Is it required to submit annual financial statements when submitting tax statement? What is the penalty for failure to submit annual financial statements in Vietnam?
Is it required to submit annual financial statements when submitting tax statement?
Pursuant to Point b, Clause 3, Article 43 of the 2019 Law on Tax Administration in Vietnam stipulating tax declaration dossiers as follows:
Tax declaration
...
3. The tax declaration dossier of taxes that are declared and paid annually is:
a) The annual tax declaration dossier, which consists of the annual tax return and other documents relevant to the tax payable; or
b) The terminal tax declaration dossier, which consists of the annual tax statement, the annual financial statement, the declaration of related-party transactions and other documents relevant to tax statement.
Thus, the tax statement dossier at the end of the year includes the annual tax statement declaration, annual financial statement, and related-party transaction declaration; other documents related to tax statement.
Is it required to submit annual financial statements when submitting tax statement? What is the penalty for failure to submit annual financial statements in Vietnam?
What is the penalty for failure to submit annual financial statements in Vietnam?
Pursuant to Clause 4, Article 12 of Decree No. 41/2018/ND-CP stipulating penalties for violations against regulations on submission and disclosure of financial statements:
Penalties for violations against regulations on submission and disclosure of financial statements
1. A fine ranging from VND 5.000.000 to VND 10.000.000 shall be imposed in the following cases:
a) The financial statement is submitted less than 3 months after the specified deadline;
b) The financial statement is disclosed less than 3 months after the specified deadline.
2. A fine ranging from VND 10.000.000 to VND 20.000.000 shall be imposed in the following cases:
a) The financial statement's contents are not fully disclosed;
b) The financial statement submitted to the competent authorities does not include the audit statement when required by law;
c) The financial statement is submitted 3 months after the specified deadline or later;
d) The disclosed financial statement does not include the audit statement when required by law;
dd) The financial statement is disclosed 3 months after the specified deadline or later.
3. A fine ranging from VND 20.000.000 to VND 30.000.000 shall be imposed for in the following cases:
a) The financial statement’s figures are falsified;
b) Provide or publish financial statements which have inconsistent figures within an accounting period for use in Vietnam.
4. A fine ranging from VND 40.000.000 to VND 50.000.000 shall be imposed for one of the following violations:
a) Failure to submit financial statement to the competent authorities;
b) Failure to disclose financial statements.
5. Remedial measure:
Submit and disclose the audit statement attached to the financial statement mentioned in Points b and d, Clause 2 of this Article.
Thus, for the act of failing to submit annual financial statements, enterprises may be fined from VND 40,000,000 to VND 50,000,000.
When is the deadline for submission of annual financial statements in Vietnam?
Pursuant to Article 109 of Circular No. 200/2014/TT-BTC stipulating the deadline for submission of annual financial statements as follows:
(1) For state-owned enterprises
- Deadline for submission of annual financial statements:
+ Accounting unit must submit annual financial statements at the latest 30 days from the end of the annual accounting period; It is at the latest 90 days for the parent companies, state-owned general companies;
+ Accounting unit affiliated state-owned general companies submit annual financial statements to parent companies, general companies under the time limit set by parent companies, general companies.
(2) For other types of enterprises
- Accounting unit being private enterprises and partnership must submit annual financial statements at the latest 30 days from the end of annual accounting period; for other accounting units, the deadline for submission of annual financial statements is within 90 days;
- Subordinate accounting unit affiliated submit annual financial statements to superior accounting unit within the time limit given by the superior accounting units.
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