- Content of shared data exchanged between tax authorities and social insurance
- New point of data sharing and working coordination regulations between Vietnam Social Security and General Department of Taxation
- Problems businesses face from sharing data
- Solutions for business
- What can we do for businesses?
On July 09.7.2021, XNUMX, Vietnam Social Security and the General Department of Taxation (Ministry of Finance) held the signing ceremony of the Regulation on data sharing and cooperation between the two branches. This regulation is intended to serve the management of collection of social insurance (social insurance), health insurance (HI) and tax administration.
Content of shared data exchanged between tax authorities and social insurance #
Information provided by the social insurance agency includes:
- Number of income paying organizations participating in social insurance, number of employees participating in social insurance;
- Amount of social insurance premium payment;
- Amount owed to social insurance;
- Organize the payment of income owed to social insurance;
- Other information at the request of the tax office.
Information provided by tax authorities includes:
- Information on income-paying organizations: Information on business registration, business registration, tax registration; Operational status of income-paying organizations; income-paying organizations are newly established, dissolved, bankrupt, have their business registration certificates revoked, cease operations, suspend operations, and give up their business addresses.
- Number of employees in the organization paying income.
- Compulsory social insurance deductions that income-paying organizations include in expenses for tax calculation.
- List of employees in the income-paying organization.”
New point of data sharing and working coordination regulations between Vietnam Social Security and General Department of Taxation #
- In the work of inspection and examination, the two branches will share information on inspection and examination results. Where necessary, the two agencies shall coordinate with each other to conduct thematic inspection of income-paying organizations.
- Regarding the data sharing method, the two sectors connect and share data through intermediary systems in accordance with the Vietnamese e-Government architectural framework. Data must be digitally signed before sending.
- Regarding the control, adjustment and troubleshooting of information technology systems. In case the information about the taxpayer is still different, the social insurance agency shall send the incorrect information to the tax office to notify the taxpayer to adjust the information in accordance with the law on tax administration.
Problems businesses face from sharing data #
- Arrears and fines for late payment of insurance premiums from the mismatch of information about the number of employees, the number of insurance premiums sent by the enterprise to the social insurance agency and the tax office.
- Collection of personal income tax, salary expenses when calculating corporate income tax due to inappropriate, unreasonable and invalid data presented.
- Arrears corporate income tax and late payment penalty from salary expenses due to incorrect and incorrect number of employees, leading to unacceptable salary expenses.
- It is difficult or not appropriate to explain why employee data does not match tax and insurance records.
- Must explain to the Social Insurance agency, the Tax authority that the insurance submission dossier is not consistent with the tax file when making the monthly/quarterly notice.
- Explain the “real” calculation of salary-related expenses when recorded in the accounting books.
- Difficulties in building and re-operating the insurance - salary - accounting apparatus when the two agencies pay attention.
Solutions for business #
- Review the entire current salary structure system.
- Compare payroll data, insurance premium data with accounting data
- Identify existing problems that are not appropriate, leading to risks for the business in the future.
- Compare with current regulations on insurance and accounting and tax.
- Make changes to forms, systems, accounting, vouchers, etc. to conform to current regulations.
What can we do for businesses? #
The entire record of hiring labor requires very high completeness, within the legal framework, you have the right to apply, but you must keep sufficient records to prove it. Our service helps you achieve this conveniently.
Compliance with regulations is the top criterion when hiring workers, in order to comply with regulations, the person in charge needs to understand all relevant regulations. Expertis specializes in performing this service with regulatory compliance on the top.
This is an element that is difficult for specialized personnel of the enterprise to ensure because it is related to Personal Income Tax and the financial statements of the business. With extensive experience in accounting and taxation, Expertis will help you achieve this.
See detailed information about our services in the article Salary and Social Insurance Management Service.
To get your questions answered as well as learn more about the services provided by EXPERTIS, please contact our Consulting Department for assistance.