Does newly established company have to submit financial statements in Vietnam?
Newly established companies appear a lot in the Vietnamese economy nowadays because many people want to start a business. When a company starts to operate, it has to submit reports to the authorities. One of the most important reports is the financial statement, this is the basis for the tax authorities to work with the company. However, does a newly established company have to submit financial statements in Vietnam? In this article, LSX legal firm will provide you with information to answer this question.
Legal grounds
- Circular 200/2014/TT-BTC
- Law on Accounting 2015
What is financial statement?
First, we need to understand the concept of financial statements:
Financial reporting is the activity of creating a system of tables, describing information about the financial position, business, and cash flows of an enterprise. The financial statements provide the most comprehensive report on the situation of assets, equity, and liabilities as well as the financial position and business results in the period of the enterprise. In other words, financial statements present the profitability and financial status of the business to interested people (business owners, investors, lenders, tax authorities, and authorities,…).
According to the law of tax authority, all enterprises belonging to industries and economic sectors must prepare and present annual financial statements.
As for companies or corporations with affiliated units, in addition to annual financial statements, they must also make general financial statements or consolidated financial statements during the annual accounting period based on the financial statements of the affiliated units.
For state-affiliated enterprises and enterprises listed on the stock market, in addition to the annual financial statements (financial statements), these enterprises must prepare interim financial statements (quarterly reports – except for quarter 4th) in full form.
Particularly for State-owned Corporations and state-owned enterprises with affiliated accounting units, they have to prepare general financial statements or consolidated financial statements. Mid-year consolidated financial statements are mandatory since 2008.
Deadline for submission of financial statements
According to article 109 of Circular 200/2014/TT-BTC
For state-owned enterprises
Deadline for submission of quarterly financial statements:
- Accounting unit must submit quarter financial statements at the latest 20 days from the end of the quarterly accounting period; It is at the latest 45 days for the parent companies, state-owned general companies;
- Accounting unit affiliated enterprises and state-owned general companies submit quarter financial statements to parent companies, and general companies under the time limit set by parent companies, and general companies.
Deadline for submission of annual financial statements:
- Accounting unit must submit annual financial statements at the latest 30 days from the end of the annual accounting period; It is at the latest 90 days for the parent companies, state-owned general companies;
- Accounting unit affiliated state-owned general companies submit annual financial statements to parent companies, and general companies under the time limit set by parent companies, and general companies.
For other types of enterprises
- accounting units as private enterprises and partnerships must submit annual financial statements at the latest 30 days from the end of the annual accounting period; for other accounting units, the deadline for submission of annual financial statements is within 90 days;
- Subordinate accounting unit affiliated submit annual financial statements to superior accounting units within the time limit given by the superior accounting units
Does newly established company have to submit financial statements?
Enterprises established before October 1st
According to Article 13 of the Law on Accounting 2015:
“If the first or last annual accounting period is shorter than 90 days, it may be aggregated with the next or previous annual accounting period, respectively; the first or last annual accounting period must be shorter than 15 months.”
In case the business was established before October 1, that is, at least 90 days are left to end the accounting period in the current year. So the enterprise must not aggregate the financial statements with the following year.
Enterprises established after October 1st
In case an enterprise is established after October 1, that is, at most 90 days to end the accounting period in the current year (the valid time to merge financial statements according to regulations). So, the enterprise has the right to aggregate the financial statements of the establishment year with the following year.
Published contents of financial statement
Firstly, accounting units using the state budget shall publish information about revenues, and expenditures of the state budget in accordance with the Law on State budget.
Secondly, accounting units that do not use the state budget shall publish their annual revenue and expenditure statements.
Thirdly, 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.
Fourthly, 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.
Lastly, financial statements of accounting units that are, by law, required to be audited must be enclosed with audit reports made by the auditing bodies.
Legal service of LSX Legal Firm
LSX legal firm provides legal services to clients in various legal areas. To make your case convenient, LSX will perform:
- Legal advice related to new regulations;
- Representing in drafting and editing documents;
- We commit the papers to be valid, and legal for use in all cases;
- Represent to submit documents, receive results, and hand them over to customers.
With a team of experienced, reputable, and professional consultants; The firm is always ready to support and work with clients to solve legal difficulties.
Furthermore, using our service, you do not need to do the paperwork yourself, We guarantee to help you prepare documents effectively and legally.
Also, you will not have to waste time preparing the application, submitting application, or receiving results. At those stages, we will help you do it smoothly.
After all, LSX provides the service with the desire that customers can experience it the best way. Additionally, we guarantee the cost to be the most suitable and economical for customers.
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Related questions
Accountants of a newly established company shall:
Submit initial tax return.
Open bank account and purchase digital signature for the company.
Submit license fee declaration.
Select VAT and Sale invoice.
Select the accounting mode and method of depreciation of fixed assets.
Register procedures to participate in social insurance and union fund for employee
Newly established businesses can choose to declare personal income tax quarterly. This tax declaration is determined once from the first quarter of which the tax liability arises and is applied consistently throughout the calendar year. In case enterprises are eligible for quarterly tax declaration, they may choose to declare tax quarterly.
The annual financial statement of an accounting unit shall be submitted to the competent authority within 90 days from the end of the annual accounting period.
Contact LSX
Finally, hope this article is useful for you to answer the question about “Does newly established company have to submit financial statements in Vietnam”. If you need any further information, please contact LSX Law firm: +84846175333 or Email: [email protected]
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