Vietnam expats will be subject to 8% additional tax starting in 2018

ksr2x · 2017-11-26T05:51:26+01:00

Explore the new 8% social insurance tax for expats in Vietnam starting in 2018, including contribution details and potential cash-out options.

ksr2x Active member

Member since 27 June 2016

ksr2xActive member26 November 2017 03:51:26

Expats working in Vietnam will be required to pay into Vietnam's social insurance program starting in 2018.聽 The social insurance tax currently only applies to Vietnamese employees.聽 The employee contribution of the tax is 8% subject to maximums (about 1,140 USD per month).聽

Other countries with similar requirements allow expats to cash out their contributions if they leave Vietnam.聽 It's not clear if Vietnam will have this option.

The tax authority is still in the process of drafting regulations to provide more guidance.

Guest2023 Guest

Guest2023Guest26 November 2017 10:36:14

They already do pay, but its only 1.5% and next year it will go up to 8%.

Thaiger Banned

Member since 03 May 2012

ThaigerBanned26 November 2017 13:51:36

299

Do u actually get any social insurance in return?

ksr2x Active member

Member since 27 June 2016

ksr2xActive member26 November 2017 16:52:36

it's different.聽 Expats currently only pay the 1.5% Health Insurance component of the Social Security tax.聽 Starting in 2018, they'll have to pay both the 1.5% Health Insurance (HI) component and the 8% Social Insurance (SI) component.聽

There has been rumors that the gov't will allow expats to request a refund of their SI contributions, but it's not certain at this point.

Yogi007 Serial expat

Member since 28 July 2014

Yogi007Serial expat26 November 2017 22:42:12

948

Thaiger wrote:
Do u actually get any social insurance in return?

Yeah ........you鈥檒l get that.

They鈥檒l throw that in along with Freedom of Speech & Democracy.

You wouldn鈥檛 want to be hanging by your nuts waiting for either. 馃

pilotadamp Banned

Member since 29 January 2014

pilotadampBanned05 December 2017 00:00:14

Only suckers will pay such a tax.

The Vietnamese (government) are classic at making changes and introducing systems - and always with NO INFRASTRUCTURE.

It is just a tax with NO BENEFIT

Dongha123 Member

Member since 31 July 2017

Dongha123Member05 December 2017 00:45:20

Is this tax equality like simple income tax in western countries? Or do they hit you with that also?

Feels like the government are licking the bone on this one