Tax, accounting and auditing policies effective from May 2018

Increase fines in the accounting field up to 100 million VND

This is the new content amended according to Decree 41/2018/ND-CP, replacing Decree 105/2013/ND-CP regulating administrative sanctions for violations in the fields of accounting and independent auditing;effective from May 1, 2018.

Accordingly, the maximum fine for an administrative violation in the field of accounting and independent auditing is VND 50,000,000 for individuals and VND 100,000,000 for organizations.

In addition, another noteworthy content in Decree 41/2018/ND-CP is the change in the time limit for revoking the right to use certificates in some cases. Specifically:

Revoke the right to use the Certificate of registration to practice accounting services and the Certificate of registration to practice auditing for a period of 03 to 06 months;

Revoke the right to use the Certificate of eligibility to conduct accounting and auditing services for a period of 01 to 12 months.

Regulations on responsibility allowance for chief accountants of state agencies

Circular 04/2018/TT-BNV on authority, procedures for appointment, dismissal, replacement and responsibility allowance of chief accountants and accountants in charge in the field of state accounting;effective from May 15, 2018.

Accordingly, the person appointed as chief accountant in the following units is entitled to a monthly responsibility allowance of 0.2% compared to the basic salary:

- Agencies responsible for collecting and spending the state budget at all levels (State Treasury, tax authorities, customs authorities); state agencies; public service units; organizations and units using the state budget; organizations funded by the State to organize activities according to socio-political goals.

For the following units, the person appointed as chief accountant is entitled to a responsibility allowance according to the decision of the competent authority:

- The project management board has legal status established by a state agency or public service unit;

- Agencies and organizations managing state financial funds outside the state budget.

New guidance on non-deductible expenses when calculating corporate income tax

This is the highlight mentioned in Circular 25/2018/TT-BTC (effective from May 1, 2018) guiding Decree 146/2017/ND-CP and amending and supplementing Circular 78/2014/TT-BTC, Circular 111/2013/TT-BTC.

Accordingly, amend and supplement a number of regulations on deductible and non-deductible expenses when calculating corporate income tax, specifically:

- Add additional depreciation of fixed assets that are not deductible in case the enterprise receives the transfer (part of the capital or the entire enterprise).

- Expenses for purchasing life insurance for employees exceeding the prescribed limit or not specifying the eligibility conditions in the profile will not be deducted when calculating corporate income tax.

- Increase the deductible expenses when calculating corporate income tax for contributions to voluntary pension funds, voluntary pension insurance, life insurance for employees, etc. to a maximum of VND 3 million/month/person; but must ensure the following requirements:

+ The conditions and levels of benefits are specifically recorded in one of the following documents: Labor contract; Collective labor agreement; Financial regulations of the Company, Corporation, Group; Bonus regulations prescribed by the Chairman of the Board of Directors, General Director, Director according to the financial regulations of the Company, Corporation.

+ Enterprises must fully perform their mandatory obligations to employees (including cases of compulsory insurance debt).

No import tariff quotas apply to salt and poultry eggs originating from ASEAN countries.

According to Circular 04/2018/TT-BCT, salt and egg products that meet the following conditions will not be subject to import tariff quotas:

Originated from ASEAN countries;

Meet the regulations on origin of goods in the ASEAN Trade in Goods Agreement;

Have Certificate of Origin Form D according to current law.

See specific commodity codes of salt and poultry eggs in Circular 04/2018/TT-BCT,effective from May 17, 2018.

At the same time, the import of salt and poultry eggs from ASEAN countries is not within the scope of regulation of legal documents on the announcement of tariff quotas and regulations on principles for operating annual salt and poultry egg tariff quotas.