An individual earning revenue of over VND 80 billion has to pay tax due to online business

The Hanoi Tax Department has classified and invited individuals owing revenue from VND 1 billion to the tax authorities.

According to the Hanoi Tax Department, at present, e-commerce activities are developing very strongly, meeting the trend of the world and the fourth industrial revolution. However, business activities in this form also face many problems in state management in general and tax management in particular.

Recently, Hanoi tax authorities have researched and classified into groups to synchronously deploy tax management solutions in the field of e-commerce. With organizations and individuals providing applications and products in current platforms such as Google Play, Apple Store and Youtube, from the beginning of 2018, the Hanoi Tax Department has collected information of organizations and individuals generating cash flow from foreign organizations.

Thereby, the Taxation Department has made a list of 47 organizations with the amount of VND78,615 billion (businesses declared to pay value-added tax and corporate income tax as prescribed). Along with that, there is also a list of 526 individuals with the amount of VND291.3 billion in Hanoi.

Based on the list of individuals generating cash flow, the Hanoi Tax Department has classified and invited individuals owing revenue from VND 1 billion to the tax authorities to propagate tax policy, grant tax codes (for the case of having not granted tax code yet), guide to implement declaration of obligations and answer questions for taxpayers.

The Hanoi Tax Department has organized a training course for 33 individuals generating large revenue to guide the registration, declaration and payment of taxes, and guide problems related to tax payment, monetary penalty for late payment and handling administrative violations. It is expected to earn VND 11 billion.

According to the statistics of Hanoi Tax Department, by the end of October 10, 2019, individuals have paid over VND 15 billion, reaching 131% of the expected amount.

However, there is one individual owing VND 80 billion of revenue which is receiving support from Hanoi Tax Department to fulfill tax obligations. In case of failure to comply, the Tax Department will handle in accordance with law.