What are the Fines for Late Submission of Financial Statements in 2024? What Should Enterprises Do After Submitting Financial Statements in Vietnam?
Fines for Late Submission of Financial Statements in Vietnam in 2024
Based on Article 12 of Decree 41/2018/ND-CP, the regulations are as follows:
Penalties for Violations Regarding Submission and Disclosure of Financial Statements
1. A fine ranging from VND 5,000,000 to VND 10,000,000 shall be imposed for one of the following acts:
a) Submitting financial statements to competent state authorities less than 03 months later than the prescribed deadline;
b) Disclosing financial statements less than 03 months later than the prescribed deadline.
2. A fine ranging from VND 10,000,000 to VND 20,000,000 shall be imposed for one of the following acts:
a) Disclosing financial statements with incomplete content as required;
b) Submitting financial statements to competent state authorities without attaching audited reports, in cases where the law requires financial statements to be audited;
c) Submitting financial statements to competent state authorities 03 months or more later than the prescribed deadline;
d) Disclosing financial statements without attaching audited reports, in cases where the law requires financial statements to be audited;
dd) Disclosing financial statements 03 months or more later than the prescribed deadline.
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If the submission of financial statements is delayed, the penalty can range from VND 5,000,000 to VND 10,000,000 for delays under 03 months. For delays of 03 months or more, the penalty can range from VND 10,000,000 to VND 20,000,000.
Note: This fine applies to organizations. For individuals, the fine is half of the amount imposed on organizations (as per Clause 3, Article 6 of Decree 41/2018/ND-CP amended by Clause 2, Article 5 of Decree 102/2021/ND-CP).
What are the Fines for Late Submission of Financial Statements in 2024? What Should Enterprises Do After Submitting Financial Statements in Vietnam?
Where Should Enterprises Submit Financial Statements in Vietnam?
According to Article 110 of Circular 200/2014/TT-BTC guiding the submission of financial statements:
- For state-owned enterprises located in provinces and centrally-affiliated cities, financial statements must be prepared and submitted to the Department of Finance of the respective province or city. For central state-owned enterprises, financial statements must also be submitted to the Ministry of Finance (Department of Enterprise Finance).
- For state-owned enterprises such as commercial banks, lottery companies, credit institutions, insurers, and securities trading companies, financial statements must be submitted to the Ministry of Finance (Department of Banking and Finance or Insurance Supervisory Authority).
- Securities trading companies and public companies must submit financial statements to the State Securities Commission and the Stock Exchange.
- Enterprises must submit financial statements to the local tax authorities directly managing their taxes. State-owned corporations must also submit their financial statements to the Ministry of Finance (General Department of Taxation).
- Enterprises with superior accounting units must submit financial statements to the superior accounting units as regulated by the superior units.
- For enterprises required by law to audit their financial statements, the audit must be completed before submitting the financial statements as prescribed. Audited financial statements must be accompanied by the audit report when submitted to state management agencies and superior enterprises.
- Financial statements of enterprises with foreign direct investment (FDI) must be submitted to the Department of Finance of the respective province or centrally-affiliated city where the enterprise is headquartered.
- For state-owned enterprises with 100% charter capital, in addition to the designated agencies where financial statements must be submitted as mentioned above, the financial statements must also be submitted to the agencies or organizations assigned and authorized to exercise ownership rights under Decree 99/2012/ND-CP (expired) and related amending, supplementing, and replacing documents.
- Enterprises (including domestic and foreign-invested enterprises) located in export processing zones, industrial zones, and high-tech zones must submit annual financial statements to the management boards of these zones if required.
What Should Enterprises Do After Submitting Financial Statements in Vietnam?
According to Article 32 of the Accounting Law 2015 regarding the forms and timing for publicizing financial statements:
Forms and Timing for Publicizing Financial Statements
1. Publicizing financial statements can be done through one or several of the following forms:
a) Issuing publications;
b) Written notifications;
c) Public posting;
d) Online posting;
dd) Other forms prescribed by law.
2. The form and timing for publicizing financial statements for accounting units using the state budget will be in accordance with the law on the state budget.
3. Accounting units not using the state budget, and units using contributions from the public must publicize their annual financial statements within 30 days from the date of submission.
4. Accounting units engaged in business activities must publicize their annual financial statements within 120 days from the end of the fiscal year. If the law on securities, credit, and insurance prescribes different forms and timings, those provisions shall apply.
Thus, according to the regulations mentioned above, after submitting annual financial statements, the enterprise must publicize them within the stipulated timeframe, using one or several of the following forms:
- Issuing publications;
- Written notifications;
- Public posting;
- Online posting;
- Other forms prescribed by law.
Note: Failure to publicize annual financial statements or delayed publicizing can result in administrative penalties according to Article 12 of Decree 41/2018/ND-CP. Specifically:
- Publicizing financial statements less than 03 months later than the prescribed deadline: Fine from VND 5,000,000 to VND 10,000,000;
- Publicizing financial statements 03 months or more later than the prescribed deadline: Fine from VND 10,000,000 to VND 20,000,000;
- Failure to publicize financial statements as prescribed: Fine from VND 40,000,000 to VND 50,000,000.
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