When is the deadline for compulsory social insurance contributions and union fees for February 2025 for enterprises in Vietnam?
When is the deadline for compulsory social insurance contributions and union fees for February 2025 for enterprises in Vietnam?
Based on Clause 1, Article 7 of Decision 595/QD-BHXH 2017, the deadline for paying compulsory social insurance is stipulated as follows:
Method of payment as regulated in Article 85, Article 86 of the Law on Social Insurance and guiding documents. Specifically:
- Monthly payment
Every month, no later than the last day of the month, the unit shall deduct compulsory social insurance contributions from the monthly wage fund of employees participating in compulsory social insurance, and simultaneously deduct from the monthly wage of each employee according to the prescribed rate, and transfer it at once into the specialized account of the social insurance agency opened at the bank or State Treasury.
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Based on Clause 2, Article 6 of Decree 191/2013/ND-CP, the deadline for paying union fees is regulated as follows:
Method of paying union fees
- Agencies and units whose operational expenses are fully or partially covered by the state budget pay union fees once a month at the same time as paying compulsory social insurance for employees.
The State Treasury where the agency or unit opens a transaction account shall base on the union fee withdrawal slip to control disbursements and transfer money into the deposit account of the labor union at the bank.
2. Organizations or enterprises pay union fees once a month at the same time as paying compulsory social insurance for employees.
- Organizations or enterprises in agriculture, forestry, fishery, and salt production that pay wages according to production and business cycles shall pay union fees monthly or quarterly at the same time as paying compulsory social insurance for employees based on registration with the labor union.
Based on the above regulations, it can be seen that the deadline for making compulsory social insurance contributions and paying union fees monthly is no later than the last day of the month.
Thus, the deadline for making compulsory social insurance contributions and union fees for February 2025 for enterprises is Friday, February 28, 2025.
When is the deadline for compulsory social insurance contributions and union fees for February 2025 for enterprises in Vietnam? (Image from the Internet)
Shall compulsory social insurance contributions be deducted from taxable personal income tax in Vietnam?
According to 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 (The contents related to personal income tax for business individuals in this Article are annulled by Clause 6, Article 25 of Circular 92/2015/TT-BTC) as follows:
Deductions
The deductions guided in this Article are amounts that are deductible from an individual's taxable income before determining taxable income from wages, salaries, and business. Specifically, as follows:
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- Deductions for insurance contributions, voluntary pension funds
a) Insurance contributions include: social insurance, health insurance, unemployment insurance, professional liability insurance for certain occupations required to participate in mandatory insurance.
b) Contributions to voluntary pension funds, purchase of voluntary pension insurance
The contribution to a voluntary pension fund, purchase of voluntary pension insurance is deductible from taxable income according to actual incurred but not exceeding one (01) million VND/month for employees participating in voluntary pension products as guided by the Ministry of Finance, including both amounts paid by the employer and by the employee themselves (if any), even in case of participation in multiple funds. Basis for determining deductible income is a copy of the payment slip (or fee payment slip) issued by the voluntary pension fund, insurer.
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Thus, according to the above regulation, the compulsory social insurance contributions are deductible from taxable personal income tax (PIT).
How many types of taxable personal income tax incomes from wages and salaries are there in Vietnam?
Based on Clause 2, Article 3 of Personal Income Tax Law 2007 amended by Clause 1, Article 1 of Amended Personal Income Tax Law 2012, it is stipulated as follows:
Taxable income
Taxable personal income includes the following types of income, except income exempted under Article 4 of this Law:
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- Income from wages, salaries, including:
a) Wages, salaries, and amounts of a similar nature to wages, salaries;
b) Allowances and subsidies, except for: allowances and subsidies under the provisions of legislation on incentives for those with contributions to the revolution; national defense and security allowances; hazardous, dangerous job allowances; allowances for attraction, regional allowances stipulated by law; sudden difficulty allowances, labor accident allowances, occupational disease allowances, one-off allowance for childbirth or adoption of children, allowances due to a reduction in working ability, one-time retirement allowances, monthly survivor's pensions and other allowances under the social insurance regime; redundancy and job loss allowances as prescribed by the Labor Code; social protection nature allowances and other non-salary and non-wage nature allowances as stipulated by the Government of Vietnam.
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Thus, income from wages and salaries includes two types:
- Wages, salaries, and amounts of a similar nature to wages, salaries;
- Allowances and subsidies.
