HOW ARE ULTRA-SMALL ENTERPRISES IN THE AGRICULTURE SECTOR UNDERSTANDED? DO ULTRA-SMALL ENTERPRISES NOT NEED TO ARRANGE AN ACCOUNTANT?

How are micro-enterprises in the agricultural sector understood? How is the total capital of small and medium-sized enterprises determined? Do micro-enterprises not need to arrange an accountant? Let’s find out more with Pham Consult!

How are micro-enterprises in the agricultural sector understood?

According to Clause 1, Article 5 of Decree 80/2021/ND-CP, the following provisions are provided:

Criteria for determining small and medium-sized enterprises

1. Micro-enterprises in the agricultural, forestry and fishery sectors; The industrial and construction sector employs an average of no more than 10 employees participating in social insurance and the total revenue of the year does not exceed VND 3 billion or the total capital of the year does not exceed VND 3 billion.

Micro-enterprises in the trade and service sector employ an average of no more than 10 employees participating in social insurance and the total revenue of the year does not exceed VND 10 billion or the total capital of the year does not exceed VND 3 billion.

Thus, we can understand that a micro-enterprise is an enterprise operating in the agricultural sector with no more than 10 employees participating in social insurance and the total capital or revenue of the year does not exceed VND 10 billion.

How is the total capital of a small and medium-sized enterprise determined?

Pursuant to Article 8 of Decree 80/2021/ND-CP, it is stipulated that:

Determining the total capital of small and medium-sized enterprises

1. The total capital of the year is determined in the balance sheet shown on the Financial Statement of the previous year that the enterprise submits to the tax authority. The total capital of the year is determined at the end of the year.
2. In case the enterprise has been operating for less than 01 year, the total capital is determined in the balance sheet of the enterprise at the end of the quarter adjacent to the time the enterprise registers to enjoy the support content.

Thus, the total capital of a micro-enterprise is determined as follows:

– Total capital of the year is determined in the balance sheet shown on the Financial Statement of the previous year that the enterprise submits to the tax authority.

– Total capital of the year is determined at the end of the year.

– For enterprises operating for less than 01 year, total capital is determined in the balance sheet of the enterprise at the end of the quarter adjacent to the time the enterprise registers to enjoy the support content.

Do micro-enterprises not need to arrange an accountant?

According to Article 8 of Circular 132/2018/TT-BTC, it is stipulated that:

Organization of accounting apparatus and accountants

1. Micro-enterprises are arranged to be in charge of accounting without being required to arrange a chief accountant. Micro-enterprises that pay corporate income tax at a percentage rate on revenue from sales of goods and services can organize and perform accounting work themselves according to the provisions of Chapter III of this Circular.
2. The arrangement of accountants for micro-enterprises must ensure that they do not violate the provisions of Article 19 of Decree No. 174/2016/ND-CP dated December 30, 2016 of the Government detailing a number of articles of the Law on Accounting.
3. Micro-enterprises are allowed to sign contracts with accounting service providers to hire accounting services or chief accountant services in accordance with the provisions of law. The list of entities eligible to provide accounting services is published and periodically updated on the Ministry of Finance’s electronic information portal.

 

Thus, based on the above basis, micro-enterprises are allowed to arrange an accountant but are not required to arrange a chief accountant. Therefore, micro-enterprises still need to arrange an accountant.

At the same time, the arrangement of accountants for micro-enterprises must ensure that they do not fall into the following cases:

– Minors; People who have been declared by the Court to have limited or lost civil capacity; people who are serving the measure of being sent to a compulsory education facility or compulsory drug rehabilitation facility. – People who are prohibited from practicing accounting according to a court judgment or decision that has come into legal effect; people who are being prosecuted for criminal liability; people who are serving a prison sentence or have been convicted of one of the crimes of violating economic management order, crimes related to positions in finance and accounting and have not had their criminal records cleared.

– Biological father, biological mother, adoptive father, adoptive mother, wife, husband, biological child, adopted child, brother, sister of the legal representative, head, director or general director and deputy head, deputy director or deputy general director in charge of finance – accounting, chief accountant in the same accounting unit, except for private enterprises, limited liability companies owned by an individual, enterprises of other types without state capital and are micro-enterprises according to the provisions of the law on support for small and medium enterprises.

– People who are managers, operators, warehouse keepers, treasurers, people assigned to regularly buy and sell assets in the same accounting unit, except for cases in the same private enterprises, limited liability companies owned by an individual and enterprises of other types without state capital and are micro-enterprises according to the provisions of the law on support for small and medium enterprises.