There is just over 1 month left before businesses officially enter the Lunar New Year holiday in Vietnam. To support our Customers and Members in closing the year 2019 successfully and having a favorable start to the year 2020, Lawnet respectfully sends to our Customers, Members the accounting and human resources tasks that need to be done immediately before and after the Lunar New Year as follows:
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1. Submitting Wage Scales and Payrolls to the Department of Labor, War Invalids, and Social Affairs in Vietnam
According to Decree 90/2019/ND-CP, from January 1, 2020, the regional minimum wage in 2020 will increase from VND 150,000/month to VND 240,000/month depending on the region compared to the regional minimum wage in 2019.
Enterprises currently using wage scales with salaries below the regional minimum wage specified in Decree 90/2019/ND-CP must reconstruct wage scales and payrolls.
Pursuant to Clause 6, Article 7 of Decree 49/2013/ND-CP, when constructing or amending wage scales and payrolls, enterprises must consult with the representative organization of the labor collective at the enterprise and publicly disclose it at the workplace before implementation, simultaneously submitting the new wage scales and payrolls to the Department of Labor, Invalids, and Social Affairs.
For single-member limited liability companies owned by the State, when constructing or amending wage scales and payrolls, they must report to the owner for opinions before implementation; for parent companies - State economic groups, parent companies of special grade corporations must concurrently send it to the Ministry of Labor, Invalids and Social Affairs for monitoring and supervision.
Thus, enterprises need to promptly reconstruct and submit the new wage scales and payrolls to the Department of Labor, Invalids, and Social Affairs immediately when Decree 90/2019/ND-CP comes into effect.
>>>>>> Download the complete dossier for notifying wage scale changes HERE.
2. Notifying the Increase in Social Insurance Contribution to the Social Insurance Agency in Vietnam
The regional minimum wage will be used as one of the bases for calculating social insurance contributions for employees. An increase in the regional minimum wage means that the minimum social insurance contribution for employees will also increase. Therefore, if any enterprise has a salary calculation for social insurance contributions lower than the new wage, it must notify the increase in social insurance contributions immediately when Decree 90/2019/ND-CP comes into effect.
According to Article 23 of Decision 595/QD-BHXH, the dossier for notifying the increase in social insurance contributions to the social insurance agency includes the following documents:
For employees working at the unit:
- Participation declaration, information adjustment for social insurance and health insurance (Form TK1-TS);
- If the employee enjoys higher health insurance benefits: additional proof document (if any) according to Appendix 03.
For the employer:
- Unit declaration, information adjustment for social insurance and health insurance (Form TK3-TS);
- List of employees participating in social insurance, health insurance, unemployment insurance, occupational accident and disease insurance (Form D02-TS);
- Information summary sheet (Form D01-TS).
Number of dossiers: 01 set
>>>>>>> Download the complete dossier for notifying the increase in social insurance contributions HERE.
3. Declaring and Paying Business License Tax in Vietnam
According to Article 5 of Decree 139/2016/ND-CP and Article 5 of Circular 302/2016/TT-BTC, the deadline for paying business license tax for organizations engaged in production, trade of goods, and services is no later than January 30 each year. Thus, January 30, 2020, is the last day for enterprises to comply with the business license tax payment.
If the taxpayer is newly engaged in production and business activities or has newly established a production and business facility, the deadline for paying business license tax is the last day of the tax declaration dossier submission period.
>>>>>>>> Download the Business License Tax Declaration Form HERE.
4. Submitting the Unemployment Insurance Participation Report in Vietnam
According to Article 32 of Decree 28/2015/ND-CP, and Article 18 of Circular 28/2015/TT-BLDTBXH, before January 15 annually, the employer must report to the Department of Labor, Invalids, and Social Affairs on the situation of participating in unemployment insurance of the previous year.
Thus, before January 15, 2020, enterprises must submit the report on unemployment insurance participation of 2019 to the Department of Labor, Invalids, and Social Affairs according to Form No. 33 issued with Circular 28.
>>>>>>>> Download Form No. 33 HERE.
5. Reporting the Use of Self-Printed Withholding Certificates in Vietnam
According to Article 5 of Circular 37/2010/TT-BTC, quarterly, organizations paying income using self-printed withholding certificates on computers must report the use of withholding certificates to the tax authority where the withholding certificate is registered no later than the 30th of the first month of the next quarter.
Thus, no later than January 30, 2020, enterprises must complete the report on the use of self-printed withholding certificates on computers for the fourth quarter of 2019.
6. Paying Provisional Corporate Income Tax for the Fourth Quarter of 2019 in Vietnam
According to Article 17 of Circular 151/2014/TT-BTC which adds Article 12a after Article 12 of Circular 156/2013/TT-BTC, based on production and business results, enterprises must pay provisional corporate income tax for the quarter no later than the 30th day of the first month of the next quarter where the tax obligation arises.
Thus, no later than January 30, 2020, enterprises must complete the provisional corporate income tax payment for the fourth quarter of 2019.
7. Reporting Labor Fluctuations in December 2019 (if any)
According to Clause 2, Article 16 of Circular 28/2015/TT-BLDTBXH, before the 3rd of each month, the enterprise must report to the employment service center where the work headquarters is located on the labor fluctuations in the unit (calculated according to the Gregorian calendar month preceding the reporting period).
Thus, before January 3, 2020, enterprises must complete the report on labor fluctuations for December 2019.
>>>>>>>> Download Form No. 29 on Labor Fluctuation Notification HERE.
8. Reporting the Use of Invoices for December 2019
According to Article 27 of Circular 39/2014/TT-BTC, Clause 4, Article 5 of Circular 119/2014/TT-BTC, and Section 10 of Official Dispatch 1839/TCT-CS, enterprises with high tax risks or those using self-printed or pre-ordered invoices with violations on invoices subject to administrative penalties for tax evasion or fraud must report the use of invoices to the directly managing tax authority no later than January 20, 2020.
>>>>>>>> Download the Report Template on Invoice Usage HERE.
9. Submitting the VAT Return for December 2019
According to Point a, Clause 2, Article 11 and Point a, Clause 3, Article 10 of Circular 156/2013/TT-BTC, enterprises with total sales revenue of goods and services of the preceding year exceeding VND 50 billion must submit the VAT return monthly, no later than the 20th of the following month. No later than January 20, 2020, these enterprises must complete the VAT return submission for December 2019.
>>>>>>> Download the VAT Return HERE.
10. Submitting the Personal Income Tax Return for December 2019
According to Clause 3, Article 10 of Circular 156/2013/TT-BTC, if within the month the enterprise has deducted personal income tax, it must submit the PIT return to the directly managing tax authority of the enterprise no later than the 20th of the following month. No later than January 20, 2020, enterprises must complete the PIT return submission for December 2019.
This regulation applies to enterprises following the monthly tax declaration method; if no PIT deduction arises within the month, it is not necessary to submit the tax return for that month.
>>>>>>> Download the PIT Return Forms HERE.
11. Contributing to Social Insurance, Health Insurance, Unemployment Insurance for January 2020
According to Clause 1, Article 7, Article 16, and Clause 1, Article 19 of Decision 595/QD-BHXH, monthly, no later than the last day of the month, enterprises must contribute mandatory social insurance, health insurance, unemployment insurance based on the monthly salary fund of employees participating in mandatory social insurance, health insurance, unemployment insurance; simultaneously deduct from the monthly salary to pay the social insurance, health insurance, unemployment insurance of each employee as prescribed and transfer it at once to the social insurance agency's specialized collection account opened at the bank or State Treasury.
Thus, no later than January 31, 2020, enterprises must complete the contribution of social insurance, health insurance, unemployment insurance for January 2020 for employees.
12. Contributing Trade Union Fees for January 2020
According to Clause 2, Article 6 of Decree 191/2013/ND-CP, enterprises, whether they have established trade unions or not, must contribute trade union fees monthly at the same time as the mandatory social insurance for employees, with a rate of 2% of the salary fund used as a basis for social insurance contributions for employees.
Thus, January 31, 2020, is also the deadline for this fee at the accounting department of the Labor Confederation of the district or town where the enterprise is registered.
Nguyen Trinh
- Key word:
- accounting
- human resources
- Vietnam
