b) The enterprises shall negotiate and decide on the brokerage rate appropriate with each contract but not exceeding the rate as prescribed at point (a) of this Clause;

c) The Ministry of Labour, War Invalids and Social Affairs stipulates the brokerage rate that the laborers refund to the enterprises suitable for each market;

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3. Type of money collected and paid and applicable exchange rate

The enterprises collect the brokerage refunded by the laborers in Vietnam dong.

The applicable exchange rate: If the brokerage is calculated on the basis of the U.S. dollar, the average exchange rate of the U.S. dollar against the Vietnam dong on the inter-bank foreign currency market shall apply as announced by the State Bank of Vietnam at the time of collection and payment. If the brokerage is calculated on the basis of other foreign currencies, the cross rate between the U.S. dollar against those foreign currencies shall apply as announced by the State Bank of Vietnam at the time of collection and payment.

4. Management and use of the brokerage

a) The brokerage must be indicated in the contract of labor supply or the private contract on the brokerage signed between the enterprises and the brokers;

b) The brokerage must be used for the proper purpose and with the right subject. If taking advantage of provisions on brokerage for wrong collection and expenditure for improper purposes, not with the right subjects and for profit making, the person making a decision on collection and expenditure shall take responsibility as prescribed by law;

c) The portion of brokerage that the laborers refund (if any) must be specified in the contracts on sending laborers to work abroad; the enterprises shall collect the laborers’ brokerage one time before they go abroad to work. Upon collection of the laborers’ brokerage, the enterprises must issue receipt to the laborers. The brokerage that the laborers refund is not included in the profit of the enterprises and they do not pay tax on it;

d) The brokerage that the enterprises pay out (if any) will be recorded into the rational cost upon calculating taxable income as prescribed by the Law on enterprise income tax.

5. Refunding the brokerage

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Where the laborers can not recover the brokerage from the broker, the enterprises are responsible for making payment to the workers on the above principle and permitted to record into the rational cost upon calculating taxable income as prescribed by the Law on enterprise income tax.

III SERVICE FEE

1. The service fee is the expenditure that the laborers must pay the enterprises for the implementation of the contract on sending laborers to work abroad.

The service fee does not apply to the case the laborers have completed the contract signed with the enterprises (including the time of the contract extension) and are extended or renewed the contract by the employers.

2. Rate of service fee

a) The ceiling rate of service fee: The laborers make the payment of service fee to the enterprises with an amount not exceeding one month's salary (or refreshing allowance) under contract for one working year, and not exceeding one month and a half month's salary under a contract for one working year for officers and crewmen working on sea carrier; The total maximal rate of service fee shall not exceed three month’s salary under the contract / person / contract;

b) The rate of service fee must be indicated in the contract on sending laborers to work abroad signed between the enterprises and the laborers;

c) The salary which, under contract (calculated by month) serves as a basis to determine the rate of service fee is the basic salary excluding: Overtime working, bonuses and other benefits. For the officers and crewmen of the sea carrier, the salary which, under the contract (calculated by month) serves as a basis to determine the rate of service fee, is the salary including the basic salary and leave salary.

3. The mode of collection, payment and refund of the service fee

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b) In case the laborers must return home ahead of schedule due to force majeure or not due to the laborers’ fault, the enterprises are permitted to collect the service fee by the actual time (number of months) the laborers work abroad.

c) In case the laborers violate the contract or the law of the country where they are working and must return home ahead of schedule or cancel the contract and illegally stay, the enterprises are permitted to collect the laborers’ service fee under the time limit signed in the contract.

4. Type of money collected and paid and applicable exchange rate

a) In case the enterprises agree with the laborers to collect the service fee one time before they go abroad to work, the collection shall be made in Vietnam dong.

The applicable exchange rate: If the service fee is calculated on the basis of the U.S. dollar, the average exchange rate of the U.S. dollar against the Vietnam dong shall apply on the inter-bank foreign currency market announced by the State Bank of Vietnam at the time of collection and payment. If the service fee is calculated on the basis of other foreign currencies, the cross rate between the U.S. dollar against those foreign currencies shall apply as announced by the State Bank of Vietnam at the time of collection and payment.

b) In case the enterprise agree with the laborers to collect the service fee many times during the course of contract execution, the enterprises shall collect the service fee in the currency the laborers are paid. If the collection of a partial service fee is made before the laborers go abroad to work, the service fee shall be collected by Vietnam dong at the exchange rate above mentioned

IV. IMPLEMENTATION ORGANIZATION

1. This Circular shall take effect after 15 days from the date of its publication on the official Gazette. Annulling the Joint Circulars of the Ministry of Finance - the Ministry of Labour, War Invalids and Social Affairs No. 107/2003/TTLT-BTC-BLDTBXH dated November 07, 2003 guiding the implementation of the financial regulations for the laborers and the enterprises sending laborers to work abroad with term and the No. 59/2006/TTLT-BTC-BLDTBXH dated June 26, 2006 guiding the brokerage in labor export.

As for the contracts of labor supply registered at the Department of Overseas Labour (Ministry of Labour – War Invalids and Social Affairs) before the effective date of this Circular, the service fee shall comply with the provisions specified in the Joint Circular No. 107/TTLT-BTC-BLDTBXH dated November 07, 2003 and the brokerage shall comply with the provisions specified in joint Circular No. 59/2006/TTLT-BTC-BLDTBXH dated June 26, 2006.

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3. Any problem arising in the course of implementation should be promptly reported to the Ministry of Labour, War Invalids and Social Affairs, Ministry of Finance for study and settlement 

PP. MINISTER OF FINANCE
DEPUTY MINISTER





Tran Xuan Ha

MINISTER OF LABOUR, WAR INVALIDS AND SOCIAL AFFAIRS
DEPUTY MINISTER




Nguyen Thanh Hoa