Collecting revenue from online trade a taxing challenge for bean counters
Collecting revenue from online trade a taxing challenge for bean counters
Like elsewhere, buying and selling online is a trend that is definitely on the increase in Laos.
Social networks like Facebook are increasingly popular, not just for keeping in touch with friends, acquaintances and former lovers but also for exchanging goods and services.
Not only popular with the young, these sites are hugely popular among adults who log in during both work and play.
Opportunities abound not only for entrepreneurs and business people but even members of the public seeking to find buyers for their pre-loved goods.
Such situation's provide unique challenges to tax revenue collectors the world over.
The nations Finance Ministry is keeping a close eye on these trends in order to ensure tax collection is undertaken according to regulations.
The Ministry and other involved sectors are working to study and find better ways of managing the collection of tax revenue from relevant online transactions, particularly from those without physical business premises.
Speaking to Vientiane Times yesterday, the Office Head of Finance Ministry Mr Bounzoum Sisavath yesterday that providing failsafe electronic means for people to pay their tax liabilities was a challenge.
He said that the ministry is currently pushing businesses to pay tax via bank transfer or card transaction in order to facilitate smoother payment collection.
“This payment through the bank has just started to be implemented, and our officials are working to push business people to use this system to pay their tax through the bank after submitting account documents verifying income and expenditure,” he said.
“We are still now studying on how to collect tax from buying and selling online. It is a long-term project and of course we need to be careful to find the best way to manage the threat posed by hacking and cybercrime.”
The Director General of Information and Technology Department under the Science and Technology Ministry Mr Keonakhone Sysuliane said the ministry drafted the law on Electronic Transactions in 2012 and it was proclaimed by the President last year.
“Regarding the law of Electronic Transactions, we are also working on regulating management of trading online as well as using electronic systems. We also use promotions to get more businesses to join our electronic system,” he said.
“We are working to manage the technical field, via which online or electronic traders can be registered in order to allow us to monitor their tax liabilities.”
According to Article 1 of the Law on Electronic Transactions, the law defines principles, regulations and measures for the formation, use, recognition, management and inspection of electronic transactions to create reliability and confidence in electronic transactions.
It aims to protect the legitimate rights and interests of those who are conducting electronic commerce, and ensure the use, promotion of electronic transactions, modernisation, regional and international integration contributing to socio-economic development while preserving national stability, social peace, order and justice.
Article 2 on electronic transaction defines an electronic transaction as an act of making a contract, and the provision and use of services that are conducted wholly or partly by electronic means, which includes the use of ATMs, payments over the internet, and other similar interactions.
vientiane times
