From July 1, 2025, what is the interest rate on late payment of health insurance contributions in Vietnam? Is the health insurance contribution deductible from personal income tax?
From July 1, 2025, what is the interest rate on late payment of health insurance contributions in Vietnam?
Pursuant to Article 49 of the Law on Health Insurance 2008, amended by Clause 34, Article 1 of the Law on Amendments to the Law on Health Insurance 2024 (effective from February 1, 2017), the regulations on interest for late payment of health insurance contributions are as follows:
Handling of violations of health insurance law
- Agencies, organizations, or individuals who commit violations of the health insurance law shall, depending on the nature and severity of the violation, be subject to disciplinary action, administrative penalties, or criminal prosecution. If damages are caused, compensation must be made in accordance with the law.
- Measures for handling delayed contributions include:
a) Mandatory payment of the full amount of the delayed contribution; payment of a sum equivalent to 0.03% per day based on the amount of delayed health insurance contribution and the number of delayed days into the health insurance fund;
b) Administrative penalties in accordance with the law;
c) No consideration of emulation titles or awards.
- Measures for handling the evasion of health insurance contributions include:
a) Mandatory payment of the full amount of evaded contribution; payment of a sum equivalent to 0.03% per day based on the amount of evaded health insurance contribution and the number of evaded days into the health insurance fund;
b) Administrative penalties or criminal prosecution in accordance with the law;
c) No consideration of emulation titles or awards.
- Agencies, organizations, or employers delaying or evading health insurance contributions for employees must reimburse all healthcare costs within the scope of benefits and levels covered by health insurance that employees have already paid during the period without health insurance due to delay or evasion.
- The Government of Vietnam shall specify details of Point a, Clause 2; Point a, Clause 3; and Clause 4 of this Article.
Thus, the interest on late payment of health insurance contributions from July 1, 2025, is 0.03% per day calculated on the amount of delayed health insurance contribution and the number of delayed days into the health insurance fund.
Furthermore, agencies, organizations, or individuals delaying the payment of health insurance contributions are also required to pay the full amount of the delayed contribution, face administrative penalties in accordance with the law, and will not be considered for emulation titles or awards.
From July 1, 2025, what is the interest rate on late payment of health insurance contributions in Vietnam? (Image from the Internet)
What are prohibited acts related to health insurance in Vietnam from July 1, 2025?
Pursuant to Article 11 of the Law on Health Insurance 2008 (amended by Clause 9, Article 1 of the Law on Amendments to the Law on Health Insurance 2024), the prohibited acts related to health insurance from July 1, 2025, are as follows:
- Failure to pay or insufficient payment of health insurance as required by this Law.
- Fraud, forgery of documents, or health insurance cards.
- Misuse of health insurance contributions or the health insurance fund.
- Obstructing, causing difficulties, or damaging the lawful rights and interests of health insurance participants and related parties.
- Intentionally reporting false information, providing misleading information, or data regarding health insurance.
- Abusing positions, powers, expertise, or professions to contravene the provisions of the law on health insurance.
Are health insurance contributions deductible for PIT purposes in Vietnam?
Based on Clause 2, Article 9 of Circular 111/2013/TT-BTC (amended by Article 15 of Circular 92/2015/TT-BTC), the regulations regarding deductible amounts for PIT calculations are as follows:
Deductible amounts
Deductions as guided in this Article refer to amounts deducted from taxable income before determining taxable income from wages, salaries, and business. Specifically:
...
- Deductions for insurance contributions and voluntary pension funds
a) Insurance contributions include: social insurance, health insurance, unemployment insurance, professional liability insurance for certain professions required to participate in mandatory insurance.
b) Contributions to voluntary pension funds, voluntary pension insurance
Contributions to voluntary pension funds, voluntary pension insurance are deductible from taxable income based on the actual amount 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 contributed by employers for employees and amounts voluntarily contributed by employees (if any), even in cases where multiple funds are joined. The basis for determining the deductible income is a copy of the payment slip or fee receipt issued by the voluntary pension fund or insurer.
c) Foreign nationals residing in Vietnam and Vietnamese nationals residing abroad but working overseas with business income, wage or salary income overseas who participate in mandatory insurance as required by the country's regulations where the individual resides or works similar to the provisions of Vietnamese law, such as social insurance, health insurance, unemployment insurance, and mandatory professional liability insurance, may deduct these insurance premiums from taxable income from business, wage, or salary income when calculating personal income tax.
Foreign individuals and Vietnamese individuals who participate in such insurance overseas shall be provisionally deducted immediately from income for tax deduction in the fiscal year (if documentation is available) and settled according to official figures upon tax finalization. If there is no documentation for provisional deduction within the year, a single deduction is made upon tax finalization.
d) Contributions for insurance and contributions to voluntary pension funds for a specific year are deducted from taxable income for that year.
dd) Supporting documents for deductible insurance contributions as mentioned above are copies of receipts issued by the insurance organization or confirmation from the income-paying organization of the insurance amount already deducted and paid (in cases where the income-paying organization pays on behalf).
...
Thus, health insurance contributions (or similar insurance amounts for foreign individuals residing in Vietnam and Vietnamese individuals residing abroad but working overseas with business, wage, or salary income) are deductible when calculating personal income tax (PIT).
