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Shenzhen Social Insurance is Levied by SAT (Effective from November 2020)

Time:   12.11.2020
Shenzhen Social Insurance is Levied by SAT 
(Effective from November 2020)

In order to improve the collection and management efficiency of social insurance premium, Shenzhen Human Resources and Social Security Bureau issued a notice on 30 October 2020, stating that social insurance collection will be transferred to Shenzhen Tax Bureau from 1 November 2020. The detailed regulations are as following:

  1. Scope of collection

    From 1 November 2020, the collection of pension insurance, unemployment insurance, employment injury insurance, medical insurance, maternity insurance, local supplementary pension and medical insurance will be transferred from Shenzhen Social Security Bureau to Tax Bureau.

  2. Collection method

    Enterprises or individual payers of social insurance (hereinafter referred to as payers) can declare social insurance through existing method & channel and pay full amount insurances that prepared and calculated by Social Security Bureau. Social Security Bureau transfers the data to Tax Authorities for collection. The payment date is from 23rd to 31st of each month.

  3. Payment channel

    Payers can make payment for social insurance premium through e-bank, website, mobile banking or go to Shenzhen Social Security Bureau in person, they can continue to use the current account for the payment if they have applied for valid social insurance account before 31 October 2020. Enterprises newly registered for social insurance account after 31 October 2020, need to sign a third-party payment agreement after completing the registration procedures.

  4. Other regulations

    The explanation of laws and regulations for social insurance, registration for insurance payment, legitimate right record and payment for retirement pension will still be handled by Shenzhen Social Security Bureau. Payers can check the payment record and print out the clearance certificate through online tax bureau system or other channels, the special receipt of social insurance premium will not be provided by Shenzhen Social Security Bureau anymore.

The main purpose of the reformation is to enhance the enforcement of social insurance collection. The tax authorities will exercise the right of collection and integrate the individual income tax data and social insurance data (including registration, declaration and collection of social insurance) into “tax system”. On this basis, the tax authorities can fully grasp the source information of social insurance by making aforementioned change, it is definitely conducive to solve the problem of less or failed payment for social insurance.

With the connection and data sharing of “tax system” and “social insurance system”, it will be easier to detect whether the enterprises has purchased social insurance for employees according to the prescribed base. If the declared payment base does not match the actual wages and salaries, it may cause tax concerns and even risks of further inspections.