What is an electronic record? Regulations on the format and storage of electronic record in Vietnam

What is an electronic record? Regulations on the format and storage of electronic record in Vietnam (Source: Internet)

1. What are electronic records?

Pursuant to Article 17 of the Law on Accounting 2015, electronic records are prescribed as follows:

- Electronic records are considered accounting records if they have the contents specified in Article 16 of this Article and are displayed in the form of electronic data, encrypted and not changed during transmission through the computer network or telecommunications network or by a storage device such as magnetic tape, magnetic disc, or payment cards.

- Electronic records must ensure security and integrity of data and information being used and stored, be managed and inspected to avoid illegal access, duplication, or piracy.

Electronic records are managed as if accounting records in original forms when they are created, sent, or received, provided there are suitable devices for using them.

- When a physical record is converted into an electronic one and vice versa, the electronic may be used for making the economic/financial transaction; the physical record is only for retention, not for making transactions or payments.

2.  Electronic record format in Vietnam

2.1. Format of tax, fee or charge receipt

In Clause 1, Article 33 of Decree 123/2020/ND-CP, the format of electronic documents for tax, fee, and charge collection is as follows:

Receipts for collection of taxes, fees, and charges that are not pre-printed with face value, pre-printed with face value, etc., must be made in the following format:

- Electronic receipts shall be XML (eXtensible Markup Language) documents, which are meant to share electronic data between IT systems;

- The data of an electronic record consists two components:

+ Information about the transaction and

+ Digital signature;

The General Department of Taxation shall develop and announce the format of transaction-related information, digital signatures and tools for display of electronic receipts as prescribed in Decree. 123/2020/ND-CP.

2.2. Format of an electronic PIT deduction statement

Clause 2 of Article 33 of Decree 123/2020/ND-CP stipulate the format of an electronic PIT deduction statement as follows:

When using the document in Point a Clause 1 Article 30 hereof in the electronic form, the organization deducting PIT shall develop a software system serving the use of electronic records which must contain adequate compulsory contents specified in Clause 1 Article 32 of Decree 123/2020/ND-CP, specifically:

The name of the tax withholding voucher; the symbol of the tax withholding voucher; the symbol of the tax withholding voucher; the ordinal number of the tax withholding voucher;

- Name, form number, reference number and ordinal number of the certificate of personal income tax withholding;

- Name, address and TIN of the applicant;

- Name, address and TIN of the taxpayer (if available);

- Nationality (if the taxpayer is not a Vietnamese citizen);

- Taxable income, time of income payment, total taxable income, PIT amount deducted, income amounts received;

- Date of the certificate of personal income tax withholding;

- Full name and signature of income payer.

In the event an electronic tax withholding record is used, the signature on the electronic voucher is a digital signature.

2.3. Make electronic vouchers and receipts

Clause 3, Article 33 of Decree 123/2020/ND-CP stipulates the format of electronic documents and electronic receipts as follows:

For electronic records, electronic receipts must be displayed fully and accurately, ensuring that the contents of the vouchers do not lead to erroneous interpretation so that users can read them by electronic means.

3. Retention of accounting records in Vietnam

Pursuant to Clause 6, Article 18 of the Law on Accounting 2015 provides for the storage of electronic documents as follows:

Accounting vouchers made in the form of electronic vouchers must comply with Section 1 above.

Electronic vouchers are printed on paper and stored according to the provisions of Article 41 of the Law on Accounting 2015, specifically:

- Accounting Records: Accounting records must be fully and safely preserved by the accounting unit during use and storage.

- In case an accounting record is temporarily seized or confiscated, a record must be enclosed with a photocopy of such accounting record;

If an accounting record is lost or destroyed, a record must be enclosed with a photocopy of the document or a certification.

- accounting records: accounting records must be archived within 12 months from the end of the annual accounting period or the end of accounting work.

- The legal representative of the accounting unit is responsible for preserving and archiving accounting records.

- accounting records must be archived according to the following deadlines:

+ At least 5 years for accounting records used for management and administration of the accounting unit, including accounting vouchers not used directly for recording accounting books and making financial statements;

+ At least 10 years for accounting vouchers used directly to record accounting books and prepare financial statements, accounting books and annual financial statements, unless otherwise provided for by law.

+ Permanently archive accounting records of historical and important significance in terms of the economy, security, and national defense.

Note: In the event that it is not printed on paper but stored on electronic means, it must ensure the safety and confidentiality of data and ensure that it can be searched within the storage period.

Ngoc Nhi

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