In 2018, the Tax Authority coordinated the provision of tax identification numbers for nearly 30.000 newly established businesses; a list of over 27.000 businesses that had ceased operations, absconded, or had their invoices frozen; and over 6.000 businesses showing signs of violating the Social Insurance and Health Insurance Laws. Notably, a review of Social Insurance in 2017 revealed that 35.300 businesses had not yet participated in Social Insurance, affecting 482.911 employees, and 25.380 businesses had not enrolled all their employees, affecting 955.380 people.
The Vietnam Social Security issued Official Letter No. 530/BHXH-BT regarding the review, exploitation, and control of the development of social insurance participants through data provided by the tax authorities. Simultaneously, it will strengthen the organization of unscheduled specialized inspections of social insurance contributions in 2019.
After receiving data from the tax authorities, the specialized departments of the Social Insurance agencies in provinces and cities require businesses to prepare registration documents for their employees to participate in social insurance; they also urge, guide, inspect, and audit businesses if they fail to register or pay social insurance contributions incompletely or not on time.
It clearly states: After the deadline for businesses to register for social insurance contributions has passed, if the business still fails to comply, within the next 5 days, the social insurance agency will request relevant agencies such as the Provincial/District Police, Tax Department, Planning and Investment Department, state management agencies on labor, and representatives of the People's Committee of the commune, ward, or town where the business is located to coordinate in inviting the business to the social insurance agency for a meeting and requesting them to prepare the necessary documents for registration to participate in social insurance contributions as prescribed.
In addition, provincial and city social insurance agencies must regularly inspect, review, and determine the status of businesses that have been dissolved, gone bankrupt, had their business licenses revoked, ceased operations, temporarily suspended operations, abandoned their business addresses, etc., in order to urge payment, finalize the amount due, and the amount of overdue payments up to the point the business ceases operations.
After 10 days from the date of requesting businesses to register for social insurance contributions for their employees, if businesses are still delaying social insurance contributions, the Social Insurance agencies of provinces and cities must organize unannounced specialized inspections.
In cases of serious violations by businesses, priority should be given to completing the procedures for transferring the case file to the police for investigation, prosecution, and criminal handling of the crime of evading social insurance contributions.
The official document also stated that by December 31st at the latest, provincial and city Social Insurance agencies must complete the review, exploitation, and development of the number of people participating in Social Insurance through data provided by the tax authorities. This must be accompanied by inspections of businesses that evade contributions and businesses that have not paid contributions for the full number of eligible employees but have evaded contributions from 2019 onwards.
Applying information technology in management is the best method to minimize the situation where employers evade or underpay social insurance contributions for their employees; thereby ensuring the legitimate rights and interests of employees in accordance with regulations.
