OFFICIAL LETTER NO. 16093/SNV-VLATLĐ ON URGING THE IMPLEMENTATION OF PERIODIC HEALTH CHECK-UPS FOR EMPLOYEES OF ORGANIZATIONS AND ENTERPRISES IN HO CHI MINH CITY

On August 17, 2026, the Ho Chi Minh City Department of Home Affairs issued Official Letter No. 16093/SNV-VLATLĐ, requesting enterprises and public service units in the city to urgently organize periodic health check-ups for civil servants, public employees, and employees before October 31, 2026.

Accordingly, the Department of Home Affairs requests enterprises, companies, corporations, and public service units in the city to:

• Complete periodic health check-ups for 100% of civil servants, public employees, and employees before October 31, 2026, with all required examination components in accordance with regulations.
• Update the health check-up results within 03 days from the date of completion of the check-ups, using the form prescribed by the Department of Health.

The update is intended to support monitoring, data reconciliation, consolidation, supervision, and assessment of health check-up results in the city.

LAW NO. 22/2026/QH16 – LAW ON VIETNAMESE WORKERS GOING ABROAD TO WORK UNDER CONTRACTS

On August 24, 2026, the National Assembly passed Law No. 22/2026/QH16, amending and supplementing a number of provisions of the Law on Vietnamese Workers Going Abroad to Work under Contracts.

Accordingly, the contract for sending Vietnamese workers abroad to work, entered into between a service enterprise and a worker, must include the following principal contents:

• The rights and obligations of the service enterprise and the worker, in accordance with the approved labor supply contract.
• The service fee collected by the service enterprise from the worker and other fees that the enterprise is permitted to collect (if any).
• A deposit, if applicable.
• Conditions under which either party may unilaterally terminate the contract.
• Methods of dispute resolution and compensation for damages.

Notably, the Law specifically provides for:

• The template of the contract for sending Vietnamese workers abroad to work; and
• The fees and other amounts that service enterprises are permitted to collect from workers.

Accordingly, once the relevant provisions take effect, the collection of fees from workers must not only be specified in the contract but must also fall within the categories prescribed by the Minister of Home Affairs.

OFFICIAL LETTER NO. 1363/LĐLĐ ON THE PAYMENT OF 2% TRADE UNION FUND CONTRIBUTIONS, COLLECTION OF TRADE UNION MEMBERSHIP FEES, AND RECTIFICATION OF GRASSROOTS TRADE UNION FINANCIAL MANAGEMENT

On August 19, 2026, the Ho Chi Minh City Federation of Labor issued Official Letter No. 1363/LĐLĐ on the payment of 2% trade union fund contributions, collection of trade union membership fees, and rectification of financial management at grassroots trade unions.

Accordingly, Talentnet would like to summarize the following provisions relevant to Human Resources and payroll matters:

1. Contribution rate: Entities subject to the 2% trade union fund contribution (Kinh phi Cong doan – KPCD) under applicable regulations are required to make the contribution, regardless of whether or not a grassroots trade union has been established.

2. Payment of trade union fund contributions via the centralized collection account of the Vietnam General Confederation of Labor:

• Business entities are required to pay the 2% trade union fund contribution via the centralized collection account of the Vietnam General Confederation of Labor from September 1, 2026.
• Entities that have not yet registered for an identification account will not be able to make payments via this centralized collection account. Therefore, such entities are required to promptly register and submit the relevant information to the Ho Chi Minh City Federation of Labor (through the local area management working group).

3. Collection of trade union membership fees: For entities that have established a grassroots trade union, the grassroots trade union is requested to collect trade union membership fees (Doan phi Cong doan – DPCD) in accordance with the regulations of the Vietnam General Confederation of Labor.

• Before July 1, 2025: Trade union membership fee = 1%, pursuant to Decision No. 1408/QĐ-TLĐ.
• From July 1, 2025: Trade union membership fee = 0.5%, pursuant to Decision No. 61/QĐ-TLĐ.

GUIDANCE ON PERSONAL INCOME TAX (PIT)

1. PAYMENTS MADE AFTER TERMINATION OF EMPLOYMENT

Regarding payments made after termination of employment, Official Letter No. 43042/HAN-QLDN5 dated August 20, 2026, and Official Letter No. 12004/TTPHCM-QLDN3 dated August 26, 2026, issued by the tax authorities of Ho Chi Minh City provide clarification on the 10% personal income tax (PIT) withholding applicable to salary and wage payments made to employees whose employment contracts (labor contracts – HDLD) have been terminated.

Accordingly, for payments of VND 5 million or more per payment, the Company is responsible for withholding PIT at the rate of 10% on the total taxable income from salaries and wages, pursuant to Clause 2, Article 50 of Decree No. 253/2026/ND-CP.

For salary and wage payments for unused annual leave days, if the payment satisfies the conditions prescribed under Clause 3, Article 113 of the Labor Code, such payment is exempt from PIT. Where salary and wage payments for unused leave days exceed the statutory limit, the excess amount shall be included in taxable income.

Regarding severance allowance and redundancy allowance, if such allowances are paid in accordance with applicable regulations, they are exempt from PIT pursuant to Clause 8, Article 4 of the 2025 Law on Personal Income Tax and Article 26 of Decree No. 253/2026/ND-CP.

2. DEDUCTIONS FOR MEDICAL AND EDUCATION/TRAINING EXPENSES

The Ninh Binh Provincial Tax Authority issued Official Letter No. 11805/NBI-QLDN1 dated September 9, 2026, and the Hanoi Tax Authority issued Official Letter No. 47199/HAN-QLDN5 dated September 18, 2026, providing guidance on certain issues concerning deductions for medical and education/training expenses.

Accordingly, employees who incur medical or education/training expenses satisfying the conditions under Article 49 of Decree No. 253/2026/ND-CP may request deductions for such expenses from their income before calculating PIT, provided that they have complete and valid supporting documents, invoices, and records, including:

• Medical expenses must be supported by a detailed statement of medical examination and treatment expenses as prescribed;
• Invoices must contain complete information of the taxpayer or the taxpayer’s dependent; and
• Such expenses must not be simultaneously paid from other sources of support that are not directly borne by the employee.

Income received by employees in connection with medical and education/training expenses specified at Points b, g, and i, Clause 4, Article 8 of Decree No. 253/2026/ND-CP is considered income that is not in the nature of salary or wages and is therefore not included in PIT-taxable income. Accordingly, these amounts are not included as deductions when determining PIT-taxable income, including:

• Support for critical illnesses: The employer provides support to employees and their family members based on valid invoices and supporting documents, within the actual expenses incurred after deducting any amount covered by insurance (if any).
• Tuition fees for children: The employer pays tuition fees for the children of foreign employees working in Vietnam or Vietnamese employees working overseas, from preschool through high school.
• Training expenses: The employer pays for training and professional/skills development expenses for employees where such training is relevant to their professional duties or in accordance with the employer’s training plan.

Medical expenses for critical illnesses that qualify for tax deduction under Article 40 of Decree No. 253/2026/ND-CP shall not be included as deductions when determining PIT-taxable income.

However, employees applying for these deductions must personally conduct their PIT finalization and may not authorize the Company to conduct the PIT finalization on their behalf.

Talentnet recommends that, as these are guidelines issued by local tax authorities, Customers should continue to monitor further guidance from the Tax Department (General Department of Taxation) to establish an appropriate basis for implementation.

Sincerely,
Talentnet Corporation.