When is the time of close of an accounting period in Vietnam? When does the new tax accounting unit open the domestic tax accounting books in Vietnam?

When is the time of close of an accounting period in Vietnam?

Based on point c, clause 3, Article 8 of Circular 111/2021/TT-BTC stipulates the tax accounting period as follows:

Tax Accounting Period

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3. Opening and closing of the tax accounting period

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c) The closing time of the tax accounting period is the last day of the third month from the end of the accounting period. In cases where the closing time of the tax accounting period coincides with a regulated holiday, the closing day will be the next working day following the holiday. In cases due to objective reasons that necessitate postponing the closing time of the tax accounting period, approval from the General Department of Taxation is required.

From the end of the tax accounting period to the closing of the tax accounting period, all adjusted tax accounting data are accounted for according to the information of the accounting year stipulated in clauses 1 and 2 of this Article.

From the closing time of the accounting period until before the tax accounting report is approved by a competent agency, the tax authority is only allowed to adjust the year's accounting data upon request from a competent agency or correct data errors discovered by the tax authority if approved by the General Department of Taxation and accounted for based on the information of the accounting year stipulated in clauses 1 and 2 of this Article.

Thus, the time of close of an accounting period is determined as follows:

- The time of close of an accounting period is the last day of the third month from the end of the accounting period.

- If the closing time of the tax accounting period coincides with a regulated holiday, the closing day will be the next working day following the holiday.

- If for objective reasons it is necessary to postpone the closing time of the tax accounting period, it must be approved by the General Department of Taxation.

When is the time of close of an accounting period in Vietnam? (Image from the Internet)

When does the new tax accounting unit open the domestic tax accounting books in Vietnam?

Based on clause 1, Article 26 of Circular 111/2021/TT-BTC stipulates as follows:

Opening, recording, and closing tax accounting books

1. Tax accounting books must be opened at the beginning of the tax accounting period; for newly established tax accounting units, the tax accounting books must be opened from the date of establishment.

2. The tax accounting unit must base on the input information data collected for tax accounting, and tax accounting documents to record the tax accounting books. The recording of tax accounting books must be promptly, clearly, and comprehensively according to the contents of each tax accounting book. The information and data reflected in the tax accounting books must be accurate, truthful, and consistent with the input information data collected for tax accounting, tax accounting documents on amounts to be collected, collected, still to be collected, to be refunded, refunded, still to be refunded, exemptions, reductions, debt standstill, and debt write-offs.

3. Tax accounting books are recorded following the chronological sequence of collecting input information data for tax accounting, and tax accounting documents. It is strictly prohibited to record tax accounting books for any information not through collecting input information for tax accounting or tax accounting documents. Tax officials responsible for updating data into the tax management application system are accountable for the accuracy of the updated information, ensuring it reflects fully, promptly, accurately, truthfully, continuously, and systematically all transactions related to tax management.

4. The tax accounting unit must close the tax accounting books at the end of the accounting period before compiling the tax accounting report.

Therefore, the time to open tax accounting books for a newly established tax accounting unit is from the date of establishment of that tax accounting unit.

When is the tax accounting recorded in Vietnam?

According to clause 2, Article 8 of Circular 111/2021/TT-BTC stipulating accounting principles for each period. Specifically:

Tax Accounting Period

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2. Accounting principles for each period

a) The day of tax accounting is determined as the day the accounting entry is recorded into the tax accounting subsystem.

b) The day of collecting input information for tax accounting must ensure it is within the day the tax management transaction arises or at the latest the next day following the day the tax management transaction arises. Except for regulated holidays, the day of collecting information is the next working day of the holiday.

c) In case, during the preparation of tax accounting reports, adjustments arise for tax management transactions that have been recorded into the tax accounting period of the previous year, if done before the closing time of the tax accounting period, adjustments are accounted in the tax accounting period of the previous year and determined by the accounting year information stipulated in clause 1 of this Article.

d) After the closing time of the tax accounting period, adjustments related to the tax accounting period of the previous year can only be made upon request from a competent state agency and according to the provisions of clauses 3 and 4 of Article 27 and clauses 2 and 3 of Article 30 of this Circular.

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Thus, the day of tax accounting for domestic transactions is determined as the day the accounting entry is recorded into the tax accounting subsystem.