At the end of April 2024, the Ministry of Public Security, in coordination with the Ministry of Finance (General Department of Taxation), made a major breakthrough in managing and combating tax evasion through business activities by collecting data from more than 120 million individual accounts and 9 million business accounts, through 96 commercial banks nationwide.
This is part of the government's strategy to strengthen tax administration, particularly in the rapidly growing e-commerce sector.
1. Scale and scope of data collection
The General Department of Taxation announces that, as of now, more than 90 % The verification and data synchronization process between the Ministry of Public Security and the tax identification number database has been completed., This excludes tax identification numbers of dependents and those unrelated to tax obligations or lacking identification documents (ID card, citizen identification card). This supports the transition to using citizen identification cards as tax identification numbers as stipulated.
The General Department of Taxation has also successfully implemented the integration of electronic identity verification accounts (VneID) into the tax management system, with 663.157 connections and 400.791 citizens accessing the system.
In addition, the Ministry of Industry and Trade, the Ministry of Information and Communications, and the State Bank of Vietnam have also begun sharing data with the General Department of Taxation, including information from 929 e-commerce websites, data from 130 organizations in the telecommunications, advertising, and broadcasting sectors, as well as payment account information of more than 9 million organizations and 121 million individuals at 96 commercial banks.
2. Transaction details and account balances are data that are collected.
The information collected by state agencies includes details of account transactions, account balances, and other transaction data, in accordance with the provisions of Decree 126/2020 and the 2019 Tax Administration Law. The main goal is to identify individuals and online businesses that have not filed tax returns.Simultaneously, strengthening data linkages and sharing aims to support the development of e-commerce, prevent tax evasion, and ensure monetary security.
View more: Handbook | Things to know about providing bank transaction data to tax authorities
Data transparency: Risks or benefits?
In 2023, the Tax Authority recorded impressive revenue from tax administration on e-commerce platforms. Estimated at 3,5 trillion VND, approximately 146 billion USD, the total tax collected was 97.000 billion VND, a 14% increase compared to the previous year.
In addition to strengthening the management of bank account information, the tax authorities have also thoroughly reviewed 929 websites providing e-commerce services and 130 organizations operating in these fields such as telecommunications, advertising, broadcasting, and television.
Businesses may face inspections, tax inspector If the collected data reveals errors or suspicions of underreporting of income from business operations.
Therefore, data transparency helps creating a fairer and more equitable business environment.However, it Encouraging businesses to comply with the law. and contribute fully to the state budget. Avoiding numerous legal risks and administrative penalties or tax recovery if violations are detected.
See more: Banks provide information to tax authorities: Should businesses be worried?