Do accountants need to buy professional liability insurances in Vietnam?

1. Do accountants need to buy professional liability insurances in Vietnam?

Article 67 of the 2015 Accounting Law stipulates responsibility of accounting practitioners, accounting firms, and accounting households as follows:

1. Perform accounting works as agreed in the contract.

2. Comply with regulations of law on accounting and code of ethics for accountants.

3. Take responsibility to the clients for provided accounting services and pay compensation for any damage caused.

4. Keep improving professional knowledge and skills, participating in annual refresher courses as prescribed by the Ministry of Finance.

5. Comply with accounting service quality control by the Ministry of Finance or an accounting association authorized by the Ministry of Finance.

6. Buy professional liability insurance as prescribed by the Government.

Thus, according to the above regulations, if you are an accountant practicing at an accounting service unit in Vietnam, you must buy professional liability insurance.

2. What is duration for accountants to buy professional liability insurances in Vietnam?

According to Article 28 of Decree 174/2016/ND-CP stipulating professional liability insurance as follows:

1. An accounting service provider must buy professional liability insurance, which is the source for paying compensation for its clients in case of damage caused by its accounting practitioners.

2. Professional liability insurance must be bought for an accounting practitioner within 60 days from the day on which he/she is granted the Certificate of Accounting Service Registration.

The cost of professional liability insurance may be aggregated with operating cost as long as it is supported by valid invoices and documents.

3. The accounting service provider and insurer may reach an agreement on the insurance premium, which must not fall below the service charges imposed by the accounting service provider.

Therefore, when you have received the Certificate of Accounting Service Registration at the unit, you have 60 days to buy professional liability insurance in Vietnam. You receive the Certificate on July 20th, then from that date to the end of September 20th, you must buy professional liability insurance.

Best Regards!