Banks to deduct tax payments from clients’ accounts

Banks will be able to deduct the tax payments of suppliers based in foreign countries—that conduct e-commerce or digital transactions with organizations and individuals in Vietnam—from their bank accounts,

 according to Decree 126/2020, which will take effect on December 5.

Banks to deduct tax payments from clients’ accounts
Bank tellers work at a bank in HCM City. – Photo: Thanh Hoa

The decree, which guides the implementation of the Law on Tax Administration, regulates that the General Department of Taxation will work with the relevant authorities to determine the name and website address of foreign e-commerce suppliers that do not register in Vietnam and provide this information to the banks and payment intermediary service companies.

Banks are also required to keep records of payments remitted overseas and provide this data to the General Department of Taxation on a monthly basis if the Vietnamese individual customers use a payment method whereby withholding cannot be done, such as payments via credit cards.

Lawyer Truong Thanh Duc, chairman of the Board of Members of Basico law firm, said this regulation will help reduce tax evasion from cross-border e-commerce transactions.

 

According to clause 30 of the decree, banks are asked to provide the tax authorities with bank account details of the taxpayers within 90 days from the effective date of this decree. Besides, they will have to provide information on transactions made via such accounts when requested by the local tax authorities.

Lawyer Duc said the banks’ provision of bank account details for tax authorities does not violate the information safety regulations because the tax authorities are fully responsible for protecting the information. “Even Switzerland, whose banking system is well-known for information safety, has allowed banks and tax authorities to share information to prevent tax evasion,” he said. SGT

Vietnam raises monthly taxable personal income threshold by 22%

Vietnam raises monthly taxable personal income threshold by 22%

With the new threshold in place, set to take effect from January 1, 2020 retrospectively, there would be more than 1 million people whose incomes are not taxable.

Airbnb-style practices targeted with tax proposals

Airbnb-style practices targeted with tax proposals

Proposals currently being pored over to recognise short-term leasing of apartments as a legal business will put pressure on popular homestay groups such as Airbnb.

 
 

Other News

.
Vietnam retail market records $172 billion in 2020
Vietnam retail market records $172 billion in 2020
BUSINESSicon  05/01/2021 

Such growth rate, while remaining lower compared to the 12.7% recorded the previous year, was an encouraging sign for the business community amid global retail market suffering plunge in revenue during the pandemic.

Vietnam’s strong economic recovery to further take Vn-Index to nearly 1,300 in 2021
Vietnam’s strong economic recovery to further take Vn-Index to nearly 1,300 in 2021
BUSINESSicon  05/01/2021 

The fact that interest rates are still very low, will help the local stock markets continue to be an attractive and profitable channel, thereby attracting domestic investor.

Covid-19 costs Vietnam US$19 billion in export revenue
Covid-19 costs Vietnam US$19 billion in export revenue
BUSINESSicon  05/01/2021 

Vietnam could have earned US$300 billion from exports this year but the export revenue stood at just US$281 billion due to Covid-19, said Minister of Industry and Trade Tran Tuan Anh.

Banks report satisfactory business results for 2020
Banks report satisfactory business results for 2020
BUSINESSicon  05/01/2021 

Improving corporate governance and listing shares on the bourse were the major activities of banks in 2020. Digital transformation was also accelerated.

Aviation sector: trying to survive the storm of 2020
Aviation sector: trying to survive the storm of 2020
FEATUREicon  05/01/2021 

2020 was a disastrous year for the aviation and tourism industries, which were hit hard by the Covid-19 pandemic.

Rooftop solar power saw tremendous growth in 2020
Rooftop solar power saw tremendous growth in 2020
FEATUREicon  04/01/2021 

Over 100,000 rooftop solar power works with total capacity of 9,300 MW were connected to the national grid by December 31, 2020.

Overcoming pandemic shocks, maintaining high growth rate, Vietnam is the ‘next Asian miracle’
Overcoming pandemic shocks, maintaining high growth rate, Vietnam is the ‘next Asian miracle’
FEATUREicon  05/01/2021 

Vietnam was among the countries gaining the highest GDP growth rates in 2020, which could serve as a launching pad for further growth.

First trading session of Vietnamese stock market in 2021 opens
First trading session of Vietnamese stock market in 2021 opens
BUSINESSicon  04/01/2021 

The first trading session of Vietnam’s stock market in 2021 opened on January 4, with a gong-beating ceremony held by the State Securities Commission and the Hanoi Stock Exchange (HNX).

Evaluating and estimating state budget to reduce deficit and increase efficiency
Evaluating and estimating state budget to reduce deficit and increase efficiency
BUSINESSicon  05/01/2021 

According to Minister of Finance Dinh Tien Dung’s latest report delivered recently at the National Assembly (NA), Vietnam achieved most of its financial goals in the last four years, including for 2020.

Restoring confidence after a challenging year
Restoring confidence after a challenging year
BUSINESSicon  05/01/2021 

The confidence of European business leaders in Vietnam is returning thanks to the government’s response to COVID-19 during 2020, with the focus on embracing the opportunities in a new normal. 

Building on economic resilience for the future
Building on economic resilience for the future
BUSINESSicon  04/01/2021 

Since the beginning of its reform in the late 1980s, Vietnam has achieved extraordinary results in its economic development.

Impressive growth seen across real estate
Impressive growth seen across real estate
BUSINESSicon  05/01/2021 

While the pandemic has affected nearly every business, Vietnam’s real estate sector has seen significant movements throughout the year. 

Power firms seek foreign funding as loans become expensive, hard to get
Power firms seek foreign funding as loans become expensive, hard to get
BUSINESSicon  04/01/2021 

The quickest and most effective way to raise funding for power projects is to enter into an alliance with foreign investors, Nguyen Anh Tuan, general director of Phu Yen TTP Joint Stock Company, said.

Aviation industry forecast to face a hard year in 2021
Aviation industry forecast to face a hard year in 2021
BUSINESSicon  04/01/2021 

Despite a recovery in the final months of this year, the aviation industry is forecast to face further difficulties in 2021.

Vietnam’s 2020 retail sales see the lowest growth in nine years
Vietnam’s 2020 retail sales see the lowest growth in nine years
BUSINESSicon  04/01/2021 

Vietnam’s total revenue from retail trade and services reached over VND5 quadrillion (US$219.5 billion) in 2020, representing a modest yearly rise of 2.6 per cent, according to the General Statistics Office (GSO).

2020 not a good year for bank stock debuts
2020 not a good year for bank stock debuts
BUSINESSicon  04/01/2021 

Debuting on a new bourse may give a boost to the stock price, but the market reactions were not quite positive for the banks doing so in 2020.

Experts hope for brighter market outlook after remarkable year
Experts hope for brighter market outlook after remarkable year
BUSINESSicon  04/01/2021 

Analysts from securities companies are optimistic about stock market movement during the first trading week of this year and betting the positive trend will continue.

VIETNAM BUSINESS NEWS JANUARY 5
VIETNAM BUSINESS NEWS JANUARY 5
BUSINESSicon  05/01/2021 

Business closure hits record high amid pandemic

HCM City’s EPZs, IPs attract over $747.6 million in 2020
HCM City’s EPZs, IPs attract over $747.6 million in 2020
BUSINESSicon  04/01/2021 

Over $747.6 million were poured into export processing zones (EPZs) and industrial parks (IPs) in Ho Chi Minh City in 2020, representing a year-on-year increase of 15.79 percent.

Vietnam exports over 1.7 million tonnes of coffee in 2020
Vietnam exports over 1.7 million tonnes of coffee in 2020
BUSINESSicon  04/01/2021 

Vietnam gained $2.7 billion from shipping an estimated 1.7 million tonnes of coffee abroad in 2020, accounting for over 10 percent of the world’s coffee value and 18 percent of the market share.

 
 
 
Leave your comment on an article

OR QUICK LOGIN