COMPLIANCE CHECKLIST FOR A NEWLY ESTABLISHED REPRESENTATIVE OFFICE (PART 5)

20% PIT rate

Has the RO’s foreign employee, who is for tax non-residents purposes of Vietnam, paid PIT of 20% from his/her total Vietnamese sourced income from wages and salary?[33]

Progressive tax tariff

Has the RO’s expatriate employee, who is a taxable resident of Vietnam, calculated and paid PIT based on the progressive tax tariff?[34]

PIT of local employee

Have the RO’s local employees calculated and paid their PIT based on the progressive tax tariff for Vietnamese citizens?[35]

PIT finalization deadline

Has RO’s employee submitted the annual PIT finalization dossier at the latest by the last day of the 3rd month (or 4th month in case of individuals directly finalizing tax) from the end of a calendar year or fiscal year for the PIT arising in the previous year?[36]

Official forms

Has the RO’s employee prepared his/her PIT finalization based on the current official state forms?

Resident check

Has the RO’s expatriate employee prepared the Resident check showing the number of days they have resided in Vietnam for determining his/her tax status and the form of PIT calculation?

Lease contract

Has the RO’s expatriate employee submitted a valid lease contract for his/her place of residence in Vietnam?

Confirmation of income

Has the parent company issued the Letters of Confirmation of Income for the RO’s expatriate employee in accordance with the official forms?

Tax notice

Has the RO’s employee received a final tax notice from the tax authorities stating the final PIT amount to be paid for the previous year?

PIT payment

Has the RO’s employee paid his/her PIT by bank transfer or in cash at the Department of Taxation of HCMC?

Probation

Has the RO established (i) a 60-day probationary period for professional employees, (ii) a 30-day probationary period for skilled employees; and (iii) a 6 day probationary period for other kinds of work?^{^[37]} Are the wages of the employees during the probationary period at least 85% of the scale wage rate for the relevant working position?^{^[38]}

Labour contracts

Have all local employees signed two copies of an official labour contract?[39]

HI Registration

Have all employees working under labour contracts of more than 3 months term or of an indefinite term been registered for HI?[40] Have HI registered local employees obtained cards and nominated a medical services provider?

HI Payment

Have all employees registered for HI, and have health insurance premiums been paid?

SI Registration

Have the local employees who work under labor contracts of more than a 3 months term or of an indefinite term been registered with the SI? [41]

Have the foreign employees who have work permit/practice certificates and work under labor contracts of more than 1 year term or of an indefinite term been registered with the SI?[42]

Have all employees been issued SI books?

[33] Article 26 of the Law on PIT and Article 18.1 of Circular 111/2013/TT-BTC

[34] Article 22 of the Law on PIT and Article 7.2 of Circular 111/2013/TT-BTC

[35] Article 22 of the Law on PIT and Article 7.2 of Circular 111/2013/TT-BTC

[36] Article 44.2 of Law on Tax Administration 2019

[37] Article 25 of Labor Code 2019

[38] Article 26 of Labor Code 2019

[39] Article 14 of Labor Code 2019

[40] Article 168 of Labor Code 2019 and Article 12 of Law on Health Insurance amended by Article 1.6 of Law on Health Insurance 2014

[41] Article 168 of Labor Code 2019 and Article 2.1 of Law on Social Insurance

[42] Article 2.1 of Decree 143/2018/ND-CP