Vietnam: What are the penalties imposed on audited units delaying the submission of financial statements under the new regulations?
- What is the time limit for submitting financial statements applicable to audited units in Vietnam?
- What are the penalties imposed on audited units delaying the submission of financial statements under the new regulations in Vietnam?
- What is the maximum fine for an administrative violation against regulations on state audit in Vietnam?
What is the time limit for submitting financial statements applicable to audited units in Vietnam?
Pursuant to the provisions of Clause 3, Article 57 of the Law on State Audit 2015, and Article 58 of the Law on State Audit 2015, the submission of financial statements is the obligation and responsibility of audited units in Vietnam.
Accordingly, the time limit for submitting financial statements is determined in Article 4 of the Regulations promulgated together with Decision 03/2019/QD-KTNN as follows:
Submission of financial statements and budget finalization statements
1. Budget estimate units level I of the central government budget shall send budget finalization statements of revenues and expenditures under their management to the State Audit before October 1 of the following year.
2. Provincial-level People's Committees:
a) Send local budget finalization statements to the State Audit before October 1 of the following year.
b) Send local budget finalization statements to the State Audit within 05 working days from the date on which the provincial-level People's Council approves the local budget finalization.
3. The Ministry of Finance shall send the state budget finalization statements to the State Audit no later than 14 months after the end of the budget year.
4. For state-owned enterprises, parent companies and state corporations holding dominant shares:
a) At the end of the fiscal year, units shall prepare and send financial statements, budget finalization statements of revenues and expenditures under their management to the State Audit within 90 days from the end of the annual accounting period.
b) For other cases with the specified time of preparation and issuance of financial statements and budget finalization statements of revenues and expenditures, financial statements and budget finalization statements of revenues and expenditures shall be sent to the State Audit after the preparation and issuance according to separate regulations.
Specifically, the time limit for submitting financial statements applicable to audited units in Vietnam is as follows:
- For state-owned enterprises, parent companies, and state corporations holding dominant shares:
+ At the end of the fiscal year, units shall prepare and send financial statements to the State Audit within 90 days from the end of the annual accounting period.
+ For other cases with the specified time of preparation and issuance of financial statements, financial statements shall be sent to the State Audit after the preparation and issuance according to separate regulations.
What are the penalties imposed on audited units delaying the submission of financial statements under the new regulations in Vietnam?
On February 28, 2023, the Standing Committee of the XV National Assembly issued the Ordinance prescribing penalties for administrative violations against regulations on state audit 2023.
For audited units delaying the submission of financial statements, Article 8 of the Ordinance prescribing penalties for administrative violations against regulations on state audit 2023 stipulates as follows:
Violations against regulations on submission of periodical reports
1. A warning shall be imposed for submission of financial statements and state budget statements under management up to 15 days behind schedule.
2. A fine ranging from VND 5,000,000 to VND 10,000,000 shall be imposed for submission of financial statements and state budget statements under management between more than 15 days and 30 days behind schedule.
3. A fine ranging from VND 10,000,000 to VND 20,000,000 shall be imposed for submission of financial statements and state budget statements under management between more than 30 days and 60 days behind schedule.
4. A fine ranging from VND 20,000,000 to VND 30,000,000 shall be imposed for submission of financial statements and state budget statements under management more than 60 days behind schedule.
5. A fine ranging from VND 30,000,000 to VND 50,000,000 shall be imposed for failure to submit financial statements and state budget statements under management at the request of the State Audit Office of Vietnam.
Thus, audited units delaying the submission of financial statements in Vietnam shall face:
- Caution: Up to 15 days later than the prescribed time limit
- Fine:
+ A fine from VND 5,000,000 to VND 10,000,000 for delays of more than 15 days to 30 days compared to the prescribed time limit;
+ A fine of from VND 10,000,000 to VND 20,000,000 for delays of more than 30 days to 60 days compared to the prescribed time limit;
+ A fine from VND 20,000,000 to VND 30,000,000 for delays of 60 days or more.
This fine is applicable to individuals. For organizations, the fine shall be doubled. (Clause 2, Article 7 of the Ordinance prescribing penalties for administrative violations against regulations on state audit 2023)
What is the maximum fine for an administrative violation against regulations on state audit in Vietnam?
Pursuant to the provisions of Clause 1, Article 7 of the Ordinance prescribing penalties for administrative violations against regulations on state audit 2023 as follows:
Fines and power to impose fines
1. The maximum fine for an administrative violation in state audit sector imposed upon an individual is VND 50,000,000; that imposed upon an organization is VND 100,000,000.
Thus, the maximum fine for an administrative violation against regulations on state audit in Vietnam is as follows:
- For individuals: VND 50 million;
- For organizations: VND 100 million.
The Ordinance prescribing penalties for administrative violations against regulations on state audit 2023 takes effect from May 1, 2023
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