What are the penalties for violations against regulations on submission and disclosure of financial statements in Vietnam?

What are the penalties for violations against regulations on submission and disclosure of financial statements in Vietnam? (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. Published contents of financial statement in Vietnam

Published contents of financial statement according to Article 31 of the Law on Accounting 2015 are as follows:

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

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

- 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.

- Accounting units doing business shall publish:

+ Assets, liabilities and owner’s capital;

+ Business performance;

+ Development and use of funds;

+ Workers’ incomes;

+ Other contents required by law.

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

2. Manners and deadline for publishing financial statements in Vietnam

Manners and deadline for publishing financial statements according to Article 32 of the Law on Accounting 2015 are as follows:

- A financial statement shall be published in one of the following manner:

+ Publication;

+ Written notice;

+ Posting;

+ Publication on a website;

+ Other manners prescribed by law.

- The manners and deadlines for publishing financial statements of accounting units using state budget shall comply with regulations of law on state budget.

- Accounting units that do not use state budget, accounting units using the people’s contributions shall publish their annual financial statements within 30 days from their submission dates.

- Accounting units doing business shall publish their annual financial statements within 120 days from the end of the annual accounting period.

Where regulations of law on securities, credit, or insurance provide for different manners and deadlines for publishing financial statements; such regulations shall apply.

3. What are the penalties for violations against regulations on submission and disclosure of financial statements in Vietnam? 

Penalties for violations against regulations on submission and disclosure of financial statements under Article 12 of Decree 41/2018/ND-CP are as follows:

- A fine ranging from VND 5.000.000 to VND 10.000.000 shall be imposed in the following cases:

+ The financial statement is submitted less than 3 months after the specified deadline;

+ The financial statement is disclosed less than 3 months after the specified deadline.

- A fine ranging from VND 10.000.000 to VND 20.000.000 shall be imposed in the following cases:

+ The financial statement's contents are not fully disclosed;

+ The financial statement submitted to the competent authorities does not include the audit statement when required by law;

+ The financial statement is submitted 3 months after the specified deadline or later;

+ The disclosed financial statement does not include the audit statement when required by law;

+ The financial statement is disclosed 3 months after the specified deadline or later.

- A fine ranging from VND 20.000.000 to VND 30.000.000 shall be imposed for in the following cases:

+ The financial statement’s figures are falsified;

+ Provide or publish financial statements which have inconsistent figures within an accounting period for use in Vietnam.

- A fine ranging from VND 40.000.000 to VND 50.000.000 shall be imposed for one of the following violations:

+ Failure to submit financial statement to the competent authorities;

+ Failure to disclose financial statements.

- Remedial measure:

Submit and disclose the audit statement attached to the financial statement mentioned in Points b and d, Clause 2 of this Article.

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