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spycatcher reincarnated · Joined: 19 May 2005 Posts: 236

There is a new decree on health insurance deductions for foreigners. PWC gives an overview here:

http://www.pwc.com/en_VN/vn/publications/assets/vn-29sep09.pdf

Very few details have come out on this yet, but DOLISA is clear that this will apply from 1 Oct 2009.

This is generally regarded as a further tax on foreigners and their employers as it is thought to be unlikely that foreigners will want to use whatever benefits they may be entitled to from this scheme.

TimkinMS · Joined: 18 Oct 2005 Posts: 86

spycatcher reincarnated · Joined: 19 May 2005 Posts: 236

Guidelines came out on this last Friday (I've only seen a Vietnamese version) and in these guidelines it says that this is applicable from 1 October 2009. However since issuing these guidelines DOLISA has said that due to short notice it would be inappropriate for this to be applicable so early so it is now applicable from 1 November 2009.

There is a huge amount of opposition to this so it is uncertain at the moment when and whether this will actually become applicable.

The guidelines make it clear that it applies to full time contracted employees (this includes English teachers), but there is no mention as to whether this applies to employees which don't have a fixed salary. Last I heard DOLISA were unable to confirm whether it would apply to part time employees or not.

DOLISA is Hanoi, HCMC and Dong Nai, all appear to have different opinions on some of the details of this new decree so we will have to just wait and see what happens.

Jerullan · Joined: 31 Aug 2009 Posts: 19

spycatcher reincarnated · Joined: 19 May 2005 Posts: 236

Update:

This is still supposed to be applicable from 1 November, but the poor implementation information and the general feeling that this is just another unfair tax have resulted in a large number of questions being thrown at DOLISA on this one. DOLISA seems to be in no hurry to reply to any of these questions and they have been very poor at informing everyone about this new regulation so as far as I am aware most companies are not going to start paying this and making deductions from staff until they have more information from DOLISA.

Most companies are already preparing their November payrolls so unless DOLISA gives them an immediate nudge it looks like this is at least going to be unofficially delayed for most foreigners.