Penalties for Accounting Service Businesses Violating the Law

Short answer: An accounting service business violating the law may be handled according to severity: administrative penalties under the penalty decree in the accounting and auditing sector still in force; suspension or revocation of the Certificate of eligibility for accounting service business; and must compensate for damages to clients under contracts and civil law. The current legal framework is the Accounting Law 2015 (as amended by Law No. 56/2024/QH15) — the Accounting Law 2003 and Decree No. 41/2018/ND-CP are no longer valid bases.

Current Legal Framework

• Accounting Law 2015 — conditions for accounting service business, obligations of accounting service enterprises;
• Law No. 56/2024/QH15 — amending and supplementing the Accounting Law 2015 (check the amended contents when applying);
• The penalty decree for administrative violations in the field of accounting and independent auditing still in force (replacing Decree No. 41/2018/ND-CP);
• Civil Code 2015 — liability for damages compensation.

Common Violations

• Operating accounting services without a Certificate of eligibility or with an expired certificate;
• Providing services while failing to meet conditions on practitioners (registered practicing accountants);
• Non-compliance with accounting standards and regimes when providing services;
• Disclosing clients’ financial and accounting information in violation of regulations;
• Fraud or collusion with clients to prepare and present misleading financial statements.

Forms of Handling

1. Administrative penalties: fines, additional penalties, and remedial measures under the penalty decree in the accounting and auditing sector still in force;
2. Suspension or revocation: time-limited suspension or revocation of the Certificate of eligibility for accounting service business for serious or repeated violations;
3. Damages compensation: accounting service enterprises must compensate for damages caused by their fault to clients under service contracts and civil law;
4. Criminal liability: where acts show signs of crime (e.g., forging documents, organized tax evasion), related individuals may be prosecuted for criminal liability.

Important Notes

• The Accounting Law 2003 has expired (replaced by the Accounting Law 2015); Decree No. 41/2018/ND-CP is no longer in force — all conclusions on fine levels and penalty authority must be based on the penalty decree still in force;
• When signing accounting service contracts, clients should check the Certificate of eligibility and the practicing accountants’ registration.

Related Articles

• Standards and conditions of chief accountants

How Can ANT Legal Help?

ANT Legal advises on conditions for accounting service business, handling administrative violations, and resolving disputes and damages compensation. For advice on a specific case, please contact our lawyers at 0966.475.966.