Vietnam Payroll Services
Vietnam Payroll
Bradford Jacobs’ expertise provides complete answers for companies targeting Vietnam in their international expansion plans. We know a successful expansion depends on making the right moves from day one. This is crucial for companies building their international profile in Vietnam. Compliance with Vietnamese payroll regulations is vital for your company’s smooth and stress-free integration into the economy.
At Bradford Jacobs, we make business expansion easy, thanks to our Professional Employer Organization (PEO) and Employer of Record (EOR) platforms. We navigate the administration of the Vietnamese payroll system for you. As part of our service, we make the returns and associated payments for income tax and social security contributions directly from our payroll system to the local tax authorities.
Our teams step in from day one, guiding you through the complex regulations of the Vietnam Tax Department (Tong cuc Thue) and compulsory procedures imposed by the Vietnam Social Insurance Agency (SIA) via the Ministry of Labor.
Bradford Jacobs provides customized payroll solutions to meet the specific demands of complying with Vietnamese payroll regulations. We fully understand that each business faces unique challenges
What Vietnamese Payroll Options are available for Companies?
Remote payroll: This option allows businesses to operate under a single payroll system, by adding employees in Vietnam to your company’s payroll. However, these employees must operate under different regulations, which is likely to cause problems.
Internal payroll: You may operate payroll from your subsidiary, especially if you are committed to growing your company’s presence in Vietnam. However, this does require hiring dedicated HR staff who understand Vietnamese employment and compliance laws.
Vietnam payroll processing company: If you are considering outsourcing, then working with a Vietnamese payroll company will help in processing your payroll – but not when it comes to compliance.
Vietnam payroll outsourcing: However, there is another option available which solves both concerns – by working with Bradford Jacobs. We can handle both your payroll and compliance for all your employees in Vietnam. We take the administrative stress off your shoulders so you can focus on what you do best
Vietnamese Payroll Services
Companies expanding into the Vietnam economy and planning to run their own payroll will need to establish a legal entity. Running payroll in Vietnam demands in-depth knowledge of the employment Labor Code, and the Vietnam Tax Department and Social Insurance Agency regulations. The Tax Administration Law of July 2020 implemented new regulations for filing. Overseas companies must comply with the Foreign Contractor Tax (FCT) in addition to personal, corporate and sales tax rates and withholding deductions from employees’ salaries.
Outsourcing payroll services in Vietnam will streamline operations, by dealing with the following:
- Remitting withheld deductions to the Vietnam Tax Department (Tong cuc Thue)
- Remitting social security deductions to relevant funds via the Social Insurance Agency (SIA)
- The tax year runs from January 1 until December 31, or 12 months from date of arrival before reverting to normal tax year
- Paying provisional employment income tax either monthly (by 20th of following month) or quarterly (by 30th of following month)
- Returns filed to the Vietnam Tax Department within four months after end of chosen tax year
- Bi-annual report on employees working hours
- Annual reconciliation reports on personal and corporate tax payments and advise on Business License Tax payment
What is required to set up Vietnamese Payroll?
Requirements for setting up payroll in Vietnam can vary depending on how foreign companies establish their presence. Setting up a subsidiary is one option as a first step. However, this takes time and can be a complex process depending on where you incorporate your company as well as the type of entity you choose to establish.
Foreign businesses planning to set up a legal entity in Vietnam to run their own payroll will typically form a limited liability company as a Wholly Foreign-Owned Enterprise (WFOE). The subsidiary operates within Vietnam’s Companies Law and must comply with registration legalities to be able to onboard staff and run payroll for their staff.
The process includes documented confirmation of registered business address and legal status of the parent company; sufficient ‘charter capital’ to cover initial costs; investors’ notarized financial documents and proof of identity. Other requirements include:
- Investment Registration Certificate (IRC) from the Department of Planning and Investment
- Business Registration Certificate (BRC) also known as Enterprise Registration Certificate (ERC) and issued by the Department of Planning and Investment
- The BRC is also the company’s tax number, necessary to pay taxes online, and after receipt companies have 90 days to make any required capital deposit
- Payment of Business License Tax
- Registration with Vietnam Tax Agency (Tong cuc Thue) and Vietnam Social Insurance Agency (SIA) via the Ministry of Labor