Tran Thi Thanh Truc, assurance partner at PwC Vietnam Three measurement models in IFRS 17 IFRS 17 introduces three measurement models for insurance contracts, namely the general measurement model, the premium allocation approach, and the variable fee approach. The general measurement model is the standard measurement model that can be used for all insurance contracts. To apply this model, insurance companies (insurers) should first understand some important concepts. The two new key concepts introduced by IFRS 17 are contractual service margin (CSM) and fulfilment cash flows. CSM is a component of the carrying amount of the asset or liability for a group of insurance contracts, representing the unearned profit the insurer will recognise as it provides services under the insurance contracts in the group. Meanwhile, the fulfilment cash flows is the present value of future cash flows, including a risk adjustment for non-financial risks. In this model, the liability for remaining … [Read more...] about IFRS 17 to impact financial statements of insurance companies
Oregon liability insurance requirements
General director of the Ministry of Finance’s Insurance Supervisory Authority Phung Ngoc Khanh speaks at the conference. — Photo mof.gov.vn Viet Nam’s insurance industry maintained positive growth in the first half of this year, with total revenue surging by 24.35 per cent year-on-year to nearly VND71.15 trillion (US$3 billion), the Ministry of Finance’s Insurance Supervisory Authority (ISA) reported on Thursday. During a conference to review the industry’s performance in the first six months of 2019 and implement tasks for the second half of 2019 held in Ha Noi, Pham Thu Phuong, ISA’s deputy director, said besides maintaining a high growth rate, the financial status of insurance firms also improved in the period with total assets rising by 19.01 per cent to VND423.42 trillion. “During the period, insurance companies re-invested nearly VND342.87 trillion into the economy, marking a rise of 26.17 per cent year-on-year. They also paid out … [Read more...] about Viet Nam’s insurance industry keeps thriving in H1 2019
Bettering new social insurance policy on foreigners, Photo: Shutterstock One of Vietnam’s leading English-language training centres, Apollo Education and Training Organisation (Apollo) has more than 400 foreign teachers working across the country and is one of the most hard-pressed to apply Decree 143. Nguyen Kim Dung, head of Apollo’s Legal, Compliance and Government Relations, told VIR that the procedures to pay insurance after foreign labourers are very complicated and are causing the company concerns. For instance, is examination in public hospitals possible for non-Vietnamese speakers? Does the insurance agency pay for foreign-language prescriptions? And do procedures to get death benefits have to be notarised and translated? “We worry that the complications may undermine the government’s policy on insurance for foreign workers. It is necessary to issue simple and convenient guidelines and procedures for foreign labourers to really enjoy the benefits of … [Read more...] about Bettering new social insurance policy on foreigners
Foreigners earning incomes from providing services in Vietnam, what are their tax liabilities? Income earned by foreigners from rendering services in Vietnam is taxed in Vietnam regardless of their residence status. However, the tax implications are different depending on various factors that are specified in this article to help the foreigners to comply with the tax regulations in Vietnam as well as mitigate the risks of additional tax, penalties and interests on late tax payment. Regulation on residence status in Vietnam According to the current tax regulation, an individual is regarded as a Vietnamese tax resident if: Being present in Vietnam for a period of 183 days or more within one western calendar year or 12 consecutive months from the date of first arrival in Vietnam; or Having a registered place of “permanent residence” in Vietnam; or Having a rented house (including hotels, guesthouses, motels, offices) with a lease term of 183 days or more in a tax year. In … [Read more...] about Foreigners earning incomes from providing services in Vietnam, what are their tax liabilities?
Vietnam’s tourism and people in general suffered shocking news at the end of 2018 as a roadside bomb detonated near a bus as it crossed Al-Haram district, close to the well-known pyramids in Giza. The explosion killed three Vietnamese people and their Egyptian guide, while another 12 inflicted severe injuries. Shortly after the incident, Saigontourist Travel Service Company, the agency operating the Egypt tour, immediately worked with Bao Viet Insurance Corporation on the insurance benefits of the tourists. As announced by Bao Viet, those killed in the bomb attack will receive the maximum life insurance coverage amount of VND2.4 billion ($104,350), while the company will also support expenditure to complete procedures to take the bodies of the three victims home and organise funeral services. For the injured people receiving treatment in the North African country, the company will continue working with Egyptian hospitals to return them home as soon as possible. Each will be … [Read more...] about Travel insurance – the globetrotters’ amulet