Vietnam expats will be subject to 8% additional tax starting in 2018

Expats working in Vietnam will be required to pay into Vietnam's social insurance program starting in 2018.  The social insurance tax currently only applies to Vietnamese employees.  The employee contribution of the tax is 8% subject to maximums (about 1,140 USD per month). 

Other countries with similar requirements allow expats to cash out their contributions if they leave Vietnam.  It's not clear if Vietnam will have this option.

The tax authority is still in the process of drafting regulations to provide more guidance.

They already do pay, but its only 1.5% and next year it will go up to 8%.

Do u actually get any social insurance in return?

it's different.  Expats currently only pay the 1.5% Health Insurance component of the Social Security tax.  Starting in 2018, they'll have to pay both the 1.5% Health Insurance (HI) component and the 8% Social Insurance (SI) component. 

There has been rumors that the gov't will allow expats to request a refund of their SI contributions, but it's not certain at this point.

Thaiger :

Do u actually get any social insurance in return?

Yeah’ll get that.

They’ll throw that in along with Freedom of Speech & Democracy.

You wouldn’t want to be hanging by your nuts waiting for either. 🤓

Only suckers will pay such a tax.

The Vietnamese (government) are classic at making changes and introducing systems - and always with NO INFRASTRUCTURE.

It is just a tax with NO BENEFIT

Is this tax equality like simple income tax in western countries? Or do they hit you with that also?

Feels like the government are licking the bone on this one

In the UK we get free healthcare and many other things. In Vietnam an expat will get nothing!

Vietnamese government just copies everything by bullshit presidential decree without details or infrastruture. Just ‘looks good’ on paper

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