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| Workers at PetroVietnam carry out technical checks. Fitch Ratings last month assigned PVN first-time long-term foreign-currency issuer default rating (IDR) at 'BB' with a positive outlook__Photo: VNA |
The Government on October 15 issued Decree 132/2024/ND-CP, adopting new policies toward employees participating in the implementation of overseas oil and gas projects.
Accordingly, in case employees are assigned by investors (employers) to permanently work in organizations engaged in the implementation of overseas oil and gas projects under agreements between investors and partners in which the employees’ wages, bonuses, allowances and insurance benefits are included in expenses for tax calculation of such projects before being transferred to investors for payment to the employees, the employees will be entitled to wages, bonuses and allowances under labor contracts and agreements with the investors. Investors may apply foreign-currency wage tables to these employees as a basis for the performance of social insurance, health insurance and unemployment insurance obligations and making of other compulsory contributions in accordance with Vietnam’s law.
In case these employees’ allowances and compulsory insurance premiums are not accounted into expenses for tax calculation of such projects, investors may deduct certain amounts from their production and business costs and from employees’ personal income for the performance of social insurance, health insurance and unemployment insurance obligations and payment of other compulsory contributions for employees in accordance with Vietnam’s law.-
Huy Hoang
