The Vietnamese Government issued Decree 7/2016/ND-CP (“Decree 7”) on 25 January 2016, outlining updated rules for establishing a Representative Office in Vietnam for foreign companies. This new Decree comes into effect on 10 March 2016.
The Vietnamese Government issued Decree 11/2016/ND-CP (“Decree 11”) on 3 February 2016 introducing important changes to work permit regulations and for foreigners working in Vietnam. This new Decree comes into effect on 1 April 2016. Key highlights from Decree 11 are detailed below.
We wish all our clients, associates, staff and friends a wonderful 2016 in the year of the Monkey. We would like to thank everyone for their continued support over the past year, and trust that all will enjoy a relaxing break with their families over Tet.
Chuc Mung Nam Moi 2016.
Domicile Corporate Services is expanding, and is looking for energetic and motivated individuals to fill the following newly created positions within our accounting teams.
The Graduate Accounting Officer role is aimed at those having recently completed an accounting (or similar) degree at University, and with less than 1 years work experience.
The Graduate Accouting Officer will be involved in a wide range of services for clients, focussing on general ledger maintenance, tax compliance (VAT, CIT, PIT, etc) and financial reporting.
January 2016 brings about a range of changes that all businesses in Vietnam should be aware of, and act upon. This publication highlights a selection of these changes.
Decree 122/2015/NĐ-CP increased the Minimum Monthly Wage for Vietnamese employees effective 1 January 2016. The new minimum wages, split across four zones, are:.
The Vietnam Government has foreshadowed stronger enforcement actions for compliance and increased penalties for non-payment of compulsory Trade Union fees for companies.
At present, all companies in Vietnam must, on a monthly basis, contribute to their local Trade Union at a rate of 2% of total salary costs. If the employees seek to create an internal Trade Union, employees will contribute an additional 1% of their salary to this Internal Trade Union (with a portion of the employer’s 2% directed there as well). Decree No.191/2013/ND-CP
In this Tax Update for November 2015, we cover recent releases from the Ministry of Finance regarding E-Tax bank transfers and also changes to the Minimum Basic Wage (not to be confused with the Minimum Monthly Wage) that will take effect from May 2016.
Discussions can be quite energetic regarding the merits of outsourcing, and in our case in particular, the merits of outsourcing of tax, accounting and payroll services in Vietnam.
The discussions often start “It is much cheaper if I do my accounting, tax and payroll internally in my company”. However, for smaller operations, this is not usually the case. Let me explain.
We are seeing many instances of confusion and problems occurring with the hiring and employment of foreign employees in Vietnam. The rules (although somewhat frustrating) are actually quite clear at the moment, and companies that take the time to understand and follow these will enjoy the benefits that foreign employees can provide.
We are always working with our clients to make a difference to their business.
We see successful clients as a measure of our success, and the best source of our own growth.