Vietnam Payroll Compliance Map

Email: sgn4ww@evershinecpa.com
or
Contact us by WeChat or Skype or WhatsApp in the day-work-time of Vietnam  (GMT+8)
The Engaging Manager from Headquarter
Ms. Judy Wang, CPA(Taiwan) Speaks both English and Vietnamese.
WeChat: Judy_Evershine
skype: Judy Wang

WWT – Vietnam Payroll Income Tax Deduction

WWT-VN-01 WWT Tax Entity

Question from client:
Is the Vietnam salary income tax levied in central or province? Or both central and province?
Are the central and province personal income tax that levied separately? Or levied together?
What is the standard withholding tax rate?

Answer from Evershine RD:
The central government enacts laws relating to income tax.
There is no province payroll tax.

 WWT-VN-02 Registration

Question from client:
The Vietnam salary income tax collection is under the jurisdiction of which government unit?
The registration of the Vietnam salary income tax collection status, that is, the application procedure for the employer withholding certificate number, paper certificate number application, or online account application? Website? Employer withholding certificate
What is the advance certificate number of the number? Do you need to use the industrial and commercial certificate e-card to apply?

Answer from Evershine RD:
Taxes are administered by the General Department of Taxation.
The company is required to apply to personal income tax registration.
Employers and employees must register within 10 days if the following occur:

1. A business registration certificate
2. License for establishment and operation
3. Investment certificate is issued
4. Business operations are commenced
5. Personal income tax obligation arises or claim for tax refund is made.

WWT-VN-03 WWT Order (OD)

Question from client:
What is the order of Vietnam salary income tax withholding declaration (information flow determines tax base) and payment (fund flow)?
Pay first and then declare?
Report first and then pays?
At the same time as the declaration and payment?

Answer from Evershine RD:
Same Period (SP) – Declaration and payment are due at the same time.

WWT-VN-04 Mechanism of Filing (MOF)

Question from client:
Vietnam salary income tax withholding declaration (information flow determines the tax base)
What is the method of account return?
Reporting cycle: every month? Every bimonthly? Every season? every half year? Per year?
Electronic filing? Manual filing? Electronic filing and manual filing coexist?
If electronic filing is possible: Web site URL?

Answer from Evershine RD:

Employers are required to remit deductions with Form No. 02/KK-TNCN.

Tax finalization declaration (Form No. 05/KK-TNCN)

The employer finalizes PIT on behalf of the employees at year-end provided that the employees have income only from this employer (or any irregular income from other sources not exceeding 10,000,000 VND per month and 10 percent PIT of which has been withheld) and that the employees authorize the employer to finalize their tax on their behalf.

The persons that earn income from wages shall submit tax declaration documents to Departments of Taxation of the provinces where they work.

WWT-VN-05 Mechanism of Payment (MOP)

Question from client:
What is the funding method for the Vietnam salary income tax withholding payment (funding flow)?
Payment cycle: M per month? B every bimonthly? Q every season? H every six months? A every year?
Automatically authorize deduction of ACH (that is, take the initiative of the recipient)?
Electronic remittance to EFT (that is, the payer takes the initiative)?
Bank counter payment OCT?
Or the above methods coexist?

Answer from Evershine RD:

For online payment, visit thuedientu.gdt.gov.vn. Login to the electronic tax website system. Select the function “Pay taxes”, select bank they will use to pay taxes and click “Continue” to proceed with the next steps. Then on the interface “Make a payment slip”, taxpayers need to complete the information according to the instructions. In the section “Content of payments to the state budget”, in the “Select item” box, choose 1001-Income tax from wages and salaries”. Finally, click the “Finish” box.

BNF – Deduction of Employee Social Welfare

BNF-VN-01 BNF Entity

Question from client:
Vietnam’s social insurance, medical insurance, pensions, and other employee social welfare levy, is it Federal? Is it local? Or is there a Federal plus local?
If there is a Federal and local, are they levied separately? or levied together? What is the withholding tax rate?

Answer from Evershine RD:

The federal government enacts laws relating to social tax.

BNF-VN-02 Registration

Question from client:
Social Security Certificate Number? What is the name of the government agency in charge of social insurance?
Medical insurance certificate number? What is the name of the government agency in charge of medical insurance?
Pension certificate number? The name of the government agency in charge of pensions?
How to apply for the social welfare certificate number for employees in the country? Paper certificate number application? Or online account application? Website? Need to use the industrial and commercial certificate electronic card to apply?
Are the above three certificate numbers unified or separate?

Answer from Evershine RD:

Social insurance in Vietnam is administer by Vietnam Social Security at https://vss.gov.vn/english/Pages/default.aspx
Step 1: An employee submits a dossier (Form No. TK1-TS) to his/ her employer who is specified in the boxes “Dossier components” and “Number of dossier sets” below.
Step 2: The employer submits the dossier (Form No. TK3-TS and TK1-TS) to provincial labor State management agency within 30 days after the conclusion of a labor contract.
Step 3: 7 working days, for grant of a health insurance card, or 20 working days, for grant of a social insurance book, from the date of receipt of a complete dossier under regulations.

BNF-VN-03 BNF Order (OD)

Question from client:
What is the order of the withholding declaration of social welfare for Vietnam employees (information flow determines the tax base) and payment (fund flow)?
Pay first and then declare? Report first and then pay? At the same time as the declaration and payment?

Answer from Evershine RD:
Same Period (SP) – Declaration and payment are due at the same time.
Employers are required to deduct and pay premiums each month for social taxes from their employee’s salary and remuneration.

BNF-VN-04 Mechanism of Filing (MOF)

Question from client:
What is the method of reporting for withholding of social benefits for Vietnam employees (information flow determines the tax base)?
Reporting cycle: every month? Every bimonthly? Every season? every half year? Per year?
Electronic filing? Manual filing? Electronic filing and manual filing coexist? If electronic filing is possible: Web site URL?

Answer from Evershine RD:
Using Form No. TK1-TS.
Employers are required to deduct and pay premiums each month for social taxes from their employee’s salary and remuneration.

BNF-VN-05 Mechanism of Payment (MOP)

Question from client:
What is the funding method for Vietnam employee social welfare withholding contributions (funds flow)?
Payment cycle: M per month? B every bimonthly? Q every season? H every six months? A every year?
Automatically authorize deduction of ACH (that is, take the initiative of the recipient)?
Electronic remittance to EFT (that is, the payer takes the initiative)?
Bank counter payment OCT?
Or the above methods coexist?

Answer from Evershine RD:
Employers are required to deduct and pay premiums each month for social taxes from their employee’s salary and remuneration.
Below is the link to login for online payment:
https://dichvucong.gov.vn/p/home/dvc-thanh-toan-bhxh-doanh-nghiep.html

Please be aware of below Warning:
The above contents are digested by Evershine R&D  and Education Center in October 2021.
Regulations might be changed as time goes forward and different scenarios will adopt different options.
Before choosing options, please contact us or consult with your trusted professionals in this area.

Contact Us

Ho-Chi-Minh Evershine BPO Service Limited Corp.
E-mail: sgn4ww@evershinecpa.com
or
Contact us by WeChat or Skype or Whatsapp in the day-work-time of Vietnam  (GMT+8)
The Engaging Manager from Headquarter
Ms. Judy Wang, CPA(Taiwan) Speak in both English and Vietnamese.
WeChat: Judy_Evershine
skype: Judy Wang

or
For  how to exchange data files between your Finance Accounting System and Evershine  Cloud Accounting  Information System,
please send an email to HQ4sgn@evershinecpa.com
Dale Chen, Principal Partner/CPA in Taiwan+Vietnam+UK will be accountable to your case.
Email address:dalechen@evershinecpa.com
linkedin address:Dale Chen

Additional Information

Evershine CPAs Firm Headquarters
6th Floor 378 Chang Chun Rd., Taipei City, Taiwan ROC
Partner Kerry Chen,  USA Graduate School and a well-English speaker
Tel No.: +886-2-27170515 ext. 105
Mobile: +886-939357000
Email: kerrychen@evershinecpa.com
Skype: oklahomekerry

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(version: 2024/07)
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