What are regulations on Account 453 – Taxes and payables to the State of non-bank credit institutions in Vietnam?

Pursuant to Article 32 of the Circular 05/2019/TT-BTC (takes effect from 01/04/2019) stipulating regulations on Account 453 – Taxes and payables to the State of non-bank credit institutions in Vietnam as follows:

1. Accounting principles

a. This account shall be designed for reflecting taxes, fees, charges and other amounts that need to be paid, have already been paid and will have to pay by microfinance institutions in the State Budget in an accounting year.

b. Microfinance institutions shall actively calculate, determine and declare taxes, fees, charges and other payables to the State as prescribed by laws; record taxes that need to be paid, have already been paid, are deductible or are refunded, etc. on time

c. In nature, indirect taxes such as VAT, environment protection tax and others shall be deemed as third-party collectibles. Therefore, indirect taxes must be deleted from the database of gross sales in financial statements or other reports.

d. As for deductible or refundable tax amounts, accountants must make clear difference between those already paid upon purchase or those that need to be paid upon sale of goods or rendering of services.

dd. Accountants must keep a detailed journal of taxes, fees, charges and amounts that need to be paid, have already been paid and will have to be paid.

2. Components and contents of this account

Debit side:

- VAT amounts that are deducted within an accounting period;

- Taxes, fees, charges and amounts that need to be paid, have already been paid and will have to be paid to the State Budget;

- Tax amounts reduced from tax amounts payable.

Credit side:

Taxes, fees, charges and other amounts that need to be paid to the State Budget.

Balances on the Credit side:

Taxes, fees, charges and other amounts that will have to be paid to the State Budget at end of an accounting period.

In particular cases, the Account 453 may have balances on the Debit side. Balances on the Debit side (if any) recorded in the Account 453 must reflect tax amounts and amounts already paid which are greater than tax amounts and amounts payable to the State, or may reflect already paid tax amounts obtaining tax exemption, reduction or reimbursement which has not yet been carried out.

Above are regulations on Account 453 – Taxes and payables to the State of non-bank credit institutions in Vietnam.

Best regards!