New Rules About Information Reporting Obligation Of Local E-Commerce Platforms

In more detail

1. Payment CIT quarterly

Decree 91 has changed the rule on provisional quarterly CIT payments. Especially, the total provisional quarterly CIT payments for four quarters must be at least 80% of the annual tax finalization payable.

According to Article 2.1 of Decree 91, this change retrospectively applies from the 2021 tax period under the following scenarios:

• If the provisional tax payable for the first three-quarters of the tax period of 2021 was not less than 75% of the annual CIT finalization for 2021, the threshold of 80% under Decree 91 would not be applied.
• If the provisional tax payable for the first three-quarters of the tax period of 2021 was less than 75% of the annual CIT finalization for 2021, the threshold of 80% under Decree 91 would be applied if this rule would not result in an increase in late payment interest.
• Taxpayers are allowed to request a decrease adjustment of the late payment interest paid according to Decree 126 if the application of the 80% threshold under Decree 91 will result in a decrease in late payment interest.

2. Information reporting obligation of local e-commerce platforms

According to Article 1.7 of Decree 19, Local e-commerce platforms, which are organizations established and operating under Vietnamese laws, are now required to provide tax authorities on a quarterly basis with information on merchants, organizations, and individuals that conduct the sale and purchase of goods and/or the provision of services on e-commerce platforms including the seller's name, tax identification number or personal identification number, or identification card or passport number, address, telephone number and revenue generated through the online ordering function of e-commerce platforms. Information shall be provided electronically every quarter by the last day of the first month of the succeeding quarter via the web portal of the General Department of Taxation in the format announced by the General Department of Taxation.

3. Tax declaration and payment obligations of securities companies, commercial banks, and fund management companies on behalf of individuals who receive dividends and bonuses in the form of shares

According to Article 1.8 of Decree 91, these tax declaration and payment obligations of securities companies, commercial banks, and fund management companies start from 1 January 2023.

Individuals who receive dividends in the form of securities, individuals who are existing shareholders receiving bonuses in the form of securities that are recorded in securities accounts of investors up until December 31, 2022, and have not had their tax declared and paid on their behalf by the securities companies or commercial banks where their depository accounts are opened, fund management companies where their investment portfolios are managed, or securities-issuing organizations shall declare and pay personal income tax themselves in accordance with personal income tax laws, be exempted from incur administrative penalties for late submission of tax declaration dossiers and imposition of late payment interest (if any) according to Clause 11 Article 16 of the Law on Tax Administration from December 05, 2020, to the end of December 31, 2022.

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