Regulated entities

1. Individuals and organizations, both domestic and foreign (hereinafter referred to as “entities”) who commit administrative violations regulated by this Decree.

2. Business households and cooperative groups violating the regulations stated in the Decree will incur the same penalties as those imposed on individual offenders.

3. Organizations facing penalties for administrative violations regulated by this Decree include:

a) Regulatory agencies who commit violations which are not related to their management duties;

b) Organizations and public service providers using state budget;

b) Organizations and public service providers not using state budget;

d) Enterprises established in and operating under the laws of Vietnam; branches and representative offices of foreign enterprises operating in Vietnam;

dd) Cooperatives and cooperative associations;

e) Professional organizations and training facilities in the fields of accounting and auditing;

g) Foreign organizations that earn incomes from providing services or goods-related services in Vietnam.

4. Those with competence to issue penalty records and impose penalties for administrative violations and other relevant entities.

Article 3. Statute of limitation

1. The time limit for imposition of penalties for administrative violations in the field of accounting is 2 years.

2. The time limit for imposition of penalties for administrative violations in the field of independent audit is 1 year.

3. Time limits for imposition of penalties for administrative violations specified in Clauses 1 and 2 of this Article:

a) For completed administrative violations, the time limit starts on the time of completion of that violation;

a) For ongoing administrative violations, the time limit starts on the time of discovery of that violation;

4. In case of penalties for administrative violations committed by individuals being transferred from presiding authorities, the time limit shall be determined in accordance with Clauses 1, 2 and 3 of this Article. The time the presiding authority spends on handling the case counts towards the time limit.

5. During the period specified in Clauses 1, 2 and 3 of this Article, if the violator deliberately evades or obstructs the penalty imposition, the time limit will be reset to the date on which the violator stops evading or obstructing the penalty imposition.

Article 4. Penalties

1. Primary penalties:

For each administrative violation regulated by this Decree, the violator will receive either:

a) a warning; or

b) a fine.

2. Additional penalties:

Depending on the nature and seriousness of the violation, the entity who commits administrative violations regulated by this Decree may also incur one or several additional penalties as specified below:

a) Suspension of certificate of registration for accounting practice or certificate of registration for auditing practice for 3-6 months.

b) Suspension of certificate of eligibility for providing accounting services or certificate of eligibility for providing audit services for 1-2 months;

c) Suspension from running refresher courses for 1-3 months;

d) Confiscation of evidence of administrative violations.