Việt Nam ramps up supervision on personal income tax
Việt Nam ramps up supervision on personal income tax
Vietnamese authorities are ramping up tax supervision on individuals who earn income from livestreaming sales on e-commerce and social media platforms to ensure they comply with tax regulations.
A screenshot showing a seller livestreaming. Tax authorities are urging individuals and businesses, especially those selling products on e-commerce platforms, to fulfill their tax obligations. — VNS Photo Bồ Xuân Hiệp |
Prime Minister Phạm Minh Chính has directed the finance ministry to closely monitor livestream sales conducted through e-commerce platforms, with individuals earning over VNĐ100 million annually required to declare and pay taxes under the personal income tax law.
During a recent Government meeting, Nguyễn Đức Chi, deputy finance minister, said that many content creators, such as YouTubers, have faced hefty back taxes for failing to disclose their earnings in past years.
Those in fields such as marketing, IT, services, digital commerce, and social media are among those identified as owing significant amounts in taxes.
In Hà Nội, more than 460 individuals with substantial earnings from these platforms have already been identified, with additional names expected to be added to the list.
Meanwhile, authorities in HCM City are reaching out to sellers on platforms such as Google, Facebook, and YouTube who have not reported their income or paid taxes, warning them of potential fines for tax evasion.
Livestreaming sales are anticipated to account for 20 per cent of e-commerce revenue by 2026, according to McKinsey & Company.
In order to improve tax collection, authorities are streamlining tax declarations and payments to reduce administrative costs.
Tax authorities will collaborate with law enforcement agencies to bolster oversight of e-commerce transactions and revenue.
Individuals with outstanding tax debt will not be allowed to leave the country until their obligations are met and may face public scrutiny in the media.
The PM has also instructed the central bank to enhance monitoring of electronic payment transactions to support e-commerce.
He also ordered credit institutions and payment intermediaries to assist with tax management by providing information on foreign suppliers and income earned from cross-border platforms.
In addition, tax authorities said they would also enhance the management of personal income tax for shareholders receiving stock dividends and payments in the form of bonus shares.
As of the end of last year, tax authorities reported total tax debt of VNĐ164 trillion (US$6.4 billion).
In a related move, the chairman of Trung Nam Group, a major hydroelectricity and renewable energy producer, has been banned from leaving the country due to the company’s tax debt amounting to VNĐ21 billion ($840,000).
