Financial statements are a very important part of a business’s books. It can be said that it is related to settlements and data; revenue and debt of the company. Therefore, the financial statements must also be accurate; even have to declare clearly. However, in some cases, late payment still occurs; late submission of these financial statements; lead to a number of other effects.
Because of this, it is imperative to have a separate regulation; about penalties for late submission of financial statements in 2022 as a deterrent. To understand more about this issue, consult Lawyer X.
Legal grounds
- Decree No. 41/2018/ND-CP
- Circular 200/2014/TT-BTC
Deadline for submission of financial statements
Pursuant to Clauses 1 and 2, Article 109 of Circular 200/2014/TT-BTC stipulates:
“1. For state-owned enterprises
a) Deadline for submission of quarterly financial statements:
The accounting units must submit the quarterly financial statements within 20 days from the end of the quarterly accounting period; For parent companies, State Corporations within 45 days;
Accounting units attached to enterprises and State Corporations shall submit quarterly financial statements to the parent company or the Corporation according to the time limit specified by the parent company or the Corporation.
b) Deadline for submission of annual financial statements:
The accounting units must submit the annual financial statements within 30 days from the end of the annual accounting period; For parent companies, State Corporations within 90 days at the latest;
The accounting units attached to the State Corporations shall submit the annual financial statements to the parent company or the Corporation according to the time limit specified by the parent company or the Corporation.
- For other types of businesses
a) Accounting units that are private enterprises and partnerships must submit annual financial statements within 30 days from the end of the annual accounting period; for other accounting units, the time limit for submitting annual financial statements is 90 days at the latest;
b) The affiliated accounting unit shall submit the annual financial statement to the superior accounting unit according to the time limit prescribed by the superior accounting unit.”
The annual financial statements of an accounting unit must be submitted to a competent state agency within 90 days from the end of the annual accounting period as prescribed by law. For example: The deadline to submit the financial statements for 2021 will be on March 31, 2022 at the latest. The deadline for submitting financial statements is also the time for paying corporate income tax. According to the above regulations, if you pay later than prescribed, you will be fined for late payment.
Regulations of financial statements
Financial statements are economic information presented by accountants in the form of tables. Financial statements help provide information; related to the financial activities of the enterprise, such as: assets, liabilities, equity, revenue, profit, cash flow… In addition, financial statements apply to all types of enterprises establish; and operates in accordance with Vietnamese law and is usually published periodically at the end of each quarter and at the end of the year.
The role of financial statements
Financial statements are very important; not only with agencies and businesses but also with competent state agencies. Financial statements most honestly reflect the business situation of an enterprise; help business managers make an objective assessment; financial strength, profitability and growth prospects of the business. In addition, financial statements help competent state agencies understand the situation of enterprises.
Penalty for late submission of financial statements 2022
Pursuant to Article 12 of Decree No. 41/2018/ND-CP on sanctioning regulations on administrative sanctions in the field of independent accounting and auditing as follows:
“Article 12. Penalties for violations of regulations on submission and disclosure of financial statements
- A fine of between VND 5,000,000 and 10,000,000 shall be imposed for one of the following acts:
a) Submit financial statements to competent state agencies less than 03 months later than the prescribed time limit;
b) Disclosure of financial statements is less than 03 months behind the prescribed time limit.
- A fine of between VND 10,000,000 and 20,000,000 shall be imposed for one of the following acts:
a) Disclosure of incomplete financial statements as prescribed;
b) Submit financial statements to competent state agencies without attached audit reports for cases where the financial statements must be audited by law;
c) Submit financial statements to competent state agencies 3 months or more behind the prescribed time limit;
d) Disclosure of financial statements without audit reports for cases where the audit of financial statements is required by law;
dd) Disclosure of financial statements is 03 months or more behind the prescribed time limit.
- A fine of between VND 20,000,000 and 30,000,000 shall be imposed for one of the following acts:
a) Untruthful information and data published in financial statements;
b) Providing and disclosing financial statements for use in Vietnam with inconsistent data in an accounting period.
- A fine ranging from VND 40,000,000 to VND 50,000,000 shall be imposed for one of the following acts:
a) Failing to submit financial statements to competent state agencies;
b) Failure to disclose financial statements as prescribed.
- Remedial measures:
Enforced submission and disclosure of audit reports attached to financial statements for violations specified at Points b, d, Clause 2 of this Article.”
Thus, the fine is from 5,000,000 VND to 10,000,000 VND; for acts of submitting financial statements to competent state agencies less than 03 months later than the prescribed time limit or disclosing financial statements less than 03 months later than the prescribed time limit. In addition, a fine of between VND 20,000,000 and VND 30,000,000 may be imposed upon submission of financial statements; to competent state agencies at least 3 months later than the prescribed time limit.
Regulations on where to submit financial statements
For State-owned enterprises located in provinces and centrally run cities, they must establish; and submit the financial report to the Department of Finance of the province or city directly under the Central Government. For central state-owned enterprises, financial statements must also be submitted; to the Ministry of Finance (Corporate Finance Department).
For all kinds of State enterprises such as: commercial banks, lottery companies, credit institutions, insurance enterprises; securities trading companies must submit financial statements; to the Ministry of Finance (Banking and Finance Department or Insurance Supervision Administration).
– Securities trading companies and public companies; must submit financial statements to the State Securities Commission and the Stock Exchange.
Enterprises must submit financial statements; for tax authorities to directly manage taxes in the locality. For State Corporations; must submit financial statements to the Ministry of Finance (General Department of Taxation).
Enterprises with superior accounting units must submit financial statements; to the superior accounting unit according to the regulations of the superior accounting unit.
For enterprises that are required by law to audit financial statements; must be audited before submitting the financial statements as prescribed. Financial statements of enterprises that have been audited; must attach the audit report to the financial statements; when submitting to state management agencies and superior enterprises.
Financial agency in which the enterprise has foreign direct investment (FDI); must submit financial statements to the Department of Finance of the provinces and centrally-run cities; where the enterprise registers its head office.
For state-owned enterprises with 100% charter capital; in addition to the agencies where enterprises must submit financial statements as prescribed above, enterprises; must also submit financial statements to agencies and organizations assigned or decentralized to exercise their rights; of the owner according to Decree No. 99/2012/ND-CP and amendments, supplements and replacement documents.
Enterprises (including domestic enterprises and foreign-invested enterprises) whose head office is located in export processing zones; industrial parks and high-tech zones must also submit annual financial statements to the Management Board of the export processing zones; industrial parks, high-tech parks if required.
Related article:
- What do you need to establish a company in Vietnam?
- Conditions for securities company establishment in Vietnam
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Frequently asked questions
For enterprises that are required by law to have their financial statements audited, they must be audited before submitting the financial statements as prescribed. The financial statements of the enterprises that have been audited must attach the audit report to the financial statements when submitting them to the State management agencies and superior enterprises.
Financial statements most honestly reflect the business situation of an enterprise, helping business managers objectively assess the financial strength of the enterprise, profitability and development prospects of the enterprise.
Conclusion: So the above is Penalty for late submission of financial statements in Vietnam. Hopefully with this article can help you in life, please always follow and read our good articles on the website: lsxlawfirm.com
