Taxes collected from individuals generating revenue from platforms such as Google, Facebook, Apple … increase, when many individuals with ‘huge’ revenues actively declare and pay taxes.
|Tax revenue from e-commerce platforms increased. Illustration|
The online business model, making money online from cross-border platforms is thriving and has a much larger scale than traditional buying and selling. The new type brings “huge” income to individuals, especially the young working class. The increase in revenue of organizations and individuals has also brought about tax administration problems with respect to revenues generated from electronic platforms without legal entities in Vietnam.
The tax revenue from the online advertising business model of foreign organizations that do not establish legal entities in Vietnam such as Google, YouTube, Facebook … increases every year when the tax authorities apply many awards. Tax administration and collection, especially for personal transactions on these platforms.
If in 2016, the total revenue from Vietnamese organizations that signed online advertising contracts with foreign organizations and had deducted and paid for foreign organizations, the total tax was 46.86 billion VND, this figure. increased to 1,010 billion VND in 2019 and by 2020 it reached 1,143 billion VND.
For this model, the tax authority performs tax administration on income generated through advertising partners or agents, or businesses that buy services directly from the above platforms in Vietnam. Vietnamese enterprises that sign advertising contracts with foreign organizations shall declare and pay taxes on behalf of foreign contractors and organizations. For the tax amount already declared and paid on behalf of, enterprises are included in deductible expenses when declaring corporate income tax.
Meanwhile, tax administration, tax collection from online businesses, individuals and businesses with revenue from Facebook, Google, Apple … in the past year have also been tightened to increase revenue for the budget.
According to the General Department of Taxation, at the Hanoi Tax Department, as of December 2020, the data system of the tax industry has managed the revenues of individuals operating from Google, Facebook, and Apple platforms. , Youtube … with total revenue of individuals received is 2,200 billion. Up to now, 333 individuals have paid tax with the paid tax amount of 148 billion VND. Among these, there are individuals with revenue of over 330 billion VND and 23 billion VND of tax that has been mentioned by the media in recent days.
Based on data collected from transport intermediaries, providing accommodation applications, Hanoi Tax Department is building a database of 2,307 rental addresses, 31,244 stores with commercial activities. e to perform tax administration.
The Hanoi Tax Department has deployed a plan to check and check individuals to receive income from advertising on application websites. In which, there are 14 businesses and 169 individuals with expected revenue increase of 68 billion.
Also in the city. Ho Chi Minh City, to manage and collect taxes for organizations and individuals doing e-commerce business on websites, Facebook … City Tax Department. HCM City has reviewed 14,951 websites, from which 1,092 website owners are taxable.
According to information from the General Department of Taxation, during the working process, there were 56 individuals voluntarily declared with the additional tax and late payment interest of 1.83 billion VND. The tax agency has examined 580 businesses and individuals with the total tax arrears, fines and late payment interest of 18.5 billion VND.
Ho Chi Minh City Tax Department reviewed 4,573 organizations and individuals residing in Vietnam providing cross-border services with income generation in Vietnam. There were 3,630 businesses and individuals that voluntarily made additional declarations with the self-declared tax amount and the late payment amount of 35.2 billion VND through propaganda and advocacy of the tax authorities. Through inspection, the tax authorities also retrospectively collected and fined 103 cases with the total amount of 13 billion VND.
Meanwhile, in Da Nang, accumulated to the beginning of January 2020, the total number of e-commerce business websites reviewed was 8,710 pages. In which, 627 cases of taxpayers declared and paid taxes, they set up websites to advertise or sell online products online. There were 8 cases in which the taxpayer voluntarily declared and paid or had tax arrears and fines with the total amount paid to the state budget of over 24 billion VND.
Despite contributing billions of VND to the budget, tax revenues from cross-border platforms, especially transactions incurred by individuals, have not yet reflected the reality of these activities.
The tax agency said that it will continue to inspect, review and strengthen tax administration for this type. According to the new regulations, tax authorities will coordinate with commercial banks to manage tax with cash flow in / out of digital platforms such as Youtube, Google, Facebook, Amazon, Netflix…. transactions in Vietnam, even with individuals.
Currently, the Tax Department is continuing to direct tax departments and sub-departments to review the remaining e-commerce websites and newly arising websites through review to strengthen the tax administration. E-commerce business picture in the next time.
Personal taxes are about to be managed according to citizen identification data
According to the leaders of the Tax Declaration and Accounting Department, in 2021, the tax agency is ready to receive the database of citizen identification cards of the Ministry of Public Security to carry out tax registration and administration procedures for individuals. .