Vietnam: Guidance on financial audits | KPMG | GLOBAL

Vietnam: Guidance on financial audits of foreign-invested enterprises

Vietnam: Guidance on financial audits

Guidance issued as regulations by the Ministry of Finance is to be followed to coordinate the audit of corporate finance mechanisms and policies at foreign-invested enterprises (FIEs).

1000

Related content

The Department of Corporate Finance (Ministry of Finance) is responsible for and will coordinate with other relevant authorities (including the customs and tax authorities) in conducting audits of the financial status of FIEs. These financial audits are to address:

  • Value of assets contributed as capital by parties (value of land-use rights; value of tangible assets such as machinery, equipment, factories, intangible fixed assets, etc.)
  • Use of machinery and equipment imported duty-free to form fixed assets for proper purposes
  • Provision of loans (bank loans, issuance of corporate bonds, etc.)
  • Making and use of provisional funds, fixed-asset depreciation, accounting of exchange rate differences
  • Share of profits from state-contributed capital in foreign-invested economic organisations or projects
  • Preservation of capital contributed by state-invested economic organisations and projects
  • Transfer of capital; capital contribution to enterprises
  • Implementation of commitments and satisfaction of conditions for entitlement of financial incentives and investment support (exclusive of tax incentives) after projects commence operation

KPMG observation

The new guidance is being considered an enhanced audit plan, compared to the annual plan for tax audits and inspections in businesses. FIEs need to consider the implication of the new regulations and prepare for upcoming audits. 

 

Read an August 2017 report [PDF 120 KB] prepared by the KPMG member firm in Vietnam

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Request for proposal

 

Submit