Each quarter, Acclime Vietnam releases our Quarterly HR & Payroll Updates focusing on relevant legislation and regulations, changes released in the previous quarter, Official Letters released by Vietnam Authorities, together with reminders for key dates for implementation of HR & Payroll changes coming into effect or upcoming reporting obligations to authorities.
Reminder for 2022 year-end lodgements and finalisations
Corporate taxpayers are reminded that they are required to finalise and lodge 2022 Personal Income Tax Finalisation (together with Corporate Income Tax, Financial Statements and associated schedules/appendixes) with the authorities no later than the last day of the third month of the following year after year end (31 March 2023, for those taxpayers with a standard 31 December 2022 financial year end).
Individual taxpayers should ensure that their tax finalisation matters for 2022 are in hand, where (generally) (i) they have a tax liability to the state, or (ii) they wish to claim a refund or credit.
Taxpayers can authorise their employers to finalise on their behalf where the taxpayer has had only one single source of employment income during the tax year.
Otherwise, individuals will need to undertake a self-finalisation or authorise another party (commonly a service provider or another individual) to conduct on their behalf. In this case, the finalisation returns are required to be lodged by the end date of the fourth month of the next calendar year(i.e., by 30 April 2023).
Reminder for Health Insurance payments in December 2022
On 30 November 2022, Ho Chi Minh City Social Insurance Office released Official Letter 8156/BHXH-QLT on Social Insurance declarations and payments, and for extending the validity of Health Insurance cards in 2023.
According to the Official Letter, for the validity of Health Insurance cards of employees to be continuously extended from 1 January 2023, companies need to have paid Social Insurance and Health Insurance for December 2022 before 25 December 2022, instead of the last day of the month as usual.
Until 31 December 2022, if enterprises had still not completed Social Insurance and Health Insurance payments, the validity of Health Insurance cards for their employees will not be extended on time and enterprises will be responsible if these delays impacts the medical examination and treatment benefits of their employees.
Increase to Minimum Basic Wage from 1 July 2023, and impact on salary (insurance) payments and Trade Union payments
On 11 November 2022, the National Assembly passed a Resolution on the state budget estimate for 2023. Accordingly, the “base salary” will be increased to 1.8 million VND/month, an increase of 20.8% compared to the current basic wage of 1.49 million VND/month. Changes come into force from 1 July 2023 and will result in an increase to the maximum caps for calculating Social Insurance, Health Insurance and Trade Union payments, and therefore increasing the potential payments by employees and employers for these insurances.
Please note that the “base salary” is primarily used as a co-efficient for determining government remuneration and is not intended to private sector salary and wage calculations.
Decree 91 amending a number of articles of the Tax Administration Law
On 30 October 2022, the Government issued Decree 91/2022/ND-CP (Decree 91) amending and supplementing a number of articles of Decree 126/2020/ND-CP (Decree 126) guiding the Law on Tax Administration, including official regulations on the exemption from submitting PIT declarations for the month/quarter with no income payments.
Specifically, organisations and individuals who do not pay income subject to PIT in a month/quarter will not be subject to the PIT declaration for that month/quarter. This was guided by the General Department of Taxation in Official Letter 2393/TCT-DNNCN dated 1 July 2021. However, a formal regulation with higher legal validity is clearer and more convenient to approach for taxpayers.
In addition, this Decree also stipulates an update on the deadline for tax declarations and payments. The time limits for submission of tax declaration reports and payments, time limits for tax authorities to process applications, and effective periods of decisions on enforcing the implementation of tax decisions are to comply with regulations of the Law on Tax Administration and this Decree. Where the expiration date of any of these time limits is a statutory day off, the expiration date will be the succeeding working day.
Amending and supplementing regulations on tax declaration and submission on behalf of individuals receiving dividends and rewards by securities
In order to create convenience for taxpayers, in Decree 91/2022/ND-CP, the Government has amended and supplemented regulations on tax declaration and submission on behalf of individuals receiving dividends and rewards by securities.
Accordingly, Decree 91 stipulates that where an individual receives a stock dividend, or an existing individual shareholder receives a bonus in securities recorded in the investor’s securities account from 31 December 2022 or earlier, and has not had tax declared by organisations paying tax on behalf, individuals shall declare and pay tax according to the provisions of the Law on Personal Income Tax. Individuals will not be administratively sanctioned for late filing of tax returns as well as not for late payment interest (if any).
Reminder of upcoming periodical reports in Quarter 1 of 2023
|Upcoming Periodical Reports||Deadline|
|Semi-annual Report on Employment of Foreign Employees||Prior to 5 January of 2023|
|Semi-annual Report on Labour Accidents||Prior to 10 January of 2023|
|Annual Report on Occupational Safety and Hygiene||Prior to 10 January of 2023|
|Annual Report on Unemployment Insurance Contributions||Prior to 15 January of 2023|
|Annual Report on Representative Office (applicable to Representative Office only)||By 30 January of 2023|
|Quarterly Report on using PIT withholding certificate||By 31 January of 2023|
|PIT declaration report for Quarter 4 of 2022||By 30 January of 2023|
|PIT finalisation for 2022||By 31 March of 2023|
For more information on HR & Payroll Updates and other compliance requirements for businesses operating in Vietnam, follow our monthly releases on the website and social media channels at vietnam.acclime.com.