Data sharing between Social Insurance (SI) and Tax Authority
On July 09, 07, Vietnam Social Security and the General Department of Taxation (Ministry of Finance) held a 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.
This article will cover:
- Linking data of Social Insurance (SI) and Tax Authority.
- This regulation is intended to serve the management of social insurance (SI), health insurance (HI) collection and tax management.
1. What data is exchanged between the Tax Authority and Social Insurance?
1.1. 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.
1.2. 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.”
1.3. New points of the regulations on data sharing and coordination between Vietnam Social Security and the 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.
2. How do business managers need to change their management thinking?
2.1. Risks that may arise due to asynchrony
The salary of the enterprise is governed by the system of regulations on Labor - Salary - Insurance - Personal income tax - Corporate income tax - Payroll accounting and employee-related items . Due to too many binding regulations, it is difficult for small and medium enterprises to ensure the synchronization and compliance with the law of the salary system. Any inconsistency can pose risks to the business, such as:
- Arrears and fines for late payment of insurance premiums due to inconsistent information about the number of employees, the number of insurance premiums sent by the enterprise to the social insurance agency and the tax office.
- Personal income tax, salary expenses when calculating corporate income tax will be arrears due to inappropriate, unreasonable and invalid data presented.
- Corporate income tax arrears and late payment penalty from salary expenses due to incorrect and incorrect number of employees, leading to unacceptable salary expenses.
- It is difficult or impossible to explain why employee data does not match tax and insurance records when finalizing taxes.
2.2. What solutions for businesses?
Here are some solutions for businesses to well organize the salary system and avoid risks related to the synchronization and compliance with the law in the implementation of regulations on Labor, Wages, Insurance, and Taxes. Personal income tax, Corporate income tax and Payroll accounting:
1. Establish a clear process: Clearly define processes and responsibilities related to updating information, calculating wages, paying taxes and insurance to ensure that information on the number of employees, wages, and insurance is fully and accurately updated.
2. Using the software:
Use payroll and human resource management software or use integrated software to synchronize information between areas such as salary, tax, insurance to avoid errors and duplicate data.
3. Training and improving knowledge for employees:
Ensure staff in charge of payroll and accounting are trained in regulations related to salary, tax, insurance.
4. Continuous updates:
Stay up-to-date with new changes in legislation to apply in a timely manner to ensure you stay up-to-date with regulatory changes related to wages, taxes and insurance.
5. Periodic internal inspection:
Perform internal audits on salary, tax, insurance processes to detect errors and make timely adjustments. If inconsistencies are found between the information, verify and resolve immediately to avoid problems later.
Remember, compliance with Labor, Wage, Insurance and Tax regulations not only helps avoid risks but also creates a solid foundation for sustainable business development.
Doing the above is not easy for businesses, an effective solution is to use professional services: Partnering with companies or professionals in payroll, tax and accounting helps ensure accuracy and regulatory compliance.
See detailed information about our services in the article
Salary and Social Insurance Management Service.
