Labour Regulations Update in June 2024

I. Official letter No. 2477/TCT-QLN synthesizing data of temporary exit suspension

On 10 June 2024, the General Department of Taxation issued the Official Letter No. 2477/TCT-QLN on synthesizing data of temporary exit suspension. The main contents mentioned in this Official Letter are as follows: 

Main contents

The General Department of Taxation requests the Tax Departments of Provinces and centrally run Cities and the Tax Department of Large Enterprises to carry out: 

• Synthesize and review all notices of exit suspension, extension of exit suspension and cancellation of exit suspension. 
• Ensure that notices are fully posted on the Tax Department’s website. 
• Enter information into the centralized tax management system (TMS) completely and accurately . 
• The Directors of the Tax Department are responsible for implementing the content of this Official Letter before 22 June 2024. 
• In case having difficulties or problems, the Tax Department reports to the General Department of Taxation for support. 

Impacts

• Help taxpayers easily look up information about exit suspension. 
• Improve the effectiveness of propaganda and dissemination of exit suspension measures. 
• Provide complete data for direction and administration.

II. Official letter No. 2633/TCT-QLN on tax debt enforcement 

On 19 June 2024, the General Department of Taxation issued the Official Letter No. 2633/TCT-QLN on tax debt enforcement. 

The highlights mentioned in this Official Letter as below: 

The responsibilities of Commercial Bank in providing taxpayer’s account information

• If the Tax Authority does not have a specific document which requests the Commercial Bank to provide information about the taxpayer’s payment account opened at the Commercial Bank, the Bank is responsible for updating the information to the Tax Authority monthly within 10 days of the following month when having information needs to be updated. 
• Provide information via the Form No. 01-1/CC to the Tax Authority within 3 working days upon written request from the Tax Authority. 

The responsibilities of Commercial Bank in implementing enforcement

• The Bank must transfer the amount stated in the enforcement decision from the taxpayer’s account to the State budget account as per the request of the Tax Authority. 
• Otherwise, the Bank will be fined corresponding to the amount not transferred (except in cases where there is no remaining balance or the entire balance has been transferred but still not enough to clear debt). 

III. Official letter No. 1488/BHXH-TT on enhancing thematic communication on one-time social insurance

On 22 May 2024, the Vietnam Social Insurance Security issued the Official Letter No. 1488/BHXH-TT on enhancing thematic communication on one-time social insurance. 

The main messages in this Official Letter are as follows: 

• Receive one-time social insurance will lose the opportunity to enjoy monthly pension and health insurance when retirement. 
• In case wanting to receive a monthly pension, should not claim one-time social insurance. 
• To ensure a stable life after working age, do not decide to receive social insurance in one lump sum. 
• Do not receive one-time social insurance to ensure free health insurance. 
• Receive one-time social insurance means depriving yourself of the right to enjoy free health insurance. 

The Official Letter No. 1488/BHXH-TT aims to ensure that employees are provided with complete and accurate information about the one-time social insurance policy to make informed decisions about their own social security benefits. 

IV. Official letter No. 28132/CTHN-TTHT on tax policy for employees’ insurance payment

On 15 May 2024, the Hanoi Tax Department issued the Official Letter No. 28132/CTHN-TTHT on tax policy for employees’ insurance payment.

Accordingly, for employees who are not subject to compulsory statutory contribution, the employer is responsible for paying the additional amount which is equivalent to the employer’s statutory insurance portion to employees at the same time as salary payment date according to the Provisions of Law on Social Insurance. This amount is determined as a benefit and must be treated as taxable income. 

V. Conclusion 83-KL/TW on salary reform; adjusting pensions, social insurance allowances, meritorious pensions and social allowances from 1st July 2024 

On 21 June 2024, Ministry of Politics issued the Conclusion No. 83-KL/TW on salary reform; adjust pensions, social insurance benefits, preferential benefits for meritorious people and social benefits from 1st July 2024.

• Adjusting the regional minimum wage (monthly and hourly) according to the provisions of the Labor Code (increased 6% compared to 2023), applicable from 1st July 2024 
• Adjusting the base salary from 1.8 million VND to 2.34 million VND (increased 30%) from 1st July 2024
• Adjustment to increase current pension and social insurance benefits by 15% (June 2024) 

Increasing the regional minimum wage, base salary and adjusting pension and social insurance benefits will affect contributions to compulsory insurance, trade unions and employee benefits. 

CONTACT US

TALENTNET CORPORATION

For further information on the latest labor regulation updates, please kindly contact us at: