What is the penalty upon extra-small enterprises for failing to submit financial statements in Vietnam?
- Which extra-small enterprise shall not be required to submit financial statements to tax authorities in Vietnam?
- Extra-small enterprises paying CIT calculated according to the method of calculation of CIT based on the CIT-to-sales ratio must prepare financial statements for internal circulation?
- When is the deadline for extra-small enterprises to submit financial statements in Vietnam?
- What is the penalty upon an extra-small enterprise for failing to submit financial statements in Vietnam?
Which extra-small enterprise shall not be required to submit financial statements to tax authorities in Vietnam?
Pursuant to Article 18 of Circular No. 132/2018/TT-BTC stipulating as follows:
Financial statements
1. Extra-small enterprises paying CIT calculated according to the method of calculation of CIT based on the CIT-to-sales ratio (%) shall not be required to submit financial statements to tax authorities in Vietnam.
2. Extra-small enterprises CIT calculated according to the method of calculation of CIT based on the CIT-to-sales ratio (%) shall implement reports required under laws on taxes. Duration and submission of preparation of reports shall be subject to laws on taxes.
3. In addition to legislative regulations on taxes, based on information about sales, salaries, wages and other contributions associated with salaries and wages, etc., extra-small enterprises may prepare accounting reports for business management and administration purposes.
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Thus, extra-small enterprises paying CIT calculated according to the method of calculation of CIT based on the CIT-to-sales ratio (%) shall not be required to submit financial statements to tax authorities.
What is the penalty upon extra-small enterprises for failing to submit financial statements in Vietnam?
Extra-small enterprises paying CIT calculated according to the method of calculation of CIT based on the CIT-to-sales ratio must prepare financial statements for internal circulation?
Pursuant to Clause 4, Article 18 of Circular No. 132/2018/TT-BTC stipulating as follows:
Financial statements
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4. If extra-small enterprises paying CIT calculated according to the method of calculation of CIT based on the CIT-to-sales ratio (%) choose to apply the accounting regime specified in Chapter II herein to meet their demands of management of their business activities, they shall have to prepare financial statements in accordance with regulations in force. Financial statements shall not need to be submitted to tax authorities, but shall be archived and deposited in accordance with regulations in force, and shall be used by these enterprises for inspection and audit purposes upon the request of competent authorities.
Thus, if extra-small enterprises paying CIT calculated according to the method of calculation of CIT based on the CIT-to-sales ratio (%) choose to apply the accounting regime specified in Chapter II of Circular No. 132/2018/TT-BTC (regime accountants of extra-small enterprises that pay CIT according to the method of calculating taxable income), they shall have to prepare financial statements in accordance with regulations in force. Financial statements shall not need to be submitted to tax authorities, but shall be archived and deposited in accordance with regulations in force, and shall be used by these enterprises.
When is the deadline for extra-small enterprises to submit financial statements in Vietnam?
Pursuant to Article 14 of Circular No. 132/2018/TT-BTC stipulating as follows:
Responsibilities and duration of formulation and submission of financial statements
1. On an annual basis, extra-small enterprises paying CIT calculated according to the method of calculation of CIT based on assessable income shall have to formulate financial statements and addenda thereto under the provisions of clause 1 of Article 13 herein.
2. Financial statements and addenda thereto used by extra-small enterprises must be submitted to tax authorities having direct authority over these enterprises and registration bodies not later than 90 days from the end date of a financial year, and must be deposited with these enterprises according to laws on accounting in order to serve inspection and audit activities upon the request of competent regulatory authorities.
Thus, extra-small enterprises must submit financial statements no later than 90 days from the end date of a financial year.
What is the penalty upon an extra-small enterprise for failing to submit 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
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, extra-small enterprises that fail to submit financial statements may be fined from VND 40,000,000 to VND 50,000,000.
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