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11 highlight points in 2011 wage labor

1. Uniform expense in cash or in kind to employees is not exceeding 5,000,000 VND/employee/year according to Circular No. 18/2011/TT-BTC dated February 10, 2011 by The Ministry of Finance. The maximum spending for the uniform is also applied to personal income tax (PIT) when determining tax income.

If these expenses are under 5,000,000 VND/year, they will not be counted when determining PIT. For more details, please refer to: http://www.nvmgroup.com/en/professional-compliance/265

2. The minimum wage increased from 730,000 VND to 830,000 VND from May 01, 2011 pursuant to Decree No. 22/2011/ND-CP. Thus, the maximum wage that makes SI-HI-UI contribute was capped at 16,600,000 VND. For more details, please refer to: http://www.nvmgroup.com/en/professional-compliance/263

3. The changes of Recruitment and Management foreign workers in Vietnam pursuant to Decree No. 46/2011/ND-CP dated June 17, 2011. This Decree amended and supplemented to Decree No. 34/2008/ND-CP dated March 25, 2008 on employment and administration of foreign employees working in Vietnam. This Decree took effect from August 01, 2011. For more details, please refer to: http://www.nvmgroup.com/en/professional-compliance/271

2011 PIT Finanlization Guidance

It’s the time for both employee and employer to make 2011 PIT Finalization in March 2012. General Department of Taxation issued Official Letter 230/TCT-TNCN on January 17, 2012 in supporting and guiding 2011 PIT finalization pursuant to Circular No. 84/2008/TT-BTC dated September 30, 2008 of Ministry of Finance, Circular No. 62/2009/TT-BTC dated March 27, 2009, Circular No. 02/2010/TT-BTC dated January 11, 2010, Circular No. 28/2011/TT-BTC dated February 28, 2011, and Circular No. 154/2011/TT-BTC dated November 11, 2011, as the following:

1. The letter details the way to determine the amount of payable personal income tax (PIT) for employee due to income from salary, wage and other income from business activities in 2011 as follow: