Vietnam.vn - Nền tảng quảng bá Việt Nam

Must deduct and pay taxes on behalf of Agoda, Booking, and banks, complaining about difficulties in many ways

Báo An ninh Thủ đôBáo An ninh Thủ đô08/03/2025


ANTD.VN - The Vietnam Banking Association has just sent an official dispatch to the Ministry of Finance and the General Department of Taxation (now the Tax Department) requesting to remove obstacles in implementing regulations on commercial banks deducting and paying tax obligations on behalf of foreign suppliers who have not registered, declared and paid taxes.

Difficult enough

The Vietnam Banking Association's official dispatch stated that, Pursuant to Clause 3, Article 30 of Decree 126/2020/ND-CP detailing a number of articles of the Law on Tax Administration and Article 81 of Circular 80/2021/TT-BTC of the Ministry of Finance, on December 31, 2024, the General Department of Taxation (now the Tax Department) issued Official Dispatch No. 6369/TCT-DNL notifying the Head Offices of commercial banks (CBs) and payment intermediary service providers of the list of foreign suppliers (NCCNN) that have not yet registered, declared, and paid taxes in Vietnam.

The Tax Authority requests the Head Office of the Bank and the organization providing intermediary payment services to notify the list of foreign suppliers to the bank's branches so that the branches can declare, deduct, and pay tax obligations on their behalf when making payments for transactions with foreign suppliers according to regulations.

However, from the practical implementation at banks, many problems arise for commercial banks.

In particular, regarding the identification of NCCNN: In Official Dispatch No. 6369/TCT-DNL, the General Department of Taxation only provides the name and website address of the NCCNN to commercial banks. However, commercial banks only execute money transfer orders based on customer requests. Money transfer orders do not require the beneficiary's website information. Therefore, the website information provided by the General Department of Taxation cannot be used to identify the beneficiary.

"If we only base tax deduction on the beneficiary's name, there will be a risk of incorrect tax deduction because there may be many NCCNNs with the same company name" - said the Banking Association.

Regarding transaction identification, the Association believes that, according to the provisions of Point b, Clause 3, Article 30 of Decree 126/2020/ND-CP, transactions for purchasing services/goods by NCCNN are Vietnamese organizations but authorize individuals to pay from their personal cards, so banks cannot accurately determine which transactions for purchasing goods/services are transactions of individuals. Commercial banks can only determine whether the person transferring money/paying is an individual or an organization, but cannot determine who the actual buyer is.

According to the provisions of Clause 3, Article 30 of Decree 126, in case the commercial bank cannot deduct and pay on behalf of the taxpayer, the commercial bank must be responsible for monitoring the amount transferred to the taxpayer and periodically send it to the General Department of Taxation every month.

The Association believes that the criteria for determining “cannot deduct or pay on behalf” arise in which cases and how long must the Bank monitor and report that amount? This content is not clear for the Bank to implement.

Loạt nhà cung cấp nước ngoài chưa đăng ký thuế tại Việt Nam

A series of foreign suppliers have not registered for tax in Vietnam

Regarding tax calculation, according to the Association, commercial banks do not participate in the transaction, so they do not understand the nature of the transaction, do not have sufficient information to correctly identify the business sector, and cannot identify the type of goods/services purchased and sold to determine the tax rate as the basis for tax deduction according to regulations.

Commercial banks are only payment intermediaries, however, there are no legal regulations on exemption or limitation of liability for banks, so there is a risk of being claimed for compensation or sued by foreign investors as well as the risk of being punished for administrative violations.

In addition, according to the regulations on tax payment exchange rates, the buying exchange rate of the commercial bank where the taxpayer opens an account is applied. In fact, most of the NCCNN do not have accounts at Vietnamese banks. So in this case, the exchange rate determined by the commercial bank also needs to be clarified.

Proposal to consider removing the regulation

To resolve the above difficulties and problems of commercial banks, the Vietnam Banking Association recommends that the Ministry of Finance and the Tax Department soon issue documents to guide/remove the above problems.

Specifically, the Tax Department is requested to clearly guide commercial banks on how to handle cases where money transfer orders/payment content do not have a website.

Regarding the responsibility for deduction, to avoid problems and complaints from NCCNN customers against commercial banks, the Association recommends that the General Department of Taxation provide at least the following information so that commercial banks can correctly identify the subject of deduction: Name of beneficiary, Beneficiary account number, Beneficiary bank.

Regarding tax calculation, the Association proposed that the tax authority add a regulation that individuals purchasing goods and services from foreign-invested enterprises must specifically determine the tax rate and provide it to commercial banks upon request for deduction, and at the same time be responsible if this rate is incorrectly determined.

At the same time, it is recommended that the tax authority notify in writing the NCCNNs to be informed of the deduction regulations, to avoid complaints against commercial banks in Vietnam.

The Association also requested the Tax Authority to review the request for tax deduction for Agoda and Booking.com's intermediary room payment services, ensuring compliance with the operating model of these two NCCNNs and the provisions of Decree 126/2020/ND-CP (commercial banks only deduct when the buyer is an "individual in Vietnam").

In particular, the Association recommends that the Tax Department and the Ministry of Finance advise competent authorities to consider abolishing the regulation on commercial banks making deductions in the 2019 Tax Administration Law. According to the Association, Clause 5, Article 6 of Law No. 56/2024/QH15 amending Article 42 of the 2019 Tax Administration Law stipulates that from January 1, 2025, foreign-invested enterprises must register for tax, declare tax, and pay tax in Vietnam.

According to the list announced by the Tax Department, the NCCNNs that have not registered for tax in Vietnam include: Agoda International Pte.Ltd - Company website: https://www.agoda.com; Paypal Pte.Ltd - Company website: https://www.paypal.com; AirBnb Ireland Unlimited - Company website: https://www.Airbnb.com; Booking.com BV - Company website: https://www.Booking.com.



Source: https://www.anninhthudo.vn/phai-khau-tru-nop-thay-thue-agoda-booking-ngan-hang-than-kho-du-duong-post605408.antd

Comment (0)

No data
No data
PIECES of HUE - Pieces of Hue
Magical scene on the 'upside down bowl' tea hill in Phu Tho
3 islands in the Central region are likened to Maldives, attracting tourists in the summer
Watch the sparkling Quy Nhon coastal city of Gia Lai at night
Image of terraced fields in Phu Tho, gently sloping, bright and beautiful like mirrors before the planting season
Z121 Factory is ready for the International Fireworks Final Night
Famous travel magazine praises Son Doong cave as 'the most magnificent on the planet'
Mysterious cave attracts Western tourists, likened to 'Phong Nha cave' in Thanh Hoa
Discover the poetic beauty of Vinh Hy Bay
How is the most expensive tea in Hanoi, priced at over 10 million VND/kg, processed?

Heritage

Figure

Business

No videos available

News

Political System

Local

Product