What contents do enterprises need to disclose in financial statement in Vietnam?

What contents do enterprises need to disclose in financial statement in Vietnam?

Pursuant to Clause 4 Article 31 of the Law on Accounting in 2015 stipulating published contents of financial statement as follows:

Published contents of financial statement

1. Accounting units using state budget shall publish information about revenues, expenditures of state budget in accordance with the Law on State budget.

2. Accounting units that do not use state budget shall publish their annually revenue and expenditure statements.

3. Accounting units using the people’s contributions shall publish the purposes and use of such contributions, contributors, contributed amount, results, revenues and expenditures related to such contributions.

4. Accounting units doing business shall publish:

a) Assets, liabilities and owner’s capital;

b) Business performance;

c) Development and use of funds;

d) Workers’ incomes;

dd) Other contents required by law.

5. Financial statements of accounting units that are, by law, required to be audited must be enclosed with audit reports made by the auditing bodies.

As regulations above, enterprises in Vietnam shall disclose following contents in financial statement:

- Assets, liabilities and owner’s capital;

- Business performance;

- Development and use of funds;

- Workers’ incomes;

- Other contents required by law.

What contents do enterprises need to disclose in financial statement in Vietnam? - Image from Internet

What is the deadline for submission of financial statements in Vietnam?

Pursuant to Article 109 of the Circular 200/2014/TT-BTC stipulating deadline for submission of financial statements as follows:

For state-owned enterprises

1. Deadline for submission of quarterly financial statements:

- Accounting unit must submit quarter financial statements at the latest 20 days from the end of the quarterly accounting period; It is at the latest 45 days for the parent companies, state-owned general companies;

- Accounting unit affiliated enterprises, state-owned general companies submit quarter financial statements to parent companies, general companies under the time limit set by parent companies, general companies.

2. Deadline for submission of annual financial statements:

- Accounting unit must submit annual financial statements at the latest 30 days from the end of the annual accounting period; It is at the latest 90 days for the parent companies, state-owned general companies;

- Accounting unit affiliated state-owned general companies submit annual financial statements to parent companies, general companies under the time limit set by parent companies, general companies.

For other types of enterprises

1. Accounting unit being private enterprises and partnership must submit annual financial statements at the latest 30 days from the end of annual accounting period; for other accounting units, the deadline for submission of annual financial statements is within 90 days;

2. Subordinate accounting unit affiliated submit annual financial statements to superior accounting unit within the time limit given by the superior accounting units

When does an enterprise, that do not generate revenue, not need to submit an annual financial statement in Vietnam?

Pursuant to Clause 3 Article 43 of the Law on Tax Administration in 2019 stipulating tax declaration as follows:

Tax declaration

...

3. The tax declaration dossier of taxes that are declared and paid annually is:

a) The annual tax declaration dossier, which consists of the annual tax return and other documents relevant to the tax payable; or

b) The terminal tax declaration dossier, which consists of the annual tax statement, the annual financial statement, the declaration of related-party transactions and other documents relevant to tax statement.

...

Pursuant to Clause 2.a Article 4 of the Decree 126/2020/ND-CP stipulating tax administration during taxpayer’s business suspension as follows:

Tax administration during taxpayer’s business suspension

...

2. During business suspension:

a) The taxpayer is not required to submit tax declaration dossiers, unless the suspension begins in the middle of a monthly/quarterly/annual tax period, in which case the tax declaration dossier of that month/quarter/year must be submitted.

b) For household businesses and individual businesses paying presumptive tax, tax authorities shall decide the tax payable upon their suspension in accordance with regulations of the Minister of Finance.

...

In the tax settlement dossier for the year, there will be an annual financial statement of the enterprise. Therefore, for enterprises that are not required to settle their annual taxes, they will not need to submit an annual financial statement.

Enterprises that are not required to submit tax settlement dossiers are those that have suspended their operations for the entire calendar year or the entire financial year.

Therefore, enterprises that do not generate revenue shall fall under the case of having temporarily suspended their business operations for the entire calendar year or the entire financial year in order to be exempt from submitting an annual financial report.

Best regards!