If my father has retired but continues to work and has income, will he have to pay personal income tax in Vietnam?

If my father has retired but continues to work and has income, will he have to pay personal income tax in Vietnam?

At Point a, Clause 2, Article 2 of Circular 111/2013/TT-BTC, there are provisions as follows:

2. Incomes from wages and remunerations.

Incomes from wages and remunerations (hereinafter referred to as wages) are incomes paid to employees from employers, including:

a) Wages, remunerations, and the other amounts paid as wages or remunerations in cash or not in cash.

According to this Article, even though your father has retired but still work and generate income from wages and remunerations, your father will still be subject to personal income tax from these wages and remunerations in Vietnam.

Can a public employee currently facing disciplinary actions be eligible for retirement at a higher age in Vietnam?

According to Article 4 of Decree 50/2022/ND-CP stipulating requirements and procedures for retirement at a higher age, specifically as follows:

1. A public employee shall be eligible for retirement at a higher age when:

a) His/her public service provider demands so;

b) His/her health is adequate;

c) He/she is not currently facing disciplinary actions, being investigated, prosecuted, tried, or enforcing disciplinary actions due to violations relating to the Communist Party and applying for extension of working period.

2. Procedures for extending retirement age:

a) On an annual basis, public service providers shall rely on their development directions, human resources, and job requirements to announce extended retirement age rules and demands;

b) Public employees meeting all requirements shall submit application for extension of working period to competent authorities at least 6 months prior to their normal retirement age;

c) Competent authorities shall review, assess eligibility of applicants, rules and demands of the public service providers to consider and decide on extending working period of public employees and extended period of each public employee.

d) Decision on extended working period of public employees shall be sent to relevant organizations and individuals at least 3 months prior to their retirement age.

As such, if public employee is currently facing disciplinary actions, he or she will not be eligible for retirement at a higher age in Vietnam.

What are regulations on early retirement (before the retirement age under ordinary working conditions) in Vietnam?

Pursuant to Clause 1, Article 5 of Decree 135/2020/ND-CP stipulating early retirement (before the retirement age under ordinary working conditions) as follows:

Early retirement (before the retirement age under ordinary working conditions) as prescribed in clause 3 Article 169 of the Labor Code is specified as follows:

1. An employee, in any of the following circumstances, may retire at the age earlier but not exceeding 5 years before the statutory retirement age provided for in Article 4 hereof, determined until the retirement date, unless otherwise prescribed by law:

a) He/she has at least 15 years’ doing laborious, toxic and dangerous occupations or highly laborious, toxic and dangerous occupations on the lists of the Minister of Labor, War Invalids and Social Affairs.

b) He/she has at least 15 years’ working in highly disadvantaged areas, including the period he/she works in areas with the region-based allowance of at least 0.7 (allowance for those working in disadvantaged areas) before January 01, 2021 on the list of the Minister of Labor, War Invalids and Social Affairs.

c) His/her work capacity reduction is at least 61%.

d) He/she has at least total 15 years’ doing the occupations specified in point a and working in the areas specified in point b.

With this provision, the early retirement (before the retirement age under ordinary working conditions) shall be applied according to the above provisions in Vietnam.

Best Regards!