Vietnam: Contribution levels to natural disaster prevention and control funds applicable from December 08, 2014

Currently, funds shall be managed and used in a timely, public, transparent, equal and effective manner for proper purposes. Funds shall operate for not-for-profit purposes.

Depending on each specific subject, the contribution levels to natural disaster prevention and control funds are different. According to Decree No. 94/2014/ND-CP of Vietnam’s Government:

- Independent accounting-practicing economic organizations:

The annual compulsory contribution level is 0.02% of the total value of current assets in Vietnam according to annual financial statements, which, however, must be at least VND 500,000 and at most VND 100 million, and may be accounted as production and business cost.

- Vietnamese citizens aged between full 18 years and the retirement age prescribed by the labor law shall make contributions as follows:

+ Salaried cadres, civil servants and public employees working in agencies, organizations and armed forces and managers of state enterprises shall contribute one day’s salary/person/year calculated based on their base salary after deducting payable taxes and insurance premiums;

+ Workers in enterprises shall contribute one day’s wage/person/year calculated based on the region-based minimum wage;

+ Other workers, other than those specified at Points a and b of this Clause shall contribute VND 15,000/person/year.

- Organizations and individuals are encouraged to make voluntary contributions to funds.

View other provisions at Decree No. 94/2014/ND-CP of Vietnam’s Government, effective from December 08, 2014.

Thu Ba

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