{"id":9743,"date":"2026-09-07T10:45:48","date_gmt":"2026-09-07T03:45:48","guid":{"rendered":"https:\/\/ketoan.man.net.vn\/?p=9743"},"modified":"2026-09-07T10:45:48","modified_gmt":"2026-09-07T03:45:48","slug":"cong-van-13751-don-qldn1","status":"publish","type":"post","link":"https:\/\/ketoan.man.net.vn\/en\/cong-van-13751-don-qldn1\/","title":{"rendered":"Official Document 13751\/DON-QLDN1: Social insurance contributions are deductible when calculating personal income tax for foreign workers."},"content":{"rendered":"<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Official Letter 13751\/DON-QLDN1 is a response from the tax authority clarifying a common issue faced by many businesses employing foreign workers when settling personal income tax (PIT): whether social insurance contributions for foreign workers can be deducted when determining taxable income from salaries and wages, and under what principle this deduction applies. <\/span><strong><span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/thuvienphapluat.vn\/van-ban\/Thue-Phi-Le-Phi\/Nghi-dinh-253-2026-ND-CP-huong-dan-Luat-Thue-thu-nhap-ca-nhan-699193.aspx\" target=\"_blank\" rel=\"noopener\">Decree 253\/2026\/ND-CP<\/a><\/span><\/strong><span style=\"font-weight: 400;\"> Officially effective from the 2026 tax year. This article summarizes all the legal basis and practical application of the new regulations. <\/span><strong><span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/luatvietnam.vn\/thue\/cong-van-13751-don-qldn1-2026-cua-thue-dong-nai-ve-chinh-sach-thue-thu-nhap-ca-nhan-441555-d6.html\" target=\"_blank\" rel=\"noopener\">Official document 13751\/DON-QLDN1<\/a><\/span><\/strong><span style=\"font-weight: 400;\">This helps payroll accountants process payments correctly from the start, avoiding the disallowance of expenses or the underestimation of employee benefits.<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_76 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Index<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewbox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewbox=\"0 0 24 24\" version=\"1.2\" baseprofile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/ketoan.man.net.vn\/en\/cong-van-13751-don-qldn1\/#Vi_sao_Cong_van_13751DON-QLDN1_dang_duoc_ke_toan_tien_luong_dac_biet_quan_tam\" >Why is Official Document 13751\/DON-QLDN1 receiving special attention from payroll accountants?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/ketoan.man.net.vn\/en\/cong-van-13751-don-qldn1\/#Can_cu_phap_ly_ma_Cong_van_13751DON-QLDN1_dan_chieu\" >The legal basis cited in Official Letter 13751\/DON-QLDN1<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/ketoan.man.net.vn\/en\/cong-van-13751-don-qldn1\/#Dieu_38_Luat_Quan_ly_thue_2025_Co_so_de_co_quan_thue_ban_hanh_huong_dan\" >Article 38 of the 2025 Tax Administration Law: Basis for tax authorities to issue guidelines.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/ketoan.man.net.vn\/en\/cong-van-13751-don-qldn1\/#Dieu_kien_ca_nhan_cu_tru_theo_khoan_1_Dieu_4_Nghi_dinh_2532026ND-CP\" >Personal residency requirements as stipulated in Clause 1, Article 4 of Decree 253\/2026\/ND-CP.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/ketoan.man.net.vn\/en\/cong-van-13751-don-qldn1\/#Cac_khoan_bao_hiem_duoc_tru_theo_khoan_2_Dieu_46_Nghi_dinh_2532026ND-CP\" >Insurance premiums are deductible according to Clause 2, Article 46 of Decree 253\/2026\/ND-CP.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/ketoan.man.net.vn\/en\/cong-van-13751-don-qldn1\/#Truong_hop_dong_bao_hiem_bat_buoc_o_nuoc_ngoai\" >Cases where mandatory insurance is paid abroad.<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/ketoan.man.net.vn\/en\/cong-van-13751-don-qldn1\/#Ket_luan_cua_Cong_van_va_cach_doanh_nghiep_ap_dung\" >Conclusion of the Official Letter and how businesses should apply it.\u00a0<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/ketoan.man.net.vn\/en\/cong-van-13751-don-qldn1\/#Quy_trinh_xac_dinh_khoan_BHXH_duoc_tru_cho_lao_dong_nuoc_ngoai\" >Procedure for determining deductible social insurance contributions for foreign workers.<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/ketoan.man.net.vn\/en\/cong-van-13751-don-qldn1\/#Thoi_diem_ap_dung_va_luu_y_ve_hieu_luc_thi_hanh\" >Time of application and notes on effective date.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/ketoan.man.net.vn\/en\/cong-van-13751-don-qldn1\/#Nhung_sai_sot_thuong_gap_khi_ap_dung_Cong_van\" >Common mistakes when applying official documents.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/ketoan.man.net.vn\/en\/cong-van-13751-don-qldn1\/#Doanh_nghiep_nen_lam_gi_de_tuan_thu_dung_quy_dinh\" >What should businesses do to ensure compliance with regulations?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/ketoan.man.net.vn\/en\/cong-van-13751-don-qldn1\/#Ket_luan\" >Conclude<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/ketoan.man.net.vn\/en\/cong-van-13751-don-qldn1\/#Thong_tin_lien_he_MAN_%E2%80%93_Master_Accountant_Network\" >Contact information MAN \u2013 Master Accountant Network<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/ketoan.man.net.vn\/en\/cong-van-13751-don-qldn1\/#Cau_hoi_thuong_gap_ve_Cong_van_13751DON-QLDN1\" >Frequently Asked Questions about Official Document 13751\/DON-QLDN1<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/ketoan.man.net.vn\/en\/cong-van-13751-don-qldn1\/#Cong_van_13751DON-QLDN1_ap_dung_cho_doi_tuong_nao\" >Which entities are covered by Official Document 13751\/DON-QLDN1?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/ketoan.man.net.vn\/en\/cong-van-13751-don-qldn1\/#Khoan_BHXH_dong_o_nuoc_ngoai_co_duoc_tru_khi_tinh_thue_TNCN_tai_Viet_Nam_khong\" >Are social insurance contributions paid abroad deductible when calculating personal income tax in Vietnam?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/ketoan.man.net.vn\/en\/cong-van-13751-don-qldn1\/#Ca_nhan_khong_du_dieu_kien_cu_tru_co_duoc_ap_dung_khoan_tru_theo_Cong_van_khong\" >Can individuals who do not meet the residency requirements be subject to the deduction as stipulated in the Official Letter?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/ketoan.man.net.vn\/en\/cong-van-13751-don-qldn1\/#Cong_van_13751DON-QLDN1_va_Nghi_dinh_2532026ND-CP_ap_dung_tu_thoi_diem_nao\" >From what date do Official Document 13751\/DON-QLDN1 and Decree 253\/2026\/ND-CP come into effect?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/ketoan.man.net.vn\/en\/cong-van-13751-don-qldn1\/#Bao_hiem_nhan_tho_bao_hiem_huu_tri_tu_nguyen_co_thuoc_pham_vi_duoc_tru_khong\" >Are life insurance and voluntary retirement insurance policies eligible for tax deductions?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Vi_sao_Cong_van_13751DON-QLDN1_dang_duoc_ke_toan_tien_luong_dac_biet_quan_tam\"><\/span><b>Why is Official Document 13751\/DON-QLDN1 receiving special attention from payroll accountants?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">From July 1st, 2026, Decree 253\/2026\/ND-CP on personal income tax officially takes effect and applies to income from salaries and wages of resident individuals starting from the 2026 tax year. This change in the legal framework has caused considerable confusion for many businesses employing foreign workers in determining which social insurance contributions of foreign workers can be deducted before calculating personal income tax, and how to handle cases where workers continue to pay mandatory social insurance abroad while working in Vietnam.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Official document 13751\/DON-QLDN1 of 2026 directly answers this question. This is not a new legal document but rather guidance on application, based on existing regulations.<\/span><strong><span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/vanban.chinhphu.vn\/?pageid=27160&amp;docid=216541&amp;classid=1&amp;typegroupid=3\" target=\"_blank\" rel=\"noopener\"> Tax Administration Law 2025<\/a><\/span><\/strong><span style=\"font-weight: 400;\"> Although it is based on Decree 253\/2026\/ND-CP, it has great practical value because it accurately addresses common situations faced by FDI enterprises, representative offices, and businesses employing foreign experts.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">For payroll accountants, a thorough understanding of Circular 13751\/DON-QLDN1 offers two specific benefits: accurately calculating taxable personal income from the payment period, avoiding retroactive adjustments during annual tax settlement; and providing a solid basis for explaining to tax authorities when foreign workers&#039; payroll records are reviewed.<\/span><\/p>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Can_cu_phap_ly_ma_Cong_van_13751DON-QLDN1_dan_chieu\"><\/span><b>The legal basis cited in Official Letter 13751\/DON-QLDN1<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<figure id=\"attachment_9745\" aria-describedby=\"caption-attachment-9745\" style=\"width: 1200px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-9745\" src=\"https:\/\/ketoan.man.net.vn\/wp-content\/uploads\/2026\/09\/Can-cu-phap-ly-ma-Cong-van-13751_DON-QLDN1-dan-chieu.jpg\" alt=\"C\u0103n c\u1ee9 ph\u00e1p l\u00fd m\u00e0 C\u00f4ng v\u0103n 13751\/DON-QLDN1 d\u1eabn chi\u1ebfu\" width=\"1200\" height=\"675\" srcset=\"https:\/\/ketoan.man.net.vn\/wp-content\/uploads\/2026\/09\/Can-cu-phap-ly-ma-Cong-van-13751_DON-QLDN1-dan-chieu.jpg 1200w, https:\/\/ketoan.man.net.vn\/wp-content\/uploads\/2026\/09\/Can-cu-phap-ly-ma-Cong-van-13751_DON-QLDN1-dan-chieu-300x169.jpg 300w, https:\/\/ketoan.man.net.vn\/wp-content\/uploads\/2026\/09\/Can-cu-phap-ly-ma-Cong-van-13751_DON-QLDN1-dan-chieu-1024x576.jpg 1024w, https:\/\/ketoan.man.net.vn\/wp-content\/uploads\/2026\/09\/Can-cu-phap-ly-ma-Cong-van-13751_DON-QLDN1-dan-chieu-768x432.jpg 768w, https:\/\/ketoan.man.net.vn\/wp-content\/uploads\/2026\/09\/Can-cu-phap-ly-ma-Cong-van-13751_DON-QLDN1-dan-chieu-18x10.jpg 18w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/><figcaption id=\"caption-attachment-9745\" class=\"wp-caption-text\">The legal basis cited in Official Letter 13751\/DON-QLDN1<\/figcaption><\/figure>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The entire guidance in Official Letter 13751\/DON-QLDN1 is based on three groups of legal grounds: the authority of the tax agency to provide guidance, the conditions for determining individual residency, and regulations on deductible items when calculating taxable personal income.<\/span><\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Dieu_38_Luat_Quan_ly_thue_2025_Co_so_de_co_quan_thue_ban_hanh_huong_dan\"><\/span><b>Article 38 of the 2025 Tax Administration Law: Basis for tax authorities to issue guidelines.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Official document 13751\/DON-QLDN1 is primarily based on the duties of the tax administration agency as stipulated in Article 38 of the 2025 Tax Administration Law, which clearly states that the tax authority has the following duties:<\/span><\/p>\n<blockquote><p><i><span style=\"font-weight: 400;\">Disseminating, publicizing, guiding, and explaining tax laws to taxpayers; publicly disclosing tax administrative procedures, voluntary compliance incentive programs, and preferential treatment at provincial and commune-level public administrative service centers, on the Tax Management Information System, and through mass media.<\/span><\/i><\/p><\/blockquote>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">This is why Official Letter 13751\/DON-QLDN1 is valuable as an official channel for clarification from the tax authorities. Although it is not a legal document, businesses should still consider it as a consistent basis for application when handling similar cases.<\/span><\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Dieu_kien_ca_nhan_cu_tru_theo_khoan_1_Dieu_4_Nghi_dinh_2532026ND-CP\"><\/span><b>Personal residency requirements as stipulated in Clause 1, Article 4 of Decree 253\/2026\/ND-CP.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The first key point of Official Letter 13751\/DON-QLDN1 is to determine whether foreign workers fall under the category of &quot;resident individuals,&quot; because only resident individuals are eligible for the deduction of social insurance contributions as guided in this official letter. Clause 1, Article 4 of Decree 253\/2026\/ND-CP stipulates:<\/span><\/p>\n<blockquote><p><i><span style=\"font-weight: 400;\">Being present in Vietnam for 183 days or more within a calendar year or within 12 consecutive months from the first day of arrival in Vietnam. For individuals entering and exiting the country, the day of arrival is counted as one day, the day of departure is counted as one day, and if entry and exit occur on the same day, it is counted as one day of residence.<\/span><\/i><\/p><\/blockquote>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The arrival and departure dates are determined based on the certification of the immigration authorities on the passport, travel document, or other documents related to the individual&#039;s purpose of entry and exit. For foreign workers who frequently travel between Vietnam and their host country, payroll accountants need to carefully compare their entry and exit schedules to determine their residency status before applying any deductions as per Circular 13751\/DON-QLDN1.<\/span><\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Cac_khoan_bao_hiem_duoc_tru_theo_khoan_2_Dieu_46_Nghi_dinh_2532026ND-CP\"><\/span><b>Insurance premiums are deductible according to Clause 2, Article 46 of Decree 253\/2026\/ND-CP.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">After determining the individual&#039;s residency status, Official Letter 13751\/DON-QLDN1 refers to Clause 2, Article 46 of Decree 253\/2026\/ND-CP to determine taxable income from salaries and wages. Accordingly, taxable income equals the total taxable income stipulated in Article 8 of the Decree minus the following amounts:<\/span><\/p>\n<blockquote><p><i><span style=\"font-weight: 400;\">Social insurance contributions, health insurance contributions, unemployment insurance contributions, professional liability insurance contributions for certain industries and professions that are required to participate in mandatory insurance, voluntary social insurance contributions according to the Social Insurance Law, voluntary health insurance contributions according to the Health Insurance Law, supplementary retirement insurance contributions according to the Social Insurance Law, voluntary retirement insurance purchases, and life insurance.<\/span><\/i><\/p><\/blockquote>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Thus, the scope of deductible expenses according to Official Letter 13751\/DON-QLDN1 is quite broad, including both mandatory insurance and some types of voluntary insurance, as long as they are of the correct type listed in the above clause. This is the list that payroll accountants need to cross-check line by line when separating deductions on the payroll of foreign workers.<\/span><\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Truong_hop_dong_bao_hiem_bat_buoc_o_nuoc_ngoai\"><\/span><b>Cases where mandatory insurance is paid abroad.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The most important point clarified by Official Letter 13751\/DON-QLDN1 is the specific case of foreign workers: individuals residing in Vietnam but earning income from salaries and wages abroad and having participated in mandatory insurance contributions as prescribed by the country where the insurance is paid. Decree 253\/2026\/ND-CP clearly stipulates:<\/span><\/p>\n<blockquote><p><i><span style=\"font-weight: 400;\">In the case of individuals residing in Vietnam who earn income from salaries and wages abroad and have participated in mandatory insurance contributions as prescribed by the country where they pay these contributions, such as social insurance, health insurance, unemployment insurance, and professional liability insurance for certain occupations, these insurance premiums may be deducted from taxable income when determining taxable income from salaries and wages.<\/span><\/i><\/p><\/blockquote>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">This is precisely the point that Circular 13751\/DON-QLDN1 definitively resolves for businesses: even if the mandatory insurance contribution is not paid according to Vietnam&#039;s Social Insurance Law but according to foreign law, employees are still allowed to deduct this mandatory insurance fee when determining their taxable personal income in Vietnam, provided they can prove its &quot;mandatory&quot; nature according to the regulations of the country where the contribution is made.<\/span><\/p>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Ket_luan_cua_Cong_van_va_cach_doanh_nghiep_ap_dung\"><\/span><b>Conclusion of the Official Letter and how businesses should apply it.\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Based on the above, Official Letter 13751\/DON-QLDN1 directly concludes: in the case of foreign employees at the company who are resident individuals as stipulated in Clause 1, Article 4 of Decree 253\/2026\/ND-CP, when determining taxable income for salaries and wages, taxpayers are allowed to deduct social insurance contributions according to the Social Insurance Law 2024. This serves as a guideline for businesses to apply uniformly to all salary records of foreign employees in 2026.<\/span><\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Quy_trinh_xac_dinh_khoan_BHXH_duoc_tru_cho_lao_dong_nuoc_ngoai\"><\/span><b>Procedure for determining deductible social insurance contributions for foreign workers.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">To properly implement the spirit of Official Letter 13751\/DON-QLDN1, payroll accountants should follow these four steps:<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Determine your residency status: <\/b><span style=\"font-weight: 400;\">Compare the entry and exit schedule with the 183-day condition in Clause 1, Article 4 of Decree 253\/2026\/ND-CP.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Identify the type of insurance you are currently paying: <\/b><span style=\"font-weight: 400;\">Clearly categorize the contributions as either mandatory social insurance, health insurance, and unemployment insurance under the 2024 Social Insurance Law, or mandatory insurance contributions under foreign laws.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Gather supporting documents: <\/b><span style=\"font-weight: 400;\">For insurance policies paid overseas, documentation proving their mandatory nature as required by the regulations of that country and the actual amount paid during the period is required.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Deduct it directly from taxable income: <\/b><span style=\"font-weight: 400;\">Applying the formula in Clause 2, Article 46 of Decree 253\/2026\/ND-CP, deduct the eligible insurance amount from the total taxable income before calculating the personal income tax payable.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><b>For example:<\/b><span style=\"font-weight: 400;\"> Mr. B is a foreign expert working at a foreign direct investment (FDI) enterprise, present in Vietnam for 220 days in 2026, thus qualifying him as a resident. Mr. B continues to pay mandatory social insurance contributions according to the laws of his home country at a rate equivalent to 40 million VND\/year, and also receives income from his salary in Vietnam.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">According to the guidance in Official Letter 13751\/DON-QLDN1, the 40 million VND in mandatory insurance contributions that Mr. B paid abroad can be deducted from taxable income when determining personal income tax in Vietnam, provided that the enterprise retains complete documentation proving the mandatory nature of these contributions as required by the regulations of that country.<\/span><\/p>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Thoi_diem_ap_dung_va_luu_y_ve_hieu_luc_thi_hanh\"><\/span><b>Time of application and notes on effective date.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">According to Clause 1, Article 69 of Decree 253\/2026\/ND-CP, this Decree takes effect from July 1, 2026. However, regulations related to income from business activities and salaries\/wages of resident individuals will apply immediately from the 2026 tax year. This means that the guidance in the Official Letter will apply throughout the entire 2026 tax year, not just from the date the document takes effect.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Businesses employing foreign workers need to review all personal income tax deduction periods from the beginning of 2026 to ensure that social insurance contributions are deducted in accordance with the spirit of the Official Letter, avoiding situations where taxes were withheld from employees in periods prior to the issuance of this document.<\/span><\/p>\n<blockquote><p><b>Reference:<\/b> <strong><span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/ketoan.man.net.vn\/en\/tien-luong-dong-bhxh-doi-voi-lao-dong-nuoc-ngoai\/\">How to determine the salary used for calculating social insurance contributions for foreign workers.<\/a><\/span><\/strong><\/p><\/blockquote>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Nhung_sai_sot_thuong_gap_khi_ap_dung_Cong_van\"><\/span><b>Common mistakes when applying official documents.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Firstly, the residency requirement is overlooked. Some businesses apply social insurance deductions for foreign workers without clearly verifying whether the individual meets the residency requirements as stipulated in Clause 1, Article 4 of Decree 253\/2026\/ND-CP.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Secondly, a lack of documentation proving mandatory overseas insurance. This is the most common mistake when applying the Official Letter, where businesses directly deduct the insurance amount without providing documentation proving that the contribution is mandatory under the laws of the host country.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Third, there is confusion between mandatory and voluntary insurance. Not all insurance premiums paid by foreign workers abroad are deductible; only those mandatory as stipulated by the country are subject to deductions.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Fourth, the regulations have not been updated in a timely manner since the beginning of the 2026 tax period. Due to the retroactive application of the regulations from the 2026 tax period, businesses that are slow to update the Official Letter may have to readjust previous deduction periods.<\/span><\/p>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Doanh_nghiep_nen_lam_gi_de_tuan_thu_dung_quy_dinh\"><\/span><b>What should businesses do to ensure compliance with regulations?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<figure id=\"attachment_9746\" aria-describedby=\"caption-attachment-9746\" style=\"width: 1200px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-9746\" src=\"https:\/\/ketoan.man.net.vn\/wp-content\/uploads\/2026\/09\/Doanh-nghiep-nen-lam-gi-de-tuan-thu-dung-Cong-van-13751_DON-QLDN1.jpg\" alt=\"Doanh nghi\u1ec7p n\u00ean l\u00e0m g\u00ec \u0111\u1ec3 tu\u00e2n th\u1ee7 \u0111\u00fang C\u00f4ng v\u0103n 13751\/DON-QLDN1\" width=\"1200\" height=\"675\" srcset=\"https:\/\/ketoan.man.net.vn\/wp-content\/uploads\/2026\/09\/Doanh-nghiep-nen-lam-gi-de-tuan-thu-dung-Cong-van-13751_DON-QLDN1.jpg 1200w, https:\/\/ketoan.man.net.vn\/wp-content\/uploads\/2026\/09\/Doanh-nghiep-nen-lam-gi-de-tuan-thu-dung-Cong-van-13751_DON-QLDN1-300x169.jpg 300w, https:\/\/ketoan.man.net.vn\/wp-content\/uploads\/2026\/09\/Doanh-nghiep-nen-lam-gi-de-tuan-thu-dung-Cong-van-13751_DON-QLDN1-1024x576.jpg 1024w, https:\/\/ketoan.man.net.vn\/wp-content\/uploads\/2026\/09\/Doanh-nghiep-nen-lam-gi-de-tuan-thu-dung-Cong-van-13751_DON-QLDN1-768x432.jpg 768w, https:\/\/ketoan.man.net.vn\/wp-content\/uploads\/2026\/09\/Doanh-nghiep-nen-lam-gi-de-tuan-thu-dung-Cong-van-13751_DON-QLDN1-18x10.jpg 18w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/><figcaption id=\"caption-attachment-9746\" class=\"wp-caption-text\">What should businesses do to comply with Official Letter 13751\/DON-QLDN1?<\/figcaption><\/figure>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">With the volume of tax laws constantly changing in 2026, from the 2025 Tax Administration Law, the 2025 Personal Income Tax Law, to Decree 253\/2026\/ND-CP and guiding documents such as Official Letter 13751\/DON-QLDN1, continuously updating and accurately applying them to each foreign worker&#039;s file requires continuous professional resources.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">If a business does not have an accounting department with sufficient expertise in personal income tax for foreign workers, the solution is...<\/span><strong><span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/ketoan.man.net.vn\/en\/dich-vu-ke-toan-tron-goi\/\"> full accounting service<\/a><\/span><\/strong><span style=\"font-weight: 400;\"> With expertise from specialized units like MAN \u2013 Master Accountant Network, we ensure that all deductions and declarations adhere to the latest guidelines.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">For more complex cases, such as foreign workers with income from multiple countries, or businesses needing to review deduction periods before this document is issued, the team will...<\/span><strong><span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/ketoan.man.net.vn\/en\/tu-van-dich-vu-ke-toan\/\"> accounting consulting services<\/a><\/span><\/strong><span style=\"font-weight: 400;\"> MAN&#039;s services can assist in cross-referencing specific records, avoiding the risk of being subject to back taxes during tax audits.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">For FDI businesses or representative offices with a large number of foreign employees but wanting to optimize the operating costs of their internal accounting department, the following solution is recommended:<\/span><strong><span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/ketoan.man.net.vn\/en\/thue-dich-vu-ke-toan-ngoai\/\"> outsource accounting services<\/a><\/span><\/strong><span style=\"font-weight: 400;\"> This option helps to keep up-to-date with all changes in personal income tax policies without maintaining a large internal team.<\/span><\/p>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Ket_luan\"><\/span><b>Conclude<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Official document 13751\/DON-QLDN1 addresses a common and practical issue faced by businesses employing foreign workers: mandatory social insurance contributions paid by employees abroad can still be deducted when determining taxable personal income in Vietnam, provided that the employee is a resident individual according to Decree 253\/2026\/ND-CP and has complete documentation proving the mandatory nature of the contribution.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Three key points to remember when applying this:<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The correct residency status must be determined before any deductions can be considered;<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The list of deductible insurance items adheres closely to Clause 2, Article 46 of Decree 253\/2026\/ND-CP;<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">And the regulation, which will apply throughout the 2026 tax year, requires businesses to review all deduction periods prior to the issuance of the document.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><a href=\"https:\/\/ketoan.man.net.vn\/en\/lien-he\/\"><span style=\"font-weight: 400;\"><strong><span style=\"color: #0000ff;\">Contact MAN \u2013 Master Accountant Network<\/span><\/strong><\/span><\/a><span style=\"font-weight: 400;\"> For timely advice and support!<\/span><\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Thong_tin_lien_he_MAN_%E2%80%93_Master_Accountant_Network\"><\/span><b>Contact information MAN \u2013 Master Accountant Network<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Address:<\/b><span style=\"font-weight: 400;\"> No. 19A, Street 43, Tan Thuan Ward, Ho Chi Minh City<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Mobile\/Zalo:<\/b><span style=\"font-weight: 400;\"> 0903 963 163 \u2013 0903 428 622<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>E-mail:<\/b><span style=\"font-weight: 400;\"> man@man.net.vn<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Google Business Profile:<\/b> <strong><span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/share.google\/EmihzHg354pCASC9k\" target=\"_blank\" rel=\"noopener\">View MAN \u2013 Master Accountant Network&#039;s Google Business Profile\u00a0<\/a><\/span><\/strong><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>LinkedIn Founder:<\/b> <a href=\"https:\/\/www.linkedin.com\/in\/tuy%C3%AAn-l%C3%AA-ho%C3%A0ng-65292aa0\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\"><strong><span style=\"color: #0000ff;\">View expert Le Hoang Tuyen&#039;s LinkedIn profile.<\/span><\/strong>\u00a0<\/span><\/a><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Responsible for production and professional content review by: Mr. <\/span><strong><span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/man.net.vn\/le-hoang-tuyen\/\" target=\"_blank\" rel=\"noopener\">Le Hoang Tuyen \u2013 Founder &amp; CEO of MAN \u2013 Master Accountant Network<\/a><\/span><\/strong><span style=\"font-weight: 400;\">He is a CPA Vietnam auditor with over 30 years of in-depth experience in accounting, auditing, taxation, and corporate legal consulting.<\/span><\/p>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Cau_hoi_thuong_gap_ve_Cong_van_13751DON-QLDN1\"><\/span><b>Frequently Asked Questions about Official Document 13751\/DON-QLDN1<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Cong_van_13751DON-QLDN1_ap_dung_cho_doi_tuong_nao\"><\/span><b>Which entities are covered by Official Document 13751\/DON-QLDN1?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Official document 13751\/DON-QLDN1 applies to foreign workers who are individuals residing in Vietnam according to Clause 1, Article 4 of Decree 253\/2026\/ND-CP, and who have income from salaries and wages and contribute to social insurance.<\/span><\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Khoan_BHXH_dong_o_nuoc_ngoai_co_duoc_tru_khi_tinh_thue_TNCN_tai_Viet_Nam_khong\"><\/span><b>Are social insurance contributions paid abroad deductible when calculating personal income tax in Vietnam?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Yes, if it is mandatory insurance as required by the country where the individual is registered, including social insurance, health insurance, unemployment insurance, mandatory professional liability insurance, and there is supporting documentation.<\/span><\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Ca_nhan_khong_du_dieu_kien_cu_tru_co_duoc_ap_dung_khoan_tru_theo_Cong_van_khong\"><\/span><b>Can individuals who do not meet the residency requirements be subject to the deduction as stipulated in the Official Letter?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">No. The deduction of social insurance contributions as guided in Official Letter 13751\/DON-QLDN1 only applies when the foreign worker is determined to be a resident individual according to Clause 1, Article 4 of Decree 253\/2026\/ND-CP.<\/span><\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Cong_van_13751DON-QLDN1_va_Nghi_dinh_2532026ND-CP_ap_dung_tu_thoi_diem_nao\"><\/span><b>From what date do Official Document 13751\/DON-QLDN1 and Decree 253\/2026\/ND-CP come into effect?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Decree 253\/2026\/ND-CP takes effect from July 1, 2026, except for the regulations on income from salaries and wages of resident individuals, which apply from the tax year 2026; Official Letter 13751\/DON-QLDN1 provides guidance on application in accordance with this scope of effect.<\/span><\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Bao_hiem_nhan_tho_bao_hiem_huu_tri_tu_nguyen_co_thuoc_pham_vi_duoc_tru_khong\"><\/span><b>Are life insurance and voluntary retirement insurance policies eligible for tax deductions?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Yes, voluntary retirement insurance contributions and life insurance contributions are also deductible under Clause 2, Article 46 of Decree 253\/2026\/ND-CP, as referenced in Official Letter 13751\/DON-QLDN1.<\/span><\/p>","protected":false},"excerpt":{"rendered":"<p>C\u00f4ng v\u0103n 13751\/DON-QLDN1 l\u00e0 v\u0103n b\u1ea3n tr\u1ea3 l\u1eddi c\u1ee7a c\u01a1 quan thu\u1ebf nh\u1eb1m l\u00e0m r\u00f5 m\u1ed9t v\u01b0\u1edbng m\u1eafc m\u00e0 r\u1ea5t nhi\u1ec1u doanh nghi\u1ec7p c\u00f3 lao \u0111\u1ed9ng n\u01b0\u1edbc ngo\u00e0i g\u1eb7p ph\u1ea3i khi quy\u1ebft to\u00e1n thu\u1ebf thu nh\u1eadp c\u00e1 nh\u00e2n (TNCN): kho\u1ea3n \u0111\u00f3ng b\u1ea3o hi\u1ec3m x\u00e3 h\u1ed9i (BHXH) c\u1ee7a ng\u01b0\u1eddi lao \u0111\u1ed9ng n\u01b0\u1edbc ngo\u00e0i c\u00f3 \u0111\u01b0\u1ee3c tr\u1eeb [&hellip;]<\/p>","protected":false},"author":4,"featured_media":9744,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-9743","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog"],"acf":[],"_links":{"self":[{"href":"https:\/\/ketoan.man.net.vn\/en\/wp-json\/wp\/v2\/posts\/9743","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ketoan.man.net.vn\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ketoan.man.net.vn\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ketoan.man.net.vn\/en\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/ketoan.man.net.vn\/en\/wp-json\/wp\/v2\/comments?post=9743"}],"version-history":[{"count":1,"href":"https:\/\/ketoan.man.net.vn\/en\/wp-json\/wp\/v2\/posts\/9743\/revisions"}],"predecessor-version":[{"id":9747,"href":"https:\/\/ketoan.man.net.vn\/en\/wp-json\/wp\/v2\/posts\/9743\/revisions\/9747"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ketoan.man.net.vn\/en\/wp-json\/wp\/v2\/media\/9744"}],"wp:attachment":[{"href":"https:\/\/ketoan.man.net.vn\/en\/wp-json\/wp\/v2\/media?parent=9743"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ketoan.man.net.vn\/en\/wp-json\/wp\/v2\/categories?post=9743"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ketoan.man.net.vn\/en\/wp-json\/wp\/v2\/tags?post=9743"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}