What are the fines for cancellation of accounting documents before retention deadline in Vietnam? What are judgments related to this issue?

1. Which accounting documents in Vietnam must be retained? How long must they be retained?

Article 41 of the Law on Accounting 2015 prescribes the preservation and storage of accounting documents as follows:

Preservation and storage of accounting documents

1. Accounting documents must be fully and safely preserved by the accounting unit during use and storage.

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5. Accounting documents must be retained for the following durations:

a) At least 05 years for accounting documents used for management and operation of the accounting unit, including accounting vouchers that are not directly used for bookkeeping and preparing financial statements;

b) At least 10 years for accounting vouchers directly used for bookkeeping and preparing financial statements, annual accounting books and financial statements, unless otherwise provided by law;

c) Permanently store accounting documents of historical value, significant economic, security, and national defense importance.

Thus, accounting documents used for management and operation of the accounting unit, including accounting vouchers not directly used for bookkeeping and preparing financial statements, must be retained for at least 05 years.

Accounting vouchers directly used for bookkeeping and preparing financial statements, accounting books, and financial statements of the year must be retained for at least 10 years, unless otherwise provided by law.

Permanent storage is required for accounting documents of historical value, significant economic, security, and national defense importance.

2.What are the fines for cancellation of accounting documents before retention deadline in Vietnam?

Based on the provisions in Clause 4, Article 13 of the Law on Accounting 2015:

Prohibited acts

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4. Destroying or intentionally damaging accounting documents before the storage period prescribed in Article 41 of this Law ends.

According to the above regulation, the act of destroying accounting documents before the end of the storage period is one of the acts prohibited by law, and any violations will be handled in accordance with legal provisions.

Administrative violation penalties:

At Point a, Clause 3, Article 15 of Decree 41/2018/ND-CP it is stipulated as follows:

Penalties for violations of regulations on preservation and storage of accounting documents

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3. A fine of between 10,000,000 VND and 20,000,000 VND shall be imposed for any of the following acts:

a) Destroying accounting documents before the end of the storage period as prescribed by the Law on Accounting but not to the extent of being subject to criminal prosecution;

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Thus, any individual who destroys accounting documents before the expiration of the storage period but not to the extent of criminal prosecution may be subject to an administrative violation fine ranging from 10 million VND to 20 million VND.

For violating organizations, the fine is doubled (Clause 2, Article 5 of Decree 102/2021/ND-CP).

Criminal penalties:

According to Article 221 of the Criminal Code 2015, amended 2017 stipulating the crime of violating regulations on accounting causing serious consequences as follows:

Crime of violating regulations on accounting causing serious consequences

1. Anyone who abuses his/her position or power to commit any of the following acts, causing damage from 100,000,000 VND to less than 300,000,000 VND or less than 100,000,000 VND but has been disciplined or administratively fined for this act, but still commits violations, shall be sentenced to non-custodial reform for up to 03 years or imprisonment from 01 year to 05 years:

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d) Destroying or intentionally damaging accounting documents before the end of the storage period as prescribed by the Law on Accounting;

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2. Committing the crime in any of the following circumstances shall be subject to imprisonment from 03 years to 12 years:

a) For profit;

b) With an organized scheme;

c) Using sophisticated, cunning methods;

d) Causing damage from 300,000,000 VND to less than 1,000,000,000 VND.

3. Committing the crime causing damage of 1,000,000,000 VND or more shall be subject to imprisonment from 10 years to 20 years.

4. The offender may also be banned from holding certain positions or doing certain jobs for 01 to 05 years or subject to a part or total asset confiscation.

Thus, anyone who exploits a position or power to destroy accounting documents before the storage period as prescribed by the Law on Accounting 2015, if constituting an offense, will be prosecuted for the crime of "Violation of regulations on accounting causing serious consequences" with the highest penalty up to 20 years of imprisonment.

3. What are judgments on the crime of violating accounting regulations causing serious consequences in Vietnam?

Below are some judgments regarding the crime of violating regulations on accounting causing serious consequences:

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