Controlling Online Business: Needing a multi-sectoral co-operation

VCN- According to information from the General Department of Taxation, through the review, the agency has discovered more than 14,000 accounts of e-commerce business (e-commerce). However, from the discovery to the management and finally the tax collection, it is still lax with insufficient specific constraints.
controlling online business needing a multi sectoral co operation
Shopping through social networks are chosen by many consumers . Picture: Thuy Linh.

Tax collection must be started from network operators

The discovery of individuals with high incomes from the e-commerce business is not a new story, because at the Tax Department of Ho Chi Minh City, the authorities have discovered a business person on Facebook who earns billions of VND without doing tax returns in the past. The tax authorities must also use strict constraints, even if they are required to file a complaint with the police and prosecute the individual.

Facing with the fact, according to Assoc. Dr. Dinh Trong Thinh, Senior Lecturer of the Financial Academy, collecting tax from online business is relatively difficult, because the tax office can not regularly check and conduct business activities on these networks. Especially in the context of business online being a booming trend.

Moreover, despite the fact that the tax authorities have managed to source information, the monitoring of revenue and tax collection also meets difficulties due to the coordination between tax authorities and banks as well as network operators is not tight and professional.

"It is due to the lack of full management of the regulator and the combination of operators, tax authorities and the commercial banks, that cause the tax losses in online business," Assoc. Dinh Trong Thinh said.

Mr Dinh Trong Thinh also said that the collection of taxes must start from the network. Network operators have the responsibility and obligation to coordinate with the tax authorities to manage business activities, broadcast on the mass media, on social networks. That helps the management agencies to get out to online business owners.

Along with that, in order to manage the e-commerce business, there are many comments that also suggest that the Ministry of Industry and Commerce is the business registration management unit that must coordinate with the network. Basing on that, the tax authorities rely on business registration on the social network to be able to regularly monitor and manage these subjects in the same way as the monitoring of traditional business subjects.

"The collection of tax arrears like the past is just not working. It is likely that close coordination among the relevant agencies could track revenues, profits and taxes payable by these account holders, as well as for the interests of consumers." Mr Thinh pointed out.

Requesting the bank to check cash flow

Commenting on the management of this new business, Truong Thanh Duc, Chairman of the Board of Member of Basico Law Firm, said that countries around the world collecting tax from those who have made revenue from Google and Facebook has been around for a long time. Therefore, there is still confusion from management agencies.

"In Vietnam, they are still doing so spontaneously," he said. "While overseas, they have very clear rules about how to levy taxes on organizations and individuals earning income from Google, Facebook," said Mr Truong Thanh Duc.

Moreover, when things happen, the tax arrears are done by the local agency so many steps remain awkward.

In fact, in Vietnam, there are many famous people, hot facebooker ... get high income from social networking sites, YouTube. However, these incomes are mainly not declared or are not fully paid. According to many economic experts, the reason is due to the mechanism of management, supervision is not tight and confused.

Overcoming this situation, experts said that the functional agencies can immediately pursuant to the Law on Tax Administration request banks to check the flow of money transferred to Vietnam from the "big" technology companies like Google, YouTube or Facebook. Since we can get the information of individuals and enterprises receiving high income from foreign countries that do not make tax declarations, this is appropriate to find solutions, increase tax revenue.

By Thuy Linh/Quynh Lan

Related News

Preventing contraband and counterfeit goods in cyberspace

Preventing contraband and counterfeit goods in cyberspace

VCN – Through advertising goods on cyberspace, competent forces inspected and discovered many business addresses selling infringing goods, even many warehouses storing infringing goods.

Latest News

US emerges as biggest consumer of Vietnam’s pepper

US emerges as biggest consumer of Vietnam’s pepper

Vietnam exported 235,335 tonnes of pepper, including 207,498 tonnes of black pepper and 27,837 tonnes of white pepper, in January - November to earn 1.22 billion USD, with the US being the biggest importer, according to the Vietnam Pepper and Spice Association (VPSA).
Why are seafood exports to some Middle Eastern countries blocked?

Why are seafood exports to some Middle Eastern countries blocked?

VCN - Many seafood export shipments to some Middle Eastern countries have had their documents returned by the Consular Department due to the nightmare of consular legalization procedures, leading to a blockage in exports to these markets.
Seafood exports increase competitiveness through quality

Seafood exports increase competitiveness through quality

VCN - The "wave" of orders from a number of large markets and increased consumption demand in the coming months will be the driving force to accelerate seafood exports at the end of the year. Not only racing to increase exports, Vietnamese seafood also increases its competitive advantage by focusing on product quality, seed sources, green transformation in the production process...
Textiles, footwear enterprises need support to green the supply chain

Textiles, footwear enterprises need support to green the supply chain

VCN- As one of the world's leading textile, garment and footwear exporting countries, Vietnam is facing many opportunities as well as challenges in response to strict customer regulations in "greening" production, including a number of commitments such as implementing social and environmental responsibilities and reducing emissions...

More News

Vietnam’s seafood export hits 1 billion USD mark for October

Vietnam’s seafood export hits 1 billion USD mark for October

Vietnam's seafood industry is on a roll, with export momentum propelling it toward the 10 billion USD target for 2024, laying robust groundwork for 2025.
Opportunities for export breakthroughs through e-commerce

Opportunities for export breakthroughs through e-commerce

VCN - According to Mr. Nguyen Van Thanh (in photo), Director of the E-commerce Development Center - Department of E-commerce and Digital Economy (Ministry of Industry and Trade), developing national e-commerce programs and fostering international cooperation are key to effectively harnessing Vietnam's potential in this area, thereby enhancing competitiveness and promoting sustainable development in the global market.
Will textile and garment exports be affected by Trump 2.0 policy?

Will textile and garment exports be affected by Trump 2.0 policy?

VCN - That was one of the topics of interest at the press conference of the Vietnam Textile and Apparel Association (VITAS) held on November 19.
Vietnam, US strengthen supply chain cooperation in global marketplace

Vietnam, US strengthen supply chain cooperation in global marketplace

The 2024 Vietnam-US Cooperation Forum, held in Ho Chi Minh City, focused on new US policy directions and opportunities to enhance bilateral economic and trade relations.
Over 218,500 enterprises established, resume operations in 11 months

Over 218,500 enterprises established, resume operations in 11 months

More than 218,500 enterprises were established and resumed operations in Vietnam in the past 11 months of 2024, a year-on-year increase of 7.4%, according to the General Statistics Office (GSO).
Textile and garment exports optimistic thanks to market opportunities

Textile and garment exports optimistic thanks to market opportunities

VCN - The diversification strategy and the shift in orders from brands have brought positive results to the Vietnamese textile and garment industry in 2024 and created a solid foundation for the 2025 target.
Vietnam attracts nearly 31.4 billion USD in foreign investment in 11 months

Vietnam attracts nearly 31.4 billion USD in foreign investment in 11 months

Total registered foreign direct investment (FDI) into Vietnam, including new and additional investments, and capital contributions via share purchases, reached 31.4 billion USD in the first 11 months of 2024.
Rice exports to set record of 9 million tonnes this year

Rice exports to set record of 9 million tonnes this year

Rice exports are likely to hit a record high of 9 million tonnes in 2024, given a total volume of nearly 8.5 million tonnes shipped abroad in the first 11 months, according to insiders.
Three goals, seven tasks for the logistics industry to accelerate

Three goals, seven tasks for the logistics industry to accelerate

VCN - Speaking at the Vietnam Logistics Forum 2024, Prime Minister Pham Minh Chinh pointed out 3 goals and 7 groups of tasks for the logistics industry to accelerate development in the new situation.
Read More

Your care

Latest Most read
US emerges as biggest consumer of Vietnam’s pepper

US emerges as biggest consumer of Vietnam’s pepper

Vietnam exported 235,335 tonnes of pepper, including 207,498 tonnes of black pepper and 27,837 tonnes of white pepper, in January - November to earn 1.22 billion USD, with the US being the biggest importer, according to the Vietnam Pepper and Spice Association (VPSA).
Why are seafood exports to some Middle Eastern countries blocked?

Why are seafood exports to some Middle Eastern countries blocked?

Many seafood export shipments to some Middle Eastern countries have had their documents returned by the Consular Department due to the nightmare of consular legalization procedures
Seafood exports increase competitiveness through quality

Seafood exports increase competitiveness through quality

The "wave" of orders from a number of large markets and increased consumption demand in the coming months will be the driving force to accelerate seafood exports at the end of the year.
Textiles, footwear enterprises need support to green the supply chain

Textiles, footwear enterprises need support to green the supply chain

VCN - Mr. Le Xuan Thinh - Director of Vietnam Cleaner Production Center (VNCPC) said that textiles, garments and footwear have now deeply participated in the global value chain, textile products have been exported to more than 100 markets.
Vietnam’s seafood export hits 1 billion USD mark for October

Vietnam’s seafood export hits 1 billion USD mark for October

Vietnam's seafood industry is on a roll, with export momentum propelling it toward the 10 billion USD target for 2024, laying robust groundwork for 2025.
Mobile Version