Currently, the social insurance issue since January 1, 2018, insurance agencies are tightening to ensure benefits for workers, but making it difficult for accountants when there are very large salaries and You don't know how to optimally divide that amount for your business... and we can think of all kinds of ways to avoid it... but if you don't know the law well, it can lead to risks for your business regarding this amount and collection. The amount of money is very large and as you know, social insurance has now been criminalized and is no longer a civil law. The article below hopes to contribute a small part to help you better understand this and its relationships. between SALARY_Social insurance_CIT_PIT
1. Salary:
- According to position => must pay social insurance => must pay personal income tax => included in expenses when calculating corporate income tax.
- Overtime work: subject to personal income tax => not required to pay social insurance => required to pay personal income tax => included in expenses when calculating corporate income tax. (Note that the additional part of overtime work will not be subject to personal income tax
2. Bonus:
- Fixed per period => must pay social insurance => must pay personal income tax => included in expenses when calculating corporate income tax.

- Not fixed => not required to pay social insurance => required to pay personal income tax => included in expenses when calculating corporate income tax.
- Innovative bonuses recognized by the state => no social insurance => no personal income tax => included in expenses when calculating corporate income tax.
- Holiday and New Year bonuses => do not have to pay social insurance => must pay personal income tax => are included in expenses when calculating corporate income tax.
3. Allowances:
3.1 Gasoline:
- Fixed expenses => do not have to pay social insurance => do not have to pay personal income tax => are included in expenses when calculating corporate income tax.
- For personal use => do not have to pay social insurance => must pay personal income tax => are included in expenses when calculating corporate income tax.
- Paid to a third party => not required to pay social insurance => not required to pay personal income tax => included in expenses when calculating corporate income tax. (If gasoline is used for work, it is deductible and does not have to pay personal income tax. But if it is a fixed monthly allowance included in the salary, this amount must be subject to personal income tax.)

3.2 Eat mid-shift:
- Cash => do not have to pay social insurance => do not have to pay personal income tax => are included in expenses when calculating corporate income tax. (note that this amount is limited to 730,000 VND/person/month.) the excess will be are charged personal income tax, but do not have to pay social insurance and are still deductible when determining corporate income tax.)
- Organizing cooking -> not having to pay social insurance => not having to pay personal income tax => included in expenses when calculating corporate income tax.
3.3 Phone: Payment
- Cash => not required to pay social insurance => not required to pay personal income tax => included in expenses when calculating corporate income tax.
- Paid to a third party => not required to pay social insurance => not required to pay personal income tax => included in expenses when calculating corporate income tax.
3.4 Work:
- Fixed business expenses => do not have to pay social insurance => do not have to pay personal income tax => are included in expenses when calculating corporate income tax.
- Paid to a third party => not required to pay social insurance => not required to pay personal income tax => included in expenses when calculating corporate income tax.

3.5 Housing fee:
- Cash => not required to pay social insurance => required to pay personal income tax => included in expenses when calculating corporate income tax.
- Pay to a third party => do not have to pay social insurance => have to pay 15% personal income tax => be included in expenses when calculating corporate income tax.
3.6 Child care fees: => do not have to pay social insurance => must pay personal income tax => are not included in expenses when calculating corporate income tax.
3.7 Raising children: => do not have to pay social insurance => must pay personal income tax => are not included in expenses when calculating corporate income tax.
3.8 Regional attraction allowances: => must pay social insurance => do not have to pay personal income tax => are included in expenses when calculating corporate income tax.
3.9 Title and responsibility allowances: => must pay social insurance => must pay personal income tax => included in expenses when calculating corporate income tax.

3.10 Seniority allowances:
- Fixed monthly payment in salary => must pay social insurance => do not have to pay personal income tax => is included in expenses when calculating corporate income tax.
- Paid annually or periodically => not required to pay social insurance => not required to pay personal income tax => included in expenses when calculating corporate income tax.
4. Welfare expenses:
4.1 Tourism organization:
- Paid to a third party => not required to pay social insurance => not required to pay personal income tax => included in expenses when calculating corporate income tax.
- Cash payments to non-participating employees => do not have to pay social insurance => must pay personal income tax => are included in expenses when calculating corporate income tax.
- Organize for employees' relatives to participate => do not have to pay social insurance => must pay personal income tax => be included in expenses when calculating corporate income tax.
4.2 Hospitality expenses: => do not have to pay social insurance => do not have to pay personal income tax => are included in expenses when calculating corporate income tax. (note not to exceed one month's average salary)
4.3 Birthdays and parties: => do not have to pay social insurance => must pay personal income tax => are included in expenses when calculating corporate income tax.

4.4 Training costs and tuition:
- People who participate in professional training are paid for by the company => do not have to pay social insurance => do not have to pay personal income tax => are included in expenses when calculating corporate income tax.
- Tuition fees for employees (from preschool to high school) are paid by the company => do not have to pay social insurance => do not have to pay personal income tax => are included in expenses when calculating corporate income tax.
4.5 Tax consulting service costs:
- Specify individual (group of individuals) => do not have to pay social insurance => must pay personal income tax => be included in expenses when calculating corporate income tax.
- Provided to the company => not required to pay social insurance => not required to pay personal income tax => included in expenses when calculating corporate income tax.
- PLEASE NOTE: These amounts must be clearly stated in one of the following documents, in salary regulations, labor contracts, labor agreements...)
• Since January 1, 2018, COMPULSORY SOCIAL INSURANCE CONTRIBUTION CLAIMS
• Salary; allowances (position allowance, title allowance; responsibility allowance; heavy, hazardous, dangerous allowance; seniority allowance; regional allowance; mobility allowance; attraction allowance; and other allowances levels have similar properties)