Following the 2025 personal income tax (PIT) and corporate income tax (CIT) settlement period, a familiar cycle begins for many businesses: the Social Insurance Agency reviews data and requires businesses to report on their mandatory social insurance and health insurance contributions using Form 05B-KT.
Especially since Social Insurance Law 2024 Officially effective from July 1, 2025, the scope of eligible participants in social insurance has been significantly expanded. This has led to a noticeable change in the approach of the management agency: instead of just checking "whether or not someone participates," they are now comprehensively assessing the nature of the labor relationship and the accuracy and completeness of insurance obligations.
I. Why is Form 05B-KT a concern after tax finalization?
Personal income tax settlement data reflects all income paid by the business (including permanent staff, seasonal workers, collaborators, service providers, etc.). Meanwhile, social insurance data only records those who are required to participate.
The differences between these two systems are the "identifying factors" that authorities focus on during inspections:
- How many individuals generate income but are not yet enrolled in social insurance?
- Is the declared income correctly classified according to its nature for the purpose of calculating social insurance contributions?
- Are businesses "abusing" service/collaborator contracts to reduce their tax obligations?
Currently, with the digital data exchange between the Tax and Insurance agencies, any discrepancies are thoroughly analyzed. Form 05b-KT 📥 (as stipulated in Official Letter 1584/BHXH-QLT) is the most comprehensive way to examine this difference.
II. Form 05B-KT: More than just a list, it's a comprehensive system audit.
Many businesses have a misunderstanding. Form 05b-KT 📥 This is merely an administrative form. In reality, through this form, the authorities will determine social insurance obligations on a case-by-case basis.
- Workers who are required to participate but have not yet done so.
- Workers who are receiving pensions/benefits.
- Probationary work, apprenticeship, internship.
- The employee is currently participating in social insurance at another company.
- Employment contracts for less than one month.
- Workers who declare taxes but do not actually work (false records).
Therefore, the key point when filling out Form 05B-KT is not to complete it entirely, but rather:
- Each classification must be supported by clear documentation.
- And it must be consistent with the actual human resource operations of the business.
Just one misclassification can refute the entire argument that follows.
III. Typical risks that businesses often encounter
Based on practical experience in assisting numerous businesses with audits and inspections, Expertis has identified the three biggest risks that businesses often face:
- The salary structure is being "broken down" to reduce contribution levels: If allowances are paid on a fixed, regular basis and are tied to a job title, the auditing agency will recover the funds based on the nature of the payment rather than the title on the contract.
- Using the wrong type of contract: A freelance contract, service contract, or piecework contract will be deemed "invalid" if, in reality, the worker performs regular work, is managed, supervised, and directed by one party, and has their attendance recorded and benefits received like a full-time employee.
- Late participation in social insurance: The date of participation in social insurance will be directly compared with the start date of employment on the employment contract and tax records. Delaying reporting an increase in contributions during an extended probationary period often leads to retroactive collection and late payment interest.
⚠️ Possible legal consequences:
- Collection of back taxes on social insurance contributions and interest on late payments.
- Administrative penalties according to Decree 12/2022/ND-CP (potentially up to...) 75 million VND)
- Criminal liability will be pursued under Article 216 of the Penal Code (fines up to...). A fine of 3 billion VND or imprisonment for up to 07 years.)
IV. Checklist of documents requiring immediate review
To prepare for inspections, businesses need to proactively improve and review their entire documentation system according to functional groups, ensuring completeness and cross-referencing capabilities.
Specifically, the key dossier groups include:
CHECKLIST FOR SOCIAL INSURANCE INSPECTION FILES
| Profile | Requirement |
| GROUP 1: BUSINESS LEGAL DOCUMENTS | |
| Business registration certificate | The latest copy. |
| Salary scale | The salary scale system has been developed, published, and stored within the unit. |
| Salary and Bonus Regulations | The document specifies the detailed method for calculating salaries, allowances, support payments, and eligibility conditions. |
| Labor Regulations & Collective Bargaining Agreements | Registered with the State management agency (if any). |
| GROUP 2: PERSONNEL FILES & LABOR RELATIONS | |
| Employment contract | Original employment contracts and contract addendums for all currently employed staff. |
| Other contracts | Types of contracts include probationary contracts, freelance contracts, piecework contracts, and service contracts. |
| GROUP 3: PAYROLL RECORDS & ACCOUNTING DOCUMENTS | |
| Time sheet | Monthly attendance data (compared with payroll records). |
| Salary calculation sheet | Clearly show the basic salary, allowances subject to social insurance contributions, and allowances not subject to social insurance contributions. |
| Salary payment vouchers | A signed payroll voucher or bank transfer authorization form (UNC) is required. |
| GROUP 4: TAX FILES & FINANCIAL STATEMENTS | |
| Annual financial report | (Used for comparison with the overall payroll fund). |
| Personal Income Tax Final Settlement Declaration Form (Form 05/QTT-TNCN) | Appendix: List of income payments to employees. |
| GROUP 5: SOCIAL INSURANCE PROCEDURES | |
| File for processing benefits | Payment documents for employee benefits if the Social Insurance agency pays directly into the company's account. |
Note: "Substance over name" – Don't just focus on the contract title. If you're a freelancer but have your time clocked in, are under supervision, and receive regular pay, be prepared for the possibility of being asked to pay back social insurance contributions.
V. What should businesses do before an inspection?
Instead of only reacting when receiving an inspection notice, businesses should proactively review and standardize their systems early on, especially in the post-tax settlement period.
The steps that should be prioritized include:
- Review discrepancies between personal income tax data and social insurance participation data.
- Review the salary structure, especially allowances and benefits.
- Review the entire contract system: employment contracts, service contracts, and contracts with collaborators.
- Standardize records to ensure consistency between contracts, time sheets, payroll, social insurance, and taxes.
Many businesses only begin reviewing their records after an inspection has been ordered. However, by then, most of the data has been closed, making adjustments both reactive and potentially more risky legally.
Therefore, early preparation is not simply about dealing with inspectors, but is a managerial step:
- It helps the human resources system operate transparently and consistently.
- Control labor costs and social insurance obligations in the long term.
- Minimize the risks of tax arrears, penalties, and legal disputes.
In summary, completing Form 05B-KT is not just an administrative procedure but a comprehensive test of consistency between a company's tax and insurance data. Instead of passively waiting for an inspection decision, businesses need to proactively review and standardize their records early on to manage risks and avoid back taxes or penalties. If you encounter difficulties in data reconciliation and preparing explanations, please contact us. Contact Expertis To receive advice on the safest and most optimal solution.