Circular 40/2020/TT-BTC reporting regime in the field of independent audit

CIRCULAR

On instruction for reporting regime in the field of independent audit and accounting as prescribed in the Decree No. 174/2016/ND-CP dated December 30, 2016 of the Government on detailing a number of articles of the Accounting Law and the Decree No. 17/2012/ND-CP dated March 13, 2012 of the Government on detailing and guiding the implementation of a number of articles of the Law on Independent Audit

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Pursuant to the Law on Independent Audit No. 67/2011/QH12 dated March 29, 2011;

Pursuant to the Law on Accounting No. 88/2015/QH13 dated November 20, 2015;

Pursuant to the Government’s Decree No. 17/2012/ND-CP dated March 13, 2012, on detailing and providing instruction on a number of articles of the Law on Independent Audit;

Pursuant to the Government’s Decree No. 174/2016/ND-CP of December 30, 2016, detailing a number of articles of the Law on Accounting;

Pursuant to the Government’s Decree No. 09/2019/ND-CP dated January 24, 2019, prescribing reporting regimes applicable to state administrative agencies;

Pursuant to the Decree No. 87/2017/ND-CP dated July 26, 2017 of the Government on defining functions, tasks, powers, and organizational structure of the Ministry of Finance;

At the request of the Director of the Department of Accounting and Auditing Regulations,

The Minister of Finance hereby promulgates the Circular on instruction for reporting regime in the field of independent audit and accounting as prescribed in the Decree No. 174/2016/ND-CP dated December 30, 2016 of the Government on detailing a number of articles of the Accounting Law and the Decree No. 17/2012/ND-CP dated March 13, 2012 of the Government on detailing and guiding the implementation of a number of articles of the Law on Independent Audit.

Chapter I
GENERAL PROVISIONS

Article 1. Scope of regulation

This Circular provides the instruction for periodic reporting regime on implementation of contract on providing cross border independent accounting services and auditing services arising within a period in Vietnam and the operation of the partnership with the foreign accounting service enterprise, foreign auditing service enterprise on providing cross border independent accounting services and auditing services as prescribed in Article 32, 33 of the Decree No. 174/2016/ND-CP of December 30, 2016, detailing a number of articles of the Law on Accounting and Article 13, Article 14 of the Government’s Decree No. 17/2012/ND-CP dated March 13, 2012, on detailing and providing instruction on a number of articles of the Law on Independent Audit;

Article 2. Subjects of application

1. Vietnam-based accounting service enterprises entering into partnerships with foreign accounting service enterprises to provide cross-border accounting services in Vietnam.

2. Foreign accounting service enterprises providing cross-border accounting services in Vietnam.

3. Vietnam-based auditing service enterprises entering into partnerships with foreign auditing service enterprises to provide cross-border auditing services in Vietnam.

4. Foreign accounting service enterprises providing cross-border auditing services in Vietnam.

5. Organizations and individuals involved in the periodic reporting regime on implementation of contract on providing cross border independent accounting services and auditing services arising within a period in Vietnam and the operation of the partnership with the foreign accounting service enterprise, foreign auditing service enterprise on providing cross border independent accounting services and auditing services.

Chapter II

SPECIFIC PROVISIONS

Article 3. Periodic reporting regime up on provision of cross-border accounting services

1. Content of the periodic report on the provision of the cross-border accounting services of foreign accounting service enterprise:

a) Title of the report: Implementation situation of the contract on providing cross-border accounting services.

b) Required contents of the report:

- Information of partnership parties;

- The List of accounting practitioners in foreign accounting service enterprise;

- The List of accounting practitioners assigned for tasks under responsibility of each party in the contract of providing accounting services;

- The List of contract on providing cross-border accounting services engaged in 06 months period;

- Observance situation for Vietnam laws.

c) Report maker: Foreign accounting service enterprises providing cross-border accounting services in Vietnam.

d) Report recipient:The Ministry of Finance (Department of Accounting and Auditing Regulation).

dd) Methods of sending and receiving the report: Periodical report shall be performed by written form or electronic copy and shall be sent by one of those following methods:

- Directly;

- By post;

- Via email;

- Other methods as prescribed by law.

e) Time limit for sending the report: No later than July 31 of the reporting year for report of the first 06 months; no later than January 31 of the next year for the report of the last 06 months.

g) Frequency of the report; Periodic report once for 06 months.

h) Period for closing report data: The period for closing report data of the first 06 months is from January 01 to June 30 of the reporting year. The period for closing report data of the last 6 months is from July 01 to December 31 of the reporting year.

i) Model outline of the report: Made according to the Appendix No. 01/BC issued together with the Circular.

k) Forms of report data: Made according to the Appendix No. 01/BC issued together with the Circular.

l) Guidelines on the report making process: Annually, foreign accounting service enterprise shall sum up information according to the set form and send to the Ministry of Finance in the prescribed limit time.

2. Content of the periodic report on the condition on operation of the partnership with foreign accounting service enterprise:

a) Title of the report: Condition on operation of the partnership with foreign accounting service enterprises on providing cross border accounting services.

b) Required contents of the report:

- Information of partnership parties;

- The List of accounting practitioners assigned for tasks under responsibility of each party in the contract of providing accounting services;

- The List of contract on providing cross-border accounting services engaged in 06 months period;

c) Report maker: Vietnam-based accounting service enterprises entering into partnerships with foreign accounting service enterprises to provide cross-border accounting services in Vietnam.

d) Report recipient:The Ministry of Finance (Department of Accounting and Auditing Regulation).

dd) Methods of sending and receiving the report: Periodical report shall be performed by written form or electronic copy and shall be sent by one of those following methods:

- Directly;

- By post;

- Via email;

- Other methods as prescribed by law.

e) Time limit for sending the report: No later than July 31 of the reporting year for report of the first 06 months; no later than January 31 of the next year for the report of the last 06 months.

g) Frequency of the report; Periodic report once for 06 months.

h) Period for closing report data: The period for closing report data of the first 06 months is from January 01 to June 30 of the reporting year. The period for closing report data of the last 6 months is from July 01 to December 31 of the reporting year.

i) Model outline of the report: Made according to the Appendix No. 02/BC issued together with the Circular.

k) Forms of report data: Made according to the Appendix No. 02/BC issued together with the Circular.

l) Guidelines on the report making process: Annually, accounting service enterprise in Vietnam shall sum up information according to the set form and send to the Ministry of Finance in the prescribed limit time.

Article 4. Periodic reporting regime

1. Content of the periodic report on the condition of implementation of the contract on provision of the cross-border accounting services of foreign accounting service enterprise:

a) Title of the report: Implementation situation of the contract on providing cross-border accounting services.

b) Required contents of the report:

- Information of partnership parties;

- The List of auditing practitioners in foreign auditing service enterprise;

- The List of auditing practitioner assigned for tasks under responsibility of each party in the contract of providing accounting services;

- The List of contract on providing cross-border auditing services engaged in 06 months period;

- Observance situation for Vietnam laws.

c) Report maker: Foreign auditing service enterprise providing cross border auditing services in Vietnam.

d) Report recipient:The Ministry of Finance (Department of Accounting and Auditing Regulation).

dd) Methods of sending and receiving the report: Periodical report shall be performed by written form or electronic copy and shall be sent by one of those following methods:

- Directly;

- By post;

- Via email;

- Other methods as prescribed by law.

e) Time limit for sending the report: No later than July 31 of the reporting year for report of the first 06 months; no later than January 31 of the next year for the report of the last 06 months.

g) Frequency of the report; Periodic report once for 06 months.

h) Period for closing report data: The period for closing report data of the first 06 months is from January 01 to June 30 of the reporting year. The period for closing report data of the last 6 months is from July 01 to December 31 of the reporting year.

i) Model outline of the report: Made according to the Appendix No. 03/BC issued together with the Circular.

k) Forms of report data: Made according to the Appendix No. 03/BC issued together with the Circular.

l) Guidelines on the report making process: Annually, foreign auditing service enterprise shall sum up information according to the set form and send to the Ministry of Finance in the prescribed limit time.

2. Content of the periodic report on the condition on operation of the partnership with foreign auditing service enterprise:

a) Title of the report: Condition on operation of the partnership with foreign auditing service enterprises on providing cross border auditing services.

b) Required contents of the report:

- Information of partnership parties;

- The List of auditing practitioner assigned for tasks under responsibility of each party in the contract of providing accounting services;

- The List of contract on providing cross border auditing services engaged in 06 months period;

c) Report maker: Vietnam based auditing service enterprises entering into partnerships with foreign auditing service enterprises to provide cross border auditing services in Vietnam.

d) Report recipient:The Ministry of Finance (Department of Accounting and Auditing Regulation).

dd) Methods of sending and receiving the report: Periodical report shall be performed by written form or electronic copy and shall be sent by one of those following methods:

- Directly;

- By post;

- Via email;

- Other methods as prescribed by law.

e) Time limit for sending the report: No later than July 31 of the reporting year for report of the first 06 months; no later than January 31 of the next year for the report of the last 06 months.

g) Frequency of the report; Periodic report once for 06 months.

h) Period for closing report data: The period for closing report data of the first 06 months is from January 01 to June 30 of the reporting year. The period for closing report data of the last 6 months is from July 01 to December 31 of the reporting year.

i) Model outline of the report: Made according to the Appendix No. 04/BC issued together with the Circular.

k) Forms of report data: Made according to the Appendix No. 04/BC issued together with the Circular.

l) Guidelines on the report making process: Annually, foreign auditing service enterprise shall sum up information according to the set form and send to the Ministry of Finance in the prescribed limit time.

Article 5. Effect

1. This Circular takes effect from July 01, 2020.

2. Any problem arising in the course of implementation should be promptly report to the Ministry of Finance for review to amend and supplement.

For the Minister

The Deputy Minister

Do Hoang Anh Tuan

Appendix No. 01/BC

FORM OF THE CONTRACT ON PROVIDING CROSS-BORDER ACCOUNTING SERVICES

(Attached to the Circular No. 40/2020/TT-BTC dated May 15, 2020 of the Minister of Finance)

REPORT

On implementation situation of the contract on providing cross-border accounting services

(Of the 06 months’ period from ..., date.... month...year...to ..., date.... month...year...)

___________________________

To: The Ministry of Finance

On implementation of the Circular No. 40/2020/TT-BTC dated May 15, 2020 of the Ministry of Finance on instruction for reporting regime in the field of independent audit and accounting as prescribed in the Decree No. 174/2016/ND-CP dated December 30, 2016 of the Government on detailing a number of articles of the Accounting Law and the Decree No. 17/2012/ND-CP dated March 13, 2012 of the Government on detailing and guiding the implementation of a number of articles of the Law on Independent Audit,(name of the foreign accounting service enterprise)hereby report on the implementation situation of the contract on providing cross-border accounting services as follow:

1. (Name of the foreign accounting service enterprise)possesses the Certificate of business eligibility for providing cross-border accounting services in Vietnam No....issued by the(name of the issuance authority)on(...date.... month...year...), is now in a partnership with:

(1)(Name of the Vietnam-based accounting service enterprise)according to the partnership contract No.(date.... month...year...)

(Name of the Vietnam-based accounting service enterprise)is now operate according to the Enterprise registration certificate, Investment registration certificate or equivalent documents No. issued by(name of the issuance authority)on(...date.... month...year...).Certificate of business eligibility for providing accounting services No.  issued the first time on (date.... month...year...) (Re-issue on date.... month...year...).

(2)(Name of the Vietnam-based accounting service enterprise)according to the partnership contract No.(date.... month...year...)

(Name of the Vietnam-based accounting service enterprise)is now operate according to the Enterprise registration certificate, Investment registration certificate or equivalent documents No. issued by(name of the issuance authority)on(...date.... month...year...).Certificate of business eligibility for providing accounting services No.  issued the first time on (date.... month...year...) (Re-issue on date.... month...year...).

….

2. The List of accounting practitioners in(name of foreign accounting service enterprise):

3. The List of contract on providing cross-border accounting services engaged in 06 months’ period from....../.../... to …/…/…:

4. Observance of Vietnam laws.(To clearly state violations on accounting performance and other violation of foreign accounting service enterprise and imposed sanctions, if any).

(Name of foreign accounting service enterprise)claim the truthfulness of all the above declared contents and shall bear any legally responsible for contents of this report./.

Appendix No. 02/BC

FORM OF REPORT ON CONDITION ON OPERATION OF THE PARTNERSHIP WITH FOREIGN ACCOUNTING SERVICE ENTERPRISES ON PROVIDING CROSS BORDER ACCOUNTING SERVICES

(Attached to the Circular No. 40/2020/TT-BTC dated May 15, 2020 of the Minister of Finance)

REPORT

On operation of the partnership with foreign auditing service enterprises on providing cross border auditing services.

(Of the 06 months period from ...,date....month...year...to ...,date....month...year...)

___________________________

To: The Ministry of Finance

On implementation of the Circular No. 40/2020/TT-BTC dated May 15, 2020 of the Ministry of Finance on instruction for reporting regime in the field of independent audit and accounting as prescribed in the Decree No. 174/2016/ND-CP dated December 30, 2016 of the Government on detailing a number of articles of the Accounting Law and the Decree No. 17/2012/ND-CP dated March 13, 2012 of the Government on detailing and guiding the implementation of a number of articles of the Law on Independent Audit,(name of the Vietnam based accounting service enterprise)hereby report on operation of the partnership with foreign accounting service enterprise for providing cross-border accounting services as follow:

1. (Name of the Vietnam-based accounting service enterprise)is now operate according to the Enterprise registration certificate, Investment registration certificate or equivalent documents No. issued by(name of the issuance authority)on(...date....month...year...).Certificate of business eligibility for providing accounting services No.  issued the first time on (date....month...year...) (Re-issue on date....month...year...).

(Name of the Vietnam-based accounting service enterprise)is now participate in a partnership with:

(1) (Name of the foreign accounting service enterprise)possesses the Certificate of business eligibility for providing cross-border accounting services in Vietnam No....issued by the(name of the issuance authority)on(...date....month...year...), according to the Contract on Partnership No.  (...date....month...year...).

(2) (Name of the foreign accounting service enterprise)possesses the Certificate of business eligibility for providing cross-border accounting services in Vietnam No....issued by the(name of the issuance authority)on(...date....month...year...), according to the Contract on Partnership No.  (...date....month...year...).

….

2. The List of contract on providing cross-border accounting services engaged in 06 months period from....../.../... to …/…/…:

(Name of Vietnam based accounting service enterprise)claim the truthfulness of all the above declared contents and shall bear any legally responsible for contents of this report./.

Appendix No. 03/BC

FORM OF THE CONTRACT ON PROVIDING CROSS-BORDER AUDITING SERVICES

(Attached to the Circular No. 40/2020/TT-BTC dated May 15, 2020 of the Minister of Finance)

REPORT

On implementation situation of the contract on providing cross-border auditing services

(Of the 06 months period from ...,date....month...year...to ...,date....month...year...)

_______________

To: The Ministry of Finance

On implementation of the Circular No. 40/2020/TT-BTC dated May 15, 2020 of the Ministry of Finance on instruction for reporting regime in the field of independent audit and accounting as prescribed in the Decree No. 174/2016/ND-CP dated December 30, 2016 of the Government on detailing a number of articles of the Accounting Law and the Decree No. 17/2012/ND-CP dated March 13, 2012 of the Government on detailing and guiding the implementation of a number of articles of the Law on Independent Audit,(name of the foreign auditing service enterprise)hereby report on the implementation situation of the contract on providing cross-border auditing services as follow:

1. (Name of the foreign auditing service enterprise)possesses the Certificate of business eligibility for providing cross-border auditing services in Vietnam No....issued by the(name of the issuance authority)on(...date....month...year...), is now in a partnership with:

(1)(Name of the Vietnam-based auditing service enterprise)according to the partnership contract No.(date....month...year...)

(Name of the Vietnam-based auditing service enterprise)is now operate according to the Enterprise registration certificate, Investment registration certificate or equivalent documents No. issued by(name of the issuance authority)on(...date....month...year...).Certificate of business eligibility for providing auditing services No.  issued the first time on (date....month...year...) (Re-issue on date....month...year...).

(2) (Name of the Vietnam-based auditing service enterprise)according to the partnership contract No.(date....month...year...)

(Name of the Vietnam-based auditing service enterprise)is now operate according to the Enterprise registration certificate, Investment registration certificate or equivalent documents No. issued by(name of the issuance authority)on(...date....month...year...).Certificate of business eligibility for providing auditing services No.  issued the first time on (date....month...year...) (Re-issue on date....month...year...).

…

2.The List of auditing practitioners in(name of the foreign auditing service enterprise):

3.The List of contract on providing cross-border auditing services engaged in 06 months period from....../.../... to …/…/…:

4. Observance of Vietnam laws:(To clearly state violations on accounting and auditing performance and other violation of foreign accounting service enterprise and imposed sanctions, if any).

(Name of foreign auditing service enterprise)claim the truthfulness of all the above declared contents and shall bear any legally responsible for contents of this report./.

Appendix No. 04/BC

FORM OF REPORT ON CONDITION ON OPERATION OF THE PARTNERSHIP WITH FOREIGN AUDITING SERVICE ENTERPRISES ON PROVIDING CROSS BORDER AUDITING SERVICES

(Attached to the Circular No. 40/2020/TT-BTC dated May 15, 2020 of the Minister of Finance)

REPORT

on operation of the partnership with foreign auditing service enterprises on providing cross border auditing services

(Of the 06 months period from ...,date....month...year...to ...,date....month...year...)

_______________

To: The Ministry of Finance

On implementation of the Circular No. 40/2020/TT-BTC dated May 15, 2020 of the Ministry of Finance on instruction for reporting regime in the field of independent audit and accounting as prescribed in the Decree No. 174/2016/ND-CP dated December 30, 2016 of the Government on detailing a number of articles of the Accounting Law and the Decree No. 17/2012/ND-CP dated March 13, 2012 of the Government on detailing and guiding the implementation of a number of articles of the Law on Independent Audit,(name of the Vietnam based auditing service enterprise)hereby report on operation of the partnership with foreign auditing service enterprise for providing cross-border auditing services as follow:

1.(Name of the Vietnam-based auditing service enterprise)is now operate according to the Enterprise registration certificate, Investment registration certificate or equivalent documents No. issued by(name of the issuance authority)on(...date....month...year...).Certificate of business eligibility for providing auditing services No.  issued the first time on (date....month...year...) (Re-issue on date....month...year...).

(Name of the Vietnam-based accounting service enterprise)is now participate in a partnership with:

(1)(Name of the foreign auditing service enterprise)possesses the Certificate of business eligibility for providing cross-border auditing services in Vietnam No....issued by the(name of the issuance authority)on(...date....month...year...), according to the Contract on Partnership No.  (...date....month...year...).

(2)(Name of the foreign auditing service enterprise)possesses the Certificate of business eligibility for providing cross-border auditing services in Vietnam No....issued by the(name of the issuance authority)on(...date....month...year...), according to the Contract on Partnership No.  (...date....month...year...).

2. The List of contract on providing cross-border auditing services engaged in 06 months period from....../.../... to …/…/…:

(Name of Vietnam based auditing service enterprise)claim the truthfulness of all the above declared contents and shall bear any legally responsible for contents of this report./.