2018 MINIMUM MONTHLY WAGE INCREASES ANNOUNCED
Vietnam’s National Wage Council released an announcement on 7 August that the Minimum Monthly Wage for workers in Vietnam would increase an average of 6.5% from 1 January 2018. This increase is subject to the Prime Minister’s approval, however this is expected to be procedural only.
Employers should ensure that their staff are not paid less than the monthly minimums, and also note that these minimums are also used as a cap for government Health Insurance and Social Insurance contribution calculations (ie, 20 x Minimum Wage).
OFFICIAL LETTERS RELEASED
Exemption for Issuing VAT Invoices when Selling Gift Vouchers
On 24 April 2017, the Ho Chi Minh City Department of Taxation released Official Letter 3611/CT-TTHT regarding the exemption for issuing Value Added Tax (“VAT”) Invoices when selling Gift Vouchers.
It follows that when a company sells Gift Vouchers, the company is not required to issue a “red” VAT Invoice or record revenue at the time of the transaction, but instead is to treat the transaction as a liability. When the holder of the Gift Voucher later uses the Gift Voucher to buy goods, it is at that time the company is required to issue the VAT Invoice.
For more information, click Vietnam Tax Update August 2017 – Domicile
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