Joint Circular No. 107/2003/TTLT/BTC-BLDTBXH guiding the financial regime for workers and enterprises sending Vietnamese workers to work abroad for a limited period as stipulated in Decree No. 81/2003/NĐ-CP dated July 17, 2003 of the Government detailing and guiding the implementation of the Labor Code on Vietnamese workers working abroad.

1.2. Deposit payments;

1.3. Export labor service fees;

1.4. Training and orientation education fees for workers;

1.5. Social insurance and income tax for workers with high income;

1.6. Labor export brokerage fees;

1.7. Contributions to the labor export support fund;

1.8. Other financial regulations.

2. Enterprises are only permitted to collect deposit payments, labor export service fees, and labor export brokerage fees after the foreign side has accepted the worker for employment or issued a visa.

3. In cases where workers are subsidized for part or all of the costs, enterprises shall not collect from workers the portion of costs that have been subsidized.

4. Enterprises shall not charge workers any additional amounts beyond those specified in Decree No. 81/2003/NĐ-CP and these Circulars.

5. In cases where agreements or cooperation agreements signed between Vietnam and the labor-receiving countries contain provisions different from those in Decree No. 81/2003/NĐ-CP and these Circulars, such agreements or cooperation agreements shall be applied.

6. The process of depositing guarantees by enterprises as stipulated in Clause 5, Article 9 of Decree No. 81/2003/NĐ-CP shall be carried out according to the guidance of the State Bank of Vietnam.

7. The Overseas Labor Management Department under the Ministry of Labor, Invalids and Social Affairs shall collect, manage, and utilize the fees for issuing export labor permits for enterprises sending Vietnamese workers to work abroad for a limited period in accordance with the Law on Fees and Charges and related guiding documents.

8. Subjects under Article 2 of Decree No. 81/2003/NĐ-CP shall be subject to financial activities inspections and audits in accordance with the law.

I. FEES FOR ISSUING EXPORT LABOR PERMITS.

When newly issued or renewed export labor permits are granted, enterprises must pay a fee of VND 4,000,000 (four million dong) to the Overseas Labor Management Department under the Ministry of Labor, Invalids and Social Affairs and this amount shall be recorded as part of the enterprise's labor export activity expenses.

II. DEPOSIT PAYMENTS.

a) Amount and method of deposit payment:

Deposit amount

One round-trip airfare ticket and three months' salary.

- Enterprises shall collect deposit payments in Vietnamese Dong.

- Exchange rate application:

If the deposit is calculated based on US dollars, the average trading exchange rate on the inter-bank foreign exchange market between US dollars and Vietnamese Dong shall be applied; if calculated based on other foreign currencies, the cross-exchange rate between Vietnamese Dong and other foreign currencies announced by the State Bank of Vietnam at the time of collection shall be applied.

For foreign currencies for which the State Bank of Vietnam does not announce a cross-exchange rate with Vietnamese Dong, enterprises shall refer directly to Reuters information on the exchange rates of such foreign currencies against US dollars; the conversion from US dollars to Vietnamese Dong shall apply the average trading exchange rate on the inter-bank foreign exchange market between US dollars and Vietnamese Dong announced by the State Bank of Vietnam at the time of collection.

2. Management of deposit payments:

a) Enterprises shall open a "Deposit Payment" account at a state commercial bank located at the main office of the enterprise (or at a subsidiary unit assigned the task of exporting labor as stipulated in Clause 13, Article 14 of Decree No. 81/2003/NĐ-CP)

and report in writing to the Overseas Labor Management Department about the opening of the "Deposit Payment" account, specifying the account name, account number, and bank where the account was opened.

The opening of the "Deposit Payment" account and depositing the deposit payments into the account shall be carried out in accordance with the guidance of the state commercial bank where the "Deposit Payment" account is opened. and report to the Overseas Labour Management Department in writing on the opening of the "Deposit Account", specifying the account name, account number, and bank where the account was opened.

Within no more than fifteen days from the date of receiving the worker's deposit, the enterprise must deposit the entire amount of the received deposit into the "Deposit Account".

The opening of the "Deposit Account" and the depositing of the deposit into the account shall be carried out in accordance with the guidelines of the state commercial bank where the enterprise opens the "Deposit Account".

b) The enterprise may only withdraw the deposit to pay workers according to the guidance provided in Clause 3, Section II, Part B of this Circular.

c) The entire balance of deposits collected from workers by the enterprise before this Circular takes effect shall be transferred to the account "Deposit" specified in Point a of this Clause and managed and utilized according to the guidance in this Circular.

Payment of deposit is carried out concurrently with the termination of the contract.

Within one month from the date the worker returns to their home country, the enterprise has the responsibility to notify the worker via a "Guarantee Letter" to come for contract termination and must provide additional notifications at least three times within the following six months. The contract termination process is conducted as follows:

a) In the case where the worker (or a legally authorized representative) comes to terminate the contract.

a.1) For workers who have completed the contract:

- If the worker does not cause economic damage to the enterprise, the enterprise must return the full deposit and bank interest to the worker.

- If the worker causes economic damage to the enterprise, the deposit and bank interest of the worker will be used to compensate for damages and reasonable expenses of the enterprise. Any remaining deposit amount (if any) must be returned to the worker by the enterprise.

a.2) For workers who breach the contract or violate the laws of the host country (desertion, fighting, theft, strike...) and must return home before the term: In this case, the worker will not be refunded the deposit. The enterprise and the worker (or a legally authorized representative) shall prepare a Contract Termination Record deducting the deposit and bank interest of the worker to compensate for damages and reasonable expenses of the enterprise. At the latest within fifteen days from the date of contract termination, the enterprise shall submit the entire remaining deposit amount (if any) to the Overseas Labor Export Support Fund, and simultaneously report in writing to the Department of Overseas Labor Management under the Ministry of Labor, Invalids, and Social Affairs.

a.3) In cases of force majeure (natural disasters, war, bankruptcy of the enterprise...) or due to reasons not attributable to the worker's fault, leading to the worker returning home before the term: The enterprise and the worker shall prepare a Contract Termination Record according to the financial conditions initially agreed upon, and return the full deposit and bank interest to the worker.

b) The enterprise may unilaterally terminate the contract in the following cases: If the worker unilaterally abandons the contract to engage in illegal activities or if, after six months from the date the enterprise has issued three "Guarantee Letters", the worker (or a legally authorized representative) does not come to terminate the contract, the enterprise may deduct any damages (if any) from the deposit and bank interest to compensate for damages and reasonable expenses of the enterprise (for cases where the worker causes damage). At the latest within fifteen days from the date of contract termination, the enterprise shall submit the entire remaining amount (if any) to the Overseas Labor Export Support Fund, and simultaneously report in writing to the Department of Overseas Labor Management under the Ministry of Labor, Invalids, and Social Affairs.

The monthly basic salary stipulated in the contract serves as the basis for calculating service fees and does not include overtime pay, bonuses, and other allowances.

For officers and seafarers on cargo ships: The monthly salary stipulated in the contract serves as the basis for calculating service fees and includes both the basic salary and vacation pay.

a) Workers going abroad through labor export enterprises must pay service fees to the enterprise, which should not exceed one month's salary (or vocational allowance) according to the contract for one year of work; for officers and seafarers working on cargo ships, it should not exceed 1.5 months' salary according to the contract for one year of work.

b) The service fee rate must be recorded in the contract.

c) In cases where the worker extends the contract or signs a new contract, the service fee for the extended period or the duration of the new contract shall be calculated according to the provisions of this point. a) clause.

a) The enterprise agrees with the worker to collect labor export service fees once before the worker departs for work abroad or multiple times during the contract execution period. For the extension period of the contract, the enterprise collects the service fee during the extension period or when the worker returns home.

- In cases where the worker must return home before the term due to force majeure (natural disasters, war, bankruptcy of the enterprise...) or reasons not attributable to the worker's fault, the enterprise can only collect service fees based on the actual number of months worked abroad.

- In cases where the worker breaches the contract or violates the laws of the host country (desertion, fighting, theft, strike...) and must return home early or leaves the contract illegally, the enterprise can collect service fees based on the contract term signed with the worker.

b) Type of currency for collecting service fees:

The enterprise and the worker agree on the type of currency for collecting service fees in the contract and implement as follows:

- Collection in Vietnamese Dong: The enterprise collects service fees based on the service fee calculated in foreign currency converted to Vietnamese Dong according to the exchange rate specified in Point b, Clause 1, Section II, Part B of this Circular.

- Collection in foreign currency: The worker is paid in which currency, they must pay the service fee in that currency or strong foreign currency (USD, EURO).

The enterprise must convert the portion of the service fee in foreign currency to Vietnamese Dong according to the exchange rate specified in Point b, Clause 1, Section II, Part B of this Circular for accounting purposes and to fulfill financial obligations according to current regulations.

4. Some examples of calculating labor export service fees (in cases of collection in Vietnamese Dong).

Worker A signed a contract with Enterprise X to work in Malaysia under the following basic conditions: the contract duration is 36 months, the monthly salary according to the contract is 18 RM/day x 26 days/month (468 RM/month); after the contract expires, the worker can extend the contract for an additional 24 months with a salary of 25 RM/day x 26 days/month (650 RM/month). The service fee is determined as follows:

- Service fee according to the contract (cross-exchange rate between the Vietnamese Dong and Malaysian Ringgit at the time of payment is 1 RM = 4.078 VND):

(36/12) x 468 RM x 4.078 VND/RM = 5,725,512 VND.

- Service fee for the extended period (cross-exchange rate between the Vietnamese Dong and Malaysian Ringgit at the time of payment is 1 RM = 4.090 VND):

(24/12) x 650 RM x 4.090 VND/RM = 5,317,000 VND.

Worker B signed a contract with Enterprise Y to work in Taiwan under the following basic conditions: the contract duration is 24 months, the monthly salary according to the contract is 15,840 NT$/month. However, after three months of working in Taiwan, due to difficulties in production, the enterprise could not arrange other work for the worker, so the worker had to return home before the contract term expired.

The service fee is determined as follows:

- Advance service fee paid before departure calculated according to the contract (cross-exchange rate between the Vietnamese Dong and New Taiwan Dollar at the time of payment is 1 NT$ = 455 VND):

(24/12) x 15,840 NT$ x 455 VND/NT$ = 14,414,400 VND.

- The service fee that the enterprise collects from the worker is:

(3/24) x 14,414,400 VND = 1,801,800 VND.

- The service fee that the enterprise must refund to the worker is:

(21/24) x 14,414,400 VND = 12,612,600 VND.

Expert C signed a contract with Enterprise Z under the following basic conditions:

The monthly salary according to the contract is: 1,000 USD/month. The contract duration is 3 years. The exchange rate at the time of payment is 1 USD = 15,300 VND.

The service fee according to the contract is determined as follows:

(36/12) x 1,000 USD x 15,300 VND/USD = 45,900,000 VND.

Sailor D signed a contract with an enterprise to work on a maritime transport ship under the following conditions: the contract duration is 10 months, the monthly salary according to the contract includes a base salary of 400 USD/month, overtime pay of 100 USD/month, and vacation pay of 60 USD/month. The exchange rate at the time of payment is 1 USD = 15,300 VND.

The service fee according to the contract is determined as follows:

(10/12) x 1.5 x (400 USD + 60 USD) x 15,300 VND/USD = 8,797,500 VND.

1. Based on the framework tuition fees set by the State, the Overseas Labor Management Agency stipulates specific collection levels suitable for the content of each training program and the training duration for each market to ensure the maintenance and development of training and orientation education activities.

2. The tuition fee level does not apply in cases where the foreign side covers the costs of training and orientation education for workers before departure.

Workers going to work abroad participate in social insurance in accordance with Circular No. 22/2003/TT-BLDTBXH dated October 13, 2003 of the Ministry of Labor, Invalids, and Social Affairs "Guidelines for Implementing Certain Provisions of Decree No. 81/2003/NĐ-CP dated July 17, 2003 of the Government detailing and guiding the implementation of the Labor Code regarding Vietnamese workers working abroad."

- Workers pay income tax in accordance with current laws applicable to high-income earners.

In cases where workers work in countries that have signed Double Taxation Avoidance Agreements with Vietnam, they shall fulfill their income tax obligations in accordance with the provisions of those agreements.

- Enterprises are responsible for collecting income tax (if any) from workers to submit to the tax authority.

1. Enterprises engaged in labor export are permitted to allocate commissions from service fee revenues to secure labor supply contracts in accordance with current regulations of the Ministry of Finance regarding commission payments in transactions and intermediary exports, and related tax deductions for commission payments.

2. For some markets, workers bear part of the intermediary costs to support enterprises in contract exploitation. The Ministry of Finance and the Ministry of Labor, Invalids, and Social Affairs will base their regulations on the characteristics of each market and the actual situation during each period to determine appropriate intermediary fees. The collection of intermediary fees from workers (if any) must be clearly stated in the contract. Enterprises are responsible for issuing receipts for collected fees, providing transfer documents to foreign partners, and maintaining records of intermediary fee income and expenses. Intermediary fees for labor export paid by workers to foreign intermediaries (foreign companies) are considered agency collections and expenditures and are not subject to taxation in Vietnam.

3. In cases where workers must return home before the contract term due to force majeure (natural disasters, war, business bankruptcy...) or not due to the fault of the worker, the enterprise must request the foreign partner to refund part of the intermediary fees to the worker based on the principle: intermediary fees must be calculated based on the actual number of months worked abroad. If it is impossible to recover from the partner, the enterprise must take measures to support the worker in each specific case. This regulation is not mandatory if the worker has completed two-thirds of the contract term signed with the enterprise.

Enterprises are required to contribute 1% of the service fee revenue from labor export to the Labor Export Support Fund in accordance with the Management Regulations of the Labor Export Support Fund issued by the Ministry of Finance.

Quarterly, enterprises self-report and contribute to the Labor Export Support Fund according to the level specified in Clause 1 of this item. At the latest by the end of the first quarter of the following year, based on the actual service fee revenue, enterprises must contribute the full amount to the Labor Export Support Fund of the previous year. Enterprises may account for this contribution as an expense of labor export operations.

1. In addition to the aforementioned expenses, workers must bear the following costs:

a) Airfare from Vietnam to the country of employment and return (except in cases where the employer covers this cost).

b) Medical examination fees at the level prescribed by the Ministry of Health.

c) Costs for study materials, food, and accommodation (if applicable) during training - orientation education.

d) Costs for exit-entry procedures for working abroad according to current state regulations.

2. After being selected to work abroad, if the worker no longer wishes to go, the worker must bear the expenses that the enterprise has incurred from the worker's payment for exit-entry procedures, health examinations, tuition fees, and costs for study materials, food, and accommodation during training - orientation education (if applicable).

In case six months have passed since the worker was selected to meet the conditions for working abroad, and the enterprise has not been able to send the worker abroad, the enterprise must inform the worker of the reasons. In such a situation, if the worker no longer wishes to work abroad or the enterprise cannot arrange for the worker to go, the enterprise must refund to the worker all amounts paid to the enterprise, including application fees, tuition fees for training - orientation education (if applicable), visa fees, airfare, airport fees, deposits, service fees, brokerage fees, and social insurance premiums.

The enterprise collects payments from workers in which currency, it must refund the same currency.

3. The enterprise guides workers to declare their pre-departure expenses (according to Appendix No. 05/LT). When collecting money from workers, the enterprise must prepare a detailed list of charges accompanied by a receipt.

Enterprises shall implement reporting requirements to the Overseas Labor Management Department, Ministry of Labor, Invalids and Social Affairs, and the enterprise management authority according to the following provisions:

By the 10th day of the first month of each quarter, enterprises submit reports on the implementation of deposit payments, social insurance contributions, income tax (Appendix No. 01/LT), and contributions to the export labor support fund (Appendix No. 02/LT). number 02/LT).

- Implementation of annual revenue and expenditure (Appendix No. 01/LT), contribution to the Export Labor Support Fund (Appendix No. 02/LT). The deadline for submission is January 30 of the following year.

- Report on the operation of labor export activities (Appendix No. 03/LT), with a deadline of January 30 of the following year.

- Plan for the next year (Appendix No. 04/LT) based on the implementation of the first six months of the year. The deadline for submitting the plan is July 15 of each year.

3. Urgent reports:

Enterprises shall submit ad hoc reports as required by the Overseas Labor Management Department, Ministry of Labor, Invalids and Social Affairs, and other relevant state agencies.

During the implementation process, collectives and individuals, labor export enterprises, and workers who achieve results in labor export shall be rewarded; if they violate, they will be handled according to Article 34 and Article 35 of Decree No. 81/2003/NĐ-CP and the guidance of the Ministry of Labor, Invalids and Social Affairs.

1. This Circular takes effect 15 days after its publication in the Official Gazette, replacing Joint Circular No. 16/2000/TTLT-BTC-BLĐTBXH dated February 28, 2000, and Circular No. 33/2001/TTLT-BTC-BLĐTBXH dated May 24, 2001.

As for the labor export service fee under this Circular, it applies to workers going to work abroad starting from the date Decree No. 81/2003/NĐ-CP takes effect.

For those who leave the country to work abroad before Decree No. 81/2003/NĐ-CP takes effect, they continue to pay the service fee according to the level prescribed in Joint Circular No. 33/2001/TTLT-BTC-BLĐTBXH dated May 24, 2001. If the worker's contract is extended or a new contract is signed from the date Decree No. 81/2003/NĐ-CP takes effect, the service fee for the extension period and the new contract will be implemented according to the guidelines in this Circular.

2. Within 90 days from the effective date of this Circular, enterprises must pay the management fee according to Decree No. 152/1999/NĐ-CP dated September 20, 1999, Joint Circular No. 16/2000/TTLT-BTC-BLĐTBXH dated February 28, 2000, and Joint Circular No. 33/2001/TTLT-BTC-BLĐTBXH dated May 24, 2001 for the number of workers sent abroad before Decree No. 81/2003/NĐ-CP takes effect.

1. Enterprises and workers are responsible for implementing in accordance with the provisions of this Circular.

2. Ministries, sectors, localities, and enterprise management authorities are responsible for inspecting, supervising, and urging enterprises under their management to comply with these provisions.

3. During the implementation process, if there are difficulties, please reflect them to the Ministry of Finance and the Ministry of Labor, Invalids and Social Affairs for research and resolution./.