As one of the most important accounting documents, accounting records must be retained in accordance with legal requirements so that the tax authorities can examine them when necessary. So, how long must accounting records be stored? In this article, KMC shares the latest 2025 updates, providing you with a clear and comprehensive answer on the process of retaining and disposing of accounting records and vouchers after their retention period expires.
Why Is It Necessary to Retain Accounting Records?
Both domestic and foreign-invested enterprises (FDI) are required to retain accounting records in order to:
- Serve internal management: Monitor cash flow, evaluate business performance, and formulate strategic plans.
- Provide information to state authorities: For tax inspections, audits, and state audits. Failure to present documents upon request may result in serious financial and legal risks.
- Ensure transparency: Serve as the basis for reconciliation and help build credibility with partners and investors.
Types of Accounting Records and Vouchers Required to Be Retained
Before addressing how long accounting records must be retained, enterprises need to understand the categories of accounting records and vouchers that must be stored.
Pursuant to Article 8 of Decree No. 174/2016/NĐ-CP, the following accounting documents must be retained:
– Accounting vouchers
– Detailed accounting books and general accounting books
– Financial statements; budget settlement reports; consolidated budget settlement reports
– Other accounting-related documents, including:
- Contracts
- Management accounting reports
- Dossiers and reports on the settlement of completed projects, including national key projects
- Reports on inventory results and asset valuation
- Documents related to inspection, examination, supervision, and auditing
- Records on the destruction of accounting documents; decisions on capital supplementation from profits; allocation of profit-derived funds
- Documents related to dissolution, bankruptcy, division, separation, consolidation, merger, termination of contracts, conversion of ownership, change of business type, or organizational restructuring
- Documents relating to the receipt and use of funds, capital, and reserves
- Documents relating to tax, fees, charges, and other obligations to the State, as well as other relevant documents.
How many years must accounting records be retained?
Pursuant to Article 40 of the Law on Accounting 2015 and its implementing regulations (such as Circular No. 200/2014/TT-BTC and Decree No. 174/2016/NĐ-CP), the retention period of accounting records is clearly classified into three categories:
1. Minimum retention period: 5 years
This group includes common accounting vouchers that are generated frequently.
- Receipts and payment vouchers
- Warehouse receipts and delivery notes
- Banking documents (payment orders, bank statements, etc.)
- Timesheets, payroll statements
- Input and output invoices (archived copies)
2. Minimum retention period: 10 years
This group covers important documents with high legal value related to consolidated financial reports.
- Detailed and general accounting books
- Annual financial statements
- Annual tax finalization reports
- Asset inventory minutes
- Documents related to completed inspections and audits
3.Permanent retention
This group consists of documents of historical and foundational significance to the enterprise, requiring special preservation.
- Enterprise establishment report
- Business registration certificate
- Company charter
- Documents on intellectual property rights and major fixed assets
- Other important legal documents
Note: Certain specific industries (such as oil & gas, finance and banking) may be subject to longer retention periods under specialized laws.
Process of destroying accounting records after the retention period
Having clarified the retention periods, the next question concerns the process for destroying accounting records once their retention period has expired.
In practice, accounting records and vouchers may not be arbitrarily discarded after their retention period. Destruction must follow a strict process with proper documentation to ensure legal validity. The standard process includes the following steps:
- Establish a Document Destruction Council
The council should include representatives of the enterprise’s management, the chief accountant, and relevant departments. This step is mandatory to ensure objectivity and transparency. - Prepare a List of Documents Proposed for Destruction
The list must detail each type of record, quantity, date of issuance, and reason for destruction (i.e., expired retention period). - Prepare a Destruction Minutes
The minutes must specify the time, location, participants, and method of destruction. All council members must sign to confirm. - Select a Safe Destruction Method
Priority should be given to methods that ensure no information leakage. For paper documents, shredding is the most common method. Under no circumstances should documents be sold as scrap. - Retain the Destruction Minutes
The minutes serve as crucial evidence of compliance and must be permanently retained.
KMC – Your Trusted Partner in Accounting & Records Management for FDI Enterprises
Not every business fully understands the proper standards and legal requirements for archiving and destroying accounting records after their statutory retention period—especially foreign-invested enterprises (FDIs). As a business manager, finding a professional partner to accompany you, provide guidance, and handle critical accounting matters is essential.
With extensive experience and in-depth knowledge of both local regulations and international standards, KMC understands the unique challenges faced by FDI enterprises, particularly Japanese-invested companies. We not only provide clear answers to the question of “How many years must accounting records be retained?” but also deliver comprehensive support for corporate accounting matters.
With extensive experience and in-depth knowledge of both local regulations and international standards, KMC understands the unique challenges faced by FDI enterprises, particularly Japanese-invested companies. We not only provide clear answers to the question of “How many years must accounting records be retained?” but also deliver comprehensive support for corporate accounting matters.
Our specialized Accounting Services for FDI Enterprises include:
- Comprehensive consulting on record retention systems and compliant document destruction procedures.
- Assistance with initial accounting and tax registration, ensuring a solid compliance foundation from day one of establishment.
- Accurate and timely tax declarations and annual financial reporting.
- Organization of specialized seminars on tax and accounting to keep you updated on the latest legal changes.
With KMC’s team of leading experts, we provide professional, dedicated corporate accounting advisory services that ensure full compliance with Vietnamese law.
📞 For immediate consultation, please contact our hotline: 081 489 4789.
