Through the receiving and responding system to recommendations of businesses, Seoul T&S Vina Co., Ltd. Would like to ask: “Is a foreign-invested company operating in the field of distribution qualified for a non-life insurance agent of an insurance enterprise? If possible, what conditions are required?”

In addition, the Company wishes to know how the insurance commission is taxed if the company acts as a non-life insurance agent.

Regarding this issue to this issue, Department of the Insurance Supervisory Authority of Ministry of Finance gives the following opinion:

Article 86 of Law on Insurance Business stipulates the conditions to be qualified as insurance agents to individuals and organizations:   

Article 86: Conditions for operation by insurance agents

1. Individuals conducting insurance agency activities must satisfy the following conditions:

(a) Be a Vietnamese citizen permanently residing in Vietnam;

(b) Be 18 years or over with full civil legal capacity status;

(c) Have a certificate of training as an insurance agent issued by an insurance enterprise or by the Vietnam Insurance Association.

2. Organizations conducting insurance agency activities must satisfy the following conditions:

(a) Be a legally established and operating organization;

(b) Staff in the agency organization directly carrying out insurance agency activities must satisfy the conditions in clause 1 of this article.

3. Any person who is currently subject to investigation for a criminal offence, subject to a criminal penalty, or has had his/her right to practice a profession cancelled pursuant to the provisions of the criminal law, shall not be permitted to enter into a contract of insurance agency.

If a Vietnamese insurance enterprise delegates power to Seoul T&S Vina Co., Ltd to act as an insurance agent and the income incurred through conducting insurance agency activities, the tax rates on agency commission shall be applied pursuant to current provisions of law on tax.