Regulations related to the destruction of accounting documents of the enterprise need to be followed according to the legal requirements

September 13, 2023

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In the world of business, compliance with legal requirements is paramount, extending even to the meticulous handling of accounting documents. The proper management and eventual destruction of these records are essential processes that ensure transparency and accountability. In this discussion, we will delve into the regulations surrounding the destruction of accounting document within an enterprise. Understanding and adhering to these regulations is vital for companies to maintain their legal standing and uphold the principles of responsible corporate governance.

Question:

I would like to ask: What is the regulation for the retention period and destruction of invoices, contracts, documents, and accounting records? How many years should they be retained, and after how many years can they be destroyed? Moreover, what are the conditions for destruction?

Answer:

Based on Decree No. 174/2016/NĐ-CP dated December 30, 2016 issued by the Government, which provides detailed regulations on certain articles of the Accounting Law, the following provisions are applicable:

+ The retention period for accounting documents shall adhere to the regulations outlined in Articles 12, 13, and 14.

+ Once companies surpass the prescribed retention period for accounting documents, they can commence the document destruction process detailed in Article 16.

+ Execute accounting document destruction procedures per Government-issued Decree No. 174/2016/NĐ-CP, Article 17 specifications

Conclusion

In conclusion, adherence to regulations governing the destruction of accounting documents is not merely a bureaucratic necessity but a fundamental aspect of responsible business operations. Companies that meticulously follow these guidelines not only fulfill their legal obligations but also contribute to a culture of transparency and accountability. As businesses continually evolve, it is paramount to keep pace with the ever-changing landscape of regulatory requirements. This helps ensure the integrity of financial records and safeguards the interests of all stakeholders.

HMLF is always available to offer assistance in understanding the procedures with authorities.