When does the accounting period start in Vietnam?

When does the accounting period start in Vietnam?

Based on the regulations at point a, clause 1, Article 8 of Circular 111/2021/TT-BTC regarding the accounting period as follows:

Tax Accounting Period

1. The tax accounting period is determined according to the calendar year, known as the accounting year, comprising 4 characters, specifically:

a) The tax accounting period is calculated from the beginning of January 1 to the end of December 31 of the calendar year.

b) The first-year tax accounting period for a newly established tax accounting entity is determined from the start of the effective date of the new establishment, division, separation, merger, or amalgamation decision until the end of December 31 of the calendar year.

c) The final tax accounting period of a tax accounting entity when divided, separated, merged, amalgamated, or dissolved is calculated from the beginning of January 1 of the calendar year to the end of the day before the effective date of the division, separation, merger, amalgamation, or dissolution decision.

d) The duration for the first-year and final-year tax accounting periods is implemented according to the guidelines of the Accounting Law and related guiding documents.

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T♐he accounting period is calculated from the beginning of January 1 to the end 🥂of December 31 of the calendar year.

What are procedures for opening and closing of the accounting period in Vietnam?

The opening and closing of the accounting period are conducted according to clause 3, Article 8 of Circular 111/2021/TT-BTC as follows:

(i) Opening the tax accounting period involves setting the open status on the Tax Accounting Subsystem from the start date of the tax accounting period stated in clause 1, Article 8 of Circular 111/2021/TT-BTC for a tax accounting period to 🧸update the input information data, accounting documents, and record accounting transactions or to amend or delete data in the tax accounting book of the Tax Accounting Subsystem.

(ii) Closing the tax accounting period involves setting the closed status on the Tax Accounting Subsystem for a tax accounting period to prevent updates to input information data, accounting documents, and prohibit amendments or deletions of data in the tax accounting book of t💛he Tax Accounting Subsystem.

(iv) The closing ཧdate of🀅 the tax accounting period is the last day of the third month from the end of the accounting period.

+ In cases where th💖e closing date of the tax accounting period coincides with a holiday as prescribed, the closing date will be the next workiꦺng day immediately following the holiday.

+ In cas♏e it is necessary to postpone the closing date of the tax accounting 🤡period due to objective reasons, approval from the General Department of Taxation is required.

From the end of the tax accounting period to the closing date, all adjustments in tax accounting data are recorded according to the accounting year information stipulated in clauses 1 and 2, Article 8 of Circular 111/2021/TT-BTC.

From the closing of the accounting period until the tax accounting reports are approved by the competent authority, the tax department may only adjust accounting data from the accounting year upon request from the competent authority or adjustments due to detected errors by the tax department with approval from the General Department of Taxation, and recorded according to the accounting year information stipulated in clauses 1 and 2, Article 8 of Circular 111/2021/TT-BTC.

(v) Mistakes in accounting data that cannot be adjusted into the tax accounting period of the stated accounting year must be recorded into the current year's tax accounting period and the budget year information must be supplemented with the value "01" to provide a basis for explanation in the current year's tax accounting report.

How is the tax accounting book stored after closing the full-year accounting period in Vietnam?

Based on clause 3, Article 28 of Circular 111/2021/TT-BTC as follows:

List, forms, content, and method of setting up, printing tax accounting books

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3. The tax accounting book samples are set up and extracted from the Tax Accounting Subsystem and ensure the contents stated in clause 1 of this Article. after closing the full-year accounting period, the accounting books are stored according to the legal provisions on accounting.

4. The list, forms, and methods of setting up tax accounting books are specified in Appendix IV issued with this Circular.

5. In addition to the tax accounting books set up by the system according to the form specified in this Circular, the tax authority can set up additional detailed accounting books and use tax accounting books already set up in the system for tax accounting work.

after closing the full-year accounting period, the tax accounting books are stored according to the legal provisions on accounting. Specifically, Article 8 of Decree 174/2016/ND-CP states that detailed accounting boo🍰ks and general accounting books are types of accounting documents that must be preserved.