What is the currency unit used in tax accounting in Vietnam?

What is the currency unit used in tax accounting in Vietnam?

Pursuant to Article 7 of Circular 111/2021/TT-BTC, the regulations on currency units in tax accounting are as follows:

- The currency unit in tax accounting is the Vietnamese Dong, used for recording tax accounting books, and preparing and presenting tax accounting reports.

- In cases where the tax authority during the execution of tax management duties for taxpayers who declare and pay taxes in foreign currencies in accordance with the Law on Tax Management and guidelines, must convert into Vietnamese Dong when collecting input information for tax accounting to record tax accounting books, and prepare and present tax accounting reports in Vietnamese Dong.

To be specific:

+ The exchange rate for amounts receivable in cases where the taxpayer declares taxes in foreign currencies is the accounting exchange rate prescribed by the Ministry of Finance (State Treasury) at the time of accounting.

+ The exchange rate for amounts collected in cases where the taxpayer pays taxes in foreign currencies is the accounting exchange rate on the accounting document transmitted from the State Treasury to the tax authority.

+ The exchange rate for surplus payments in foreign currencies processed for offsetting the state budget or refunded by the state budget into Vietnamese Dong is the rate specified in point a.5 clause 1 Article 25 and clause 4 Article 46 of Circular 80/2021/TT-BTC.

What is the currency unit used in tax accounting in Vietnam? (Image from the Internet)

What is the content of tax accounting in Vietnam?

Pursuant to Article 6 of Circular 111/2021/TT-BTC, the regulation on tax accounting is one of the tax management functions of the tax authorities at all levels performed 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:

- Collecting input information for tax accounting and preparing tax accounting documents

+ Collecting input information for tax accounting is the work of tax accounting performed automatically by the Tax Accounting Subsystem connected with the Taxpayer Obligation Management Subsystem according to Articles 12, 13, 14, 15 of Circular 111/2021/TT-BTC to fully determine the accounting content of each tax accounting account.

+ In cases where the tax accounting books are not recorded through the process of collecting input information from the Tax Accounting Subsystem, officials performing tax accounting work prepare tax accounting documents as prescribed in Article 16 of this Circular.

- Recording tax accounting books is the work of tax accounting performed automatically by the Tax Accounting Subsystem to record input information for tax accounting and tax accounting documents in clause 1 of this Article to account for tax accounting, reflecting tax management transactions arising during the tax accounting period, including opening books, recording books, closing books, amending tax accounting books as prescribed in Section 3, Chapter II of Circular 111/2021/TT-BTC.

- Preparing tax accounting reports is the work of tax accounting performed automatically by the Tax Accounting Subsystem or by officials performing tax accounting work to summarize the results of tax management activities of the tax authorities at all levels (including tax receivable, collected, remaining receivable, refundable, refunded, remaining refundable, exempted, reduced, debt rescheduled, debt written off) as prescribed in Section 4 Chapter II of Circular 111/2021/TT-BTC.

- Storing and providing tax accounting information and documents is the work of tax accounting performed according to Article 9 of Circular 111/2021/TT-BTC.

How to determine the tax accounting period in Vietnam?

Pursuant to Article 8 of Circular 111/2021/TT-BTC on tax accounting periods:

Tax Accounting Period

1. The tax accounting period is determined according to the calendar year, called the accounting year, consisting of 4 characters, specifically:

a) The tax accounting period is calculated from the beginning of January 1st to the end of December 31st of the calendar year.

b) The first tax accounting period for a newly established tax accounting unit is determined from the effective date of the decision on new establishment, division, separation, consolidation, or merger of the tax accounting unit to the end of December 31st of the calendar year.

c) The final tax accounting period for a tax accounting unit when divided, separated, consolidated, merged, or dissolved is calculated from the beginning of January 1st of the calendar year to the day before the effective date of the decision on division, separation, consolidation, merger, or dissolution of the tax accounting unit.

d) The duration of the first and last tax accounting periods is implemented following the Law on Accounting and related guiding documents.

The tax accounting period is determined according to the calendar year, called the accounting year, consisting of 4 characters. To be specific:

- The tax accounting period is calculated from the beginning of January 1st to the end of December 31st of the calendar year.

- The first tax accounting period for a newly established tax accounting unit is determined from the effective date of the decision on new establishment, division, separation, consolidation, or merger of the tax accounting unit to the end of December 31st of the calendar year.

- The final tax accounting period for a tax accounting unit when divided, separated, consolidated, merged, or dissolved is calculated from the beginning of January 1st of the calendar year to the day before the effective date of the decision on division, separation, consolidation, merger, or dissolution of the tax accounting unit.

- The duration of the first and last tax accounting periods is implemented according to the guidance of the 2015 Law on Accounting and related guiding documents.