Uni 01-09-2016 - Instruction to new notes of Circular 133/2016/TT-BTC replacing Decision 48/2006/QĐ-BTC

On 26 Aug 2016, MOF issued Circular133/2016/TT-BTC guiding small- mid enterprise accounting regime replacing Decision 48/2006/QĐ-BTC.

This SME accounting regime is based on accounting regime platform issued together with Circular 200/2014/TT-BTC and revised and added more simply. Some contents of new accounting regimes applied to SME as follows:

– Most of accounts are 1^st degree, few ones are 2^nd degree, not separated short-term and long-term accounts. They are allowed to classify into short-term and long-term accounts as their requirement;

– Remove all form regulations of accounting documents and ledgers.

– Separate accounting and tax, in many cases, accounting revenue and expense recognition time are differed from tax’s, revenue recognition is not as the same as in invoices or not depending on whether the invoices are issued or not. For examples:

+ Enterprises buy car less than 9 seats in amount of 2 billion VND, accounting depreciation cost is 2 billion VND but tax depreciation is 1,6 billion VND;

+ Pre-receipt from estate sale, enterprises must issue invoices and estimation of CIT payment of 1% to the pre-receipt but not estate delivery, they are not allowed to recognize revenue;

+ Buying air tickets, agency ticket must issue invoices but passengers do not yet fly, their revenue are not yet recognized;

+ Commission-received agents, revenue is commission but invoices are the whole receipts from goods sale;

+ Sale for trial products, invoices must be issued but the receipts are allowed to recognize revenue but reduced to trial production costs;

This Circular takes effects from 01 January 2017.