Our Vietnam Legal Update #193 would lead you on 04 legal issues:
I. The labeling of goods
On 17 December 2021, the General Department of Customs issued Official Letter No. 5951/TCHQ-GSQL on the labeling of goods with the following contents:
- Goods labels of exports shall be presented according to the law of the importing country.
- In case the exported goods are produced from many different sources of raw materials, the origin of which cannot be determined, on the goods and packaging of the exported goods, write the country in which the last stage of finishing the goods is performed. It shall be presented by one of the phrases or a combination of phrases in order to present the finishing stage of goods as follows: “assembled in”, “bottled in”, “blended in”, “completed in”, “packed in”, “labeled in” followed by the country’s name or region in which the last stage of finishing the goods is performed.
- Compulsory contents must be shown in a foreign language or Vietnamese on the original label of imported goods when carrying out customs clearance procedures.
II. Expenses for making temporary residence cards and visas for foreign employees
Hanoi Tax Department issued Official Letter No. 51361/CTHN-TTHT dated 01 December 2021 to guide the cost of making temporary residence cards and visas for foreign employees with the following contents:
- In case the expenses for making and renewing temporary residence cards and visas for foreign employees are paid by the employer. This payment which is to help foreign employees qualify to work at organizations in Vietnam is the responsibility of the employer, these expenses are not included in the personal income tax (“PIT”) taxable income from the salary and wages of the foreign employees.
- In case the expenses for making and renewing temporary residence cards and visas for foreign employees are paid by the employer on behalf of the employee and are the employee’s benefits, these amounts shall be included in the PIT taxable income the salary and wages of the foreign employees.
III. Regulations on working time and rest time for employees
On 15 December 2021, the Ministry of Labor, War Invalids, and Social Affairs issued Circular No. 18/2021/TT-BLDTBXH to give guidance on the working time and rest time for employees doing seasonal-producing work and processing of goods under purchase orders. Some notable contents are as follow:
- The employees being subject to the application of this Circular are those who are working under a labor contract with a fix-term of full 12-36 months and indefinite-term with the following job:
- Seasonal production in the agro-forestry-fishery-salt industry, requiring immediate harvesting or processing immediately after harvest;
- Processing goods according to purchase orders, depending on the time requested by the owner of the goods.
- The total number of standard working hours and working overtime hours in a day must not exceed 12 hours.
- The total number of standard working hours and working overtime hours in a week must not exceed 72 hours.
- The total number of working overtime hours in a month must not exceed 40 hours. The total number of working overtime hours in a year must not exceed 300 hours.
- Every week, employees are entitled to at least 1 day off (24 consecutive hours). During the seasonal months or when it is urgent to process export goods according to purchase orders, if it is not possible to take a weekly break, it is necessary to ensure that employees have at least 04 days off every month.
- In case the employer decides to implement the regime of working time and rest time according to this Circular, the employer must:
- Make and adjust the plan of working time and rest time in the year according to the guidance of this Circular. When making and adjusting the plan, it is necessary to consult the representative organization of employees at the grassroots level;
- Notify the plan of working time and rest time to the employees at least 30 days before implementation;
- Pay wages to employees in accordance with the labor contract and the provisions of law; and
- Report annually to the competent authority on the implementation of this Circular in the report on occupational safety and health.
- The method of calculating the standard working time in the year, the principles of using the standard working time, and the plan to determine the number of standard working hours per day of the employee is detailed in this Circular.
- The Circular shall take effect on 1 February 2022.
IV. Guidance on tax policy on tuition fees for children of foreign employees working in Vietnam
On 14 December 2021, the Tax Department of Binh Duong province issued Official Letter No. 1984/CTBDU-TTHT to guide the tax policy on tuition fees for children of foreign employees working in Vietnam. The content of the guidance is as follows:
In case an enterprise signs a labor contract with a foreign employee working in Vietnam:
- If the labor contract has a provision on tuition fees for the children of the employee studying in Vietnam from preschool to high school, which is paid by the enterprise with the nature of salary and wages and has full invoices and documents with information of the enterprise, the tuition fees shall be included in deductible expenses when determining income subject to cooperation income tax.
- Such tuition fee is not included in the employee’s PIT taxable income.
Maybe you are interested in reading other Legal Update of BLawyers Vietnam: December 2021 (Part 3) | December 2021 (Part 2) | December 2021 (Part 1) | November 2021 (Part 4) | November 2021 (Part 3) | November 2021 (Part 2) | November 2021 (Part 1) | October 2021 (Part 5) | October 2021 (Part 4) | October 2021 (Part 3) | October 2021 (Part 2)