CIRCULAR of the MINISTRY of FINANCE-MINISTER of LABOUR, INVALIDS and SOCIAL finance mode instructions about bringing laborers working overseas duration according to Decree No. 12/CP dated January 20, 1995 by the Government _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ pursuant to Decree No. 12/CP dated 20 January 1995 from the Government detailed rules of some articles of the labor code on bringing the free workers Men go to work overseas, the term financial Minister of labor and social-specific instructions some financial mode as follows: A-the RULES of responsibility, the RIGHTS of WORKERS and ECONOMIC ORGANIZATION i. DEPOSIT: 1. for workers: workers must pay for economic organizations bringing workers go to work have time limit in a foreign deposit in order to ensure the implementation of the contract.
2. With regard to the organisation of economy: Currency and deposit management of employees, can perform once or extract gradually from monthly salary and be accounted as "pay" to ensure timely repayment.
The extent and form deposits by economic organizations and workers agreed, but no consistent money a weekly flights bringing workers from Vietnam to work abroad and must be clearly stated in the contract laborers to work abroad in which laborers register with the economic organization put away.
Within 1 month from the date of completion of the contract workers on water or due to termination of the contract ahead of time without causing economic damage to the economic organization of the economic organizations must return for workers about the deposit plus interest rate deposits a term not specified by the State Bank of Vietnam.
Case workers violated the labor contract, causing economic damage to the economic organization of economic organization is entitled to deduct the deposit and interest on deposits (if any) of the workers in the proper material compensation mode, but is public notice to employees know the reason and how to subtract.
After the conclusion of the labor contracts, if the employee has not yet received back then about the water deposit, organizations have a responsibility to continue to manage this money as defined in part A, section I, point 2 to handle according to the law of the State.
II. SOCIAL INSURANCE 1. During the time worked abroad, workers are entitled to social insurance regimes (hereafter abbreviated as BHXH) of water to work under specific agreements stated in the contract, this is one of the conditions of economic organization when signing the contract with the foreign employer must achieve in order to guarantee the rights of workers from when they exit procedures leave Vietnam until they complete a contract returns to the country.
2. During the time worked abroad, workers must pay social insurance social insurance for Vietnam to enjoy the retirement mode, productivity.
The level of temporary BHXH made monthly by 15% of 2 times the minimum salary prescribed by the Government of Vietnam for each period.
3. Economic organizations are responsible for paying the salaries for workers, the monthly quote social insurance funds and private contributions accounting for social insurance of each worker to take log base of social insurance under the provisions of the social insurance agency in Vietnam. Case workers are not salary or wage payments not through economic organization, the currency BHXH made with the proper form according to the agreement between the workers and the economic institutions for the whole contract.
III. SERVICE FEE 1. With regard to economic organizations: service charge is tax revenue public service of economic organization and used to cost the labour activity; the recruitment costs; health check; fostering and check workmanship, fostering foreign language; education training before; labor management in and outside the country; do the procedure resumes from districts (districts) and over are related to the entry and exit, move to pay workers on the base before going.
Economic organization bringing laborers working overseas duration allowed by the laborers a maximum service charge not exceeding 12% of income under the contract which the employer pays for employees assigned does not include food, in premises in the insurance money and time working abroad. In each specific contract, if there is income including cost, in money and in time working abroad, the service fees that organizations are allowed to collect a maximum of no more than 8% of that income.
Service fee rate of economic organization was quoted after the monthly income from the following:-Money flights 1 weekly round-trip from Vietnam or to the country where the contract is clearly the employees suffer, fares are determined by the price of purchased with logical journey (not including baggage charges).
-The account payable to work according to the law of that country (if any).
The account is calculated from the monthly income to service charge above is determined by taking the total count value, number of chapters unless both work time recorded in the contract.
In addition to the above service fees, non-economic institutions are in addition to any other charges of the employees.
To strengthen the responsibilities of the employees, when to register please go to work abroad, the economic organization was allowed a temporary currency before a sufficient guarantee expenses for the following work content (average no more than 1 million Vietnamese Dong):-National Health Examination under the regulation of the Ministry of health.
-Check foreign language skills (including funding is fostering, training again at the request of the labour contract) with costs as required by the Ministry of education.
-The costs related to making the profile, exit procedure from the district, the County turned up for workers.
-The costs related to training, training before going.
Account temporarily cost currency ahead of the aforementioned workers, economic organization is responsible for refund when contracting official with laborers before they go abroad (as defined in section II, point 2 c, circulars No. 20/LĐTBXH on 3-8-1995 of the Ministry of labor, invalids and Social Affairs). The case does not perform contract work overseas, if by workers (no need anymore, or not enough of the conditions stipulated in the contract), the workers must bear part of the cost calculated according to each specific job content that organizations have implemented; If the contract is not achieved by the economic organization of the economic organizations must bear the costs and return immediately the amount deposited currency for workers.
2. for workers:-are obliged to submit monthly service fee with each economic organization for wage rates specified in item 1 above.
-In the case of workers do not make salary or economic organizations do not have the service fee conditions due to direct wages workers from the Labor Party in a foreign country, then the employee has the responsibility to implement the filing service charge according to the modalities agreed between workers and economic organizations.
IV. HIGH INCOME TAXES: employees are responsible for the personal income tax as defined in the Ordinance on income tax for high income earners on 19/5/1994, Decree No. 04/CP dated 20 January 1995, the Government's circular No. 27TC/TCT on 30/3/1995 of the Ministry of finance.

For individuals working in countries that have signed the agreement on avoiding double taxation with Vietnam, follow the content of the agreement signed with each particular country and guide the implementation of agreements to avoid double taxation of INTERNATIONAL COOPERATION/1664TCT 11/10/1994 of the General Department of taxation, Ministry of finance.
1. Taxable incomes: due to particularities of higher income tax payers are laborers working overseas duration according to each specific contract, should high income taxable income is determined as follows: a. in an income tax as income are clearly in the contract that the parties use overseas labor to pay the full monthly salary set for workers for them to handle the costs of accommodation, travel, insurance and other costs during the time worked under contract. Side cases for employers only guarantee a portion of the cost of accommodation, travel and the cost of parts, BHXH rest is calculated from the earnings recorded in the contract to calculate the income line as defined in point b below.
b. If the contract which the employer pays for employees part of salary (net income) does not include the cost of food, accommodation and insurance money out of time working abroad, then the expenses are determined by the amount of net income (or in other words by around 50% of total income) for the calculation of taxable income.
c. The account is calculated to determine the taxable income is calculated from the monthly income when calculating the service fees specified in section III, point 1 of this circular (not excluding high income tax already paid in that country to work, if available).
d. In the labor contracts with foreign countries, the monthly income of workers was stable for the whole of the contract, so the monthly income is the average income of the months of the year.
2. high income tax: tax under article 10 section 2 of the Ordinance on income tax for high income earners on 19/5/1994 Vietnamese workers go a work term abroad follow partially progressive tariff and income tax are calculated according to the following guide table : Ug, average income per person tax tax 1 to 5,000 0% 0 2 5,000 to 12,000 10% 10%-500 3 x TNCT On 12,000 to 30,000 20% x 20%-1,700 4 TNCT On 30,000 to 50,000 30% x 30% TNCT-4.7000 50,000 to 70,000 40% 5 x 40% TNCT-9,700 6 On 70,000 50% x 50% TNCT-16,700 which TNCT : Taxable income (x): the sign (-): minus 3. example computer tax income and high income tax: a. example 1: medical professionals to work in A van Angola 3-year period, in the labor contract that he signed A note of total income is 1,000 USD/month. The consultants are self-sufficient fares both leg and is about 1,600 USD and should bear the costs of accommodation, travel insurance, etc. throughout the duration of the contract. Tax income and higher income taxes for you, Mr. A is calculated as follows:-fares are distributed every month according to the contract term is: 36 months = 44.44 USD: 1,600 USD/monthly-income tax are: 1,000 USD-USD = 44.44 955.56 USD/month Vietnam Dong Qui according to 11,000 VND/US $ exchange rate is: 10.511.160 VND/month-high 1, income tax is : 10,511,160 VND x 10% = 551.116 VND VND 500,000-the equivalent of US $50.10 (551.116:11,000) for Angola as the country has not signed the agreement on avoiding double taxation, but if workers produce certificates from a monthly income tax in which the assumption is 30 USD (qui cash rate of 11,000 VND/USD is 330,000), the tax is also payable in Vietnam is 221,116 VND (330,000-551,116). The tax case assume have filed abroad is higher than the level of tax in the country ($ 50.10) the workers shall be tax free income in Vietnam.
b. example 2: Anh Tran Van B contracted laborers to work in country X with a time limit of 1 year in the contract stating the workers be paid the monthly net income is $350 and side are employers guarantee for the costs of food, accommodation and insurance during the time worked under contract.
Taxable income and high income tax for England B is calculated as follows: – taxable income said in point 1, b this item is: $350 + $350 = 700 USD/month-I B are self-sufficient a weekly flights from Vietnam to country X by logical journey is 360 USD , distributed to all 12 month contract is 30 USD/month-as required by the contract, the costs of labor management in foreign countries have been deducted from income by the employee before paying income for workers is: 20 USD/month-fact income tax remains to be : 700 USD (30 USD + 20 USD) = 650 USD/month Vietnam Dong Qui according to rate of 11,000 VND/USD: 7.150.000 VND/month-English B income tax payable 1 month is: 7.150.000 VND VND 500,000 10%-x = 215,000 DD equivalent 19.5 USD (215,000:11,000).
Water for X, as the country has signed agreements to avoid double taxation with Vietnam, according to article 15, article 23 of the Convention and the text of the Guide made the agreement to avoid double taxation of 1664 TCT/INTERNATIONAL COOPERATION on 11-10-1994 of the General Department of taxation, Ministry of finance, the workers must file income taxes in both countries. The case assumed they were high in the country of income tax X is 10 USD (VN Dong qui 11,000 VND/USD rate is VND 110,000) and have a valid invoice vouchers, the number of remaining tax payable in Vietnam is 105,000 dd, if the assumption of tax already paid in country X the higher tax in the country (19.5 USD) then the workers are tax free income high in Vietnam.
The British case Tran Van B enjoy the wages stated in the aforementioned contract, but Mr B to bear the costs of both breakfast and dinner, buy health insurance, the expenses in the country X is 110 USD, the taxable income of the UK B calculated as follows:-the UK's net income B is : 240 USD ($ 350-$ 110)-taxable income are: ($ 240 + $240)-(30 USD + 20 USD) = 430 USD Qui Vietnamese Dong VND 11,000/USD rate is: 4,730,000 dd, according to the export tax rates defined above, you B not high income taxpayers v. LICENSING FEES: 1. Average Ministry of labor, invalids and Social Affairs are allowed to collect and manage two types of fees : active licensing fees and licensing fees made the contract.
Organizations receiving operating licence fee to be paid by contract in Vietnam the equivalent of 2,000 dollars and receipt of license contracts must pay the fees in Vietnam the equivalent of us $5 per person calculated according to the number of notes in the contract for Labour, invalids and Social Affairs (Bureau of foreign labor management).
2. mode of management: the collection and management of licensing fees is done according to the mode of management fees and charges of the State. The Ministry of labor, invalids and Social Affairs (Bureau of foreign labor management) plan to spend according to the list, send the Ministry of finance and the review was announced in the General annual income plan of the Ministry in the form of a fixed percentage taken out of licensing fees collected This steady rate, from 1 to 2 years, specific spending categories from this source of revenue is:-for the evaluation of legal personality as well as the necessary condition of a business bringing laborers working overseas has a time limit, to have active license basis.

-For the evaluation of the contract and the conditions of possibility of the contract taken laborers working abroad, to have the licensing base base made the contract.
-The costs of opening new markets, Marketing activities, the network of collaborators in a number of areas in need of receiving Vietnamese workers-other costs incurred need to spend in the State management sector for a particular foreign economic sector that financial policy regime of State yet the amount is adequate.
VI. ABOUT the ORGANIZATION COLLECTING BHXH HIGH INCOME TAX, FILING and SERVICE FEES: 1. Economic organizations is organizing Committee nhệm currency, must actively register Declaration to the local tax authority where registration tax article subjects (or subscription based business) for instructions about procedures to ensure professional currency lodging taxes according to the law. When implementing pay monthly salaries for workers, economic organization is responsible for currency lodging money BHXH, high income tax and service charge, case sides use overseas labor directly charged the monthly wage for laborers, held currency lodging is done according to one of the following forms :-agreement with the employers organization abroad to their monthly quote 3: BHXH, high income tax and service fees before pay for workers (according to the calculation of availability level of economic organizations) and turn the account into submission as required by economic organizations to move about the country.
-Through a representative office (or officer authorized representative) held currency lodging every month appropriate forms consistent with the situation, the characteristics of each country and each specific contract.
2. Due to the specific nature of the field put the Vietnamese workers go to work overseas is the term revenues are generated abroad, so the proxy organization is the economic organization directly administered workers do clue focused source of revenue for the State to ensure the correct collection timely enough, currency, according to the law and are entitled to compensation income earning credentials BHXH, income taxes by 0.5% of the amount actually collected.
Monthly, at the latest on 10 months later, was the economic organizations must pay a certain amount has been obtained about the income tax and higher BHXH under the guidance of the Agency and the tax agency BHXH same level, amount to 0.5% was performed simultaneously with each payment procedures.
VII. REPORTING MODE: 1. mode setting the vote tracking and documented accounting logging: in addition to the General provisions on State accounting mode under the guidance of the financial authorities, the Agency and local tax agencies BHXH, with responsibility for the Organization's mandate for the State and is the direct agency workers , economic organization to do the following procedure:-set the votes (or shared) monitor the situation of income and currency lodging of each monthly workers (according to the model No. 1) to the base collation base after the end of the contract and address the policy regime for workers.
-Slip the track established 02:01 economic organizations hold to save along the profile of workers who make up the base basis financial statements, 1 a worker (or authorized person) keep to the present and every newsletter is linked with the economic organization.
2. periodically report mode:-quarterly economic organizations must submit a situation report made the account currency lodging (form No. 2) sent to the Finance Ministry (foreign financial Service), Ministry of labor, invalids and Social Affairs (Bureau of labor management with foreign countries), local tax authorities and social insurance in Vietnam.
-Every year, economic organizations must establish the following: reports + report next year plans on the basis of the implementation of the first 9 months of the year, in the report there is plan analysis: the amount of labour (male, female), industry, water to work, contract term, expected salary, expected time line up of each contract etc.. in the report, the plan also outlined the proposals and recommendations to the authority in the field of labour.
+ Reporting the implementation of the plan according to labor and currency targets 2 filed under model number 04 issued Circular No. 20/LĐTBXH and model No. 2 of this circular. The annual report is sent to the Ministry of labor, invalids and Social Affairs (Bureau of labor management with foreign countries), the Ministry of Finance (TCĐN), Vietnam BHXH local tax agencies. The time limit for submitting the report according to the regulations of the State.
3. Prepare reports according to the content of the above rules is the duty and the responsibility of organizations to make the point 10, section 9 of the Decree 7/CP dated 20 January 1995 the Government and regarded as one of the conditions to resume the level phếp for economic organizations bringing workers go to work overseas has a time limit.
B. SOME OTHER PROVISIONS 1. To ensure that the interests of the State, economic organizations and workers, ensuring consistency in the implementation of the fiscal policy regime, wages of workers in the contract must be in us dollars (USD) or foreign currencies freely convertible. Depending on each specific case, the payment, payment can be made as follows:-currency monthly wage paid by the two parties signed the agreement, but the Exchange must be in us dollars (USD) by NBU rate of countries announced at the time of payment.
-If the salary paid by a bad cam design is required in contract workers are right to ask the Bank or country home employment convert out of us dollars (USD) in whole or in part certain percentage match required to spend in the country to work.
2. Type of money made and filed:-Currency deposit of copper workers in Vietnam or in us dollars (USD) according to the agreement between organizations and employees.
-Currency lodging BHXH (defined in section II), collecting the fees allocated (specified in section V) are made in the Philippines.
-Collecting service fees (defined in section III) and higher income tax revenue (defined in section IV) be made in USD, namely: high income tax rates result is filed by Vietnamese Dong qui back USD (exchange rate from USD to the computer tax payable) to workers filed in USD.
When the income tax revenues as well as higher service fees in foreign currency, the economic organization must base the actual situation are paid to collect salary is paid 100%: If in us dollars (USD), currency lodging in USD; If the salary is paid part a currency currency both the currency (the U.S. dollar and a corresponding national currency currency is paid in monthly salary). Economic organization filed income tax higher income by USD to currency in the country, most currency by a currency lodging to fund GOVERNMENT EXCESSIVE custody at the Embassy of Vietnam in the country. Enjoy remuneration rate of economic organizations in the realization of high income taxes as well as real currency currency.
3. economic institutions taken Vietnamese laborers to work abroad in the form of equity, contracting works, getting producers mining production sharing etc. then make a financial mode as follows:-If the employee is entitled to wages in foreign currency during the time worked abroad as the other labor contract due to economic institutions taken away (Labor export) shall comply with the provisions of this circular.

-If during the time worked in the foreign workers are only entitled to subsistence (accommodation etc to qualify to work) is also a part of salary and other fiscal policy regime workers be entitled according to the law on Vietnamese enterprises in the country, the workers and the economic organizations follow the law on State enterprises.
C-ORGANIZER 1. This circular is valid from 01/01/1996, high income tax taken from 1/6/1994, abolish circular No. 5 LB-TC-LĐTBXH on 12/3/1992 guide ND 370/HĐBT, no. 2599/LĐTBXH on 25/7/1995 of the Ministry of labor, invalids and Social Affairs guidelines for laborers to South Korea and other text contrary to this circular.
The financial policy regime for laborers working overseas had made the day before 01/01/1996, when implementing this circular if organizations do not handle was then promptly reported The contact to handle comments for each specific case.
2. Inspect, inspect the implementation of the financial regime brought laborers working abroad specified in this circular is one of the important tasks in the field of governance of the ministries concerned. In the process, if the detection of an infringement, the use by financial and accounting regime of the State of Vietnam, disciplinary or administrative, depending on the extent of that infringement requires termination of the contract before the time limit, suspend or revoke the licence for each specific case.
3. in the implementation process, if there are obstacles and suggest the ministries, local economic organizations, reflects on the financial Minister of labor-invalids and social, to study the resolution.