Can Commune Committees hire accounting services in Vietnam?
Can Commune Committees hire accounting services in Vietnam? What are cases in which provision of accounting services are prohibited in Vietnam?
Hi, I work at the Commune Committee, recently the person in charge of accounting of the Committee quit her job to give birth, so there is no one to work as an accountant. So can we hire an accounting service company to do the accounting job for the Commission?
1. Can Commune Committees hire accounting services in Vietnam?
Pursuant to Clause 1, Article 22 of Decree 174/2016/ND-CP has the following provisions:
1. Business accounting units, public service agencies not funded by state budget and other accounting units mentioned in Clause 3 Article 3 hereof may hire accounting service providers to do their accounting works or chief accountant’s works. Legal representatives of public service agencies may decide whether to hire accounting service providers to do their accounting works or chief accountant’s works.
Thus, according to the above regulations, organizations and public service agencies not funded by state budget are not allowed to hire accounting services. Therefore, the Commune People's Committee is not allowed to hire accounting services in Vietnam.
2. What are cases in which provision of accounting services are prohibited in Vietnam?
Article 25 of Decree 174/2016/ND-CP stipulates enterprises, household businesses providing accounting services and audit firms (hereinafter referred to as “accounting service providers”) must not provide accounting services in the cases where the manager, executive officer or the person that directly performs the account services is:
1. a parent, adoptive parent, spouse, child, sibling of the manager, executive officer or chief accountant of the accounting unit, unless the accounting unit is a sole proprietorship or limited liability company owned by an individual or an extra-small enterprise not funded by state budget as defined by regulations of law on assistance for small and medium enterprises.
2. any of the people specified in Clause 2 through 5 Article 68 of the Law on Accounting.
3. A person in the cases specified by Code of ethics for professional accountants and auditors and the law.
According to this Article, if they fall into the above cases, they are not allowed to provide accounting services in Vietnam.
Best Regards!
