Coming soon to collect taxes for individuals doing online business

On November 27, the Vietnam Chamber of Commerce and Industry (VCCI) cooperated with the Ministry of Finance to hold a conference in Ho Chi Minh City to listen to the opinions of Southern businesses on tax-administrative policies and procedures. year 11. 

One of the highlights of the conference was the issue surrounding Decree 126, which stipulates that commercial banks are obliged to provide customer account information to the tax authorities.

Review tax collection for online business

In this regard, the General Department of Taxation affirmed that individuals having business activities even on e-commerce platforms, digital platforms such as YouTube, Google ... must declare and pay taxes. Accordingly, individuals with income from operating on cross-border advertising service platforms in Vietnam will be subject to a collection of long-missed taxes.

Mr. Dang Ngoc Minh (Deputy Director of the General Department of Taxation) further explained, in fact, the source of income through online platforms is very large. Therefore, the regulation of commercial banks to provide customer account information to the tax authorities is to support the income tax review and retrospective activities, ensuring fairness between business activities. system and business on digital platforms.

YouTuber worries about tax arrears 

Many content creators (especially YouTubers), online sellers (on Facebook, Google, ...), freelance workers ... expressed concern about the provisions of Decree 126. Which include both worry about tax arrears and the disclosure of personal information from commercial banks.

Some YouTubers shared that if they receive money directly from YouTube (via Western Union - an international fast money transfer service with headquarters in the US), most of YouTubers have paid taxes for fear of arrears. after that. If they receive money through an intermediary, the tax payment will be handled by that company, so they will not bother too much for this.

Talk about information security

Before the state regulations allow the head of the tax authority to request the bank to provide transaction information via customers' accounts, balances ..., individuals and enterprises that have not committed any violations on Tax is dissatisfied when its personal information and transaction history is disclosed to a third party.

They want the process of providing and processing information between the two sides also need to be transparent to make people feel secure.

Regarding the security of providing customer account information to the tax authority, Mr. Minh added, the tax authority is responsible for keeping all information content of each individual and enterprise very confidential. including sales, taxes, private information… not just your bank account. 

On the other hand, the request for user's bank account information is in line with international practice. “The bank cannot invoke customers' confidentiality reasons to avoid the responsibility of providing information to the tax industry because the tax industry takes information to track citizens, businesses fulfill their obligation to pay taxes into the budget. government. Previously, banks in Switzerland were absolutely 100% secure, but now there is no longer this regulation.

Continue to support tax relaxation and tax reduction

Also at the conference, Mr. Chung Thanh Tien, Director of Dong Hung Accounting Services Co., Ltd., asked: “What solutions does the Ministry of Finance have to support businesses in 2021 when the economic situation is still difficult? ". Mr. Nguyen Quoc Hung, Deputy Director of Tax Policy Department (Ministry of Finance), replied that during the outbreak of Covid-19 epidemic, the Ministry of Finance has reported to the Government and the National Assembly to propose a series of supportive solutions. business support, people.

In 2021, the ministry will continue to closely follow the actual situation, research to continue extending tax payment time and land rent, researching and expanding taxpayers. For sectors that continue to be affected after the epidemic, the Ministry of Finance will advise the Government and the National Assembly Standing Committee to continue reducing environmental protection taxes, cutting other fees to reduce input costs, and continue proposed corporate income tax reduction, ...

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