Vietnam’s social insurance law: New law to come into effect on 1 July 2025

Vietnam’s 15th National Assembly recently passed Law No. 41/2024/QH15 on social insurance. The new law introduces amendments that address current inadequacies between legislation and real-life practice, while improving the rights and benefits for social insurance participants. It will come into effect on1 July 2025. The Ecovis experts know the changes.

The implementation of the new law repeals Law No. 58/2014/QH13 on social insurance and Resolution No. 93/2015/Qh13 concerning the one-time social insurance policy for employees.

The new 2024 social insurance law regulates the rights and obligations of the relevant authorities, organisations and individuals in terms of:

• The implementation of social insurance
• Social pension benefits
• Registration and management of social insurance collection and payment
• Regimes and policies for both compulsory and voluntary social insurance
• The social insurance fund
• Supplementary pension insurance
• Complaints, censures and the handling of social insurance violations
• State management of social insurance

We support companies in implementing the new social insurance law.

Nghia Tran, Partner, ECOVIS AFA Vietnam, Da Nang City, Vietnam

The key points of the social insurance law

With 141 articles arranged in 11 chapters, the new law contains several remarkable new points, which are summarised below:

1. The law provides a state-funded social pension scheme, which is developed from the current regulations on monthly social allowances for the elderly.
2. The law is designed to develop a multi-tier social insurance system. Accordingly, social insurance participants will be entitled to monthly allowances before reaching the age of social pension eligibility. During that period, they will also be eligible for state-covered health insurance benefits.
3. The scope of compulsory social insurance participants is expanded.
4. The law is more beneficial to social insurance participants, e.g., it reduces the minimum years of insurance premium payment required for monthly pension entitlement, and grants maternity allowances to voluntary social participants.
5. The law devotes a separate chapter to providing the management of social insurance premium collection and payment, clarifying the definition of, and measures for handling, late payment and evasion of social insurance premiums.
6. The law specifies a reference level, i.e., a financial amount prescribed by the government for the calculation of social insurance premiums and benefits, to replace the basic salary level, which was abolished as of 1 July.
7. The law contains more specific provisions on the investment and management of the social insurance fund as well as the approval, appraisal and account finalisation of expenses for social insurance activities.
8. Social insurance administrative procedures are simplified, enabling electronic transactions in the social insurance sector and assessment of public satisfaction with the implementation of social insurance policies and regimes.
9. The law is contains additional regulations on international cooperation and further clarifies the state management responsibilities of the Ministry of Labour, Invalids and Social Affairs and the Ministry of Finance for social insurance-related issues.

For further information please contact:

Nghia Tran, Partner, ECOVIS AFA VIETNAM, Da Nang City, Vietnam
Email: Nghia.Tran@ecovis.com.vn

ATO Data Matching: What Taxpayers Should Know

The Australian Taxation Office (ATO) is drawing media attention this tax season with its scrutiny of various areas, including the usual remote work expenses, as well as cryptocurrencies and rental properties. However, beyond the media spotlight the ATO has also quietly developed new data connections that could indicate future audit targets. Scott Hogan-Smith from ECOVIS Clark Jacobs explores these data links and the information being gathered about taxpayers.

Recurring Focus Areas

The ATO is requesting records from designated service providers of cryptocurrency transactions occurring between 2014 and 2020. If you hold crypto assets, the ATO is gradually catching up with data from previous years.

As usual, data matching will also take place with the gig economy, which includes platforms like Airbnb and Uber, as well as rental property data.

These are the typical targets for ATO data matching, conducted to ensure that all income is reported. However, some new and interesting connections have been established.

New Areas of Focus

One of the new data links for the 2024 year is with Services Australia, where the ATO is seeking to match income data from Services Australia with the primary focus on ensuring that Medicare Levy Surcharge and Exemptions are being properly reported. However, this will likely lead to other compliance activities.

An interesting new connection is that between the ATO and the State Government-administered Rental Bond Boards and the recently announced Rental Property Software connection. This will enable the ATO to much more accurately identify when rental bonds are taken and released, along with being able to receive direct information about rental income and expenses being tracked through management software. This, in turn, will make it much easier for the ATO to data match income and expenses on tax returns and to review and audit potential mis-application of capital gains tax discounts if a property is sold.

Another new data connection to note is between the ATO and providers of novated car leases. While the ATO has maintained a close relationship with state vehicle registration bodies in recent years, the new focus on novated leasing providers and vehicles registered in business names indicates the ATO’s increased attention on Fringe Benefits Tax (FBT) and its aim to reduce the amount of unpaid FBT.

Key Points to Remember

As you get ready to file your taxes for 2024, keep in mind that the ATO will probably have extensive records of your income and its origins. To maximize your deductions, ensure you maintain thorough and accurate documentation to back up your claims. This will afford you a more favourable position should your tax return be selected for an ATO audit or review.

Corporate secretarial services in Finland: Efficient administrative management of clients’ Finnish operations through Ecovis Finland

Ecovis Finland offers comprehensive Corporate Secretarial (CoSec) services to international companies and funds, backed by a robust cooperation network that provides a solid foundation for fiducial services.

The offer includes management, domiciliation, and secretarial services tailored to the needs of our clients. In addition to these core services, the range of services has been extended to include various administrative functions such as accounting, management reporting, payroll, and HR services.

Please contact us if you would like to use our corporate secretarial services.

Jaana Palomäki, CEO, ECOVIS Finland Oy, Helsinki, Finland

A special feature is the digitalised corporate secretarial service (CoSec), which was developed to support global management and boards of directors.The CoSec services operate on a cutting-edge digital platform, enabling clients to manage their operations securely and efficiently in real time. This blend of advanced digital tools and decades of expertise in corporate secretarial services positions Ecovis Digital CoSec as reliable and user-friendly solution for business management needs.

Who can use CoSec

The business secretarial service, developed by Ecovis Finland to meet the specific requirements of more than 90 countries, can be used by all clients in the Ecovis network. This innovation strengthens Ecovis’ international range of services.

For further information please contact:

Jaana Palomäki, CEO, ECOVIS Finland Oy, Helsinki, Finland
Email: jaana.palomaki@ecovis.fi