Monthly Newsletter January, 2019
Ho Chi Minh Social Insurance Department: dossier to adjust monthly salary for insurance purpose must be submitted before 1st of March 2019
On 20th December 2018, HCM Social Insurance issued official letter no 2717/BHXH-QLT as guidance on payment for Social insurance from 1st of January 2019.
- From 1st of Jan 2019 on, employers are required to review the minimum wages in their salary structure sent to relevant authorities to make sure that their salary levels are not lower than:
- 4,180,000 VND applies to employers operating at districts, Cu Chi, Hoc Mon, Binh Chanh and Nha Be.
- 3,710,000 VND applies to employers operating at Can Gio.
- Employers are required to set insurance salary as below:
- Not lower than minimum wages for the simplest work;
- As to employees who have took part in vocational training (as per Clause 2, Article 5, Decree no. 157/2018/NĐ-CP), their salary must be higher than minimum wages by at least 7%.
- Deadline for submission of adjusting insurance salary is 28th of February 2019.
- Social Insurance department shall certify the period of Social Insurance contribution, and approve other claims upon receipt of documents of adjusting Social insurance salary as mentioned above. The company shall be all responsibility for any negative impacts of non-approval caused by delay in such submission.
Social Insurance, Health Insurance, and Unemployment Insurance contribution from 1 Jan 2019
The minimum wages being effective from 1 Jul 2018 is VND 1,390,000/ month. The region-based minimum wages being effective from 1 Jan 2019 varies from VND 2,920,000/ month to VND 4,180,000/ month
Legal bases: 2014 Law on Social Insurance; 2013 Law on Employment; Decree No. 146/2018/ND-CP dated October 17, 2018; Decree No. 143/2018/ND-CP dated October 15, 2018; Decision No. 595/QD-BHXH dated April 14, 2017; Decree No. 157/2018/ND-CP dated November 16, 2018.
6 important tasks in labour and accounting in Feb 2019
List of important tasks in Labour and Accounting in Feb 2019 as below:
1. Report of labour change in 01.2019 (if any)
- Deadline: before 03/02/2019
- Legal grounds: Clause 2 Article 16 Circular 28/2015/TT-BLĐTBXH dated 31/7/2015.
If there’s any change in number of labour used (increase/ decrease), employer is required to report such change to local Job service center on or before the 3rd of next month.
2. 01.2019 PIT declaration
- Deadline: on or before 20/02/2019
- Legal grounds: Point a, Clause 3, Article 10 Circular 156/2013/TT-BTC dated 06/11/2013.
During Jan 2019, if company withheld PIT from salary disbursement, it is required to submit PIT return to relevant tax department on or before the 20th of next month.
Note: above regulation only applies to companies which are required to report PIT on monthly basis; if there’s no PIT withheld in the month, no reporting is required.
3. Report of invoice use in 01.2019
- Deadline: on or before 20/02/2019
- Legal grounds: Article 27 Circular 39/2014/TT-BTC dated 31/3/2014.
Companies are required to report invoice use to relevant tax department (even though there’s no invoice used) on or before the 20th of next month.
Below companies are required to report invoice use on monthly basis:
- Companies which print their own invoices, and commit breaches of regulations on invoices; and were fined for administrative violations of tax evasion and tax fraud.
- Company of which tax risk is significant, and which is required to purchase invoices from tax department.
Note: Monthly reporting of invoice use must be done in 12 months since establishment date or from the date it is required to purchase invoice from tax deparment.
4. 01.2019 VAT declaration
- Deadline: on or before 20/02/2019
- Legal grounds: Clause 15, Circular 151/2014/TT-BTC dated 10/10/2014 and Point a, Clause 3, Article 10 Circular 156/2013/TT-BTC dated 06/11/2013.
Company of which previous year’s income from goods sold and service renderred is higher than 50 billion VND is required to report monthly VAT on or before the 20th of next month.
5. Payment of Social insurance, Health insurance, Unemployment insurance for 02.2019
- Deadline: On or before 28/02/2019
- Legal grounds: Article 7 Decision 595/QĐ-BHXH dated 14/4/2017
On or before last date of the month, company is required to withhold Social insurance, Health insurance, Unemployment insurance based on SHUI salary of employees who take part in SHUI regime.
And make payment for such insurance as per regulation to Social Deparment at District level, branches of company shall make payment to Social Department at it operating site.
6. Payment of Union fee for 02.2019
It’s company’s obligation regardless of establishment of local labour union.
Union fee is charged at 2% of SHUI salary fund, and payment is made at the same time of payment for SHUI contribution.