Can compulsory social insurance contributions be deducted from personal income taxable income in Vietnam?

Can compulsory social insurance contributions be deducted from personal income taxable income in Vietnam?

Based on the provisions at point a, clause 2, Article 9 of Circular 111/2013/TT-BTC, amended by Article 15 of Circular 92/2015/TT-BTC (Contents related to personal income tax for individual businesses in this Article are abolished by clause 6, Article 25 of Circular 92/2015/TT-BTC) as follows:

Deductions

Deductions as guided in this Article are amounts deducted from the individual's taxable income before determining taxable income from wages, salaries, or business. Specifically, as follows:

...

2. Deductions for insurance premiums, voluntary pension fund

a) Insurance premiums include: social insurance, health insurance, unemployment insurance, professional liability insurance for certain professions required to participate in compulsory insurance.

b) Contributions to voluntary pension funds, voluntary pension insurance

The contribution to the voluntary pension fund, voluntary pension insurance is deducted from taxable income based on actual expenses incurred but not exceeding one (01) million VND/month for employees participating in voluntary pension products as guided by the Ministry of Finance, including amounts paid by the employer for the employee and amounts paid by the employee himself (if any), even in the case of multiple fund participation. The basis for determining deductible income is a copy of the payment receipt (or payment proof) issued by the voluntary pension fund or insurer.

...

Based on the provisions for deductions regarding insurance premiums, including social insurance, health insurance, unemployment insurance, and professional liability insurance for certain professions required to participate in compulsory insurance.

Thus, compulsory social insurance contributions will be deducted from the individual's taxable income before determining taxable income from wages and salaries.

Can compulsory social insurance contributions be deducted from personal income taxable income in Vietnam? (Image from Internet)

What benefits does an employee receive when participating in compulsory social insurance in Vietnam?

Based on the provisions of Article 18 of the Law on Social Insurance 2014, an employee enjoys the following benefits when participating in compulsory social insurance:

- Participation in and enjoyment of social insurance benefits.

- Issuance and management of social insurance booklets.

- Receive pensions and social insurance allowances fully, promptly, through one of the following payment methods:

+ Directly from the social insurance agency or a service organization authorized by the social insurance agency;

+ Through the employee's bank account;

+ Through the employer.

- Enjoy health insurance under the following circumstances:

+ Receiving a pension;

+ During maternity leave receiving maternity allowances when giving birth or adopting;

+ On leave receiving monthly occupational accident or professional disease allowances;

+ Receiving sickness allowances for employees suffering from diseases listed in the Ministry of Health's long-term treatment list.

- Proactively undergo labor capacity reduction assessment if meeting the conditions in point b, clause 1, Article 45 of the Law on Social Insurance 2014 and preserving the period of social insurance contributions; entitled to medical assessment fee reimbursement if eligible for social insurance benefits.

Labor capacity reduction assessment

1. Employees suffering from occupational accidents or diseases can undergo assessment or reassessment of labor capacity reduction in the following cases:

...

b) After stable treatment of recurrent injuries or diseases.

...

- Authorize others to receive pensions and social insurance allowances.

- Every six months, the employer provides information on social insurance contributions; the social insurance agency annually confirms contributions; employees can request information on social insurance contributions and benefits from the employer and social insurance agency.

- Complaints, denouncements, and lawsuits regarding social insurance per legal provisions.

What are the responsibilities of employees participating in compulsory social insurance in Vietnam?

Based on the provisions of Article 19 of the Law on Social Insurance 2014, the responsibilities of employees participating in compulsory social insurance include:

- Paying social insurance as stipulated by the Law on Social Insurance 2014.

- Implementing social insurance dossier procedures.

- Preserving social insurance booklets.