Decree No. 129/2004/ND-CP dated May 31, 2004 of the Government detailing and guiding the implementation of a number of articles of the Accounting Law, applicable to business activities

DECREE

DETAILING AND GUIDING THE IMPLEMENTATION OF A NUMBER OF ARTICLES OF THE ACCOUNTING LAW, APPLICABLE TO BUSINESS ACTIVITIES

THE GOVERNMENT

Pursuant to the December 25, 2001 Law on Organization of the Government;

Pursuant to the June 17, 2003 Accounting Law;

Pursuant to the November 26, 2003 Law on State Enterprises; the June 12, 1999 Law on Enterprises; the November 12, 1996 Law on Foreign Investment in Vietnam; the June 9, 2000 Law Amending and Supplementing a Number of Articles of the Law on Foreign Investment in Vietnam; and the November 26, 2003 Law on Cooperatives;

At the proposal of the Finance Minister,

DECREES:

Article 1.- Regulation scope

This Decree details and guides the implementation of a number of articles of the Accounting Law, applicable to the subjects defined in Article 2 of this Decree (hereinafter called business activities for short).

Article 2.- Subjects of application

Pursuant to Points c, d, e and f, Clause 1, Article 2 of the Accounting Law, subject to the application of this Decree shall be the following organizations and individuals:

1. Organizations engaged in business activities, including:

a) State enterprises;

b) Limited liability companies;

c) Joint-stock companies;

d) Partnerships;

e) Private enterprises;

f)  Foreign-invested enterprises;

g) Branches of foreign enterprises operating in Vietnam;

h) Representative offices of foreign enterprises operating in Vietnam;

i) Cooperatives;

j) Individual business households and cooperation groups.

2. Accountants; accounting practitioners; other persons involved in business operation accounting.

Article 3.- Objects of business operation accounting

Pursuant to Clause 3, Article 9 of the Accounting Law, the objects of business operation accounting are prescribed as follows:

1. Objects of accounting are fixed and liquid asets, including:

a) Money and money-equivalent amounts;

b) Receivables;

c) Inventories;

d) Short-term financial investment;

e) Tangible fixed assets, intangible fixed assets, financial leasing fixed assets;

f) Long-term financial investment;

g) Short-term assets and long-term assets.

2. Objects of accounting are passive debts, including:

a) Payables to sellers;

b) Payable loans;

c) Payables to employees;

d) Other amounts to be paid, to be remitted.

3. Objects of accounting are owners’ capital, including:

a) Owners’ capital;

b) Assorted funds;

c) Undistributed profits.

4. Business revenues and expenditures; other incomes and expenditures.

5. Taxes and remittances into the State budget.

6. Trading results and division thereof.

7. Other assets related to accounting units.

Article 4.- Responsibility to manage, use and supply accounting information, documents

Pursuant to Article 16 of the Accounting Law, the responsibility to manage, use and supply accounting information and documents is prescribed as follows:

1. The accounting units must formulate regulations on management, use and preservation of accounting documents, clearly defining the responsibilities and rights of each section and each accountant; the accounting units must ensure adequate material foundations and means for management and preservation of accounting documents.

2. The accounting units have the responsibility to supply accounting documents to tax offices and competent State bodies performing the functions of inspection, examination, investigation and auditing according to law provisions. The agencies supplied with accounting documents shall have to keep and preserve the accounting documents while using them and must return in full and on time the used accounting documents.

3. The accounting units’ representatives at law may provide accounting information and documents for organizations and individuals according to law provisions. The exploitation and use of accounting documents must be agreed upon in writing by the accounting units’ representatives at law or their authorized persons.

Article 5.- Forms of accounting vouchers

Pursuant to Clause 2, Article 19 of the Accounting Law, the forms of accounting vouchers are prescribed as follows:

1. Forms of accounting vouchers include compulsory accounting voucher forms and guiding accounting voucher forms.

a) The compulsory accounting voucher forms are those with contents and structures being prescribed by competent State bodies, which the accounting units must strictly comply with in terms of their forms, contents, methods of inscribing norms and be uniformly applied to accounting units or each specific accounting unit.

b) The guiding accounting voucher forms are those prescribed by competent State bodies; apart from the contents prescribed in the forms, the accounting units may add norms or change forms and tables to suit the recording and managerial requirements of units.

2. The Finance Ministry prescribes the lists and forms of compulsory accounting vouchers, the lists and forms of guiding accounting vouchers; and provides for the printing and issuance of accounting voucher forms.

Article 6.- Electronic vouchers

Pursuant to Clause 2, Article 18 of the Accounting Law, the electronic vouchers are prescribed as follows:

1. The electronic vouchers must fully contain the contents prescribed for the accounting vouchers and be encrypted to ensure electronic data safety in the course of processing, transmission and archival.

2. The electronic vouchers used in accounting shall be stored in information-carrying objects such as magnetic tapes, magnetic discs, assorted payment cards.

3. For the electronic vouchers, the confidentiality must be ensured and the data and information must be preserved in the course of use and archival; there must be measures to manage and examine against all forms of exploiting, accessing, copying, stealing or using electronic vouchers in contravention of regulations. When being preserved, the electronic vouchers shall be managed like accounting documents in the original state created, transmitted or received, but there must be adequate appropriate equipment for use when necessary.

Article 7.- Conditions on the use of electronic vouchers

Pursuant to Clause 2, Article 18 of the Accounting Law, the conditions on the use of electronic vouchers are prescribed as follows:

1. The organizations providing payment services, accounting or auditing services and using electronic vouchers must satisfy the following conditions:

a) Having locations, information transmission channels, information networks, information transmission equipment, which satisfy the requirements of exploitation, control, management, use, preservation and archival of electronic vouchers;

b) Having the contingent of executive personnel possessing qualifications and capability corresponding to the technical requirements in order to carry out the process of elaborating and using electronic vouchers according to the accounting and payment process;

c) Complying with the regulations prescribed in Clause 2 of this Article.

2. Organizations and individuals using electronic vouchers and conducting electronic payment transactions must satisfy the following conditions:

a) Acquiring the electronic signatures of the representatives at law, the persons authorized by their representatives at law;

b) Establishing the modes of delivery and reception of electronic vouchers and techniques of information-carrying objects;

c) Committing that the activities occurring due to their established electronic vouchers are compatible and compliant with regulations.

Article 8.- Electronic voucher value

Pursuant to Clause 2, Article 18 of the Accounting Law, the electronic voucher value is prescribed as follows:

1. When a paper voucher is converted into an electronic voucher for transaction, payment, the electronic voucher shall be valid for the performance of economic and/or financial operation and then the paper voucher is only valid for archival for monitoring and examination, but not for transaction, payment.

2. When an electronic voucher has been used with the performance of an economic and/or financial operation and converted into a paper voucher, such paper voucher is only valid for archival for recording the accounting books, monitoring and examination, but not for transaction, payment.

3. The conversion of paper vouchers into electronic vouchers or vice versa must comply with the regulations on compilation, use, control, processing, preservation and archival of electronic vouchers and paper vouchers.

Article 9.- Electronic signatures on electronic vouchers

Pursuant to Clause 4, Article 20 of the Accounting Law, the electronic signatures are prescribed as follows:

1. Electronic signatures are information in electronic form, which are properly associated with electronic data in order to establish the relations between the senders and the contents of such electronic data. The electronic signatures certify that the senders have accepted and taken responsibility for the information contents in the electronic vouchers.

2. The electronic signatures must be encrypted in cipher; an electronic signature is established separately for each individual in order to determine the rights and responsibilities of the makers and the concerned persons are responsible for the safety and accuracy of the electronic vouchers. The signatures on electronic vouchers have the same value as the hand-signatures on paper vouchers.

3. In case of changing the deciphering technicians, the secret codes, electronic signatures and confidentiality passwords must be changed and the parties involved in electronic transactions must be notified thereof.

4. The persons assigned to manage, use secret codes, electronic signatures, confidentiality passwords must keep secret and are answerable to law if they disclose them, causing material losses to the units and the parties involved in transactions.

Article 10.- Sale invoices

Pursuant to Clauses 1 and 4 of Article 21 of the Accounting Law, cases where goods sales and sale proceeds must not be recorded in sale invoices are prescribed as follows:

1. Business organizations and individuals that use sale invoices, when retailing goods or providing a single service with value lower than the level prescribed by the Finance Ministry, they must not make sale invoices exept where the goods purchasers request the invoices which, in this case, must be made and handed strictly according to regulations. Retail goods or single service provision with value below the prescribed levels, though not being subject to invoice making, must be listed or can be invoiced according to regulations for use as accounting vouchers. In case of making lists of retail goods, services, at the end of each day, the sale invoices must be made according to regulations on the basis of the general data of the lists.

2. Organizations and individuals, when buying products or goods or being provided with services, are entitled to request the sellers or service providers to make the invoices and hand the second copy thereof to them for use and archival as prescribed, and at the same time have the responsibility to check the contents of the norms inscribed in the invoices and refuse to take the invoices inscribed with wrong details, with values in disparity with the kept invoice copies of the sellers.

3. Organizations and individuals that print sale invoices by themselves must obtain the Finance Ministry’s written prior approval. Organizations and individuals allowed to print invoices by themselves must have invoice-printing contracts with the organizations which undertake the printing, which clearly state the volume, signs and serial numbers of the invoices. After each invoice printing or upon the conclusion of printing contracts, the liquidation of printing contracts must be effected.

4. Accounting units must use sale invoices strictly according to regulations; must not buy, sell, exchange or donate invoices or use invoices of other organizations or individuals; must not use invoices for declaration to evade tax; must open monitoring books, work out regulations on management, have facilities to preserve and archive invoices strictly according to law provisions; must not let invoices be damaged or lost. Where invoices are damaged or lost, they must notify such in writing to the tax offices of the same level.

Article 11.- Copied accounting vouchers

Pursuant to Clause 3, Article 22 and Clause 3, Article 41 of the Accounting Law, the copied accounting vouchers are prescribed as follows:

1. The copied accounting vouchers must be copied from the originals, signed and stamped for certification by the representatives at law of the accounting units where the originals are kept or by competent State bodies which decide on the temporary seizure or confiscation of the accounting documents.

2. The accounting vouchers shall be copied only in the following cases where:

a) The accounting units have foreign loan or foreign aid projects and have to submit the originals to foreign donors as committed. For this case, the copied vouchers must bear the certification signatures and seals of the representatives at law of the donors or the accounting units;

b) The accounting units have the originals of their accounting vouchers temporarily seized or confiscated by competent State bodies. For this case, the copied vouchers must bear the certification signatures and seals of the representatives of the competent State bodies which decide to temporarily seize or confiscate the accounting vouchers as provided for in Article 26 of this Decree.

c) Accounting vouchers have been lost or damaged due to objective causes such as natural calamities, fires. For this case, the accounting units must go to the goods or service-purchasing or- selling units and other relevant units to ask for permission to make copies of their lost accounting vouchers. The copied accounting vouchers must bear the certification signatures and seals of the representatives at law of the purchasing or selling units or other accounting units;

d) Other cases prescribed by law.

Article 12.- Translation of accounting vouchers into Vietnamese

Pursuant to Article 19 of the Accounting Law, the inscriptions on the accounting vouchers are prescribed as follows:

1. The accounting vouchers which have arisen outside the Vietnamese territory and been written in foreign languages, when being used for book-entries in Vietnam, must be translated into Vietnamese.

2. Vouchers which rarely arise must be fully translated. Vouchers which arise many times shall only have their principal contents translated according to the regulations of the Finance Ministry.

3. The Vietnamese translations of vouchers must be enclosed with their orignals in foreign languages.

Article 13.- Selection and concretization of accounting books

Pursuant to Clause 2 of Article 2, and Article 26, of the Accounting Law, the concretization of accounting books is stipulated as follows:

1. The general accounting books and the detail accounting books selected by the accounting units must be opened fully, ensuring the capacity for comparison and synthesis of accounting data and the making of financial statements.

2. The selected accounting books must be uniformly used in an yearly accounting period.

3. The representative offices of foreign enterprises operating in Vietnam, individual business households and cooperation groups, which are prescribed at Points h and j, Clause 1, Article 2 of this Decree, shall make accounting books according to regulations of the Finance Ministry.

Article 14.- Computerized book-entries

Pursuant to Clause 7, Article 27 of the Accounting Law, the computerized book-entries are stipulated as follows:

1. Where the accounting units computerize their book-entries, the selected accounting softwares must meet the prescribed standards and conditions, ensuring the capacity for comparison and synthesis of accounting data and the making of financial statements.

2. The Finance Ministry shall prescribe the standards and conditions of the accounting softwares.

Article 15.- Financial statement-making schedules

Pursuant to Clause 3, Article 29 and Clause 1, Article 30 of the Accounting Law, the financial statement-making schedules are prescribed as follows:

1. The business accounting units must make financial statements at the end of the annual accounting period.

2. The accounting units subject to division, separation, consolidation, merger, ownership transformation, dissolution, operation termination or bankruptcy must make financial statements at the time of division, separation, consolidation, merger, ownership transformation, dissolution, operation termination or bankruptcy.

3. For State enterprises, in addition to annual financial statements, they must also make quarterly financial statements.

Article 16.- Making general financial statements or consolidated financial statements

Pursuant to Clause 2, Article 30 of the Accounting Law, the making of general accounting statements or consolidated accounting statements is stipulated as follows:

1. Accounting units with attached accounting units shall, apart from making their own financial statements, have to make the general financial statements or consolidated financial statements at the end of the annual accounting period, based on the financial statements of their attached accounting units.

2. The parent companies must make consolidated financial statements at the end of the annual accounting period as provided for by the Finance Ministry.

3. The State corporations and State enterprises having attached accounting units must make general financial statements or consolidated financial statements at the end of the quarterly and annual accounting periods.

4. The Finance Ministry shall specify the making of general financial statements and consolidated financial statements of the accounting units having attached accounting units.

Article 17.- Abbreviated monetary units and rounding figures when making financial statements or publicizing financial statements

Pursuant to Articles 11 and 30 of the Accounting Law, the abbreviated monetary units in making financial statements or publicizing financial statements are prescribed as follows:

1. The accounting units, when making general financial statements or consolidated financial statements from the financial statements of their attached accounting units and if appearing reporting figures of more than 9 numerals, may opt to use the abbreviated monetary unit of thousand dong (1,000 dong) or million dong (1,000,000 dong) for making financial statements.

2. The accounting units, when publicizing the financial statements, may use the abbreviated monetary unit of thousand dong or million dong prescribed in Clause 1 of this Article.

3. When using the abbreviated monetary units, the accounting units may round up the figures by the following way: the numeral following the abbreviated monetary unit, if being five (5) or bigger, shall be added with one (1) unit; if it is smaller than five (5), it shall not be counted.

Article 18.- Conversion of financial statements of accounting units operating overseas

Pursuant to Articles 29, 30 and 31 of the Accounting Law, cases where accounting units operating overseas send their financial statements back to Vietnam are prescribed as follows:

Accounting units operating overseas, when sending their financial statements to their superior accounting units in Vietnam, must inscribe them in the foreign currency(ies) used for book-entries, and at the same time convert such foreign currency(ies) into Vietnam dong according to the Finance Ministry’s regulations and translate them into Vietnamese.

Article 19.- Recipients of financial statements

Pursuant to Article 31 of the Accounting Law, the recipients of financial statements are prescribed as follows:

1. The financial statements of the business accounting units must be submitted to the tax offices, the statistical bodies and the business registration certificate-granting agencies of the same level as well as other agencies as prescribed by law.

2. For State enterprises, their financial statements must also be submitted to the finance bodies of the same levels.

3. The attached accounting units must also submit their financial statements to their superior accounting units.

Article 20.- Time limits for submitting financial statements

Pursuant to Article 31 of the Accounting Law, the time limits for submitting financial statements are prescribed as follows:

1. For State enterprises:

a) The time limit for submitting their quarterly financial statements:

- The accounting units must submit their quarterly financial statements within 20 days as from the end of such quarter; for State corporations, it is within 45 days;

- The accounting units under the State corporations shall submit their quarterly financial statements to their respective corporations within the time limits prescribed by the corporations.

b) The time limit for submitting their annual financial statements:

- The accounting units must submit their annual financial statements within 30 days as from the end of the annual accounting period; for the State corporations, it is within 90 days;

- The accounting units attached to State corporations shall submit their annual financial statements to their respective corporations within the time limits prescribed by the such corporations.

2. For enterprises of other types:

a) The accounting units of private enterprises or partnerships must submit their annual financial statements within 30 days as from the end of the annual accounting period; for other accounting units, the time limit for submitting the annual financial statements is 90 days;

b) The attached accounting units shall submit their annual financial statements to their superior accounting units within the time limits prescribed by the latter.

Article 21.- Time limits for publicizing annual financial statements

Pursuant to Clause 2 of Article 32 and Article 33 of the Accounting Law, the time limits for publicizing annual financial statements are prescribed as follows:

1. For State enterprises:

a) The accounting units must publicize the annual financial statements within 60 days as from the end of the annual accounting period; for the State corporations, the publicizing time limit is within 120 days;

b) The accounting units under State corporations must publicize the annual financial statements within the time limits prescribed by their respective corporations, which, however, must not longer than 90 days.

2. For enterprises of other types:

a) The accounting units of private enterprises or partnerships must publicize the annual financial statements within the time limit of 60 days as from the end of the annual accounting period; for other enterprises, the time limit for publicizing the financial statements shall not exceed 120 days;

b) The attached accounting units must publicize the annual financial statements within the time limits prescribed by their superior accounting units.

Article 22.- Submitting and publizing financial statements of accounting units with attached accounting units

Pursuant to Article 33 of the Accounting Law, the submission and publicization of financial statements of accounting units having attached accounting units are prescribed as follows:

1. The accounting units with attached accounting units, including State corporations and parent companies, when submitting the general financial statements or the consolidated financial statements, shall have to submit also the financial statements of their attached accounting units and the financial statements of the affiliate companies.

2. The accounting units defined in Clause 1 of this Article, when publicizing the general financial statements or the consolidated financial statements, shall have to also publicize the financial statements of the attached accounting units and the financial statements of the affiliate companies.

Article 23.- Cases of exemption from making, submitting financial statements

Pursuant to Clause 2, Article 2 of the Accounting Law, the units exempt from making and submitting financial statements are prescribed as follows:

1. The accounting units exempt from making and submitting financial statements include: representative offices of foreign enterprises operating in Vietnam, individual business households and cooperation groups, which are defined at Point h, j, Clause 1, Article 2 of this Decree.

2. The accounting units prescribed in Clause 1 of this Article shall still have to make the written tax payment declarations according to law provisions.

Article 24.- Agencies competent to decide on accounting examination

Pursuant to Article 35 of the Accounting Law, the agencies competent to decide on accounting examination are defined as follows:

1. The Ministry of Finance, other ministries, ministerial-level agencies, Government-attached agencies and other central bodies shall, within the scope of their respective tasks and powers, decide to examine the accounting by accounting units in the domains assigned to them for management.

2. The provincial/municipal People’s Committees shall, within the scope of their tasks and powers, decide to examine the accounting by accounting units in their respective localities.

3. The superior accounting units, including the State corporations, shall decide to examine the accounting by their attached accounting units.

Article 25.- Agencies competent to examine the accounting

Pursuant to Article 35 of the Accounting Law, the agencies competent to examine the accounting are defined as follows:

1. The agencies having competence to decide on accounting examinations, as defined in Article 24 of this Decree, shall also have competence to examine the accounting.

2. The State inspection bodies, the finance inspectorates, the State audit and the tax offices, when performing the tasks of examination, inspection and auditing of accounting units, shall have the right to examine the accounting.

Article 26.- Sealing, temporary seizure and confiscation of accounting documents

Pursuant to Clause 3, Article 22 and Clause 2, Article 40 of the Accounting Law, the sealing, temporary seizure and confiscation of accounting documents are stipulated as follows:

1. Where the competent State bodies decide on the sealing of accounting documents according to law provisions, the accounting units and the representatives of the State bodies competent to perform the task of sealing the accounting documents must make records on sealing of accounting documents. Such records must clearly state the sealing reasons, volumes, types and accounting periods of the sealed accounting documents. The representatives at law of the accounting units, the representatives of the State bodies competent to seal accounting documents must sign and stamp on the records on sealing of accounting documents.

2. Where the competent State bodies temporarily seize or confiscate accounting documents, the accounting units and representatives of the State bodies competent to perform the task of temporarily seizing or confiscating the accounting documents must make records on hand-over and reception of accounting documents. Such records must clearly state the reasons therefor, the types, volume of each type of documents, the present conditions of each type of temporarily seized or confiscated accounting documents; if temporarily seized, clearly state the time for use, the time for return of the accounting documents. The representatives at law of the accounting units and the representatives of the State bodies competent to temporarily seize or confiscate accounting documents must sign and stamp the records on hand-over and reception of accounting documents; and at the same time have to photocopy the seized or confiscated accounting documents and the photocopied accounting documents must be signed and stamped for certification by representatives of the State bodies competent to temporarily seize or confiscate the accounting documents. For computerized accounting vouchers, accounting books and financial statements, which have not yet been printed out on paper, the competent State bodies request the accounting units to print them out on paper and carry out the procedures prescribed for accounting documents before the temporary seizure or confiscation.

Article 27.- Types of accounting documents which must be archived

Pursuant to Article 40 of the Accounting Law, the types of accounting documents which must be archived include:

1. Accounting vouchers;

2. Detail accounting books, general accounting books;

3. Financial statements, administration accounting reports;

4. Other documents relating to accounting besides those prescribed in Clauses 1, 2 and 3 of this Article, including: assorted contracts; decisions to supplement capital from profits; distribution of funds from profits; decisions on tax exemption, reduction, reimbursement, retrospective tax collection, inventorying result and asset valuation reports; documents related to examinations, inspections, audit; documents related to dissolution, bankruptcy, division, separation, merger, operation termination; ownership transformation.

Article 28.- Accounting document preservation and archival

Pursuant to Article 40 of the Accounting Law, the preservation and archival of accounting documents are stipulated as follows:

1. Accounting documents must be fully and safely preserved by accounting units in the course of use. The accountants must preserve their own accounting documents in the course of use.

2. The archived accounting documents must be the originals as prescribed by law for each type of accounting documents. Where accounting documents are temporarily seized, confiscated, lost or destroyed, there must be the records thereon enclosed with the copies of the temporarily seized, confiscated, lost or destroyed accounting documents. For an accounting document of which only one original is available while it needs to be archived at two places, one of these two places may keep the copied document according to provisions of Article 11 of this Decree.

3. The representatives at law of the accounting units shall have to organize the preservation and archival of accounting documents and are responsible for the safety, adequacy and legality of the accounting documents.

4. The accounting documents to be archived must be adequate, systematic, classified, arranged in separate dossier sets according to the temporal order of appearance and the annual accounting period.

Article 29.- Accounting document-archiving places

Pursuant to Article 40 of the Accounting Law, the accounting document-archiving places are prescribed as follows:

1. Accounting documents of any accounting units shall be archived at such accounting units’ storehouses. The archival storehouses must be furnished with adequate preservation equipment and conditions to ensure preservation safety in the course of archival as provided for by law. The accounting units may hire archival organizations to archive the accounting documents on the basis of contracts signed between the two parties.

2. The accounting documents of foreign-invested enterprises, branches and representative offices of foreign enterprises operating in Vietnam, during the period of operating in Vietnam under their granted investment licenses or establishment permits, must be archived at the accounting units in the territory of the Socialist Republic of Vietnam. When foreign-invested enterprises, branches or representative offices of foreign enterprises operating in Vietnam terminate their operations in Vietnam, the accounting documents shall be archived at places decided by the representatives at law of the accounting units.

3. The accounting documents of dissolved or bankrupt units, including accounting documents of various annual accounting periods still being in the archival time limits and the accounting documents related to the dissolution or bankruptcy shall be archived at places decided by the representatives at law of the accounting units.

4. The accounting documents of units subject to equitization or ownership transformation, including accounting documents of various annual accounting periods still being in the archival time limits and the accounting documents related to equitization or ownership transformation shall be archived at the accounting units being new owners or at places decided by the agencies competent to decide on the equitization or ownership transformation.

5. For accounting documents of the annual accounting periods which are still being in the archival time limits of units which are divided or separated into two or more new units: If the accounting documents can be divided to new accounting units, they shall be divided and archived at new units; if they are indivisible, they shall be archived at the dividing or separating accounting units or at places decided by agencies competent to decide on the unit division or separation. The accounting documents related to division or separation shall be archived at the newly divided or separated accounting units.

6. The accounting documents of various annual accounting periods, which are still being in the archival time limits, and the accounting documents related to merger of accounting units shall be archived at the merging units.

7. The accounting documents on national security and defense must be archived according to law provisions.

Article 30.- Accounting documents which must be archived for at least 5 years

Pursuant to Article 40 of the Accounting Law, the accounting documents, which must be archived for at least 5 years, include:

1. Accounting documents used for regular management and administration of accounting units, not directly for book entries and making of financial statements shall be archived for at least 5 years as from the end of the annual accounting period, including revenue bills, expenditure bills, warehousing bills, ex-warehousing bills, which are not kept in the files of accounting documents of the Accounting Sections.

2. Other accounting documents used for management and administration and other accounting vouchers used not directly for book-entries and making of financial statements.

Article 31.- Accounting documents which must be archived for at least 10 years

Pursuant to Article 40 of the Accounting Law, the accounting documents which must be archived for at least 10 years, include:

1. Accounting vouchers used directly for book-entries and making of financial statements, lists, detail comprehensive sheet, detail accounting books, general accounting books, monthly, quarterly and annual financial statements of accounting units, records on destruction of accounting documents and other documents relating to book-entries and the making of financial statements, including auditing reports and accounting examination reports.

2. Accounting documents related to liquidation of fixed assets.

3. Accounting documents of investing units, including accounting documents of annual accounting periods and accounting documents on reports on settlement of investment capital of completed projects.

4. Accounting documents related to the establishment, division, separation, consolidation, merger, ownership transformation, dissolution, operation termination, bankruptcy of accounting units.

5. Other accounting documents of the accounting units, used in a number of cases, which, according to law provisions, must be archived for more than 10 years, shall be archived according to such regulations.

6. Documents and dossiers on auditing of financial statements of independent auditing organizations.

Article 32.- Accounting documents which must be archived indefinitely

Pursuant to Article 40 of the Accounting Law, the accounting documents which must be archived indefinitely are prescribed as follows:

1. Accounting documents of historic characters, of important significance for economy, national security and/or defense. The determination of accounting documents to be archived indefinitely shall be decided by the representatives at law of the accounting units, based on the historic characters and long-term significance of the documents, information to decide on each specific case, which shall be assigned to accounting sections or other sections to archive in form of original copies or other forms.

2. The indefinite archival duration must be more than 10 years until the accounting documents naturally decay or are destroyed under decisions of the representatives at law of the accounting units.

Article 33.- Archival of electronic vouchers

Pursuant to Articles 18 and 40 of the Accounting Law, the archival of electronic vouchers is stipulated as follows:

1. Electronic vouchers being magnetic tapes, magnetic discs, payment cards must be arranged according to the temporal order, be preserved with adequate technical means against detoriation of electronic vouchers and against illegal information access from the outside.

2. The electronic vouchers, before being archived, must be printed out on paper for archival according to regulations on accounting document archival. In cases where electronic vouchers are archived in original copies on special equipment, the appropriate information-reading equipment must be archived to ensure the exploitation thereof when necessary.

3. The time, time limits, places for archival and destruction of electronic vouchers shall comply with the provisions in Articles 28, 29, 30, 31, 32, 34, 35 and 36 of this Decree.

Article 34.- The time for calculation of time limits for archival of accounting documents

Pursuant to Article 40 of the Accounting Law, the time for calculation of time limits for archival of accounting documents is prescribed as follows:

1. The time for calculation of the time limits for archival of accounting documents prescribed in Article 30, Clauses 1, 2 and 5 of Article 31 and Article 32 of this Decree shall be counted from the ending date of the annual accounting period.

2. The time for calculation of the time limit for archival of the accounting documents prescribed in Clause 3, Article 31 of this Decree, shall be counted from the date the reports on settlement of investment capital of completed projects are approved.

3. The time for calculation of the time limit for archival of the accounting documents prescribed at Clause 4 and the auditing documents and dossiers prescribed in Clause 6, Article 31 of this Decree, shall be counted from the date the work is completed.

Article 35.- Destruction of accounting documents

Pursuant to Article 40 of the Accounting Law, the destruction of accounting documents is stipulated as follows:

1. The accounting documents with their archival time limit having expired shall be allowed to be destroyed under decisions of the representatives at law of the accounting units, except where the competent State bodies issue decisions.

2. The archived accounting documents of any accounting units shall be destroyed by such accounting units.

3. Depending on the practical conditions of each accounting unit for destruction of accounting documents by their own selected modes: The accounting documents classified as secret shall be destroyed by ways of burning, mechanically or manually shredding or cutting, ensuring that the information and/or data on the destroyed accounting documents cannot be reused.

Article 36.- Procedures for destruction of accounting documents

Pursuant to Article 40 of the Accounting Law, the procedures for destruction of accounting documents are prescribed as follows:

1. The representatives at law of the accounting units decide to set up the councils for destruction of expired accounting documents. Such a council shall be composed of the unit’s leader, chief accountant and a representative of the archival section.

2. The accounting document-destroying councils must inventory, evaluate and classify the accounting documents, make the lists of to be-destroyed accounting documents and the records on destruction of expired accounting documents.

3. The records on destruction of expired accounting documents must be made immediately after the destruction of the accounting documents and must be clearly inscribed with the contents: the types of accounting documents already destroyed, the archival duration of each type, the destruction mode, conclusions and signatures of members of the destruction councils.

Article 37.- Arrangement and removal of chief accountants

Pursuant to Clause 2, Article 48 of the Accounting Law, the arrangement and removal of chief accountants are stipulated as follows:

1. All accounting units defined in Clause 1, Article 2 of this Decree must arrange persons to work as chief accountants, except the representative offices of foreign enterprises operating in Vietnam, individual business households and cooperation groups defined at Points h and j, Clause 1, Article 2 of this Decree which are not compelled to arrange persons to work as chief accountants, but are allowed to appoint persons in charge of accounting.

2. Upon their establishment, the accounting units must immediately arrange persons to work as chief accountants. In case of the absence of chief accountants, the competent authorities must immediately arrange new chief accountants. In case of unavailability of persons who meet the criteria and conditions for appointment to be chief accountants, they must appoint persons in charge of the accounting or hire chief accountants. For State enterprises, limited liability companies, joint-stock companies, foreign-invested enterprises and cooperatives, they are only allowed to appoint persons in charge of the accounting for a maximum duration of one fiscal year, then later have to arrange people to work as chief accountants.

3. The arrangement and removal of chief accountants shall comply with the law provisions applicable to each type of enterprises.

4. Upon change of chief accountants, the representatives at law of accounting units must organize the hand-over of work and accounting documents between the former chief accountants and the new chief accountants, and at the same time notify the relevant sections in the units and the banks where they open transaction accounts of the full names and signature specimens of the new chief accountants. The new chief accountants shall be responsible for their work as from the date of accepting the work handover. The former chief accountants are still responsible for the accuracy, completeness and objectiveness of information, accounting documents during their tenure.

Article 38.- Criteria and conditions of chief accountants

Pursuant to Article 53 of the Accounting Law, the professional criteria and conditions of chief accountants are prescribed as follows:

1. Persons arranged to work as chief accountants must meet the following criteria:

a) The chief accountants of the accounting units defined at Points a, b, c and e, Clause 1, Article 2 of this Decree must acquire accounting profession of university or higher degree and be engaged in practical accounting work for at least two years. In cases where they have the accounting profession of collegial degree, the practical duration of their accounting work shall be at least three years;

b) The chief accountants of the accounting units defined at Point d, e, g and i of Clause 1, Article 2 of this Decree must acquire the professional accounting qualification of intermediate or higher degree and be involved in practical accounting work for at least three years;

c) The chief accountants of the attached accounting units and the chief accountants of the State corporations must possess the professional accounting qualifications of university or higher degree and be engaged in practical accounting work for at least five years.

2. Persons arranged to work as chief accountants must satisfy the following conditions:

a) Being other than the subjects banned from performing accounting work as defined in Article 51 of the Accounting Law;

b) Having gone through chief accountant- fostering courses and being granted chief accountant-fostering certificates according to the Finance Ministry’s regulations.

Article 39.- Hiring accountants, hiring chief accountants

Pursuant to Clause 1, Article 56 of the Accounting Law, the hiring of accountants, chief accountants is stipulated as follows:

1. Accounting units may hire accounting service-providing enterprises or persons having registered accounting service business to act as accountant or chief accountants.

2. Persons hired to work as accountants or chief accountants must satisfy the professional criteria prescribed in Articles 51, 55, 56 and 57 of the Accounting Law.

3. Persons hired to work as chief accountants must meet the following conditions:

a) Having accounting practice certificates as provided for in Article 57 of the Accounting Law;

b) Having chief accounting-fostering certificates as provided for by the Finance Ministry;

c) Having registered accounting service business or registered accounting practice in the accounting service providing enterprises.

4. Persons hired to work as accountants shall have the responsibilities and rights of the accountants defined in Clauses 2 and 3, Article 50 of the Accounting Law. Persons hired to work as chief accountants shall have the responsibility and rights of the chief accountants defined in Article 54 of the Accounting Law.

5. The representatives at law of accounting units must bear responsibility for the hiring of accountants and/or chief accountants.

Article 40.- State bodies competent to grant accounting practice certificates

Pursuant to Article 57 of the Accounting Law, the State bodies competent to grant accounting practice certificates are stipulated as follows:

1. The Finance Ministry is competent to organize examinations and granting of accounting practice certificates or authorize the accounting professional organizations to organize examinations and granting of accounting practice certificates.

2. The Finance Ministry provides for the fostering programs, examination and recruitment councils, procedures and competence to grant and withdraw accounting practice certificates according to the provisions of the Accounting Law and other relevant law provisions.

Article 41.- Accounting service enterprises

Pursuant to Article 55 of the Accounting Law, the accounting service enterprises are prescribed as follows:

1. The accounting service enterprises shall be set up and operate under law provisions in one of the three following forms: limited liability companies, partnerships and private enterprises. To set up an accounting service enterprise there must be at least two persons possessing accounting practice certificates, one of whom is among the managerial officials of the accounting service enterprise as provided for in Article 57 of the Accounting Law and Article 40 of this Decree.

2. The establishment, management and operation of accounting service enterprises must comply with law provisions on enterprises and the provisions of this Decree.

3. The accounting service enterprises are entitled to register accounting service business according to the provisions of Article 43 of this Decree.

4. In the course of operation, the accounting service enterprises must ensure that at least one of their managers has the accounting practice certificate as provided for in Article 57 of the Accounting Law and Article 40 of this Decree.

Article 42.- Individuals registering accounting service business

Pursuant to Article 55 of the Accounting Law, the accounting service business registration by individuals is stipulated as follows:

1. Individuals possessing accounting practice certificates and satisfying other conditions prescribed by law are allowed to register accounting service business according to law provisions on business registration and pay taxes like individual business households and according to the provisions of this Decree.

2. Individuals registering accounting service business must have their transaction offices and addresses.

Article 43.- Contents of accounting services

Pursuant to Article 55 of the Accounting Law, organizations and individuals that register accounting service business are entitled to perform the following accounting services:

1. Working as accountants;

2. Working as chief accountants;

3. Establishing specific accounting systems for the accounting units;

4. Providing and advising on the application of information technology on accounting;

5. Fostering accounting operations, updating accounting knowledge;

6. Providing financial consultancy;

7. Making tax declaration;

8. Other accounting services prescribed by law.

Article 44.- Responsibilities of accounting practicing organizations, individuals

Pursuant to Clause 5, Article 56 of the Accounting Law, the accounting practicing organizations and individuals have the following responsibilities:

1. To perform the accounting work related to accounting service contents agreed upon in contracts.

2. To comply with legislation on accounting and legislation on accounting professional activities.

3. To be answerable to customers and law for the contents of accounting services already provided and must pay compensations for damage they have caused.

4. To regularly foster professional knowledge and experiences, implement the annual programs on knowledge updating according to the regulations of the Finance Ministry or the professional organizations authorized by the Finance Ministry.

5. To submit to the professional management and accounting service quality control by the Finance Ministry or the accounting professional organizations authorized by the Finance Ministry.

Article 45.- Cases where accounting services must not be provided

Pursuant to Article 55 of the Accounting Law, accounting service enterprises and accounting service business registering individuals must not provide accounting services when the persons responsible to manage, administer the accounting service enterprises or the accounting service business registering individuals fall under the following cases:

1. Being fathers, mothers, spouses, children or siblings of the persons having the managerial and executive responsibilities, including chief accountants of the accounting units defined at Points a, b, c, f, g and i, Clause 2 of this Decree.

2. Having economic and/or financial ties with customers.

3. Having not enough capability, professional qualifications nor conditions for providing the accounting services.

4. Currently working as hired chief accountants for the accounting units that have economic and/or financial ties with customers.

5. The accounting units make requests against the professional ethics or against the professional requirements of accounting, financial operations.

6. Other cases prescribed by law.

Article 46.- Right to join accounting professional organizations

Pursuant to Article 58 of the Accounting Law, the right to join accounting professional organizations and Accounting Association is prescribed as follows:

1. The accounting units, accountants, persons performing accounting in accounting service enterprises or accounting individual practitioners may join Vietnam Accounting Association. The accounting service enterprises and accounting practitioners must register their accountants with Vietnam Accounting Association and submit to the management by the Accounting Association in term of professional ethics and professional operations under the authorization of the Finance Ministry.

2. The Finance Ministry shall specify the registration and management of the lists of enterprises and individuals practicing the accounting.

Article 47.- Implementation effect

1. This Decree takes implementation effect 15 days after its publication in the Official Gazette.

2. The previous regulations on business accounting contrary to this Decree shall all cease to be effective after this Decree comes into force.

Article 48.- Organization of implementation

1. The Finance Minister shall be responsible for guiding and organizing the implementation of this Decree.

2. The ministers, the heads of the ministerial-level agencies, the heads of the Government-attached agencies, the presidents of the provincial/municipal People’s Committees shall have to organize the implementation of this Decree.