Below, Thu Ky Luat will summarize notable new points in Decree 41/2018/ND-CP on the sanctioning of administrative violations in the field of accounting, which comes into force from May 01, 2018.
Article table of contents
1. Expanding the scope of administrative penalties for accounting violations
Administrative violations in the accounting sector, even if not specified in Decree 41/2018/ND-CP, can still be penalized under administrative sanction regulations in other related sectors.
2. Handling business households and cooperatives similarly to individuals
In cases where business households or cooperatives violate regulations stipulated in Decree 41//2018/ND-CP, they shall be penalized similarly to individual violators.
3. Detailed regulations on organizations subject to penalties in the field of accounting
Decree 41/2018/ND-CP also enumerates specific types of organizations subject to administrative penalties in the field of accounting, including: State agencies; public service providers; cooperatives, cooperative unions; enterprises, branches, representative offices;...
4. Increasing the maximum monetary penalty in the field of accounting to 100 million VND
To be specific, the maximum monetary penalty for a single violation has increased from 30,000,000 VND to 50,000,000 VND for individuals, and from 60,000,000 VND to 100,000,000 VND for organizations.
5. Abolishing the primary penalty of “Revocation of practice certificates and temporary suspension of activities”
The primary penalty of “Revocation of practice certificates and temporary suspension of activities” is no longer available.
Simultaneously, the additional penalty of “Revocation of the Accounting Practice Certificate for an accountant from 01 - 03 months” has been removed.
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6. Increasing the number of additional penalties
The Decree specifies additional penalties for administrative violations in the field of accounting as:
- Revocation of the Certificate of Accounting Service Registration for 03 - 06 months;- Revocation of the Certificate of Eligibility for Business Accounting Services or Auditing for a period from 01 - 12 months;- Suspension of knowledge update activities for a period from 01 - 03 months;- Confiscation of administrative violation exhibits.
7. Extending the period of certificate revocation and suspension of operations for accounting service organizations
Current regulations stipulate that accounting service organizations may face supplementary penalties, including business suspension for 01 - 03 months.
However, Decree 41/2018/ND-CP increases the aforementioned periods. The revocation of the Certificate of Accounting Service Registration will extend from 03 - 06 months or revocation of the Certificate of Eligibility for Business Accounting Services for 01 - 12 months.
8. Adding remedial measures for violations in the field of accounting
In addition to the three remedial measures currently applied for violations in the field of accounting, Decree 41/2018/ND-CP also stipulates the following additional measures:
- Supplement: Missing elements of accounting documents, missing elements of accounting books, documents not prepared when economic or financial transactions occur; record in the accounting books for acts involving off-the-book assets, liabilities;- Cancel fraudulent or forged accounting documents;- Correct accounting books to match the actual situation when there are no accounting documents evidencing data on the accounting books, or the data on the accounting books do not match the accounting documents;- Correct accounting books to match the actual situation when the information or data recorded in the accounting books of the current year does not succeed the information or data recorded in the accounting books of the preceding year;- Prepare and present financial statements in accordance with accounting policies and standards;- Correct false or misleading information;- Appoint or hire accountants, chief accountants, or accounting supervisors who meet the required standards and conditions.
9. Raising the minimum monetary penalty to 1,000,000 VND
Under the new regulations, no accounting-related violations shall be fined 500,000 VND as per current guidelines. Instead, the minimum monetary penalty for violations will be 1,000,000 VND.
Additionally, the levels of penalties and remedial measures for each specific violation have experienced significant changes.
10. Adding penalized violations
To be specific:
- Issuing or publishing accounting standards, auditing standards, or accounting policies without authority shall be fined from 20,000,000 VND to 30,000,000 VND;- Violations regarding the photocopying, sealing of accounting documents shall be fined up to 5,000,000 VND;- Failure to translate accompanying documents in foreign languages into Vietnamese as required by competent state agencies shall be fined up to 5,000,000 VND;- Violations related to the accounting certificate examination and knowledge update for professional accountants or those registering for accounting services may be fined up to 30,000,000 VND.
From May 1, 2018, Decree 41/2018/ND-CP shall take effect, replacing Decree 105/2013/ND-CP.
