What is the form for notes to financial statements in Vietnam according to Circular 200?

What is the form for notes to financial statements in Vietnam according to Circular 200?

Pursuant to Clause 1, Article 115 of Circular 200/2014/TT-BTC stipulating the purpose of the notes to financial statements as follows:

- The notes to financial statements is an integral part of the enterprise's Financial Statements, used to describe narratively or to provide a detailed analysis of the numerical information presented in the Balance Sheet, the Income Statement, the Cash Flow Statement, as well as other necessary information required by specific accounting standards.

- The notes to financial statements can also provide other information if the enterprise deems it necessary for the truthful and reasonable representation of the Financial Statements.

At the same time, pursuant to Article 100 of Circular 200/2014/TT-BTC stipulating the enterprise's Financial Statement system, accordingly, depending on the type of financial report, there will be corresponding notes to financial statementss as follows:

- For the annual Financial Statements: The notes to financial statements is Form No. B 09 - DN.

Download Form No. B 09 - DN word file.

Download Form No. B 09 - DN excel file.

- For interim Financial Statements: The selective notes to financial statements is Form No. B 09a – DN.

Download Form No. B 09a – DN.

What is the form for notes to financial statements in Vietnam according to Circular 200? (Image from the Internet)

What content must a note to financial statements include in Vietnam?

Pursuant to Point c, Clause 2, Article 115 of Circular 200/2014/TT-BTC stipulating that a note to financial statements must present the following content:

- Information on the basis of preparation and presentation of the Financial Statements and the specific accounting policies selected and applied for significant transactions and events;

- Presentation of information required by accounting standards not presented in other Financial Statements (Significant information);

- Providing supplementary information not presented in other Financial Statements, but necessary for faithfully and reasonably presenting the financial position of the enterprise.

What are penalties for underpaying tax due to incorrect financial statement in Vietnam?

Pursuant to Article 16 of Decree 125/2020/ND-CP regarding sanctions for incorrect declaration leading to underpayment of tax or an increase in exempted, reduced, or refunded tax as follows:

Sanctions for incorrect declaration leading to underpayment of tax or an increase in exempted, reduced, or refunded tax

1. A fine of 20% of the underreported tax amount or the excess tax exempted, reduced, or refunded compared to the regulation applies to any of the following acts:

a) Incorrect declaration of tax basis or deductible tax amount or incorrect identification of a case eligible for tax exemption, reduction, or refund leading to underpayment of tax or an increase in exempted, reduced, or refunded tax, but economic transactions have been fully reflected in the legitimate accounting system, invoices, and vouchers;

b) Incorrect declaration reducing the tax payable or increasing the tax refund, exempted, or reduced amount not falling under the case specified in point a of this clause, but the taxpayer proactively rectified the declaration and fully paid the underreported amount to the state budget before the tax authority completed the tax inspection or audit at the taxpayer's premises;

c) Incorrect declaration reducing the tax payable or increasing the tax refund, exempted, or reduced amount, which the competent authority identified as tax evasion in inspection, audit records, but it was the taxpayer's first administrative violation on tax evasion after rectification and full payment into the state budget before the authority's sanction decision, where the tax authority has recorded it as an incorrect declaration leading to insufficient tax;

d) Incorrect declaration leading to underpayment of tax or an increase in exempted, reduced, or refunded tax for related transactions, but the taxpayer has prepared a market pricing dossier or prepared and submitted the annexes as regulated on tax management for enterprises with related transactions;

đ) Usage of illegitimate invoices, vouchers for accounting purchase values of goods and services leading to reduced payable tax or increased refunded, exempted, or reduced tax when detected in tax audits, the buyer can prove that the usage violation of invoices, vouchers belongs to the seller while the buyer has fully accounted as per regulations.

2. Remedial measures:

a) Oblige to pay the full underreported tax amount, excess refunded, exempted, reduced tax, and late tax payments into the state budget for violations specified in clause 1 of this Article.

If the limitation period for sanctioning has expired, the taxpayer is not fined under the regulations in clause 1 of this Article, but must fully pay the underreported tax amount and excess refunded, exempted, reduced tax and late tax payments into the state budget as specified in clause 6, Article 8 of this Decree;

b) Oblige to adjust the loss, the input VAT deductible to the next period (if any) for violations specified in clause 1 of this Article.

3. In case of taxpayer's incorrect declaration actions as per point a, b, d in clause 1 of this Article not leading to underpayment, increase of tax exempted, reduced, or yet refunded tax, it will not be fined according to this Article but sanctioned according to clause 3, Article 12 of this Decree.

Thus, an enterprise is penalized with a 20% fine on the underreported tax amount or the refunded tax amount and is compelled to pay the full underreported tax amount and late tax payment into the state budget.

If the limitation period for penalty has expired, the enterprise is not fined under the provisions in clause 1, Article 16 of Decree 125/2020/ND-CP but still must pay the full underreported tax amount and the late tax payment into the state budget.