Tax authority “refuses” to collect insurance premium

VCN- In the statement on proposal for development of the Law on Tax Administration (amended) recently submitted by the Ministry of Finance to the Government, the Ministry of Finance has proposed that the Tax authority only coordinates to exchange and provide information and set up specialized inspection on the compliance with provisions of the law on Social insurance and Tax of income payers and individuals in collecting Social insurance premium.
tax authority refuses collection of insurance premium to social insurance Different comments on proposal to let Tax agency collect social insurance
tax authority refuses collection of insurance premium to social insurance Proposing Tax authority to collect compulsory social insurance
tax authority refuses collection of insurance premium to social insurance Expenditure for social insurance management only increased by 6%
tax authority refuses collection of insurance premium to social insurance
Illustrative photo. Source: Internet

In the draft statement on proposal for development of the Law on Tax Administration (amended) issued by the Ministry of Finance for comments, the merger of collection of Social insurance premium into the Tax authority is one of the two solutions provided by the Ministry of Finance. This work is to simplify administrative procedures and facilitate tax payers and social insurance premium payers and improve the business environment.

In the two solutions, the first solution is to implement as current, it means that the tax administration and collection of social insurance premium are still implemented by the Tax authority and Insurance authority. However, for this solution, the Ministry of Finance said that the coordination between the two authorities achieved certain results but still did not reach expectation. The reason was that there were many differences between the two authorities such as the declaration and payment time to have a basis for calculation of personal income tax and social insurance premium.

The second solution causes many disputations, because the Tax authority will collect compulsory insurance amounts for employers. According to leaders of the Finance sector, the positive point of this solution is to reduce the quantity of declarations to be submitted to the State agencies.

The Ministry of Finance said that the solution helped to reduce management cost of the State management agency. With the implementation of this solution, the Tax authority is the leading agency in charge of inspection for employers in complying with the policies on tax and social insurance.

In negative terms, the leaders of the Ministry of Finance also acknowledged that in the initial period of merger of collection of Social insurance premium into the Tax authority, the Tax sector needs to grasp specialized knowledge in collection of insurance premium.

However, between the two solutions, the leaders of the Ministry of Finance proposes to select the second solution, which means that the Tax authority collects social insurance premium.


The Ministry of Labor, Invalid and Social Affairs, Vietnam Social Insurance has proposed to implement the first solution, which means that the collection of tax and social insurance premium is independently implemented by the Tax authority and Insurance authority as per current provisions. These agencies also have proposed the Finance sector to add international experience with the issue.

Ministry of Home Affairs, Ministry of Information and Communications, Ministry of Planning and Investment, Vietnam Chamber of Commerce and Industry (VCCI) have said that the second solution needs to be considered, because it could increase the workload for Tax Authority.

In addition, representatives of the ministries have also expressed their views that the data and human resource for Tax sector still has shortcomings. It is necessary to have specific roadmaps and plans to do tax and insurance administration well.

For Ministry of Justice, this Ministry has assessed that the merger and transfer will greatly affect the arrangement of the two authorities’ apparatus. Therefore, the Ministry proposed the Ministry of Finance to strictly evaluate for the above solution to ensure the feasibility in the implementation. On the other hand, the Ministry also said that it is necessary to specify whether or not compulsory social insurance amounts are subject to the amendment of the Law on Tax Administration.

For Tax Departments, the statement also showed that 17 tax departments proposed to select the first solution. Because the amounts of Tax and Social Insurance is different in terms of nature, collection policy and collecting agency.

tax authority refuses collection of insurance premium to social insurance Insurance premiums for construction workers at the highest of 1.2 million vnd

VCN- The Ministry of Finance has issued Circular No. 329/2016 / TT-BTC guiding the implementation of some ...

The representatives of Tax departments also said that the Tax authority is also faced with many difficulties in performing their tax collection tasks and other receivables due to the tax debts of enterprises. Moreover, some receivables must be authorized to other agencies. Therefore, the tax Department said that if selecting the solution that the tax agency shall collect the social insurance premium, the implementation will be very difficult. Furthermore, the merger will lead to misunderstandings by people because the tax agency collects too many fields.

Receiving opinions from ministries, sectors and units, the leaders of Ministry of Finance stated that the above content would be amended towards the Tax authority only to coordinate to exchange and provide information and set up specialized inspection on the compliance with provisions of the law on Social insurance and Tax of income payers and individuals in collecting Social insurance premium.

By Thuy Linh/Ngoc Loan

Related News

HCM City Customs refunds over VND 49 billion of VAT for foreign passengers

HCM City Customs refunds over VND 49 billion of VAT for foreign passengers

VCN – In the first half of 2024, HCM City Customs Department refunded over VND 49 billion for over 10,000 foreign passengers.
How does Asanzo Group Joint Stock Company evade taxes?

How does Asanzo Group Joint Stock Company evade taxes?

VCN – Asanzo Company failed to declare and pay special consumption tax; excluded in accounting books; and used illegal invoices to account for goods and input materials for tax evasion, HCM City Tax Authority said.
Extend the deadline for paying taxes and land rent in 2024

Extend the deadline for paying taxes and land rent in 2024

VCN - The Government has just issued Decree No. 64/2024/ND-CP dated June 17, 2024 extending the deadline for paying value added tax (VAT), corporate income tax (CIT), personal income tax (PIT) and land rent in 2024. This Decree takes effect from June 17, 2024 to December 31, 2024. After the extension period according to this Decree, the deadline for paying taxes and land rent will comply with current regulations.
Extend deadline for paying Special Consumption Tax on domestically produced and assembled cars

Extend deadline for paying Special Consumption Tax on domestically produced and assembled cars

VCN – The Government has issued Decree 65/2024/ND-CP dated June 17,2024 extending the deadline for paying Special Consumption Tax on domestically produced and assembled cars. The Decree takes effect from the date of signing until December 31, 2024.

Latest News

2025 budget estimation must be practical, accurate and efficient

2025 budget estimation must be practical, accurate and efficient

VCN - Directing the 2025 state budget estimation, Minister of Finance Ho Duc Phoc emphasized that units must ensure that the 2025 budget estimation must be practical, accurate, efficient, and meet the requirements for performing professional and political tasks assigned to central and local agencies.
The corporate bond market will be more vibrant in the second half of the year

The corporate bond market will be more vibrant in the second half of the year

VCN - In the first half of 2024, with bond maturity pressure continuing to increase, corporate bond issuance has shown many positive signs compared to the previous year. According to forecasts, businesses' need to borrow and issue corporate bonds will accelerate in the second half of 2024.
Prioritize resources and promptly supplement capital for policy credit

Prioritize resources and promptly supplement capital for policy credit

VCN- In the near future, to further promote the effectiveness of policy credit, the Ministry of Finance will continue to preside over and coordinate with relevant ministries, branches and the Vietnam Bank for Social Policies (VBSP) to implement many key solutions.
Measures suggested to boost startups’ access to capital

Measures suggested to boost startups’ access to capital

The recent vigorous growth of startups in Vietnam has attracted domestic and foreign investors, but insiders recommended more efforts be made to facilitate startups’ access to funding from investors so that they can live up to potential.

More News

Inflationary pressure seen from monetary policy

Inflationary pressure seen from monetary policy

VCN - The economy went through the first half of the year, inflation is still under control and forecast to reach the target set by the National Assembly and the Government. However, variables from the currency market such as exchange rates, interest rates, credit..., even gold prices, are issues that need to be paid attention.
Banks with the problem of promoting credit growth

Banks with the problem of promoting credit growth

VCN - It is estimated that by the end of June 2024, the economy's credit growth will reach nearly 4.5%. This number is still far from the yearly credit growth target of 14-15%.
Proposal to increase Special Consumption Tax on tobacco products

Proposal to increase Special Consumption Tax on tobacco products

VCN - At the workshop Special Consumption Tax on cigarettes held by Vietnam Tax Consulting Association and the Institute of Financial Strategy and Policy on July 16, experts and businesses clarified the goals and content of amended the special consumption tax policy on tobacco products. According to experts, there cannot be a solution that fully ensures the benefits of both consumers, the state and businesses, but it is necessary to choose the most optimal option to achieve the initially set goals.
Savings of individual customers at banks hit record high

Savings of individual customers at banks hit record high

In spite of low interest rates, figures from the State Bank of Vietnam (SBV) released this week show deposits of individual customers increased by more than VNĐ39.7 trillion in April, to reach more than VNĐ6.7 quadrillion.
Managing fiscal policy has achieved many positive and comprehensive results

Managing fiscal policy has achieved many positive and comprehensive results

VCN - On July 15, the Ministry of Finance held an online conference to summarize state budget financial work in the first 6 months of the year, implementing tasks in the last 6 months of 2024. Minister of Finance Ho Duc Phoc attended and directed the conference. Also attending the Conference were Deputy Ministers of Finance, leaders of units under the Ministry of Finance.
Determine tools, policy for inflation control

Determine tools, policy for inflation control

VCN - According to economic expert Associate Professor, PhD. Ngo Tri Long (photo), former Director of the Price Market Research Institute (Ministry of Finance), inflation is an issue that needs special attention, especially related to the management of monetary policy, interest rates, increasing prices of goods and services...
The impact of wage increases on inflation will not be too significant

The impact of wage increases on inflation will not be too significant

VCN - Addressing concerns related to wage and price increases, Dr. Nguyen Duc Do, Vice Director of the Institute of Economics - Finance (Finance Academy), believes there are not many factors causing sudden price surges in the last 6 months of 2024. Therefore, it can be expected that the rate of price increases in the last 6 months will be comparable to that in the first 6 months of 2024.
Imposing and raising special consumption tax contributing to change consumption behavior

Imposing and raising special consumption tax contributing to change consumption behavior

VCN - At the Workshop on Comments on Completing the Revised Law on Special Consumption Tax (SCT) organized by the Vietnam Confederation of Commerce and Industry (VCCI) on July 11, many experts and businesses contributed their opinions to clarify the importance and impact of the revised special consumption tax law, which emphasizes the addition of taxable areas or tax increases to change society's consumption behavior.
The local Finance sector is flexible and strict in managing budget revenues and expenditures

The local Finance sector is flexible and strict in managing budget revenues and expenditures

VCN - Although the forecast for the last 6 months of the year will still have many difficulties and challenges, the Finance sector in all localities expressed their determination to strive to achieve and exceed estimates, while strengthening the prevention of revenue loss and handling tax debt recovery, etc.
Read More

Your care

Latest Most read
2025 budget estimation must be practical, accurate and efficient

2025 budget estimation must be practical, accurate and efficient

VCN - Directing the 2025 state budget estimation, Minister of Finance Ho Duc Phoc emphasized that units must ensure that the 2025 budget estimation must be practical, accurate, efficient, and meet the requirements for performing professional and political
The corporate bond market will be more vibrant in the second half of the year

The corporate bond market will be more vibrant in the second half of the year

VCN - In the first half of 2024, with bond maturity pressure continuing to increase, corporate bond issuance has shown many positive signs compared to the previous year. According to forecasts, businesses' need to borrow and issue corporate bonds will acc
Prioritize resources and promptly supplement capital for policy credit

Prioritize resources and promptly supplement capital for policy credit

VCN - According to the VBSP, by the end of June, total policy credit capital rose 7.6% year-on-year to VND 372,723 billion, including entrusted capital from the local budget at VND46,929 billion, an increase of VND7,755 billion, accounting for 12.6%.
Measures suggested to boost startups’ access to capital

Measures suggested to boost startups’ access to capital

The recent vigorous growth of startups in Vietnam has attracted domestic and foreign investors, but insiders recommended more efforts be made to facilitate startups’ access to funding from investors so that they can live up to potential.
Inflationary pressure seen from monetary policy

Inflationary pressure seen from monetary policy

The economy went through the first half of the year, inflation is still under control and forecast to reach the target set by the National Assembly and the Government
Mobile Version