Do employer managers who do not receive salaries participate in compulsory social insurance in Vietnam? What are cases where an employee is exempt from paying PIT on insurance premiums paid by đá bóng trực tiếp employer in Vietnam?
Do employer managers who do not receive salaries participate in compulsory social insurance in Vietnam?
According to point n, clause 1, Article 2 of đá bóng trực tiếpSocial Insurance Law 2024(effective from July 1, 2025), đá bóng trực tiếp provisions regarding individuals required to participate in compulsory and voluntary social insurance are specified as follows:
Individuals subject to compulsory and voluntary social insurance participation
- Vietnamese laborers subject to compulsory social insurance participation include:
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i) employer managers, controllers, representatives of state capital, or representatives of employer capital as prescribed by law; members of đá bóng trực tiếp Board of Directors, General Directors, Directors, members of đá bóng trực tiếp Supervisory Board or controllers, and other elected management positions of cooperatives, unions of cooperatives as stipulated by đá bóng trực tiếp Cooperative Law who receive salaries;
k) Non-specialized individuals operating at đá bóng trực tiếp commune, village, or neighborhood levels;
l) Individuals stipulated at point a of this clause working part-time, with a monthly salary equal to or higher than đá bóng trực tiếp lowest salary used as a basis for compulsory social insurance contributions;
m) Business household owners of registered business households participating as per Vietnam's Government regulations;
n) employer managers, controllers, representatives of state capital, representatives of employer capital as prescribed by law; members of đá bóng trực tiếp Board of Directors, General Directors, Directors, members of đá bóng trực tiếp Supervisory Board or controllers, and other elected management positions of cooperatives, unions of cooperatives as stipulated by đá bóng trực tiếp Cooperative Law who do not receive salaries.
Thus, from July 1, 2025, employer managers who do not receive salaries are still required to pay compulsory social insurance.
Do employer managers who do not receive salaries participate in compulsory social insurance in Vietnam?(Image from đá bóng trực tiếp Internet)
Shall social insurance contributions be deducted when calculating personal income tax in Vietnam?
According to clause 2, Article 9 ofCircular 111/2013/TT-BTC(amended by Article 15 ofCircular 92/2015/TT-BTC), provisions on deductible amounts when calculating PIT are specified as follows:
Deductible amounts
Deductible amounts as guided in this Article are amounts subtracted from đá bóng trực tiếp taxable income of individuals before determining taxable income from salaries, wages, or business activities. Specifically as follows:
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- Deduction for insurance contributions, voluntary pension fund
a) Insurance contributions include: social insurance, health insurance, unemployment insurance, professional liability insurance for certain professions required to participate in compulsory insurance.
b) Contributions to đá bóng trực tiếp voluntary pension fund, purchase of voluntary pension insurance
Contributions to đá bóng trực tiếp voluntary pension fund or purchase of voluntary pension insurance can be deducted from taxable income according to đá bóng trực tiếp actual amount occurred but not exceeding one (01) million VND/month for employees participating in voluntary pension products as guided by đá bóng trực tiếp Ministry of Finance, including amounts paid by employers for employees and amounts employees self-contribute (if any), even if participating in multiple funds. đá bóng trực tiếp basis for determining deductible income is a copy of đá bóng trực tiếp payment voucher (or fee) issued by đá bóng trực tiếp voluntary pension fund, insurer.
c) Foreigners residing in Vietnam and Vietnamese individuals residing but working abroad with income from business, salaries, wages abroad who have participated in compulsory insurance contributions according to đá bóng trực tiếp laws of đá bóng trực tiếp country where đá bóng trực tiếp individual resides or works, similarly prescribed by Vietnam’s laws, such as social insurance, health insurance, unemployment insurance, compulsory professional liability insurance, and other compulsory insurance types (if any) shall have such insurance fees deducted from taxable income from business or salaries, wages when calculating personal income tax.
Foreign individuals and Vietnamese individuals who have made đá bóng trực tiếp above-mentioned insurance contributions abroad shall have temporary deductions immediately into income for tax deduction in đá bóng trực tiếp year (if there is a certificate) and calculated according to đá bóng trực tiếp official amount if đá bóng trực tiếp individual conducts tax finalization as prescribed. In cases where there is no certificate for temporary deduction in đá bóng trực tiếp year, it will be deducted once when finalizing taxes.
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Thus, social insurance contributions (or similar types of insurance for foreigners who are residents in Vietnam, Vietnamese residents working abroad with income from business, salaries, wages abroad) will be deducted when calculating PIT.
What are cases wherean employee isexempt from paying PIT on insurance premiums paid by đá bóng trực tiếp employer in Vietnam?
Based on sub-item đ.2, point đ, clause 2, Article 2 ofCircular 111/2013/TT-BTC(amended by clause 3, Article 11 ofCircular 92/2015/TT-BTC), đá bóng trực tiếp following is specified:
Taxable income
As stipulated in Article 3 of đá bóng trực tiếp Personal Income Tax Law and Article 3 of Decree No. 65/2013/ND-CP, taxable personal income includes:
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- Income from salaries, wages
Income from salaries, wages is đá bóng trực tiếp income received by workers from đá bóng trực tiếp employer, including:
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đ) Monetary or non-monetary benefits beyond salaries, wages paid by đá bóng trực tiếp employer which đá bóng trực tiếp taxpayer is entitled to under any form:
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đ.2) Monetary amounts paid by đá bóng trực tiếp employer for life insurance, other non-compulsory insurances with accumulated insurance premiums; purchasing voluntary pension insurance or contributing to đá bóng trực tiếp voluntary pension fund for employees.
If đá bóng trực tiếp employer purchases non-compulsory insurance products for đá bóng trực tiếp employees without accumulated insurance premiums (including purchasing insurance from insurers not established and operating under Vietnamese law permitted to sell insurance in Vietnam), đá bóng trực tiếp insurance premium for purchasing these insurance products is not included in đá bóng trực tiếp taxable personal income of đá bóng trực tiếp employee. Non-compulsory insurances without accumulated insurance premiums include insurance products such as health insurance, term insurance (excluding term insurance products with premium returns), ... where đá bóng trực tiếp participants do not receive accumulated insurance premiums from participating in insurance, except for agreed insurance or compensation payments under đá bóng trực tiếp insurance contract paid by đá bóng trực tiếp insurer.
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Thus, in cases where đá bóng trực tiếp employer purchases non-compulsory insurance products for đá bóng trực tiếp employees without accumulated insurance premiums, đá bóng trực tiếp insurance premium for these products is not included in đá bóng trực tiếp taxable personal income of đá bóng trực tiếp employee.
