ENGAGED PROJECT THIS MONTH
I.
o
BUDGET 2009 PREPARATION
Opened the 2nd meeting for reviewing the Budget 2009
(attending of Department Director, BOD & Chairman)
o
Collected the Budget 2009 (with approved of E.V.P) from
Related Department
Consolidated for the Total Company Budget 2009
o
o
Prepared the Approval Report for Total Company Budget
2009
o
Send the to Parent Company the final Budget with approved
by BOD & Chairman (expected before Dec. 05, 2008)
Cathay Life Insurance Ltd. (Vietnam)
2
30 May 2008
ENGAGED PROJECT THIS MONTH
II. FUND SPLITING (Company fund device into Shareholder
fund & Policyowner fund as MOF regulation)
o
o
o
Completed “Funds Segmentation” which includes the:
 Overview & regulation requirement
 Proposal method for splitting
 Responsible of related department
 Implementation plan
Planning Dept has approved the method, but still waiting
from Parent Company for approved
Accounting Dept will send the Letter of register the method
Cathay applying to MOF (expected by Dec.05th, 2008)
Cathay Life Insurance Ltd. (Vietnam)
3
30 May 2008
ENGAGED PROJECT THIS MONTH
III. OUR ACTION FOR NEW LAW OF PIT (from Jan 01, 2009)
o
Opened the meeting with Related Department (HR, Agency):

Human Resource & Agency plan to:
 Work with IT about the Salary system
 Collect registration of employee’s dependents
 Issue memo to staff & agent
 Register Tax code for staffs & submit forms to Tax
o
Accounting Dept will help to support to calculate the tax
rate & tax confirmation letters
o
These process are expected to finish by Dec 25, 2008
Cathay Life Insurance Ltd. (Vietnam)
4
30 May 2008
ENGAGED PROJECT THIS MONTH
IV. COMPARISON OF NEW & CURRENT PIT LAW
o
The table below is to show the main differences:
Items
1. Tax rate applying for non-resident
Current
rules
New law
25%
20%
2. Tax rate for employee (Local & Expat.
use the same new tax rate)
New tax rate
3. Deductions for taxpayer (himself & his
dependents)
not
apply
- Each dependent:
1.6 mil/month
15% of - The actual house
income rental
4. Housing allowance
5%
5. Tax apply for agent
Cathay Life Insurance Ltd. (Vietnam)
- Taxpayer: 4mil./mth
5
- Has tax code: 10%
- No tax code: 20%
30 May 2008
ENGAGED PROJECT THIS MONTH
IV. COMPARISON OF NEW & CURRENT PIT LAW
o
Give an example: the below sample show how much
different the tax amount individual has to pay
Dependents
Rate
(usd/vnd)
3,030
2 persons
16,500
4,850
2,180
1 person
Ms.C
3,030
1,515
1 person
Mr.D
1,820
1,090
no one
Salary
House
Mr.A
6,060
Mr.B
Cathay Life Insurance Ltd. (Vietnam)
6
30 May 2008
IV. COMPARISON OF NEW & CURRENT PIT LAW
o
How much different of the tax amount payable
Tax
paye
r
Current regulation
Income
(vnd.million)
Taxable
income
(vnd
mil.)
Tax
Amoun
t (vnd
mil.)
New regulation
Income
(vnd.million) Deducti Taxabl
on
(taxpay
er
&depe
ndents)
e
incom
e (vnd
mil.)
Difference
(in vnd
million)
Tax
Amoun
t (vnd
mil.)
Salary
Housi
ng
(actu
al)
30.20
100
50
7.2
142.8
40.13
9.93
119.2
92
21.00
80
36
5.6
110.4
28.79
7.79
93.48
7.5
57.5
9.45
50
25
5.6
69.4
14.97
5.52
66.24
4.5
34.5
4.10
30
18
4
44
7.75
3.65
43.8
Salary
Housi
ng
(15%)
Mr.A
100
15
115
Mr.B
80
12
Ms.C
50
Mr.D
30
Cathay Life Insurance Ltd. (Vietnam)
7
1
mth
1 year
30 May 2008
ENGAGED PROJECT THIS MONTH
IV. COMPARISON OF NEW & CURRENT PIT LAW
o
o
Conclusion: from the above example, we can see:

The new tax law make the taxpayer pay a higher tax amount

The reason mainly is due to Housing Allowance
Our action: we will may consider

Reduce the house rental fee

Two people can live in one apartment

Transfer the amount on the contract from Gross (the net
income of Expats are not changed but higher expense for the
Company)
Cathay Life Insurance Ltd. (Vietnam)
8
30 May 2008
ENGAGED PROJECT THIS MONTH
I.
GETTING APPROVAL OF PAYMENT GUIDELINE at
Customer Service counter
Summarize the main point :

Payment amount : Maximum cash payment VND 20
million per one time of payment

Documents for payment:
1)
Payment application form:
This is signed by customer who is entitled for payment
Cathay Life Insurance Ltd. (Vietnam)
9
30 May 2008
ENGAGED PROJECT THIS MONTH
2) Authorization letter:
Customer can authorize any person to collect money on his or
her behalf.
 If the payment amount is over VND 2,000,000, the
authorization letter have to be verified by local government as
current law regulations.
 For case payment amount equal or lower than VND
2,000,000, direct sale managers and brand managers can verify
the authorization
Cathay Life Insurance Ltd. (Vietnam)
10
30 May 2008
ENGAGED PROJECT THIS MONTH
3) Original ID card of receiver: the receiver can submit
 The original ID card
 The passport, driving license, or other legally valuable
documents attached photo are acceptable.
4) Payment voucher:
 Payment voucher is printed from the system.
 CSC have to check enough support documents for any
payment
 CSC process payment to appropriate person with correct
amount.
 This voucher has to be signed by CS staff and receiver.
Cathay Life Insurance Ltd. (Vietnam)
11
30 May 2008
ENGAGED PROJECT THIS MONTH
II. MONTHLY FORECAST EXPENSE form apply to HR,
GA, IT, Marketing and training division since November
2008

Forecast how much money we use enough in month

Investment can use the remain amount to invest
III. OPEN BANK ACCOUNT AT IVB for Deposit of Premium
collector

To widen the Premium collection system

And for the convenience of our policy owner
Cathay Life Insurance Ltd. (Vietnam)
12
30 May 2008
ENGAGED PROJECT NEXT MONTH
I.
PREPARATION FOR AUDITING
For the year end auditing, we need to:

Contact with auditors to arrange the schedule working

Prepare the documents & data, answer the questionnaire
II. PREPARATION FOR CLOSING ALL THE EXPENSES
OF THE YEAR

To work with related departments for providing all the
invoice of expense of the year 2008

Consider if some expenses in 2009 can issue invoice in
2008
Cathay Life Insurance Ltd. (Vietnam)
13
30 May 2008
ENGAGED PROJECT NEXT MONTH
III. IMPROVEMENT THE ACCOUNTING SYSTEM

Working with IT Dept to
accounting bookings & reports
revise/improve
some
IV. SUPPORTING HUMAN RESOURCE IN COMPLETING
PROCEDURE FOR REGISTER NEW PIT

Formula & calculate the tax amount

Submit register form to Tax Dept.

Others related to Taxable income of employees
Cathay Life Insurance Ltd. (Vietnam)
14
30 May 2008
ENGAGED PROJECT NEXT MONTH
I.
SURVEY AND DUE WITH BANKS FOR TRANSFER
PAYMENT OF PREMIUM OF CUSTOMERS

To make a list of bank and find out the best banks
II. ARRANGE FOR PHYSICAL CASH COUNT AT YEAR
END FOR AUDITOR

Cash on hand at HCM & HN office and Cash in banks
III. MAKING GUIDELINE FOR CASH MANAGEMENT AT
HN OFFICE
Cathay Life Insurance Ltd. (Vietnam)
15
30 May 2008
THANK YOU
Cathay Life Insurance Ltd. (Vietnam)
16
30 May 2008