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Are these scary tax law rumours true?

 
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pants



Joined: 17 Feb 2005
Posts: 7

PostPosted: Wed May 11, 2005 4:09 am    Post subject: Are these scary tax law rumours true? Reply with quote

Recently I heard that a girl left Vietnam and the school she had been working at taxed her final pay massively. I was told there is a law that if you work for less than 180 days since January, and then leave, then these huge tax penalties apply. I want to leave at the end of the month but i'm worried that my final pay, which i desperately need, will be subject to this tax.

Does anyone have any definite information about this? Thanks...
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Mr Wind-up Bird



Joined: 22 Sep 2004
Posts: 196

PostPosted: Wed May 11, 2005 8:08 am    Post subject: Reply with quote

The law is that for the first 6 months you work in Vietnam, you're taxed at 25% instead of the usual 10%, the difference being reimbursed to you should you stay longer. Those schools that follow the law should tax your firat 6 monthly pay packets at 25%, then reimburse you the 15% difference at the end of the 7th month. I only know of 2 schools, SEAMEO and Apollo, that do this. The idea behind the law is to stop foreigners coming in, making a packet in 6 months & then clearing off having contributed little to the local economy.

I've never heard of anyone having their final pay packet docked though, which sounds a bit naughty. If in doubt, check with the school ASAP!
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pants



Joined: 17 Feb 2005
Posts: 7

PostPosted: Wed May 11, 2005 12:19 pm    Post subject: Reply with quote

Thanks Mr Wind-Up Bird. I actually work for a 'good school' and so far that's what has happened. (25% in the first six months and now 10%) But I seem to be surrounded by hysteria. I think she must have worked for a dodgy school, can't recall the name of the place today.
Hope you're not spending too much time in dry wells, if you know what I mean...( if you don't get the reference feel free to think I'm crazy).
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Blade



Joined: 17 Mar 2005
Posts: 44

PostPosted: Thu May 12, 2005 2:09 am    Post subject: Reply with quote

Mr Wind-up Bird wrote:
The law is that for the first 6 months you work in Vietnam, you're taxed at 25% instead of the usual 10%, the difference being reimbursed to you should you stay longer. Those schools that follow the law should tax your firat 6 monthly pay packets at 25%, then reimburse you the 15% difference at the end of the 7th month. I only know of 2 schools, SEAMEO and Apollo, that do this. The idea behind the law is to stop foreigners coming in, making a packet in 6 months & then clearing off having contributed little to the local economy.


Also they may want to dissuade travelers/backpakers from coming and going.

I do think English teachers in Vietnam contribute to the economy. They pay rent, eat, shop, and put their money back in the community. Over-charging foreigners and theft occur constantly also.
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Micro67



Joined: 29 May 2003
Posts: 297
Location: HCMC, Vietnam

PostPosted: Thu May 12, 2005 3:22 am    Post subject: Just a note Reply with quote

To make sure your move to Việtnam goes smoothly you should request your criminal record and have it notorized before leaving home.

My understanding is that this requirement for a work permit is starting to be enforced and not having it could cause another unneccessary headache.
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H5N1



Joined: 15 Feb 2005
Posts: 80

PostPosted: Fri May 13, 2005 5:04 am    Post subject: Re: Just a note Reply with quote

Micro67 wrote:
My understanding is that this requirement for a work permit is starting to be enforced and not having it could cause another unneccessary headache.


I agree with this statement.

I have talked with some new arrivals here who cannot get work because they don't have criminal background checks.

Also I am told that if you have the original degree from your university you still need to prove that it isn't a fake.
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