What are the fines imposed on enterprises for failure to disclose financial statements in Vietnam?

According to the law in Vietnam, what is a financial statement?

Pursuant to Clause 1 Article 3 of the Law on Accounting in 2015 stipulating as follows:

Definitions

In this Law, the terms below are construed as follows:

1. Financial statement means a system of financial information of an accounting unit demonstrated according to a form provided for by accounting standards and accounting regime.

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As regulations above, financial statement means a system of financial information of an accounting unit demonstrated according to a form provided for by accounting standards and accounting regime.

What are the fines imposed on enterprises for failure to disclose financial statements in Vietnam? - Image from Internet

What are manners of publishing financial statements in Vietnam?

Pursuant to Article 32 of the Law on Accounting in 2015 stipulating manners and deadline for publishing financial statements as follows:

Manners and deadline for publishing financial statements

1. A financial statement shall be published in one of the following manner:

a) Publication;

b) Written notice;

c) Posting;

d) Publication on a website;

dd) Other manners prescribed by law.

2. The manners and deadlines for publishing financial statements of accounting units using state budget shall comply with regulations of law on state budget.

3. Accounting units that do not use state budget, accounting units using the people’s contributions shall publish their annual financial statements within 30 days from their submission dates.

4. Accounting units doing business shall publish their annual financial statements within 120 days from the end of the annual accounting period. Where regulations of law on securities, credit, or insurance provide for different manners and deadlines for publishing financial statements; such regulations shall apply.

As regulations above, a financial statement shall be published in one of the following manner:

- Publication;

- Written notice;

- Posting;

- Publication on a website;

- Other manners prescribed by law.

What are the fines imposed on enterprises for failure to disclose financial statements in Vietnam?

Pursuant to Article 12 of the Decree 41/2018/ND-CP stipulating penalties for violations against regulations on submission and disclosure of financial statements as follows:

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.

Pursuant to Clause 2 Article 6 of the Decree 41/2018/ND-CP (amended by Clause 2 Article 5 of the Decree 102/2021/ND-CP) stipulating fines as follows:

Fines

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2. The fines specified in Chapter II and Chapter III of this Decree are imposed upon organizations except cases specified in Clause 1 Article 7; Article 8; Article 9; Article 10; Article 11; Article 13; Article 14; Article 15; Article 16; Article 17; Article 19; Clauses 1 and 3 of Articles 21; Article 22; Articles 23; Article 24; Article 26; Article 33; Article 34; Clauses 1 and 3 Article 36; Clauses 1 Article 38; Clauses 2 and 3 Article 39; Clauses 1 and 2 Article 48; Clause 1 Article 57; Clauses 1 and 2 Article 61; Article 67, which are fines that apply to individuals. For organizations with the same violations, the fines will double those of individuals.

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As regulations above, enterprises which fail to disclose financial statements in Vietnam shall be fined from VND 40.000.000 to VND 50.000.000. If they fails to disclose financial statements by the specified deadline, they shall be fined from VND 5.000.000 to VND 10.000.000.

In addition, enterprises shall submit and disclose the audit statement attached to the financial statement for following violations:

- The financial statement submitted to the competent authorities does not include the audit statement when required by law;

- The disclosed financial statement does not include the audit statement when required by law;

Best regards!