Vietnam

Individual - Significant developments

Last reviewed - 20 January 2021

Social security

Effective from 1 December 2018, social insurance (SI) contributions are applicable to foreign individuals that are employed under Vietnam labour contracts with an indefinite term or a definite term of one year or more. Foreign employees internally transferred within a group and those who have reached the statutory retirement age (60 years for males, 55 years for females) are not subject to compulsory SI contributions.

New tax administration law

  • Greater power to tax authorities to collect tax, particularly in instances where companies attempt to evade tax.
  • Deadline for individuals to file annual personal income tax (PIT) return is extended by one month, to 30 April of the following year.
  • Taxpayers are entitled to interest on tax refunded amount as a result of appeal/ litigation.
  • Legal representative of a company can be prohibited from leaving Vietnam if his/her employer has a tax debt due to the tax authorities.

The new tax administrative law is effective from 1 July 2020.

Changes in personal and dependant relief

Based on the Resolution 954/2020/UBTVQH14 issued on 2 June 2020, the personal and dependant relief is updated as below:

  • Personal relief is increased from 9 million Vietnamese dong (VND)/month to VND 11 million/month.
  • Dependant relief is increased from VND 3.6 million/month to VND 4.4 million/month.

Although Resolution 954 is effective from 1 July 2020, the increase is effective from 1 January 2020.