On April 8th, 2020, Hanoi Tax Department issued Official Letter No. 20651/CT-TTHT. Whereby:
In case the Company buys life insurance with accrual of insurance premiums for the employee from the insurer(s) established and operating under Vietnam’s law, When the contract matures, the insurer shall deduct 10% tax from the accrual of premiums paid by the employer for the employee as prescribed in Clause 2, Article 14 of Circular No. 92/2015/TT-BTC.
On the other hand, Incase the employer buys life insurance with the accrual of insurance premiums for the employee from the insurer(s) which is/are not established and operating under Vietnam’s law (the insurer(s) must be allowed to sell insurance in Vietnam), the employer has the responsibility to deduct 10% of the tax from the premiums before paying the employee.
