In this Issue
 
Official Letter 4064/BHXH-THU dated 17 December 2014 on significant changes of Employment Law and Health Insurance Law, effective since 1 January 2015
The National Assembly has approved the new Law on Social, Health and Employment. Pending the Decree and Circular providing detailed guidance on the new Laws, on 17 December 2014 the Ho Chi Minh City Social Security authority (HCMC SS) issued Official Letter No. 4064/BHXH-THU (OL 4064) to provide detailed guidelines on the implementation of the new Laws.
 
Law on Social Insurance No. 58/2014/QH13 dated 20 November 2014
On 20 November 2014, the National Assembly has passed the Law on Social Insurance which will take effect from 1 January 2016. This Law broadens application scope of compulsory social insurance and makes some significant changes with respect to employee’s benefits.
 
Official Letter No. 17862/BTC-TCT dated 9 December 2014 (OL 17862) on Foreign Contractor Tax (FCT) exemption on reimbursement of employment cost to overseas companies
The OL 17862 confirms that the reimbursement of employment cost of assignees working in Vietnam made to overseas company shall be FCT exempted if the conditions stated therein are met.
 
Official Letter No. 5722/TCT-CS dated 19 December 2014 (OL 5722) on FCT to goods sold at bonded warehouse
Pursuant to OL 5722, direct sale of goods via bonded warehouse to a Vietnamese company, even if the company is located in the non-tariff zone, is considered as distribution activities within Vietnam and subject to FCT.
Official Letter No. 5806/TCT-CS dated 24 December 2014 (OL 5806) on bank payment vouchers for VAT refund purposes
Bank payment vouchers lacking of information required by respective State bank’s regulations shall not be eligible for VAT creditability or VAT refund, as guided in the OL 5806.
Official Letter No. 206/BCT-TCT dated 7 January 2015 (OL 206) on tax incentives applicable to income generated during extended project life
According to OL 206, income generated during project period which is extended from that stated in the initial Investment Certificate shall not be entitled to preferential tax rate.
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