What is the regulation on the currency unit in tax accounting in Vietnam?

What is the regulation on the currency unit in tax accounting in Vietnam?

Based on Article 7 of Circular 111/2021/TT-BTC, the currency unit in tax accounting is stipulated as follows:

- The currency unit in tax accounting is the Vietnamese Dong, which is used to record tax accounting books, prepare and present tax accounting reports.

- In cases where tax authorities perform tax management procedures for taxpayers declaring and paying taxes in foreign currencies according to the provisions of the Tax Management Law 2019 and other guiding documents, the amounts must be converted into Vietnamese Dong for collecting input information for tax accounting to record in tax accounting books, prepare and present tax accounting reports in Vietnamese Dong. To be specific:

+ The conversion exchange rate for receivables in cases where taxpayers declare taxes in foreign currencies is the exchange rate stipulated by the Ministry of Finance (State Treasury) at the time of recording.

+ The conversion exchange rate for collected amounts in cases where taxpayers pay taxes in foreign currencies is the accounting rate on the state budget accounting documents transmitted from the State Treasury to the tax authority.

+ The conversion exchange rate for excess payments in foreign currencies offsetting state budget revenues or refunded from the state budget into Vietnamese Dong is the rate stipulated at point a.5 clause 1 Article 25 and clause 4 Article 46 of Circular 80/2021/TT-BTC.

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

When is the first accounting period of a newly-founded accounting unit determined in Vietnam?

According to clause 1 Article 8 of Circular 111/2021/TT-BTC as follows:

Tax accounting period

1. The tax accounting period is determined according to the calendar year, called the fiscal year, comprising 4 digits, specifically:

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

b) The first fiscal year for a newly established tax accounting unit is determined from the date the new establishment, division, separation, merger, or consolidation decision of the tax accounting unit takes effect until the end of December 31 of the calendar year.

c) The final fiscal year of a tax accounting unit when divided, separated, merged, consolidated, or dissolved is calculated from the beginning of January 1 of the calendar year to the end of the day before the decision of division, separation, merger, consolidation, or dissolution of the tax accounting unit takes effect.

d) The duration of the first and final fiscal years follows the guidance of the Accounting Law and its implementing documents.

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Thus, according to the regulation, the first fiscal year for a newly established tax accounting unit is determined from the effective date of the decision for new establishment, division, separation, merger, or consolidation of the tax accounting unit until the end of December 31 of the calendar year.

How long is a tax accounting report approved in Vietnam?

Based on clause 5 Article 29 of Circular 111/2021/TT-BTC, the deadline for tax accounting units to approve tax accounting reports is stipulated as follows:

Tax accounting report

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3. Preparing the tax accounting report

a) Before closing the tax accounting period, the tax accounting department is responsible for cooperating with tax management departments to reconcile and check recorded data to ensure accuracy with the operational records of different departments.

b) The tax accounting unit cooperates with the relevant State Treasury to check, reconcile, and adjust accounting data related to the collection and payment of the state budget as stipulated.

c) The tax accounting unit prepares the tax accounting report in electronic data form. The report is stored in electronic data and paper form at the tax accounting unit.

4. The Tax Department consolidates tax accounting reports of tax accounting units within the provincial jurisdiction, the Large Enterprise Tax Department consolidates tax accounting reports in the areas assigned to it by the Tax Department, and the General Department of Taxation consolidates tax accounting reports of tax accounting units nationwide.

5. The accounting unit at the Regional Tax Sub-department, Tax Sub-department must approve the tax accounting report no later than 20 days after closing the tax accounting period; the accounting unit at the Tax Department must approve the tax accounting report no later than 30 days after closing the tax accounting period.

6. The list, templates, and methods of preparing the tax accounting report are detailed in Appendix V attached to this Circular.

Thus, the accounting unit must approve the tax accounting report no later than 20 days after closing the tax accounting period for units that are Regional Tax Sub-departments, Tax Sub-departments, and no later than 30 days for units that are the Tax Department.