This December 2018 publication on Tax and Accounting updates covers recent releases from Vietnamese authorities, particularly upcoming changes to payroll costs, along with our regular review of recent Official Letters released by the Tax Authorities.
INCREASE TO MINIMUM MONTHLY WAGE FROM 1 JANUARY 2019
The Vietnamese Government has officially confirmed the previously announced increases to Minimum Monthly Wages from 1 January 2019, through Decree 157/2018/ND-CP. Details of the increases can be seen in Domicile’s 2019 Payroll Quick Guide, which is on our website.
INCREASE TO MINIMUM BASIC WAGE FROM 1 JULY 2019
On 9 November 2018, the National Assembly of Vietnam passed Resolution 70/2018/QH14 covering the State budget for 2019. As a result, from 1 July 2019, the Minimum Basic Wage will increase from 1,390,000 VND per month to 1,490,000 VND per month.
Although the Minimum Basic Wage generally only applies to Government employees (who are paid a multiple of this depending on a range of factors), and should not be confused with the Minimum Monthly Wage that applies to employers in Vietnam, the change will have an impact on employers and employees in Vietnam due to manner in which Social Insurance and Health Insurance caps are linked.
As the maximum contribution caps to which Social Insurance and Health Insurance are required to be calculated and remitted are based upon 20 times the Minimum Basic Wage, the cap above which monthly salaries are not subject to these insurances will increase on 1 July 2019 from 27,800,000 VND to 29,800,000 VND.
REMINDERS FOR YEAR END FINALISATIONS AND OBLIGATIONS
As the 31 December year end for the Vietnamese tax year approaches for most in Vietnam, corporate entities & individuals are reminded to be aware of their tax finalisation and reporting obligations.
For more information, click Vietnam Tax Update December 2018 – Domicile
OTHER NEWS ON THE AUSCHAM WEBSITE
In the toolbar of this website, click on “NEWS” for the drop down menu which includes: