Recently, an online conference to report the performance of the tax industry in the first half of 2022 took place on June 30. Mr. Thai Minh Giao, Deputy Director of Ho Chi Minh City Tax Department said that in the first 6 months of the year, there were 6 banks that provided tax authorities with organizations and individuals with income arising from Google. The total amount of money received from abroad is more than 4 million USD and 51,2 billion dong.
Collecting taxes from individuals and organizations earning income from Google
Ho Chi Minh City Tax Department has processed arrears and fines for late payment with 38 individuals with income from Google amounting to 169 billion VND. In particular, the Tax Department of District 7 - Nha Be has just collected and fined 31 billion VND for a case where an individual has a "terrible" income from Google but forgot to declare and pay taxes. At the same time, there are 3 businesses that are also handled by the Tax Department and fined for late payment of VND 327 million.
In addition, Mr. Giao also said that the inspection results for arrears and tax fines of VND 24,3 billion for a partner company of Google in Vietnam (commonly known as MCN - Multi Channel Network). responsible for managing YouTube channels that self-produce digital content in Vietnam.
"Through the inspection of partner companies, the tax authorities have exploited more domestic organizations and individuals to provide online services to foreign organizations that have not yet made tax declaration and payment," said Mr. .
Requests and proposals of Ho Chi Minh City Tax Department
In order to manage e-commerce activities on a digital platform, in the past time, the tax authority of Ho Chi Minh City has synchronously implemented many solutions to enhance effective tax collection management.
- Raise the legal consciousness of individuals and organizations to voluntarily fulfill their tax declaration and payment obligations according to regulations by means of propaganda and guidance.
- Develop a mechanism for providing information as well as periodically inspecting logistics and delivery service providers, especially those providing cash on delivery (COD) services from organizations. Organizations and individuals doing e-commerce business for tax authorities.
- Require businesses, owners of e-commerce trading floors to request organizations and individuals providing services and goods on trading floors to fulfill their tax obligations.
- Annually, supplement the plan to inspect and examine at least 50% of businesses that are owners of e-commerce trading floors located in Ho Chi Minh City. Ho Chi Minh.
At the online conference, the representative of Ho Chi Minh City Tax Department proposed the City People's Committee to request the State Bank to direct the provision of remittance transaction data from abroad to domestic organizations and individuals that receive income. from foreign organizations (Google, Apple, Netflix, ...) for providing services on digital platforms.
According to the provisions of Decree 126/2020/ND-CP, the Tax Department requires banks to be responsible for withholding tax payable by foreign organizations providing cross-border services that generate income in Vietnam. before transferring money abroad such as: Google; Apple (cloud data storage, Apple Music (streaming music); Netflix (watch movies online), Agoda, Booking.com (online booking).
Summarizing the first 6 months of the year, the Tax Department of Ho Chi Minh City estimated to realize 169.924 billion VND, reaching 63% of the estimate for 2022, up 21% compared to the same period in 2021. State budget revenue is progressing well compared to estimates as well as compared with the same period, in which some revenue sources show the recovery and development of businesses in the area, such as VAT increased by 15,6%; CIT increased by 8,6% over the same period.