How to calculate benefits for Vietnamese tax officials retiring early in 2025?

How to calculate benefits for Vietnamese tax officials retiring early in 2025?

Based on Article 4 of Circular 1/2025/TT-BNV, the calculation of benefits for Vietnamese tax officials retiring before the eligible age is stipulated as follows:

Vietnamese tax officials who meet the criteria and are authorized to retire before the stipulated retirement age will receive their pension immediately, as regulated by social insurance law, without any reduction in pension rate due to early retirement. They are also entitled to lump-sum retirement benefits, benefits based on years of early retirement, and benefits corresponding to the period of mandatory social insurance contributions, specifically:

(1) For those who are between 2 to 5 years from the specified retirement age, as mentioned in point a and c, clause 2, Article 7 of Decree 178/2024/ND-CP, the following three types of subsidies are available:

- Lump-sum retirement benefits for early retirement months:

+ For those retiring within the first 12 months:

+ For those retiring from the 13th month onwards:

- Benefits for years of early retirement: Each year of early retirement (12 full months) entitles the retiree to receive 5 months' current salary.

- Benefits based on the period of mandatory social insurance contributions:

For the first 20 service years with mandatory social insurance contributions, retirees receive a benefit equivalent to 5 months of current salary; for subsequent years (21st year onwards), each additional year entitles the retiree to a benefit equivalent to 0.5 month’s current salary.

(2) For those who are over 5 years and up to 10 years from the specified retirement age as mentioned in point b, clause 2, Article 7 of Decree 178/2024/ND-CP, the following three types of subsidies are available:

- Lump-sum retirement benefits for early retirement months:

+ For those retiring within the first 12 months:

+ For those retiring from the 13th month onwards:

- Benefit for early retirement years: Each year of early retirement (12 full months) entitles the retiree to receive 4 months’ current salary.

- Benefits based on the period of mandatory social insurance contributions:

For the first 20 service years with mandatory social insurance contributions, retirees receive a benefit equivalent to 5 months’ current salary; for subsequent years (21st year onwards), each additional year entitles the retiree to a benefit equivalent to 0.5 month’s current salary.

(3) For cases where the age is less than 2 years from the specified retirement age as indicated in points d and đ, clause 2, Article 7 of Decree 178/2024/ND-CP, a lump-sum retirement benefit for the months of early retirement is calculated similarly to that for those who retire within the first 12 months, as follows:

In which:

- The current monthly salary is determined as follows:

+ For those receiving salaries according to the salary scale prescribed by the State

The current monthly salary includes: Salary level as per rank, position, title, professional title, and various salary allowances (including: Leadership position allowance; seniority allowance beyond the scale; professional seniority allowance; preferential allowance by profession; responsibility allowance by profession; public service allowance; allowance for party and political-society organizations duties, if any), specifically:

The statutory pay rate to calculate the above-mentioned current monthly salary is the statutory pay rate prescribed by the Government of Vietnam at the time of the previous month immediately before the month of retirement.

+ For those receiving a salary according to the amount agreed in the labor contract, the current monthly salary is the monthly salary stated in the labor contract.

- The number of months retiring early is the number of months counted from the retirement date according to the decision of the competent authority compared to the retirement age specified in Appendix 1 or Appendix 2 issued together with Decree 135/2020/ND-CP.

- The number of early retirement years is the number of years counted from the retirement date according to the decision of the competent authority compared to the retirement age specified in Appendix 1 or Appendix 2 issued together with Decree 135/2020/ND-CP calculated as per the provisions in clause 4, Article 5 of Decree 178/2024/ND-CP.

How to calculate benefits for Vietnamese tax officials retiring early in 2025? (Image from the Internet)

What are the titles of Vietnamese tax officials?

Based on clause 2, Article 3 of Circular 29/2022/TT-BTC, the titles of Vietnamese tax officials are stipulated as follows:

In which:

(1) Senior Tax Inspector:

Based on clause 1, Article 9 of Circular 29/2022/TT-BTC, the senior tax inspector is an official with the highest professional qualifications in the field of taxation, positioned for leadership titles at the General Department, Directorate, Bureau and equivalent levels, provincial tax department leadership responsible for advisory tasks in state tax management at the General Department of Taxation and provincial tax departments and execute high complexity tax tasks nationwide.

(2) Principal Tax Inspector:

According to clause 1, Article 10 of Circular 29/2022/TT-BTC, the principal tax inspector is an official with high professional knowledge in the taxation sector, assisting leaders in organizing tax management or directly executing tax procedures as assigned in tax organizations.

(3) Tax Inspector

According to clause 1, Article 11 of Circular 29/2022/TT-BTC, the tax inspector is an official with basic professional qualifications in the taxation sector; directly implementing tax management responsibilities.

(4) Intermediate Tax Inspector

Based on clause 1, Article 12 of Circular 29/2022/TT-BTC, the intermediate tax inspector is an official carrying out professional tasks in the taxation sector; directly handling parts of management tax affairs in the unit.

(5) Tax Officer

As per clause 1, Article 13 of Circular 29/2022/TT-BTC, the tax officer is an official executing straightforward professional duties within the taxation sector; directly handling parts of management tax work assigned by the unit.

What are the professional standards for the senior tax inspector in Vietnam?

Based on clause 3, Article 9 of Circular 29/2022/TT-BTC, the professional competence standards for the senior tax inspector are stipulated as follows:

- Mastering strategic guidelines, policies of the Communist Party, and State laws regarding tax work, socio-economic development plans, and national and local integration strategies; grasping financial sector development strategies and the administrative reform and modernization strategy of the sector;

- In-depth understanding of tax management laws, tax laws, financial laws, accounting, and related administrative laws concerning tax management functions;

- The capacity to propose, advise, and plan policies, lead the development of legal projects, enactments, and plans in the tax field; research abilities and capability to advance modern technical applications to enhance the tax system management;

- The ability to aggregate, analyze, organize, direct, and guide tax management; forecasting revenue from tax and other sources under management;

- Skill in obtaining and processing sensitive information; financial analysis skills for large and complex corporations; conflict management skills; drafting skills; skills in compiling reports, evaluating performance, and forecasting tasks in the management field;

- Basic IT skills and proficiency in a foreign language or minority language skills for officials working in minority regions as per job requirements.