Foreigners working in Vietnam: Manage the required compliance procedures 2023

Foreigners who are working in Vietnam shall be complied with the local laws and regulations to avoid and prevent violations in advance, keep their good standing in optimal manners whenever they are working and doing business in Vietnam.

WHO ARE THE FOREIGN EMPLOYEES IN VIETNAM?

Executing the labor contracts
Working as managers, chief executive officers, experts, technicians
Internal reassignments
Enforcing contracts or agreements
Working for foreign non-governmental or international organizations in Vietnam

WHAT ARE THE REQUIRED PROCEDURES FOREIGN EMPLOYEES IN VIETNAM SHALL KEEP IN MIND?

Visa for experts and investors
Work permit
Temporary resident card
Personal income tax
Compulsory insurances
Labor contracts, Employment records and relations
Direct investment in Vietnam
Rights and obligation of Chief of representative offices and Legal representatives of a business entity
Legalized and notarized translations of overseas papers | Local banks accounts and remittances | Manage contracts | Buy, rent and purchase housing | | Other procedures at the local competent state agencies.

HOW VIVA ENSURES THE FOREIGNERS BE FULLY COMPLIED WITH LOCAL REGULATIONS – KEEP THE GOOD STANDING IN CONSISTENT MANNER?

ENTRY VISA

Visa means a document issued by a competent authority of Vietnam to a foreigner to grant entry into Vietnam. A visa may be used one or multiple times and its purpose must not be changed. Visa shall be issued and attached to passport, issued separately or issued via electronic transaction or according to lists issued by immigration authorities.

In Vietnam, many types of entry visas with different symbols and time limits, there are 05 most popular visa symbols:

Symbol ĐT – has time limits of visa from 12 months and do not exceed 10 years – Issued to foreign investors in Vietnam.
Symbol LĐ has time limits of visa do not exceed 2 years – Issued to people who come to work.
Symbol DN has time limits of visa do not exceed 12 months – Issued to people who come to work with companies in Vietnam.
Symbol TT has time limits of visa do not exceed 12 months – Issued to foreigners that are parents, spouse, children under 18 years of age of the foreigners issued the above visas.
Symbol: DL – Issued to tourists.

WORK PERMIT

There are regulations on issuance of work permits for foreigners in Vietnam and cases of expulsion of foreign workers who are working in Vietnam without the work permits.

A work permit is granted for:

Employees who are foreign citizens moving to Vietnam for employment for the purpose of:

Executing the labor contracts or Internal reassignments;
Enforcing contracts or agreements on business, commerce;
Providing services under contracts;
Offering services;
Working for foreign non-governmental organizations or international organizations in Vietnam;
Taking charge of establishing the commercial presence;
Working as managers, chief executive officers, experts, technicians
Participating in the execution of bid contracts and projects in Vietnam.

What are conditions for issuing the work permit in Vietnam?

The Employees are manager, chief executive officer, expert, or technician.
The employment of the foreign worker is approved in writing by a state competent authority.
The worker’s health is fit for working and the worker is not a criminal or liable to criminal prosecution in accordance with the Vietnam law and the foreign country’s law.

TEMPORARY RESIDENCE CARD

A temporary residence card is a multiple visa valid from 2 to 5 years for expats who want to reside for a definite period in Vietnam. However, depending on each case the temporary residence card can be issued for a different period and also required different documents.

A temporary residence card is granted for:

A foreigner who is a member of the board director of the stock corporation.
A foreigner who is a member of the two members limited liability company or more.
Relatives of the temporary residence cardholder include parents, spouse, and children.
A foreign lawyer who is licensed to practice following Vietnam law by the Vietnam Ministry of Justice.
A foreigner who is granted a working permit in all kinds of businesses or representative offices of foreign companies.
A foreigner who is the owner of the one-member limited liability company;
Professionals, students, trainees who are in the national working or studying programs which are signed between the ministries was approved by the Government.

The validity of the temporary residence card:

Expired temporary residence cards will be considered for the issuance of a new card.
The duration of TRC is at least 01 month shorter than the duration of the passport.
Temporary residence cards with the code LĐ, PV1 have a term of no more than 02 years.
Temporary residence cards with the code NN1, NN2, TT have not more than 03 years.
Temporary residence cards with the code NG3, LV1, LV2, ĐT, and DH have a term of no more than 10 years.

PERMANENT RESIDENCE CARD

A permanent residence card (PRC) is a paper granted by immigration authorities to foreigners who are allowed to permanently reside in Vietnam and have validity longer than a Visa.

Conditions and dossiers for the application of permanent residence cards for foreigners in Vietnam can be flexible depend on case by case.

Conditions for permanent residence card application

Foreigners who are legal residents.
Foreigners who have stable incomes ensure their livings in Vietnam.
Foreigners who are resided in Vietnam for 3 years or more.
Foreigners who are sponsored by their parents, spouses or children who are Vietnamese citizens permanently residing in Vietnam.

EXCLUSIVE PROMOTION FOR LOYAL CLIENT WHO WILL GO WITH US IN NEXT 04 YEARS – FREE CONSULTING AND SUPPORTING:

MANAGING – PLANNING ON COMPULSORY SOCIAL INSURANCE FOR FOREIGNERS WHO ARE WORKING IN VIETNAM

According to Decree No. 143/2018/ND-CP October 15, 2018, compulsory social insurances (SI) for foreigners who are working in Vietnam include the following benefits: sickness, maternity, occupational accident, disease, retirement and death insurance benefits. The main contribution and rates shall enter into force from January 1, 2022, as follow:

The foreigners who are required to participate in the compulsory insurances

Employees who are foreign nationals working in Vietnam shall be required to participate in the compulsory SI program if they obtain work permits, practicing certificates, practicing licenses issued in Vietnam, indefinite-term employment contracts or employment contracts valid for at least one year with employers in Vietnam.
The foreign employees referred above shall be excluded from participation in the compulsory social insurance as provided herein if:

- They are intra-company transferees as stipulated in the Labor Code regarding foreign employees working in Vietnam.
- They reach retirement age under the Labor Code.

What are the compulsory insurance rates

Total compulsory social insurances contribution rates are 30%, consist of:

The employee side shall, on a monthly basis, make a total SI contribution accounting for 9,5% of monthly pay (8% into the retirement and death benefit fund and 1,5% into the sickness and parental insurance benefit fund)
The employer side shall, on a monthly basis, make a SI contribution accounting for 20,5% in proportion to the employee’s payroll in the SI payment month (14% in to the retirement and death insurance benefit fund, 3% into the sickness and parental insurance benefit fund, 0.5% of into the occupational accident and disease benefit fund, 3% into the health medical fund).

MANAGE THE LOCAL REQUIRED RECORDS AND PROCEDURES FOR INVESTORS AND LEGAL REPRESENTATIVE:

VIVA Business Consulting if offering exclusive supporting to foreign investors and chief of representative office in Vietnam, this service will provide local regulations and instant solutions for most of the concerns for a foreigner who are working in Vietnam. Under our management, the required compliance procedures shall be reviewed and managed properly:

Professional employee profile and establish local employment relations:

Know your employer and your title position
Local job descriptions that shall be in lined and consistent with the position
Establish a lawful employment relations in forms of appointment letter, labor contract, internal assignment…
Required papers to meet local conditions on foreign employment in Vietnam.
Manage your work permits, residency.

Manage your personal income tax and compulsory insurances:

Taxable incomes and tax exemption, methods of tax declaration and payment.
Review and identify your sources of incomes, and tax deduction to avoid potential violations that may impact to your good standing.
Calculate your tax payable amount and compulsory insurances in lawful and optimal manners.
Review your tax reports and annual final settlement, apply for insurance benefits and avoid double tax payment according to the tax agreements.
Representative on behalf to manage and settle any query or requirements from the local competent state agencies.

Other supporting for foreigners:

Private banking services: Manage required papers and procedures for every transactions as per local laws. Overseas remittance and loans.
Direct or In-direct Investment in Vietnam.
Buy, rent and purchase housing
Business records management for any of required papers so that your will be always ready to provide information and protect your interests during your working in Vietnam.
Exclusive counsel for the Chief of representative office and Legal representatives of a business entity.

ANNUAL PERSONAL INCOME TAX SETTLEMENT

Choosing the right method and calculating optimal tax payable amounts
Preparing the settlement sheets for final declaration of annually personal income tax
Submitting tax declaration according to the current regulations and on behalf to pay the tax
Representative on behalf, manage and take care any relevant issue from the tax department
Upon request, apply for letter of final confirmation form Tax Department (tax completion certificate)
Collect the related papers of above procedures for business records management. Tax planning, tax optimizing for the the next year.

We do trust our service will meet your demands and we aim to not only fully manage, optimize compliance procedures according to local laws and regulations, but also continuously offer outstanding solutions to help create added value and inspire your business in Vietnam long term.

VIVA is a business consultant in mandatory compliance procedures in Vietnam since 2006. The insights and consistent background in Business Laws – Accounting and Corporate Finance – Tax Management – Labor Relations and Payroll – Secretarial services help us build trust and confidence in the entrepreneurs community.

Became the trusted brand name since 2006, where the entrepreneurs can rely on for any local business compliance procedures. We have been successfully providing service for thousands of leading companies from Hong Kong, Japan, US, EU, Singapore, India, China, Korea….

We looking to be your valued business partner and resources in Vietnam as we have been choosing since 2006.

ABOUT VIVA BUSINESS CONSULTING

VIVA is the local experts for local business compliance procedures, has been trusted by thousands of foreign investors, multinational companies from Europe, Japan, Singapore, India, Korea, USA… regard to market entry service, required business compliance procedures by local laws and regulations since 2006.

Thanks for consistent of practice expertise in Business laws - Employment relations – Tax and accounting – Corporate finance – Corporate services, VIVA has been successfully providing service for thousands of leading companies from Japan, US, EU, Singapore, India, China, Korea…. in such industries: Garment, ennergy, pharma, advertising, agricultural…

VIVA keeps its service signature by offering one-stop business platform with exclusive and tailored-made services related to market entry and mandatory business compliances. We ensure for our client’s good standing, in lawful and optimal manners whenever they are working and doing business in Vietnam.

YOU WILL RECEIVE

“If you ask any successful businessperson, they will always have had a great mentor at some point along the road.”
Richard Branson

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FOREIGNER WORKING IN VIETNAM MANAGE THE REQUIRED COMPLIANCE PROCEDURES 2023 – 2026