Pursuant to Decree No. 126/ND-CP regulating a number of articles of the Law on Tax Administration issued by the Government and will officially take effect from December 05, 2020. (Hereinafter referred to as “Decree 126”). Accordingly, one of notable points of Decree 126 is the responsibility to provide taxpayer information for tax authorities of state management agencies, in which commercial banks shall be responsible for providing information about customer accounts as requested by tax authorities. Specifically as follows:
1. The responsibility to provide information on transaction IDs of accounts opened at commercial banks as requested by tax authorities:
(i) As requested by tax authorities, commercial banks shall provide information on contents of accounts of each taxpayer, including: name of the account holder, transaction IDs according to tax code issued by the tax authority, account opening date; account closing date;
(ii) Providing the aforementioned account information will be initially carried out within 90 days from December 05, 2020. Account information must be updated every month for 10 days of the following month. The method of providing is in the electronic forms;
(iii) Commercial banks shall provide information about transactions via account, account balance, transaction data as requested by the Head of Tax administration agency to serve the purpose of inspection, examination for determination of taxable obligations and implementation of measures to enforce the administrative decisions on tax administration in accordance with tax laws;
(iv) The tax authorities shall be responsible for confidentiality of information and be fully responsible for the safety of information with the Law on Tax Administration and relevant laws.
2. The responsibility of deducting and paying tax in compliance with the provisions on taxation of overseas organization and individuals whose e-commerce activities generate income in Vietnam (Hereinafter referred to as “Overseas Provider”):
(i) If the Overseas Provider has not registered, declared and paid taxes, the commercial bank, the intermediary payment service provider shall deduct and pay on behalf of the tax obligations as prescribed by tax laws applicable to each product, goods or service that the buyer being individual in Vietnam making payment to such overseas provider related to e-commerce business or digital business;
(ii) The General Department of Taxation coordinates with relevant agencies to identify and publish the names and website addresses of the overseas providers that have not yet registered, declared and paid taxes, in which buyer of goods/services makes a transaction. On such basis, the General Department of Taxation shall notify the names and website addresses of the overseas providers to the commercial banks, the intermediary payment service providers so that these units can determine overseas providers’ transaction accounts and perform deduction and payment on behalf of tax obligations for transactions of buyers being individuals in Vietnam making payment to transaction accounts of overseas providers;
(iii) In case an individual purchases goods or services from an overseas provider and makes the payment by card or other forms that the commercial bank or payment intermediary service provider cannot deduct or pay taxes on behalf of such overseas provider, the commercial bank, the payment intermediary service provider shall be responsible for monitoring the amount transferred to the overseas provide and sending monthly these data under the form issued by the Minister of Finance to the General Department of Taxation;
(iv) Every month, commercial banks, payment intermediary service providers shall be responsible for declaring and remitting into the state budget the amount deducted and paid on behalf of the tax obligations payable by overseas providers under the forms issued by the Minister of Finance.