Ask: Our company has a loan from our parent company abroad. Are we required to submit any reports and if so, how should we comply with this requirement?
Answer
According on the information you provided, if your company has a loan from its overseas parent company, it must comply with the reporting requirements as stipulated by the Law on the State Bank of Vietnam as follows:
First: Periodic Reporting
- On a monthly basis, no later than the 5th of the following month, the Client must submit an online report on the status of short, medium, and long-term loans via the Electronic Portal for Managing Foreign Loans and Debt Repayment Without Government Guarantee. In cases where the portal encounters technical issues and the report cannot be submitted online, the Client must send a report in writing.
- Within 10 working days from the date of receipt of the company's report via the Electronic Portal for Managing Foreign Loans and Debt Repayment Without Government Guarantee, the State Bank branch will approve the report (or enter information from the written report in case of technical issues with the portal) and store the information in the database.
- If the report information is accurate, the company will be notified via email that the reporting has been completed in accordance with regulations.
- If the information is inaccurate or needs clarification, the State Bank branch will notify the company by email to adjust the data.
- Within 03 working days from the discovery of errors in the foreign loan and repayment reports, the company is responsible for reporting the corrected figures online via the portal (or in writing in case of technical issues with the portal) regarding the status of short, medium, and long-term loans, and simultaneously notify the State Bank branch via email for approval.
Legal Basis: Article 41, Circular 12/2022/TT-NHNN
Second: Ad-hoc reporting
In unexpected situations or when necessary, the Client must submit reports as requested by the State Bank. (Article 42, Circular 12/2022/TT-NHNN)
Therefore, in the above case, the Client must submit periodic reports or ad hoc reports if requested by the State Bank.
Administrative Penalties
According to Points a and b, Clause 1, Article 47 of Decree 88/2019/ND-CP, the company may face fines ranging from VND 5,000,000 to VND 10,000,000 for the following violations:
Failing to meet deadlines, and providing complete and accurate reports from the second time onward in a financial year for statistical reports with a reporting period of less than 01 month.
Submitting reports late as prescribed by law.
However, according to Point b, Clause 3, Article 3 of Decree 88/2019/ND-CP, "The fines prescribed in Chapter II of this Decree are applied to individuals; for organizations committing the same administrative violations, the fine is doubled compared to that for individuals."
Thus, the company committing the above violations will be fined from VND 10,000,000 to VND 20,000,000.
Note: Individuals or organizations that delay reporting foreign loans must resubmit complete and accurate reports and will not be allowed to expand their scope, scale, or operational areas, or add new business activities until the violation is resolved.
Legal Basis: Point a, Clause 7, Article 47 of Decree 88/2019/ND-CP and Point b, Clause 32, Article 1 of Decree 143/2021/ND-CP.
