State Audit, inspection, examination, supervision files of competent state agencies or files of independent audit organizations.

[6] Other documents not specified in Section 1.1 and 1.3 of this document.

[7] If the accounting documents stipulated in paragraphs (1), (2), (3), (4), (5), (6) above are required by other laws to be retained for more than 10 years, storage shall comply with those regulations.

*Case where accounting documents must be retained permanently (Article 14 Decree 174/2016/ND-CP)

[1] For accounting units in the field of state accounting, documents that must be retained permanently include the annual State budget settlement report approved by the National Assembly, local budget settlement reports approved by councils at various levels; files, and completion settlement reports of projects in group A, national important projects; other accounting documents of historical nature with significant economic, security, or defense meaning.

The determination of other accounting documents that must be retained permanently is decided by the legal representative of the accounting unit, the sector, or locality based on their historical nature and significant economic, security, or defense meaning.

[2] For business operations, accounting documents that must be retained permanently include accounting documents that have historical significance and important economic, security, or defense meaning.

The head or legal representative of the accounting unit shall decide the determination of accounting documents to be retained permanently based on their historical and long-term significance, and direct which department, either the accounting or another, to retain under original or other forms.

[3] The permanent retention period must be over 10 years until accounting documents are naturally destroyed.

Thus, the accounting documents used for management and operation by the accounting unit are not directly recorded in accounting books and not used for preparing financial statements.

Can accounting tax documents used for management and operation by an accounting unit be recorded in accounting books in Vietnam? (Image from the Internet)

What are the regulations on the timing for calculating the storage period of accounting tax documents in Vietnam?

Based on Article 15 Decree 174/2016/ND-CP, the timing for calculating the storage period of accounting documents is as follows:

[1] The timing for calculating the storage period for accounting documents stipulated in Section 1.1, paragraph (1), (2), (7) Section 1.2, and Section 1.3 above is calculated from the end date of the annual accounting period.

[2] The timing for calculating the storage period for the accounting documents stipulated in paragraph (3) Section 1.2 above is calculated from the date the completion settlement report is approved.

[3] The timing for calculating the storage period for accounting documents related to the establishment of a unit is calculated from the date of establishment; accounting documents related to division, separation, merger, consolidation, change of ownership form, change of type are calculated from the date of division, separation, merger, consolidation, change of form, or type; accounting documents related to dissolution, bankruptcy, cessation of operation, project completion are calculated from the date the procedures for dissolution, bankruptcy, cessation of operation, project completion are completed; accounting documents related to audit, inspection, and examination files of competent authorities are calculated from the date of the audit or examination report or conclusion.

Should accounting documents be kept as originals or copies in Vietnam?

According to regulations at Article 9 Decree 174/2016/ND-CP, as follows:

Preservation, storage, and provision of accounting documents and information

1. Stored accounting documents must be the original as prescribed by law for each type of accounting document, except in the following cases:

a) Accounting documents specified in Clause 2, Clause 3 Article 6 of this Decree have only one original but need to be stored in multiple units, apart from the unit holding the original, the other units may store copied accounting documents.

b) During the time accounting documents are temporarily held or confiscated under Clause 4 Article 6 of this Decree, the accounting unit must store copied accounting documents accompanied by the "Handover Record of Accounting Documents" according to Clause 2 Article 7 of this Decree.

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Thus, accounting documents must be stored as originals according to legal provisions for each type of accounting document except in the following cases:

- For accounting documents with only one original that need to be stored in multiple units, apart from the unit holding the original, the other units may store copied accounting documents.

- Accounting documents lost or destroyed due to objective causes as prescribed;

- Accounting documents temporarily held or confiscated;