Vietnam: Periodical reports that representative offices of foreign credit institutions must submit

 Date: 03 November 2021

Writers: Huy Nguyen

To do market research for business expansion, promote and introduce services to customers outside their main offices, foreign credit institutions could establish representative offices in Vietnam (the “RO”). Accordingly, during its operation, the RO must comply with Vietnamese laws on a periodical reporting regime. BLawyers Vietnam will present underneath some types of report that the RO must submit among other.

RO

1. Annual financial statements

Within 180 days after the end of a fiscal year, the RO shall send its annual financial statements to the State Bank of Vietnam.

2. Report on changes of Vietnamese employees

If the RO uses Vietnamese employees, it shall submit a biannual report (before June 05) and an annual report (before December 05) on changes of employees to the Provincial Department of Labor, War Invalids, and Social Affairs through the National Public Service Portal according to Form No. 01/PLI in Appendix I of Decree No. 145/2020/ND-CP and send notifications to the social insurance authorities of the districts where the RO is located.

3. Report on the employment of foreign employees

In case the RO uses foreign employees, prior to July 5 and January 5 of the following year, the RO shall send a first-half-year report and an annual report on employment of foreign employees, using Form No. 07/PLI Appendix I of Decree No. 152/2020/ND-CP. The reporting period of the first 6 months is from December 15 of the previous reporting year to June 14 of the reporting year, the reporting period of the annual report is from December 15 of the previous reporting year to December 14 of the reporting year.

4. Personal income tax (“PIT”) declaration and deduction

According to the law, the income payers that withhold PIT shall declare such tax monthly or quarterly.

Thus, monthly or quarterly, the RO must report declaring the tax administration agency and pay PIT on the income from wages and salaries of employees working at the RO.

5. Social insurance declaration, deduction, and payment

Bylaws, monthly employers shall pay social insurance premiums to employees, and make deductions from employees’ salaries for simultaneous payment to the social insurance fund.

Therefore, the RO must make monthly declarations to the social insurance agency, deducting and paying social insurance premiums to employees working at the RO.

Should you have any questions about the above contents, please revert to BLawyers Vietnam at consult@blawyersvn.com. We are more than happy to hear from you!

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