Taxation of international executives
In Vietnam, there are statutory schemes on social insurance, health insurance, and unemployment insurance1.
This scheme is applicable to Vietnamese national only.
Contribution rates effective from 1 January 2007 are as follows. The base for social insurance contribution calculating is the contractual salary/wages and caped at 20 times the minimum salary.
According to Law No. 23 on HI, from 1 January 2010, the compulsory contribution for HI is changed to 4.5 percent, of the contractual salary/allowances with the statutory cap, of which, two-thirds is contributed by the employer and one-third is contributed by the employee.
1 October 2009, expatriates signed locally labor contract for three month or more with employer in Vietnam are subject to the compulsory health insurance scheme as applicable to Vietnamese employees.
Yes, please refer to the previous section.
Income being foreign currency remitted by overseas Vietnamese to individuals in Vietnam is not subject to income tax.
Yes. Personal income tax is imposed on also income from overseas transactions. Any tax paid in overseas countries can be credited in Vietnam, but not exceeding Vietnamese tax liabilities
Standard VAT in Vietnam is 10 percent. Lower rates of 0 percent or 5 percent may be applied to some goods or services.
Yes. It is Unemployment Insurance, which is applicable to only Vietnamese national sign indefinite contracts or definite contracts with employers having 10 Vietnamese employees or more
Each of the employees and the employers are required to contribute 1 percent of the salary/wages used for social security contribution i.e. capped at 20 times of the monthly statutory minimum salary.
Custom duty and special consumption tax may be imposed if the assignee brings various goods crossing the border of Vietnam. Goods subject to these taxes include laptops, perfumes, cigarettes, alcohol, electric wares, and so on at volume exceeding the limits.
1Paragraph 149 of Labor code, 1994 and Decree 58/1998/ND-CP of the Vietnamese Government on Health Insurance, 13 August 1998.
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