What is an account in Vietnam? What are 03 requirements for an account in Vietnam?
What is an account in Vietnam?
The domestic account is stipulated in Clause 1, Article 17 of Circular 111/2021/TT-BTC as follows:
Article 17. Account
1. The account is used to record and account for tax management business transactions that arise, ensuring a regular, continuous, and systematic reflection and control of the results of tax management activities conducted by tax authorities at all levels.
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The domestic account is an account used to record and account for tax management business transactions that arise, ensuring a regular, continuous, and systematic reflection and control of the results of tax management activities conducted by tax authorities at all levels.
What is an account in Vietnam? (Image from the Internet)
What is the structure of an account in Vietnam?
The structure of the domestic account is stipulated in Clause 2, Article 17 of Circular 111/2021/TT-BTC as follows:
Article 17. Account
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- The account is fixedly defined in structure and unified, comprising 06 independent code segments, each segment containing corresponding values to serve detailed accounting of economic transactions arising according to the requirements of tax management and state budget management.
The names of each code segment are defined as follows: Collection agency code, Administrative area code, Program code, Subitem code, Reserve code, and Account code. The number of characters in the segments Collection agency code, Administrative area code, Program code, Subitem code is standardized according to Article 28 of Circular No. 77/2017/TT-BTC dated July 28, 2017 by the Ministry of Finance, guiding state budget accounting policies and State Treasury operations.
- Specific values of the code segments in the account are assigned once and only once in the tax accounting subsystem (no reassigning of values that have been used in the past), except for special cases as prescribed by competent state agencies. Each value is uniquely set up throughout the operation period of the tax accounting subsystem.
Specific values for each code segment are stipulated in Articles 19, 20, 21, 22, 23, 24 of this Circular.
- Principle of determining and accounting for the account
a) Based on the determination method of input information values of the tax accounting subsystem prescribed in Appendix I issued with this Circular, the taxpayer obligation management subsystem automatically supplements information on the code segments corresponding to each tax management transaction as prescribed in Clause 1, Article 13 of this Circular.
b) For each determined code segment, accountants perform accounting to the most detailed value. The system will automatically supplement information for the corresponding aggregate codes. The balance of the account by aggregate code is the total balance of accounts by detailed code.
The account is fixedly defined in structure and unified, comprising 06 independent code segments, each segment containing corresponding values to serve detailed accounting of economic transactions arising according to the requirements of tax management and state budget management.
The names of each code segment are defined as follows:
+ Collection agency code,
+ Administrative area code,
+ Program code,
+ Subitem code,
+ Reserve code,
+ Account code.
The number of characters in the segments Collection agency code, Administrative area code, Program code, Subitem code is standardized according to Article 28 of Circular 77/2017/TT-BTC guiding state budget accounting policies and State Treasury operations.
What are 03 requirements for an account in Vietnam?
The requirements of the domestic account are stipulated in Article 18 of Circular 111/2021/TT-BTC as follows:
(1) The account content must be designed to comply with the State Budget Law 2015, the Accounting Law 2015, the Tax Administration Law 2019, the organization of the tax accounting apparatus, and the organization of information of tax agencies at all levels.
(2) Reflect fully the economic and financial activities related to tax management operations and payment with the state budget of tax agencies at all levels.
(3) Facilitate the collection, processing, exploitation, and provision of information through the application of information technology, ensuring the capability for automatic data exchange, transmission, and receipt concerning state budget management within the Finance sector between the tax accounting subsystem and information systems on state budget management of the Ministry of Finance, State Treasury.
