Shall the data belonging to the prior accounting period be adjusted after the closing day of an accounting period in Vietnam?

What are regulations on closing an accounting period in Vietnam?

Based on the provisions at point b, clause 3, Article 8 of Circular 111/2021/TT-BTC, the closing of a tax accounting period is the setting of a closed status in the Tax Accounting Subsystem for a tax accounting period, preventing the update of tax accounting input data, the update of tax accounting documents, or the amendment or deletion of data in the tax accounting books of the Tax Accounting Subsystem.

When is the time for closing an accounting period in Vietnam?

The time for closing an accounting period in Vietnam is determined according to point c, clause 3, Article 8 of Circular 111/2021/TT-BTC as follows:

- The closing time of the tax accounting period is the last day of the third month from the end date of the accounting period.

+ If the closing day of the tax accounting period coincides with an official holiday, the accounting period closes on the next working day immediately following the holiday.

+ If due to objective reasons the closing time of the tax accounting period needs to be delayed, it must be approved by the General Department of Taxation.

From the end of the tax accounting period to the closing time of the tax accounting period, any tax accounting adjustment data is recorded according to fiscal year information provided in clauses 1 and 2, Article 8 of Circular 111/2021/TT-BTC.

- From the time of closing the accounting period until before the accounting tax report is approved by a competent authority, the tax authority can only adjust the fiscal year data following the request of the competent authority or correct errors found by the tax authority with the approval of the General Department of Taxation, according to fiscal year information provided in clauses 1 and 2, Article 8 of Circular 111/2021/TT-BTC.

What are regulations on closing an accounting period in Vietnam? (Image from Internet)

Shall the data belonging to the prior accounting period be adjusted after the closing day of an accounting period in Vietnam?

Based on the provisions at point c, clause 2, Article 8 of Circular 111/2021/TT-BTC regarding the accounting principles according to the domestic tax accounting period:

Tax Accounting Period

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2. Accounting Principles

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c) If during the preparation of tax accounting reports there arises the need to adjust management transactions that were recorded in the tax accounting period of the previous year, if done before the tax accounting period closes, adjustments can be recorded in the previous year's tax accounting period and are determined according to fiscal year information as stipulated in clause 1 of this Article.

d) After the close of the tax accounting period, adjustments to data within the tax accounting period of the previous year can only be made upon the request of a competent state authority and according to regulations specified in clauses 3 and 4, Article 27 and clauses 2 and 3, Article 30 of this Circular.

...

Thus, after the closing time of the tax accounting period, data adjustment within the tax accounting period of the previous year can only be carried out as follows:

(i) According to the request of a competent state authority; and

(ii) As regulated in clauses 3 and 4, Article 27 of Circular 111/2021/TT-BTC; and

- In cases where errors or omissions are identified in amounts to be collected, collected, still to be collected, refunded, refunded amounts, still to be refunded, exemptions, reductions, deferrals, or cancellations after the close of the tax accounting period until before the accounting tax report is approved by a competent authority, the correction of tax accounting records is done as follows:

+ For adjustments based on a request from a competent state authority: The tax accounting department shall prepare adjustment documents for errors to record adjustment data in the previous year's tax accounting books according to Article 14 of Circular 111/2021/TT-BTC.

+ For adjustments discovered by the tax authority: Adjustments to the previous year's tax accounting records are allowed only if approved by the General Department of Taxation with a specific explanation. If not approved, the accounting unit shall adjust data in the current year's tax accounting records according to "budget year" information as a basis for reporting in the current year's tax accounting report in accordance with point d, clause 3, Article 8 of Circular 111/2021/TT-BTC.

- After the tax accounting report has been approved by a competent authority, if adjustments arise concerning amounts previously due, collected, still due, to be refunded, refunded, required to be refunded, exempt, reduced, deferred, or canceled, these adjustments are to be made in the current period with "budget year" information as per point d, clause 3, Article 8 of Circular 111/2021/TT-BTC to identify.

(iii) According to the provisions in clauses 2 and 3, Article 30 of Circular 111/2021/TT-BTC, specifically:

- If errors or omissions are found after the close of the tax accounting period until before the tax accounting report is submitted to the competent state authority, the correction of the tax accounting report is carried out as follows:

+ For adjustments at the request of the competent authority, the data adjustment of the previous year's report is made according to the request and must include a specific explanation.

+ For adjustments due to errors found by the tax authority, data adjustment of the previous year's report is only permitted if approved in writing by the General Director of the General Department of Taxation with a specific explanation.

- After the tax accounting report has been approved by the competent state authority, if adjustments arise, the previous year's data adjustments are carried out in the current year's report.