There are commonly 5 concessions for foreign labor in Vietnam.
1/ One flight “home” can be purchased and deducted per year for the employee. This will be deductible for the company and not subject to PIT.
2/ Extra insurances (life, capital, complementary health, accidents, etc.) can be purchased, those have different level of deductibility both for PIT and CIT. So please let us know if you wish to get some, we will get back to you with a complete simulation.
3/ Housing allowances are compensated by an extra PIT amounting to 15% of the declared salary. For instance, you rent a house with a monthly rent of 500.000.000VND, and your salary is 10.000.000VND, the extra PIT you will pay for received that benefit will be maximum 1.500.000VND. If your rent is less than the salary, 15% is calculated based on your rent. Only when the rent is over the salary, we will count 15% on the salary. The rent is totally deductible for CIT.
4/ School for foreign employees’ children. The tuition fees are totally deductible both from CIT and PIT.
5/ Preferential rate for social insurance compared to Vietnam labor.
1/ company must be profitable.
2/ individual receiving the benefit must be a foreigner resident with a valid work permit duly declared on the company payroll and paying social security and health insurance.
3/ full compliance in terms of Vietnam Accounting Standards (VAS) must be met (for instance for the house allowances)
Do not hesitate to contact us for more information!