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Social insurance tax

Social insurance in cross hairs

November 7, 2018 vir Leave a Comment

Social insurance in cross-hairs, illustration photo Mac Van Tien, Director, Ministry of Labour, Invalids, and Social Affairs’ National Institute for Vocational Education Applying compulsory social insurance on foreign employees is such a new policy for Vietnam. Currently, compulsory social insurance on local employees is very difficult to administer, with 30 per cent of the total workforce contributing to the policy, so carrying out a similar policy on foreign employees will be much more difficult because Vietnamese supervision on foreign employees has not been tightened. Currently, with a huge number of foreign workers in Vietnam, supervision of them in industrial zones, in companies hiring workers from their countries’ headquarters or from other countries is quite hard for the local government. As a result, despite their obligations to the decree in Vietnam, I consider that the number of foreign workers contributing to the compulsory social insurance will be much … [Read more...] about Social insurance in cross hairs

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Mandatory social insurance for expat workers creates burden on enterprises

July 11, 2018 thesaigontimes Leave a Comment

Mandatory social insurance for expat workers creates burden on enterprisesBy Thuy Dung Foreign workers are seen at a construction site in Vietnam - PHOTO: TL HANOI – Compulsory social insurance for foreigners working in Vietnam is creating a heavy burden on local enterprises, according to a report by the Investment and Trade Working Group of the Vietnam Business Forum. The group regards the payment of social insurance for expat workers in Vietnam as a kind of tax, noting that Vietnam thereby has the highest taxes in the region in terms of quantity, rates and large-scale application. The report also shows that the draft government decree on compulsory social insurance does not adjust the rule of an accumulating period of social insurance payment. For example, if a foreign worker has paid social insurance for five years in Thailand, and another five years in Singapore before coming to work in Vietnam, such periods are still not accumulated for the expat into Vietnam's … [Read more...] about Mandatory social insurance for expat workers creates burden on enterprises

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Compulsory social insurance for expats to go ahead despite firms’ concerns

April 1, 2018 robert Leave a Comment

Viet Nam News Thu Hà – Mai Hiên HÀ NỘI — A controversial rule requiring foreign workers in Việt Nam to make social insurance payments is likely to be put into practice soon, several months after the Government’s issuance of a decree to implement the new provision of the Law on Social Insurance 2014, which came into effect on January 1 this year. The chorus of varied and strong opinions from the business community and related ministries and sectors has delayed the issuance. However, Trần HảiNam, deputy head of the Department for Social Insurance under the Ministry of Labour, Invalids and Social Affairs (MoLISA), said a draft decree had been sent to the Government, after getting the nod from the National Assembly Standing Committee in mid-March. Nam said the draft is expected to be ratified in about a month. The draft decree is expected to narrow the number of foreigners affected by the compulsory social insurance … [Read more...] about Compulsory social insurance for expats to go ahead despite firms’ concerns

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EuroCham voices concern over new social insurance rule – EuroCham voices concern over new social insurance rule

March 16, 2017 robert Leave a Comment

EuroCham voices concern over new social insurance rule Thuy Dung HANOI – Foreign nationals working in Vietnam will be subject to a new statutory social insurance regulation early next year, something which has sparked concern among European enterprises in the country. European firms said this rule may lead to the double taxation of social insurance for non-Vietnamese employees. In accordance with the Law on Social Insurance, which went into force early last year but will not cover foreign nationals working in Vietnam until early 2018, foreign workers in Vietnam with a work permit, or a practice certificate or license will have to contribute social insurance. But there are no specific guidelines for none-Vietnamese employees such as those signing a labor contract with a legal entity in Vietnam or being assigned to work in Vietnam on an assignment as well as for benefit entitlement for cases where foreign nationals terminate their assignment and go back to their home countries. … [Read more...] about EuroCham voices concern over new social insurance rule – EuroCham voices concern over new social insurance rule

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EuroCham voices concern over new social insurance rule

March 15, 2017 robert Leave a Comment

In accordance with the Law on Social Insurance, which went into force early last year but will not cover foreign nationals working in Vietnam until early 2018, foreign workers in Vietnam with a work permit, or a practice certificate or license will have to contribute social insurance. But there are no specific guidelines for none-Vietnamese employees such as those signing a labor contract with a legal entity in Vietnam or being assigned to work in Vietnam on an assignment as well as for benefit entitlement for cases where foreign nationals terminate their assignment and go back to their home countries. “More comprehensive regulation would be recommended,” the European Chamber of Commerce in Vietnam (EuroCham) said. In practice, a certain number of foreign nationals who come to Vietnam for an assignment still maintain social security in their home countries or enter a voluntary healthcare program. For such cases, statutory social and health insurance will result in … [Read more...] about EuroCham voices concern over new social insurance rule

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