Is it mandatory to have a chief accountant in the company in Vietnam? How much is penalty for failing to have a chief accountant in the company in Vietnam?

Is it mandatory to have a chief accountant in the company in Vietnam?

In Clause 1 and Clause 2, Article 20, Decree 174/2016/ND-CP stipulates chief accountants and acting chief accountant are as follows:

1. An accounting unit must have a chief accountant, except for those specified in Clause 2 of this Article. In the cases where a unit is not able to appoint a chief accountant at the time, it may appoint an acting chief accountant or outsource chief accountant works. An acting chief accountant will hold the position for up to 12 months, after which a chief accountant shall be appointed.

2. Acting chief accountant:

a) An accounting unit that has only one accountant or part-time accountant, budget accounting and finance units of communes shall appoint only acting chief accountants, not chief accountants.

b) Extra-small enterprises defined by the law on provision of assistance for small and medium enterprises may appoint acting chief accountants without having to appoint chief accountants.

According to Article 4 of the Law on providing assistance for small and medium-sized enterprises 2017, criteria for identification of SMEs is specified as follows:

1. An SME is either a micro-enterprise, small enterprise or medium-sized enterprise having the annual average number of employees who participate in social insurance is not greater than 200 and satisfying one of the following criteria:

a) The total capital is not greater than 100 billion dong;

b) The enterprise’s revenue of the previous year is not greater than 300 billion dong;

2. Micro-, small and medium-sized enterprises are identified according to each industry such as agriculture, forestry, aquaculture; industry and construction and trade and services.

3. The Government shall provide detailed guidance on this Article.

Thus, arranging a chief accountant for the company is mandatory, except in the case of Extra-small enterprises, which do not need to have a chief accountant but only needs to be in charge of accounting.

Your company has a total capital of 200 billion VND and is not a micro-sized enterprise according to the law, so your company is required to have a chief accountant. If you cannot immediately appoint a chief accountant for your company, you can hire a chief accountant service in Vietnam.

If you do not appoint someone to be the chief accountant for the company, you will be subject to administrative sanctions in Vietnam.

Is it mandatory to have a chief accountant in the company in Vietnam? How much is penalty for failing to have a chief accountant in the company in Vietnam? (Image from the Internet)

How much is penalty for failing to have a chief accountant in the company in Vietnam? 

Pursuant to Clause 2, Article 17 of Decree 41/2018/ND-CP stipulating penalties for violations against regulations on organization of accounting apparatus, appointing or hiring accountants as follows:

2. A fine ranging from VND 10.000.000 to VND 20.000.000 shall be imposed for one of the following violations:

a) Failure to organize the accounting unit’s accounting apparatus; failure to appoint accountants, chief accountants or purchase accounting services or chief accountant’s services;

b) Appointing accountants who are forbidden to work in accounting as specified in the law;

c) Appointing accountants, chief accountants and accounting managers who do not meet all standards and conditions;

d) Appointing chief accountant and accounting manager against established procedures;

In Clause 2, Article 6, Decree 41/2018/ND-CP, amended by Clause 2, Article 5, Decree 102/2021/ND-CP, fines are prescribed:

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.

Therefore, if you do not arrange someone to be the chief accountant for your company, you will be fined from 10,000,000 VND to 20,000,000 VND in Vietnam.

Best regards!