Assess the deductibility of interest expense according to Decree no. 20/2017/NĐ-CP
On the 5th of October, 2018, General Department of Taxation issued Official letter No. 3790/TCT-DNL as a response to Crowe Vietnam Co., Ltd (which operates in audit and advisory services) as to assessing deductibility of interest expense for corporate income tax purpose (CIT) according to Decree no. 20/2017/NĐ-CP dated 24/02/2017 (“Decree no. 20”):
Principles to assess deductibility of interest expense incurred by companies which entered into transactions with related parties
On the 24th of January 2018, Hanoi Tax Department issued Official Letter no. 3966/CT-TTHT as guidance on interest expense according to Decree 20/2017/NĐ-CP applied to companies which entered into transactions with related parties.
Decree no. 121/2018/NĐ-CP as amendment to Decree no. 49/2013/NĐ-CP as guidance to salary regulations
On the 13th of September 2018, the Government issued Decree no. 121/2018/NĐ-CP as an amendment to Decree no. 49/2013/NĐ-CP as guidance on salary regulations:
The decree comes into forces on the 1st of November 2018.
Social Insurance guidance for foreign workers
On the 15th of October 2018, the Government issued Decree no. 143/2018/NĐ-CP as detailed guidance on Social Insurance for foreign workers as per Social Insurance Law, Law on Occupational Safety and Hygiene. Below are some notable points:
1. Foreign workers at Vietnam are required to join Social Insurance regime if:
2. Statutory rate:
a. From the 1st of January 2022, foreign workers who are required to join Social Insurance Scheme shall monthly contribute 8% of salary for SI purpose to pension and death benefit fund.
b. The employer shall monthly make a contribution based on salary for SI purpose as below:
3. Monthly salary for SI purpose:
As per stipulated at Clause 2 & 3, Article 89 of Social Insurance Law, and Clause 2 and 3, Article 17 of Decree no. 115/2015/NĐ-CP. This decree comes into force since the 1st of December 2018.