Is it permissible to rent accountant certificate in Vietnam?

Is it permissible to rent accountant certificate in Vietnam?

Pursuant to Article 13 of the Law on Accounting in 2015 stipulating prohibited acts as follows: 

1. Forging, making false statements in, falsifying accounting records or other accounting documents, or forcing another person to do so.

2. Intentionally providing, verifying false accounting information and data, or colluding with another person in doing so or forcing another person to do so.

3. Leaving assets, liabilities of the accounting unit or related to the accounting unit from the accounting books.

4. Destroying or deliberately damaging accounting documents before the expiration of the retention period specified in Article 41 of this Law.

5. Promulgating, publishing accounting standards or accounting regimes ultra vires.

6. Bribing, threatening, repressing, forcing accountants to do accounting works against this Law.

7. Allowing the manager or operator of an accounting unit to act as its accountant, warehouse-keeper, or treasurer, except for private enterprises and any limited liability company owned by a single individual.

8. Assigning or hiring people that fail to satisfy all standards and requirements specified in Article 51 and Article 54 of this Law as accountants or chief accountants.

9. Renting, borrowing, leasing out, or lending the accountant certificate or Certificate of Accounting Practice Registration in any shape or form.

10. Establishing two or more accounting book systems or providing, publishing financial statements that contain inconsistent data in the same accounting period.

11. Providing accounting services without the Certificate of eligibility to provide accounting services or practice accounting without satisfying all requirements specified in this Law.

12. Use the phrase “dịch vụ kế toán” (“accounting services”) in the enterprise’s name without the Certificate of eligibility to provide accounting services after 06 months from the issuance date of the Certificate of Enterprise Registration, or while the enterprise has stopped providing accounting services.

13. Hiring individuals or organizations that fail to satisfy all requirements for practicing accounting or providing accounting services to provide accounting services.

14. Accounting practitioners and accounting firms colluding with their clients in providing or verifying false accounting information and data.

15. Other prohibited acts according to regulations of law against corruption in accounting works.

As regulations above, hiring, borrowing, leasing or lending of an accountant certificate is prohibited by law.

What are the fines for lending accountant certificate in Vietnam?

Pursuant to Article 21 of the Decree 41/2018/ND-CP stipulating as follows: 

1. A fine ranging from VND 5.000.000 to VND 10.000.000 shall be imposed on individuals for one of the following violations:

a) Tampering with the accountant certificate’s contents;

b) Allowing an external entity to rent, borrow and use one's own accountant certificate and auditor certificate for the purpose of registration of accounting practice or registration of accounting practice at a unit other than that specified in the full-time labor contract.

2. A fine ranging from VND 10.000.000 to VND 20.000.000 shall be imposed for renting, borrowing and using an accountant certificate and a auditor certificate of a person who is not working as a full-time employee, or not working at all for one's own unit for the purpose of registration of accounting practice.

3. A fine ranging from VND 20.000.000 to VND 30.000.000 shall be imposed for forging accountant certificates.

4. Additional penalties:

a) Any of violations mentioned in Point a, Clause 1 of this Article shall result in confiscation of evidence;

b) The accounting practitioner committing the violation mentioned in Point b, Clause 1 of this Article shall have his/her certificate of accounting practice registration suspended for 3-6 months period from the day the decision on penalty imposition comes into effect.

5. Remedial Measure:

Return illegal profits earned by the violation mentioned in Point b, Clause 1 of this Article.

As regulations above, anyone allows an external entity to rent, borrow and use one's own accountant certificate and auditor certificate for the purpose of registration of accounting practice shall be fined from VND 5.000.000 to VND 10.000.000. Besides, they shall return illegal profits earned by the violation.

Best regards!