This is the content prescribed at the Decision No. 144/QD-TTg dated January 20, 2014 of the Prime Minister on Approving the scheme on formation and development of the voluntary pension program in Vietnam.
At the Decision, the Prime Minister has pointed the Ministry of Finance to assume the prime responsibility for, and coordinate with related agencies, to encourage employees and employers (enterprises) that sign labor contracts to participate in the voluntary pension program.
Employees and enterprises may only participate in, and enjoy preferential policies from, the voluntary pension program when they fully participate in all compulsory social insurance programs. By 2020, there will be some 400-500 enterprises with around 150,000 persons buying pension insurance products or making contributions to voluntary pension funds in the form of investment entrustment.
By 2020, the accumulated turnover of voluntary pension funds for reinvestment in the economy, including the capital and securities markets, will approximate VND 10-12 trillion. The State shall encourage employees and enterprises to participate in the voluntary pension program through various products of the program, and adopt tax preferences for contributed amounts, investment profits and payments to laborers when they reach the retirement ages. The conditions for enjoyment of tax preferences and specific tax preference levels must comply with the Law on Enterprise Income Tax and the Law on Personal Income Tax and guiding documents.
Besides, the Prime Minister also emphasizes to study and develop products of voluntary pension funds with the contributions of employees and employers (enterprises) after the establishment, operation, management and supervision models conformable with international practices and practical conditions of Vietnam, aiming to contribute to the assurance of social security and expand the basis for long-term capital investors on the capital market.
This Decision takes effect on the signing date.
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