When May Micro-Enterprises Change Their Accounting Regime? Can They Design Their Own Accounting Document Forms?

When may micro-enterprises change their accounting regime?

The accounting regime applicable to micro-enterprises is governed by clause 4, Article 3 of Circular 132/2018/TT-BTC as follows:

Application of the accounting regime

1. Micro-enterprises paying CIT based on taxable income apply the accounting regime prescribed in Chapter II of this Circular.

2. Micro-enterprises paying CIT calculated as a percentage of revenue from selling goods and services apply the accounting regime prescribed in Chapter III of this Circular, or may choose to apply the accounting regime prescribed in Chapter II of this Circular.

3. Micro-enterprises may choose to apply the Accounting Regime for small and medium enterprises issued under Circular No. 133/2016/TT-BTC dated 26/8/2016 of the Ministry of Finance, appropriate to their production/business characteristics and management requirements.

4. Micro-enterprises must apply a consistent accounting regime within a fiscal year. Any change of the applied accounting regime may only be made at the beginning of the next fiscal year.

Under these provisions, micro-enterprises must apply a consistent accounting regime within a fiscal year.

A change of the applied accounting regime may only be made at the beginning of the next fiscal year.

May micro-enterprises design their own accounting document forms?

Accounting document forms of micro-enterprises are governed by clause 3, Article 4 of Circular 132/2018/TT-BTC as follows:

Accounting documents

1. The contents of accounting documents and the preparation and signing of accounting documents by micro-enterprises comply with Articles 16, 17, 18 and 19 of the Law on Accounting and the detailed guidance in this Circular.

2. The contents, form of invoices, and the procedures for preparing, managing and using invoices (including e-invoices) comply with tax laws.

3. Micro-enterprises may design their own accounting document forms appropriate to their business characteristics, ensuring clarity, transparency and ease of inspection and control (except invoices for selling goods and services). Where a micro-enterprise cannot design its own accounting document forms, it may apply the forms and methods for preparing accounting documents guided in Appendix 1 of this Circular.

Accordingly, micro-enterprises may design their own accounting document forms appropriate to their business characteristics, ensuring clarity, transparency and ease of inspection and control (except invoices for selling goods and services).

Note: Where a micro-enterprise cannot design its own accounting document forms, it may apply the forms and methods for preparing accounting documents guided in Appendix 1 issued with Circular 132/2018/TT-BTC.

Are micro-enterprises required to have a chief accountant?

The organization of the accounting apparatus of micro-enterprises is governed by clause 1, Article 8 of Circular 132/2018/TT-BTC as follows:

Organization of the accounting apparatus and accounting personnel

1. Micro-enterprises may assign an accounting officer and are not required to appoint a chief accountant. Micro-enterprises paying CIT as a percentage of revenue from selling goods and services may organize their own accounting work as prescribed in Chapter III of this Circular.

2. The assignment of accounting personnel by micro-enterprises must not violate Article 19 of Decree No. 174/2016/ND-CP dated 30/12/2016 of the Government detailing certain articles of the Law on Accounting.

3. Micro-enterprises may contract with accounting service businesses to hire accounting services or chief accountant services as prescribed. The list of entities qualified to trade accounting services is published and periodically updated on the Ministry of Finance’s electronic information portal.

Under these provisions, micro-enterprises may assign an accounting officer and are not required to appoint a chief accountant.

Micro-enterprises paying corporate income tax as a percentage of revenue from selling goods and services may organize their own accounting work as prescribed in Chapter III of Circular 132/2018/TT-BTC.

In addition, micro-enterprises may contract with accounting service businesses to hire accounting services or chief accountant services for their enterprise as prescribed.

Notes on applying current legal provisions

This article belongs to the Real Estate & Projects Knowledge group and is presented for reference, helping readers understand the legal issue at an overview level before preparing dossiers or conducting transactions.

Legal provisions may change depending on timing, locality, dossier type and specific circumstances. Where it is necessary to determine the exact legal basis applicable to your dossier, you should contact an ANT Legal lawyer at 0966.475.966 for review and advice before proceeding.

Common risks to note

• Applying legal texts that have been amended, supplemented or replaced.
• Preparing incomplete dossiers, documents or evidence.
• Misunderstanding the applicable conditions, procedures, time limits or competent authority.
• Signing, filing or conducting transactions without fully assessing legal risks.

How can ANT Legal help?

ANT Legal assists in reviewing specific situations, checking dossiers, identifying the applicable legal basis, advising on handling plans, and representing you in working with individuals, organizations or competent authorities when necessary.

For quick advice, you may contact a lawyer at 0966.475.966.

Related articles

• Maximum extension of implementation schedule for projects with only an Investment Registration Certificate
• New investment projects under Vietnamese law
• Procedures for securing project implementation by investors under the law
• Securing investment project implementation under Vietnamese law
• Selecting investors to implement investment projects under Vietnamese law