New tax law makes it easier to manage online businesses

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Ms. Ta Thi Phuong Lan. Photo: Thuy Linh

With changes in the amended Tax Administration Law approved by the National Assembly and expected to be applied from July 1, 2020, how will tax administration with online businesseschange?

We are looking forward to the law being made a reality so we can change the management ofonline businesses. In order to do this, the tax sector can’t do it alone butneedsthe close coordination of commercial banks, the Ministry of Information and Communications, businesses, and organizations.This will be more difficult and needs to be implemented in the future.

Does the amended Tax Management Law manage domestic entities that generate income paid from Google and Facebook?

The law on Tax Managementhas attached the responsibility of commercial banks and organizations such as Facebook and Google when they set up branches and representative offices in Vietnam. Currently, these units do not have official branches and offices, but it is clear that they dotheir work through organizations and businesses. That is what we already know and there will be a solution to tax deduction through coordination between the banks and the tax industry.

One of the biggest worries now is that the payment of cash in online trading makes tax administration very difficult, how will the Tax sectorsolve this problem?

In fact, not only managing online business individuals, even with businesses and tax authorities still face cash transactions and there are cases where there are no invoices. With these cases, the solution is managingin the form of cash flow, money sources and other relevant information to determine the scale, form of business and impose tax. This means that although the management of each spending co-operation cannot be followed, the tax industry still has a way to manage it.

Currently,the Tax Agency has a database, for example, online businesses still have facilities to manage such as warehouses, business locations, etc. For many cases, online business is only one in sales channels.

We are still managing thesebusinesses. They are absolutely not invisible on the network.

In addition, the authorities are currently implementing electronic invoices. It is also a channel to manage. Therefore, it is not true that they keep using cash because we cannot manage it.

Can you tell me how many individuals doing online business have already declared tax?

In fact, the tax industry only registered for tax declaration according to industries such as retail, fashion,there is no "online business"industry. Currently, personal data of online business can be obtained from the Ministry of Industry and Trade. The Ministry of Industry and Tradehas stipulated that e-commerce individuals must register.

Thank you, madam!