What are the principles of period-based accounting principles in Vietnam?

What are the principles of period-based accounting principles in Vietnam?

Based on Clause 2, Article 8 of Circular 111/2021/TT-BTC, the principles of period-based accounting principles are regulated as follows:

First, the tax accounting day is determined as the day of accounting record entry into the Tax Accounting Subsystem.

Second, the day of collecting tax accounting input information must adhere to the principle of the same day the tax management transaction arises or at the latest, the next day following the day the tax management transaction arises. Except for regulatory holidays, the information collection day is the next working day after the holiday.

Third, if during the tax accounting report preparation period, there are adjustments to tax management transactions already accounted into the tax accounting period of the previous year, adjustments must be accounted into the tax accounting period of the previous year if done before the tax accounting period close. These adjustments are determined by the accounting year information stipulated in Clause 1, Article 8 of Circular 111/2021/TT-BTC;

Fourth, after the tax accounting period closure, adjustments to data related to the previous year's tax accounting period are only executed upon request from a competent state authority and according to the provisions in Clauses 3 and 4, Article 27 of Circular 111/2021/TT-BTC and Clauses 2 and 3, Article 30 of Circular 111/2021/TT-BTC.

What are the principles of period-based accounting principles in Vietnam? (Image from the Internet)

When does the the tax accounting period close in Vietnam?

Based on Clause 3, Article 8 of Circular 111/2021/TT-BTC, the regulations pertaining to the opening and closing of the tax accounting period are as follows:

Tax Accounting Period

...

3. Opening and Closing of the Tax Accounting Period

a) Opening a tax accounting period involves establishing an open status on the Tax Accounting Subsystem from the start date of the tax accounting period as stated in Clause 1 of this Article, to perform data updates, input tax accounting information updates, tax accounting document updates, and accounting record entries or amendments, deletions on the tax accounting ledger of the Tax Accounting Subsystem.

b) Closing a tax accounting period involves setting a closed status on the Tax Accounting Subsystem for a tax accounting period so that tax accounting input data, tax accounting documents, and amendments or deletions cannot be updated on the tax accounting ledger.

c) The closure time of the tax accounting period is the last day of the third month from the end date of the accounting period. If the closure time coincides with a regulatory holiday, the closure day will be the next working day following that holiday. In cases necessitating postponement of the closure time due to objective reasons, approval from the General Department of Taxation is required.

From the end of the tax accounting period to the closure time, all tax accounting adjustments are accounted according to accounting year information stipulated in Clauses 1 and 2 of this Article.

From the closure time to before the tax accounting report is approved by a competent authority, tax authorities may only adjust accounting year data upon request from a competent authority or correct errors identified by the tax authority if approved by the General Department of Taxation, and account according to accounting year information as stipulated in Clauses 1 and 2 of this Article.

d) Errors in accounting data not adjusted in the above tax accounting period according to accounting year information must be accounted in the current tax accounting period and supplemented with budget year information with the value "01" to provide a basis for explanation on the current year's tax accounting report.

What is the content of tax accounting work in Vietnam?

Based on Article 6 of Circular 111/2021/TT-BTC, tax accounting work is one of the tax management functions of tax authorities at various levels, carried out continuously and systematically according to tax management procedures on the Tax Management Application System, including the Tax Accounting Subsystem.

Tax accounting work includes the following tasks:

- Collect tax accounting input information, prepare tax accounting documents

+ Collect tax accounting input information automatically performed by the Tax Accounting Subsystem connected to the Taxpayer Obligation Management Subsystem according to regulations at Articles 12, 13, 14, 15 of Circular 111/2021/TT-BTC to fully determine the accounting entries of each tax accounting account.

+ If tax accounting records are not through the tax accounting input information collection process of the Tax Accounting Subsystem, officials handling tax accounting tasks prepare tax accounting documents according to Article 16 of this Circular.

- Tax accounting record entry is the job of tax accounting automatically performed by the Tax Accounting Subsystem to record tax accounting input information and tax accounting documents as in Clause 1 of this Article to conduct tax accounting, reflect tax management activities arising in the tax accounting period, including opening, recording, closing, correcting tax accounting books according to regulations in Section 3, Chapter II of Circular 111/2021/TT-BTC.

- Preparing tax accounting reports is the job of tax accounting automatically executed by the Tax Accounting Subsystem or by officials handling tax accounting tasks to summarize the tax management results of tax authorities at different levels (including taxes payable, collected, remaining to be collected, to be refunded, refunded, remaining to be refunded, exemptions, reductions, debt freezing, debt write-off) according to the provisions in Section 4, Chapter II of Circular 111/2021/TT-BTC.

- Storing and providing tax accounting information, documents is the job of tax accounting performed following the provisions of Article 9 of Circular 111/2021/TT-BTC.