Increasing internationalization within companies and today’s global labor market creates high demands on the knowledge, resources and routines of the employer with regard to dealing with personnel who are working across national borders. This brochure explains how Grant Thornton Vietnam can provide support in this context.
Vietnamese and international regulations concerning tax and social security contributions are constantly changing. When a company plans to transfer personnel from one country to another many questions arise concerning the tax and labor consequences in both the home country and the host countries.
On the other hands, when a company in Vietnam recruits a foreigner, there are a number of tax, labor issues needed to be considered before entering the labor contract with the foreigner.
Some key matters to be considered include:
- Is there any restriction or particular requirements for the seconded expatriate or when hiring a foreigner in Vietnam?
- Who should employ the individual during the assignment, secondment?
- Does the expatriate have to file personal income tax return in Vietnam?
- Are the moving costs taxed or not?
- Will double tax treaty relief be available?
- What is a "hypothetical tax" and will it apply to the expatriate?
- Is there any requirement of local work and residence permits?
- Who will take care of the expatriate’s tax filing & labor compliance in Vietnam?
- If the expatriate is exempted for work permit in Vietnam, whether the certificate of work permit exemption has been obtained yet?
If high caliber employees are to be encouraged to relocate to meet employer requirements in existing and new locations, it is essential that potential problems with tax, social security or pension matters do not deter them. It is also important that overseas assignment costs are minimised and that the assignment policies in place are equitable between the company and its employees.