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Notice On Social Insurance For Foreigner in Vietnam

Notice On Social Insurance For Foreigner in Vietnam

VIVA BUSINESS CONSULTING là công ty tư vấn doanh nghiệp được tín nhiệm bởi hằng ngàn khách hàng danh tiếng từ năm 2006. VIVA cung cấp nền tảng quản lý toàn diện và nguồn lực thực thi theo cách kết hợp đồng thời của: Luật pháp và thủ tục hành chính trong kinh doanh – Quản lý thuế và kế toán – Quản trị quan hệ lao động – Quản trị tài chính doanh nghiệp – Quản trị và kiểm soát nội bộ. Năng lực của chúng tôi giúp khách hàng lường trước các rủi ro, tối ưu chi phí, kiến tạo lợi thế kinh doanh.

VIVA is a business consulting company, specializes in business compliance procedures according to local business laws and regulations since 2006. VIVA has been continuously trusted by thousands of well-known clients since 2006. We are creating added value for clients by offering one-stop business platform with exclusive and tailored-made services related to market entry and mandatory business compliances. We keep our client’s good standing in lawful and optimal manners whenever they are working and doing business in Vietnam.

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This rule may lead to the double taxation of social insurance for non-Vietnamese employees.

In accordance with the Law on Social Insurance, which went into force early last year but will not cover foreign nationals working in Vietnam until early 2018, foreign workers in Vietnam with a work permit, or a practicing certificate or license will have to contribute insurance.

SOCIAL INSURANCE FOR EXPATRIATE EMPLOYEES

In practice, a certain number of foreign nationals who come to Vietnam for an assignment still maintain social security in their home countries or enter a voluntary healthcare program. For such cases, statutory social and health insurance will result in additional costs for employees and their employers.

The enforcement of social and health insurance for foreign nationals without signing Totalization agreements with any countries would lead to double taxation of income with respect to social security taxes. Totalization agreements are meant to protect the benefit rights of those working between two or more countries and do away with situations where workers pay social security taxes to two countries on the same income.

The Law on Social Insurance, which the National Assembly passed on November 20, 2014, broadens the definition of the salary used as the basis for social insurance contribution (*). Many FDI in Vietnam has expressed concerns about changes in legislation.

Wages and allowances are used as the basis for social insurance in the period from January 1, 2016, to December 31, 2017. However, from early next year onwards, the basis for social insurance contribution will be broadened to include salaries, allowances and other supplementary amounts, making the burden of labor cost heavier (*).

(*) In order to update, manage and optimize the labor cost, many FDI companies have been using outsourcing service for payrolls and other procedures related to expats from consultant firms. The consultant can support to verify situation – design solutions and optimal tools in a tailored manner…

ABOUT VIVA BUSINESS CONSULTING

VIVA is the local expertise for local business compliance procedures, has been trusted by thousands of foreign investors, multinational companies from Europe, Japan, Singapore, India, Korea, USA… for the 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 in such industries: Garment, energy, pharma, advertising, agricultural…

VIVA keeps its signature by offering one-stop business platform with regard to market entry and the 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.

 

VIVA not only manage business required procedures by laws but firstly places client’s compliance and good standing, in the optimal methods when offering any solution, and integrated with our intensive resources that allow us to prevent most of the risks in advance, create more benefits, advantages and business inspiration for entrepreneurs.

The insights and consistent backgrounds in Business Laws – Accounting and Corporate Finance – Tax Management – Labor Relations and Payroll – Serectarial and consistent with our exclusive standard operation processes, consisting of consultation – implementation – pratice operation help us fully protect client interests as one-stop solution.

YOU WILL RECEIVE

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

 

 

Read more about social insurance for expatriate employees:

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