Uni 27-12-2018 - Guidance on tax policy for rehiring labors

Official letter 81485/CT-TCT dated 12/12/2018 of Ha Noi Taxation Department guiding tax policy for rehiring labors:

In case the Company has labor sublease activities in accordance with the law, under which the Company signs contracts directly with employees and subleases other employees to the following:

• Labor sublease service fee paid by the lessee to the Company is subject to 10% VAT rate. Upon receiving this fee, the Company issues the invoice as prescribed
• Amount transferred by the laborer to the Company for payment of amounts payable to the employee (salary, bonus, allowance, allowance, insurance, ...) or the Company authorizing the lessee to repay Payment for employees is a revenue payment, the Company does not have to declare and pay VAT, the Company prepares receipts and vouchers as prescribed.