Key Changes under Circular 99/2025/TT-BTC

Effective Date and Objectives

• Implementation Date: Circular 99/2025/TT-BTC reforms will take effect starting January 1, 2026, marking a key transition.
• Transparency Enhancement: The circular aims to improve transparency by aligning accounting practices with international standards.
• System Modernization: Reforms focus on restructuring the accounting system and overhauling the financial reporting framework.
• Compliance and Integration: Changes support better compliance and help Vietnamese enterprises integrate into global financial markets.

Regulatory Changes

• Removal of Approval Requirement: Circular 99/2025/TT-BTC removes Ministry of Finance approval for account changes, granting enterprises greater autonomy.
• Requirement for Account Opening Regulation: Enterprises must issue documentation explaining and justifying accounting account changes to ensure integrity.
• Emphasis on Accountability: New framework stresses legal compliance and transparency while allowing operational flexibility.

Examples of Newly Introduced Accounts

• New Biological Assets Account: Account 215 is introduced for tracking biological assets, reflecting growth in agricultural and related sectors.
• Fixed Assets Renovation Account: Account 2414 covers costs for upgrading and renovating fixed assets, ensuring precise capital expenditure tracking.
• Dividends and Profit Payable: Account 332 manages dividends and profit payable, helping companies accurately report shareholder payments.
• Tax and Corporate Income Expenses: Accounts 6275 and 82112 handle taxes, fees, and additional corporate income tax under Global Minimum Tax rules.

Financial Reporting System Updates

• Replacement of Balance Sheet: The traditional Balance Sheet is replaced by the Statement of Financial Position under new financial reporting regulations.
• Alignment with International Norms: This change aligns Vietnam’s financial reporting with global standards, improving clarity and relevance of disclosures.
• Comprehensive Reporting Framework: The new system includes Statement of Financial Position, Profit or Loss, Cash Flow, and Notes to Financial Statements for transparency.
• Implementation and Training: Enterprises must update reporting templates and train staff to comply with new financial disclosure requirements.

Steps for Compliance and Readiness

• Review Accounting Systems: Enterprises must thoroughly review accounting systems and identify areas needing updates or additions.
• Issue Accounting Regulations: Formal Accounting Regulations must be issued to document changes and ensure legal compliance.
• Upgrade Accounting Software: Enterprises should upgrade software to meet new technical requirements including data accuracy and security.
• Training for Staff: Investing in training programs helps staff understand new standards and reporting formats effectively.