This June 2017 publication of Domicile Corporate Services’ monthly Tax Update Newsletter looks at a selection of recent changes to Vietnamese laws.
CHANGES TO INSURANCE RATES FROM 1 JUNE 2017
Changes came into force from 1 June 2017 for calculations to Vietnamese Social Insurance payments, following adoption of Decree 44/2017/ND-CP by the National Assembly on 22 May 2017.
Due to a 0.5% reduction in the employers’ compulsory contribution to the Occupational Accident and Occupational Disease Insurance Fund (which forms part of the Social Insurance obligation for employers), the Social Insurance contribution rate for employers decreases from 18.0% to 17.5% per month.
Monthly Contribution rates for Social Security payments on Salaries from 1 June 2017
|Social Security Element||Employer Contribution||Employee Contribution||Total|
|Social Insurance (SI) (incorporating sickness, paternity, occupational accident and disease, retirement and impairment insurances)||17.5%||8.0%||25.5%|
|Health Insurance (HI)||3.0%||1.5%||4.5%|
|Unemployment Insurance (UI)||1.0%||1.0%||2.0%|
OFFICIAL LETTERS RELEASED
On 24 May 2017, the General Department of Taxation (“GDT”) released Official Letter 2186/TCT-CS regarding abbreviations for addresses on VAT invoices.
Specifically, where abbreviations are used for a range of descriptive words (like “P” for Ward, “Q” for District), then provided the other items on the invoice are correct, then these invoices are still acceptable for taxation purposes.
VAT and Promotions
On 24 May 2017, GDT released Official Letter 2179/TCT-CS for where companies offer promotions to customers by selling goods or services at prices lower than the prices previously registered under a sales promotion program with the Department of Industry and Trade (“DoIT”).
In these situations, the company must declare and pay VAT on the basis of the VAT rules for donations or internal consumption (ie, based upon the full market-value of the product or service before the discount), and cannot avail themselves to the discounted price registered for the discount program with DoIT.
GENERAL NOTE – CHANGES TO VIETNAM TELEPHONE NUMBERS
Area codes for telephone numbers across 23 Vietnamese Provinces, including Ho Chi Minh City and Hanoi, change from 17 June 2017, and will operate together with the old numbers until 17 July 2017.
– Ho Chi Minh City area codes change from 08 to 028
– Hanoi area codes change from 04 to 024
Domicile Corporate Services’ phone number will change to 028 6291 5779 (or +84 28 6291 5779 if dialled internationally).
For further information contact:
Matthew Lourey, Managing Partner
Phan Thi Thu Thuy, Manager
OTHER NEWS ON THE AUSCHAM WEBSITE
In the toolbar of this website, click on “NEWS” for the drop down menu which includes: