Chief Account Required for Microenterprises: Key Insights from Circular 132/2018/TT-BTC
The Ministry of Finance issued Circular 132/2018/TT-BTC, providing guidelines on the accounting regime for microenterprises. This regulation streamlines accounting practices and reduces administrative burdens. Below, we explore the requirements and obligations concerning the chief account required for microenterprises.
Organizational Structure for Accounting in Microenterprises
Microenterprises, as defined by Circular 132/2018/TT-BTC, are not required to appoint a chief accountant. Instead, they must arrange for a person in charge of accounting to handle their financial records and maintain compliance with the law. This adjustment simplifies staffing requirements while ensuring accountability.
Accounting Books and Methods for Microenterprises
Microenterprises benefit from simplified accounting rules under Circular 132/2018/TT-BTC:
- Accounting Books
- Businesses can develop and maintain accounting books tailored to their needs.
- If they cannot develop their own formats, they must use the templates and recording methods prescribed in this Circular.
- Simplified Accounting Methods
- Microenterprises are not required to open accounting accounts.
- They may simply record revenues and incomes directly in their accounting books for monitoring purposes.
These measures enable smaller enterprises to focus on operations without being burdened by complex accounting systems.
Financial Reporting Requirements
Circular 132/2018/TT-BTC exempts microenterprises from preparing and submitting financial statements to tax authorities. This relief significantly reduces the administrative workload for these businesses.
Definition of Microenterprises
Microenterprises eligible under this Circular are classified based on employee count and financial thresholds:
- Employee Limit
- The business has no more than 10 employees participating in social insurance.
- Revenue or Capital Thresholds
- Total annual revenue does not exceed:
- 10 billion VND for trading and service enterprises.
- 3 billion VND for agriculture, forestry, fisheries, industry, and construction enterprises.
- Alternatively, total capital must not exceed 3 billion VND.
- Total annual revenue does not exceed:
Implementation Timeline
The Circular took effect on February 15, 2019, and applies to fiscal years beginning on or after April 1, 2019.
Additional Notes and Expert Assistance
Circular 132/2018/TT-BTC offers microenterprises a simplified accounting framework, reducing costs and improving efficiency. Businesses must ensure compliance with its provisions to fully benefit from these measures.
For detailed advice or assistance regarding the chief account required for microenterprises, contact Law Plus via or phone +84 966 008 030.
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