I. SOCIAL INSURANCE

1. Cases of increasing social insurance and health insurance premiums based on base salary from July 1, 2024

Official letter No. 2156/BHXH-TST dated July 4, 2024 of Vietnam Social Insurance on collection of social insurance, health insurance, unemployment insurance, and labor accident and occupational disease insurance according to Base salary 2,340,000 VND/month.

Vietnam Social Insurance announced that it will deploy social insurance (SI), health insurance (HYT), unemployment insurance (UI), and labor accident insurance (Occupation) based on the base salary. new (2.34 million VND/month) from July 1, 2024 for the following target groups:

  1. Participants in social insurance, health insurance, unemployment insurance, and occupational accident insurance are subject to the salary regime prescribed by the State. Social insurance participants have a salary as a basis for payment calculated according to the base salary.
  2. Voluntary social insurance participants choose the highest monthly income as a basis for paying voluntary social insurance, which is 46.8 million VND.
  3. Health insurance participants calculate the health insurance premium based on the base salary in the following groups: paid by the social insurance agency, paid by the state budget, supported by the state budget, participating in health insurance by household, paid by the individual. using closed labor. Source: LuatVietnam.NET

2. Cases where participation in compulsory social insurance is required

Social insurance includes mandatory social insurance and voluntary social insurance, so how to distinguish these two types of social insurance?

Vietnam Social Insurance:

Regarding the interpretation of terms, Article 3 of the 2014 Law on Social Insurance specifically stipulates as follows:

– Compulsory social insurance is a type of social insurance organized by the State that employees and employers must participate in.

– Voluntary social insurance is a type of social insurance organized by the State in which participants can choose the payment level and payment method appropriate to their income and the State has a policy to support social insurance contributions for participants to enjoy benefits. retirement and death benefits.

Regarding the subjects of application, Article 2 of the 2014 Law on Social Insurance stipulates that employees participating in compulsory social insurance specified in Clause 1 and Clause 2 include employees who are Vietnamese citizens:

– People working under an indefinite-term labor contract, a definite-term labor contract, a seasonal labor contract or a certain job with a term from 3 months to less than 12 months, including labor contracts signed between the employer and the legal representative of a person under 15 years old according to the provisions of labor law;

– People working under labor contracts with a term of from 1 full month to less than 3 months;

– Officials, civil servants and public employees;

– National defense workers, police workers, people working in other cipher organizations;

– Officers and professional soldiers of the People’s Army; officers, professional non-commissioned officers, officers, technical non-commissioned officers of the People’s Public Security; People who do cipher work are paid the same as soldiers;

– Non-commissioned officers and soldiers of the People’s Army; non-commissioned officers and soldiers of the People’s Public Security serving for a limited period of time; Military, police, and cipher students studying are entitled to living expenses;

– People working abroad under contracts specified in the Law on Vietnamese workers working abroad under contracts;

– Business managers and cooperative managers receive salaries;

– People who work part-time in communes, wards, and towns.

– Employees who are foreign citizens working in Vietnam with a work permit or practice certificate or practice license issued by a competent Vietnamese agency are entitled to participate in compulsory social insurance according to the provisions of the Law. Government.

Voluntary social insurance participants specified in Clause 4 are Vietnamese citizens aged 15 years or older and are not subject to compulsory social insurance. Source: LuatVietnam.NET

3. How to calculate increased pension from July 1, 2024

Previously, I was a forestry worker, retired for decades, receiving a pension of 3 million VND/month. According to the new regulations, how much will my pension increase be?

YouMe Law Company Limited:

The new monthly pension is calculated according to the following formula:

Pension level of July 2024 = Monthly pension level of June 2024 x 1.15.

In addition, subject groups (1), (2), (3), (4), (5), (6) and (7) in the Decree adjusting pensions, social insurance benefits and allowances Monthly leave to enjoy pension, social insurance benefits, monthly benefits before 1995, after making adjustments according to the above regulations, the pension, social insurance benefits, monthly benefits are below 3,500 000 VND/month will continue to be adjusted further as follows:

– Increase by 300,000 VND/person/month for those with benefits below 3,200,000 VND/person/month;

– Increased by 3,500,000 VND/person/month for those with benefits from 3,200,000 VND/person/month to less than 3,500,000 VND/person/month.

The level of pensions, social insurance benefits, and monthly benefits after adjusting according to the above regulations is the basis for calculating adjustments to pensions, social insurance benefits, and monthly benefits in subsequent adjustments. according to.

Thus, after making the adjustment to increase by 15%, the reader’s pension of 3,450,000 VND (pension level is less than 3,500,000 VND/month) will increase to 3,500,000 VND/month. Source: LuatVietnam.NET

II. TAX POLICY

1. Policies to increase wages and reduce taxes in 2024 have been approved by the National Assembly

Resolution No. 142/2024/QH15 dated June 29, 2024 of the National Assembly on the 7th Session, 15th National Assembly

According to this Resolution, at the 7th Session, the 15th National Assembly passed the following important contents:

– Passed 11 Laws, including the Law on Social Insurance; Road Law; Law on Road Traffic Order and Safety; Law amending the Law on Asset Auctions; Law amending Land Law No. 31/2024/QH15status2, Housing Law No. 27/2023/QH15status2, Real Estate Business Law No. 29/2023/QH15status2 and Law on Credit Institutions No. 32/2024/QH15status2.

– Agree to adjust the regional minimum wage increase (average increase of 6%) from July 1, 2024.

– Agree to adjust the base salary from 1.8 million VND/month to 2.34 million VND/month (up 30%) from July 1, 2024.

– Agree to adjust the pension and social insurance benefits by 15% from July 1, 2024.

– Agree to continue reducing the VAT rate by 2% for groups of goods and services specified in Point a, Section 1.1, Clause 1, Article 3 of Resolution No. 43/2022/QH15 from July 1, 2020. 2024 until December 31, 2024.

– Assign the Government to regulate subjects, conditions, levels of support, order and procedures for resolving retirement and death benefits for employees in case the employer is no longer able to pay insurance. social benefits for workers before July 1, 2024. Funding for implementation comes from revenue from handling late payment and evasion of payment. Source: LuatVietnam.NET

2. Summary of tax reduction and tax grace policies in 2024

Official letter No. 6602/CTTPHCM-TTHT dated July 4, 2024 of the City Tax Department. Ho Chi Minh City on guiding Decree No. 64/2024/ND-CP, Decree No. 65/2024/ND-CP and Decree No. 72/2024/ND-CP

Guidance document for businesses and production and business establishments in the city. Ho Chi Minh City applies the following policies: extension of tax payment and land rent in 2024 according to Decree No. 64/2024/ND-CP; Extend payment of special consumption tax in 2024 for domestically produced cars according to Decree No. 65/2024/ND-CP and reduce 2% VAT in the last 6 months of 2024 according to Decree No. 72/2024/ND- CP .

Accordingly, the taxes eligible for payment deferral in 2024 according to Decree No. 64/2024/ND-CP include: VAT (tax periods from May to September and the second and third quarters of 2024); corporate income tax (temporarily paid tax amount for the second quarter of 2024); VAT and personal income tax of business households (all tax amounts incurred in 2024); Land rent (50% of land rent arising in 2024). The deadline for submitting the application for grace is September 30, 2024 at the latest.

Special consumption tax periods eligible for payment deferral in 2024 for domestically produced and assembled cars according to Decree No. 65/2024/ND-CP include: tax period from May to September 2024 . Grace period until November 20, 2024. The deadline to submit the request for grace is November 20, 2024 at the latest.

The 2% VAT reduction policy under Decree No. 72/2024/ND-CP only applies to groups of goods and services that are subject to a 10% tax rate and do not belong to the goods and services listed in Appendix I, II,III. Enterprises must declare goods and services purchased and sold in the period eligible for VAT reduction, and the VAT difference in the period is subject to the 8% tax rate according to Form No. 01 in Appendix IV of Decree No. 72/2024/ ND-CP enclosed with VAT declaration monthly/quarterly/each time it arises. Source: LuatVietnam.NET

III. BUSINESS REGISTRATION

1. Regarding comments on the draft of the new Decree on business registration

Official letter No. 2858/TCT-KK dated July 4, 2024 of the General Department of Taxation on collecting comments on the draft Decree on business registration

Document requesting the Tax Departments of provinces and cities to review, study and provide comments on the new Draft Decree on business registration to replace Decree No. 01/2021/ND-CP, deadline for submission Opinions before July 10, 2024.

IV. ELECTRONIC TRANSACTIONS

1. It is not required to submit tax registration documents online

Circular No. 46/2024/TT-BTC dated July 9, 2024 of the Ministry of Finance on amending and supplementing a number of articles of Circular No. 19/2021/TT-BTC dated March 18, 2021 of the Minister The Ministry of Finance guides electronic transactions in the tax field

One of the important amendments and supplements to this Circular is to allow individual taxpayers to use level 2 identification accounts instead of presenting identity cards or passports/identification cards. Citizen/ID card when registering for an electronic tax transaction account through the General Department of Taxation Portal; The request to activate an electronic tax transaction account will be sent to the individual via registered phone number or email.

In addition, regarding tax registration dossiers submitted for the first time through the General Department of Taxation Information Portal, this Circular eliminates the requirement for taxpayers to bring paper dossiers to the tax authority headquarters after receiving the Notice of Receipt. electronic tax registration dossier.

The Circular takes effect from August 28, 2024. Source: LuatVietnam.NET

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