Reducing social insurance arrears by database of the Tax agencies

	Enterprises are worried about the new level of social insurance
	Persist on litigating enterprises which attempt to avoid social insurance
	Continue to prioritize tax administrative procedures reform

The conference. Photo: T.L

BHXH-TCT dated 31 December 2014 on coordination between Vietnam Social Insurance and the General Department of and Taxation in 2015 and 2016, Mr. Nguyen Tri Dai, Head of Collection Board of Vietnam Social Insurance (VSI) said that right after the issue of the regulation, the General Department of Taxation provided information of enterprises in the whole country in a timely fashion for VSI to manage, thereby, VSI handled and classified the information of enterprises. Until now, the two agencies unified the systematic and standard model to connect and exchange information to each other, bringing many remarkable positive results.

As reported by Vietnam Social Insurance, in 2015 and 2016 , thanks to a database provided by the tax agencies, Vietnam Social Insurance has encouraged more than 51, 224 employees joining Social Insurance and collected more than 460 billion vnd from the debts of social insurance, health insurance and unemployment insurance.

As assessed by Mr. Tran Dinh Lieu, Deputy Director General of the VSI, the signing of Regulation on coordination between the two sectors is one of the appropriate and timely solutions to implement Government Resolution 19/NQ-CP, contributing to the reform of administrative procedures, creating favorable conditions for enterprises, thereby reducing the time of tax and social insurance payment. After 2 years of implementation, based on data provided by the General Department of Taxation, Vietnam Social Insurance handled and classified information to forward to the provincial social insurance to exploit and use for the management of social insurance collection.

Mr. Cao Anh Tuan, Deputy Director General of the General Department of Taxation stated that, so far, the General Department of Taxation completely built the infrastructure and applied IT to meet the data exchange and exploitation with the VSI, and completed the testing of IT application towards replacing information exchange in the current manual method.

Along with that coordination in inspection and examination for enterprises on violations of social insurance, health insurance and life insurance, payments have been implemented effectively, thereby, exploiting tens of thousands of employees joining social insurance and collecting hundreds of billions of vnd from debts of social insurance, health insurance and unemployment insurance.

However, according to Mr. Cao Anh Tuan, the current information technology systems of the two sectors are not uniform due to the tax service having a centralized data system in the General Department of Taxation, while the data on social insurance is dispersed in localities. Thereby leading to the exchange of information on social insurance not being unified, synchronized and implemented by electronic methods because Vietnam Social Insurance has not prepared an investment plan for infrastructure and IT application to carry out the automatic information connection and processing.

Notably, the coordination of interagency inspection and investigation only meet the requirements for collection and management of social insurance debts, and is not associated with tax management, and inspection, not leading to reform administrative procedures and limit the overlaps in inspection and investigation of the sectors to enterprises.

Collecting more revenue from Tax inspections and auditing VCN- According to a new information from the General Department of Taxation, for the first 8 months of 2016, the State budget ...

Mr. Cao Anh Tuan emphasized that to achieve the target of reform of administrative procedures in accordance with the Government Resolution 19-2017/NQ-CP, in the coming time, the tax agencies and and social insurance agencies should further promote the coordination between the two agencies and identify the implementation of the coordination as a regular political task. It is urgent to complete the connection between the General Department of Taxation and VSI to carry out the information exchange of the Regulation by Tax Administration and the Vietnam Social Insurance to make the exchange of information of the Regulation by electronic methods.