On 28 December 2018, the Ministry of Finance (“MOF”) issued Circular 132/2018/TT-BTC (“Circular 132”) on the accounting regime of micro enterprises. Accordingly, micro enterprises can apply accounting regime regulated in Circular 133/2016/TT-BTC of MOF, or apply the accounting regime prescribed in this Circular:
(i) Accounting regime for micro enterprises calculating and declaring Corporate Income Tax (“CIT”) on profit (“declaring CIT on profit”); or
(ii) Accounting regime for micro enterprise calculating and declaring CIT on the revenue (“declaring CIT on revenue”).
This Circular shall take effect from 15 February 2019, applicable for the fiscal year beginning on or after 01 April 2019, and has the following notable points:
- The criteria to determine the micro enterprises for applying this Circular shall be specified under the tax law regulations.
- The chosen accounting regime must be applied consistently in a fiscal year. The change of accounting regime can only be made at the beginning of the subsequent fiscal year.
- Micro enterprises can appoint the person in charge of accounting without being bound to appoint the chief accountant, or sign contracts with external service providers for accounting or chief accountant services. For micro enterprises declaring CIT on revenue, they can arrange the accounting work on their own.
- Micro enterprises can design appropriate template of accounting documents (except for the invoice) and accounting books applicable with their operation. Alternatively, the micro enterprises can apply the template of accounting documents and accounting books specified in this Circular.
- Micro enterprises declaring CIT on profit shall apply the chart of accounts as specified in this Circular, and prepare and submit the Financial Statements to tax and business registration authority within 90 days from the end of fiscal year. Micro enterprises declaring of CIT on revenue can choose to prepare and maintain the single entry accounting system and not to prepare and maintain the Financial Statements.
We do trust the above points are notable and sufficient, but should you have any question or need a deeper discussion on this issue, please do not hesitate to contact us.
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