What is the guidance on writing form 01b-hsb bhxh for the proposal list in Vietnam? Are the convalescence and post-maternity recovery benefits subject to PIT in Vietnam?

Guidance on how to write form 01b-hsb bhxh for the new arising policies benefit list in Vietnam

Based on Decision 166/QD-BHXH which specifically stipulates the policies for sickness, the documentation required for employees to claim such policies is as follows:

Form 01b-hsb bhxh.....download here

Section 1: LIST OF NEW ARISINGS REQUESTING POLICY BENEFITS

This section lists new cases that have arisen during the proposal for policy resolution.

- Column A: Enter the serial number of the employee on the list.

- Column B: Enter the full name of the employee.

- Column 1: Enter the employee's Social Insurance Code.

- Column 2: Enter the first date (day/month/year) the employee officially took leave to enjoy the policy benefits (e.g., the starting date of sick leave).

- Column 3: Enter the last date (day/month/year) the employee officially took leave to enjoy the policy benefits (e.g., the concluding date of sick leave).

- Column: Enter the total number of leave days of the employee during the period. If the leave is less than 1 month, record the number of days. If the leave exceeds 1 month, record the number of months and any additional days (e.g., 1 month 5 days).

- Column C: Enter the account number, bank name, and branch where the employee has opened an account to receive the allowance. If there is no personal account, leave blank.

- Column D: Record criteria determining conditions or benefit levels (only for units conducting electronic transactions without accompanying paper documents). Record information related to policies that the employee is entitled to, such as:

- For illness: Record the disease code (or disease name if no disease code is available in the records).

- For maternity: Record information about the child's date of birth, date of child's death (if any), date of mother’s death after childbirth (if any), or date the mother is unfit to care for the child (if any).

- Child illness: Record the child’s birth date when the employee takes leave to care for the sick child.

- For convalescence: Record the date of resuming work or the date of the Medical Assessment Council's conclusion in cases of convalescence after occupational accidents or diseases.

- Column E: Record detailed information related to sick leave or maternity:

- If the weekly leave does not match the usual weekly rest days (typically Saturday, Sunday), specify clearly.

- If the employee has a regional allowance, specify the regional allowance level (e.g., PCKV 0.7).

- If the child is sick: Record the child's health insurance card number.

Information is for reference only.

What is the guidance on writing form 01b-hsb bhxh for the proposal list in Vietnam? Are the convalescence and post-maternity recovery benefits subject to PIT in Vietnam? (Image from the Internet)

Are the convalescence and post-maternity recovery benefits subject to PIT in Vietnam?

Subsection b.6, Clause 2, Article 2 of Circular 111/2013/TT-BTC stipulates taxable personal income as follows:

Taxable Income Categories

....

2. Income from wages, salaries

....

b.6) Sudden hardship allowances, compensation for occupational accidents, occupational diseases, one-time maternity or adoption benefits, maternity policies benefits, convalescence, and health recovery after maternity benefits, decrements due to reduced work capacity benefits, one-time retirement benefits, monthly survivor benefits, severance allowance, job loss allowance, unemployment allowance, and other allowances according to the Labor Code and Social Insurance Law.

....

Thus, the convalescence and post-maternity recovery benefits is not subject to Personal Income Tax (PIT).

Which income is exempt from personal income tax in Vietnam?

According to Clause 1, Article 3 of Circular 111/2013/TT-BTC as amended and supplemented by Article 12 of Circular 92/2015/TT-BTC stipulates the income categories exempted from personal income tax as follows:

- Income from real estate transfers (including future house properties, future construction projects according to real estate business laws) between: spouses; biological parents and biological children; adoptive parents and adopted children; parents-in-law and daughter-in-law; father-in-law, mother-in-law and son-in-law; paternal grandparents and grandchildren; maternal grandparents and grandchildren; siblings.

In cases where real estate (including future housing, future construction projects under real estate business laws) developed during marriage is identified as joint property of the spouses, division upon divorce as per agreement or court decision is tax-exempt.

- Income from the transfer of residential rights, homestead land use rights, and assets attached to homestead land, where the transferor owns only one household, homestead land use right in Vietnam.

- Income from the land-use right value given by the State free of charge or reduced land levy as per legal regulation.

If land transferred from a reduced or waived land levy is transferred, tax filing and payment for real estate transfer income should follow Article 12 of Circular 111/2013/TT-BTC.

- Income from inheritance, gifts of real estate (including housing, construction projects as per future real estate business laws) between: spouses; biological parents and children; adoptive parents and adopted children; parents-in-law and daughter-in-law; father-in-law and son-in-law; paternal grandparents and grandchildren; maternal grandparents and grandchildren; siblings.

- Income from land use exchanges to rationalize agricultural production without altering land use purposes of households, individuals directly engaged in agriculture, allocated by the State for production.

- Income of households, individuals directly engaged in agricultural, forestry activities, salting, aquaculture, or fishing without further processing or only simple prepping into non-differentiated products.

- Income from bank interest deposits, foreign bank branches, life insurance contracts; income from interest bonds of the Government of Vietnam.

- Income from remittances is tax-exempt, a personal amount received from abroad by overseas Vietnamese relatives, Vietnamese abroad from whom work, study, or labor arrangements sent money to Vietnamese relatives;

Cases of receiving money from abroad due to a foreign relative sending it back under the State Bank of Vietnam's encouragement for remittance return meet tax-exempt conditions.

Basis for determining tax-exempt income includes documents proving receipts from abroad and payment records of paying organizations (if applicable).

- Income from the extra night shifts, overtime salary higher than daytime, on-time pay under Labor Code provisions.

- Retirement wages paid by the Social Insurance Fund as per the Social Insurance Law; voluntary pension contributions received monthly.

Individuals living, working in Vietnam are exempt from tax on foreign-paid retirement funds.

- Income from scholarships.

- Income from compensation for life insurance contracts, non-life, health insurance; accident compensation funds; compensation, assistance under compensation, support, resettlement laws; state and other legal compensations.

- Income received from state-approved or recognized charitable funds for non-profit, humanitarian, learning objectives.

- Income from foreign aid for charity, humanitarian purposes under approved Government of Vietnam, non-Government of Vietnam authorized documents.

Basis for determining tax-exempt income is an authorized government document approving the aid receipt.

- Income from wages, salaries of Vietnamese seafarers working for foreign shipping lines or Vietnamese shipping lines engage in international transport.

- Income of individual ship owners, individuals with ship usage rights, and individuals on ships obtained from offshore fishing goods, service provision directly serving offshore fishery exploitation.