Is it allowed to sign an accounting service contract with an individual in Vietnam?

Regarding this matter, LawNet would like to answer as follows:

1. Are individuals allowed to provide accounting services themselves in Vietnam?

Article 58 of the Law on Accounting 2015 stipulates  regulations on conditions for registration of accounting practice. The holder of an accountant certificate or auditor certificate according to the Law on Independent audit may register his/her accounting practice through an accounting firm or accounting household if he/she:

- Has full civil capacity; and

- Has at least 36 months’ experience of finance, accounting, or audit works since graduation from university; and

- Has participated in every mandatory refresher course.

At the same time, the following people must not register accounting practice:

- Officials and public employees; professional servicemen and officers; national defense workers and public employees, police officers.

- People banned from practicing accounting under an effective court’s judgment or decision; people undergoing criminal prosecution; people sentenced to imprisonment or were convicted of economic crimes or other crimes related to finance, accounting and have not had their criminal records expunged; people put on probation, and people forcibly sent to reform schools or rehabilitation centers.

- People convicted of serious economic crimes and have not had their criminal records expunged.

- Any person that incurred a penalty for an administrative violation against regulations of law on finance, accounting, audit within the previous 06 months, if the penalty is a warning, or 01 years, if the penalty is other than a warning.

- People suspended from accounting practice.

Thus, individuals who want to practice accounting services must work for accounting firm or accounting household. At the same time, they must have an accountant certificate or auditor certificate. If these conditions are not met, the individual cannot provide accounting services.

2. Responsibilities of accounting practitioner in Vietnam

The responsibilities of accounting practitioner in Vietnam are specified in Article 15 of Circular 296/2016/TT-BTC as follows:

- No later than August 31 every year, the accounting practitioner must send a report on compliance with requirements for accounting practice to the Ministry of Finance through accounting firm or accounting household business using the form in Appendix No. 08/DKHN to Circular 296/2016/TT-BTC.

- Send a written request to the accounting firm or accounting household business on the cessation of accounting practice as prescribed in Clause 7, Article 9 of Circular 296/2016/TT-BTC at least 10 days before the date of cessation.

- Notify in writing to the Ministry of Finance at least 10 days before the APC expires or is no longer valid for the cases specified in clauses 4, 5, 6, 7, and 8 Article 9 of Circular 296/2016/TT-BTC using the form prescribed in Appendix No. 06/DKHN issued together with Circular 296/2016/TT-BTC.

- Submit the old APCs to the Ministry of Finance through the accounting firm or the accounting household business within 15 days after the APC expires or is invalid for the cases specified in clauses 2, 4, 5, 6, 7, and 8, Article 9 of Circular 296/2016/TT-BTC, unless it has been returned upon submission of application for the APC specified in Clauses 3 and 4, Article 11 of Circular 296/2016/TT-BTC.

- Do not use the expired or invalid APC in accounting professional activities.

- An accounting practitioner who registers to practice in an accounting firm or accounting household business, but also acts as the legal representative, Director (Director General), President of the Board of Directors, President of the Member Assembly, Chief Accountant (or accountant in charge), accountant, internal audit or other positions at other entity must notify the Ministry of Finance in writing within 15 days from the start or end date of holding the job or having a change in working time, title at such entity.

- Provide information on the periodical or ad-hoc basis related to their accounting practice at the request of the Ministry of Finance.

- Abide by the Ministry of Finance's regulations on inspection and examination of accounting practice registration.

- Other responsibilities as provided for by law.

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