Economy
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| Việt Nam is likely to intensify scrutiny of income tax paid by foreign workers, a seminar heard in HCM City yesterday. — Photo m.vietnambreakingnews.com |
HCM CITY — Việt Nam is likely to intensify scrutiny of income tax paid by foreign workers, a seminar heard in HCM City yesterday.
Thomas McClelland of Deloitte Vietnam, the organiser of “Managing mobility risk and compliance in Southeast Asia,” said there is an increasing number of foreign investors in Việt Nam and they are employing an increasing number of foreign workers, especially in construction and oil and gas.
Tax authorities are expected to closely check tax payments by foreign workers and even cross-check related information outside Việt Nam.
Mistakes in calculating tax over the past 10 years would be rectified, he said.
“Regular updates about new tax regulations of Việt Nam and other AEC countries is key to ensuring full compliance with regulatory requirements both at home and host locations to avoid unnecessary exposure.”
The seminar, attended by HR and tax specialists, finance managers and generalists interested in the cross-border mobility of professionals and skilled labour, was aimed at apprising companies about tax, social security and immigration implications following cross-border mobility of labour in the ASEAN Economic Community (AEC).
On January 1 this year the AEC came into existence with 10 member countries and a total population of over 620 million.
The combined workforce accounts for nearly 50 per cent of the population, or 300 million. Three countries make up over 70 per cent of that number -- Indonesia (40 per cent), the Philippines (16 per cent) and Việt Nam (15 per cent).
In the declaration, AEC said: “An ASEAN single market and production base shall comprise five core elements: (i) free flow of goods; (ii) free flow of services; (iii) free flow of investment; (iv) freer flow of capital; and (v) free flow of skilled labour.”
This will create not only great opportunities but also difficulties for Vietnamese employers to attract skilled and talented workers in other AEC countries and vice versa.—VNS
