Posted 15.04. 2020 by Cekindo
For many foreigners and expats, staying in Vietnam is a true taste of life. The beautiful and historic country has been a trending destination for both tourists and expats because of its low cost of living, burgeoning economy, colorful history, vibrant culture and of course the incredibly breathtaking landscapes.
Although Vietnam is relatively small on the map, many people are looking to make a big change by moving to and staying in Vietnam – because of business, family or even the love for this stunning country.
However, just like staying in any country in the world, it’s not as simple as just packing your bag, buying a plane ticket and just getting there. There are things you need to consider when you are staying in Vietnam, and when you have decided to leave after some time.
In this article, Cekindo has come up with a list of important things you should take care of.
Residence Card and Work Permit
If you plan on working and staying in Vietnam long-term, the essential and most important documents are the work permit and temporary residence card.
You can never get away without having those; you will have to face serious consequences such as deportation for not having them.
The temporary residence card (TRC) is valid for 1-3 years with the possibility of extension, and the work permit is valid for a year and can be extended once.
Oftentimes, foreigners holding a work permit, investment certificate, sponsor business record or other proof of status are required before you can apply for a TRC.
When leaving Vietnam, a foreigner must return the TRC to the issuing immigration, and submit the work permit to the employer upon the employment termination.
All foreigners who are non-tax residents or tax residents (working and residing in Vietnam at least 183 days) in Vietnam must register as taxpayers and pay for their taxes. The personal income tax rates for non-tax residents and tax residents are 20% and 5-35% (depending on the amount of income) respectively.
When a foreigner leaves Vietnam, they must pay all taxes and complete the finalisation declaration form of their personal income tax.
Foreigners can open bank accounts when in Vietnam. There are two types: personal bank accounts for individuals and business bank accounts for foreign companies. Business bank accounts can be further categorised into investment capital account and transaction account.
When leaving Vietnam, a foreigner or a foreign company must notify all banks to close their accounts. Accounts can be terminated at the local branch and the foreigner must bring all the identification documents including the residence card, work permit and passport.
Social Security, Insurance and Pension
Apart from personal income tax, a foreigner must also pay for social security, insurance, and pension taxes.
The percentage has been revised and will be effective from January 1, 2022:
Applying for a work permit and a residence card for staying in Vietnam can be time-consuming and frustrating if you are not familiar with the process in Vietnam.
Besides, employment and residency status are time-sensitive and for that reason having a local expert or professional legal consultant with expertise in these areas is the most efficient way for successful working and staying in Vietnam.
Cekindo offers a full range of permit and visa application services, as well as other corporate business solutions to help you achieve compliance, simplify operations and reduce costs.
We have helped thousands of individuals and companies worldwide to work and stay in Vietnam and to grow their business. Therefore, Cekindo is very certain that we can help you too.
For more information, talk to us to discuss your needs. Just fill in the form below.